New Jersey is one of the most expensive states as far as auto insurance is concerned. Its average annual premium for 2011 is $2.380, nearly one thousand dollars per year higher than the national average of $1,440.
Annual Changes
The average annual premium in New Jersey fell 4% in 2011 after falling 1% in 2010. New Jersey insurance rates are not regulated or fixed in any way and it is not possible to predict how rates will change in the future. Especially given the high cost of insurance in the state, frequent monitoring of prices and obtaining multiple quotes is highly advisable for New Jersey drivers.
Seasonal Changes
During the beginning of 2010, rates for insurance in New Jersey fell steadily from March to May, only to rise again in June before a downward spiral started in July and ended in September. October saw a return to previous higher rates – which fell once again in November to stabilize around the 2011 rate. New Jersey insurance rates are clearly subject to rapid change so that frequent monitoring and requests for quotes are highly recommended.
Insurance Requirements
The minimum insurance requirements in New Jersey are complex due to the no-fault and tort options.
The tort option, in which one party is held liable for all damages and in which there is an unlimited right to sue, requires minimum coverage of $15,000 per person and $30,000 per accident for bodily liability, $5000 minimum coverage for property damage, $ 15,000 per person and $30,000 per accident for uninsured and underinsured motorist coverage, and $15,000 personal injury protection limit. However, these policy limits can also be chosen for no-fault coverage.
The no-fault option, in which the right to sue is limited and the driver’s own insurance covers all damages, can be obtained through a basic policy which requires only $5,000 property damage protection and $15,000 coverage for personal injury protection.
All policies written in New Jersey include a $250,000 limit of coverage for serious or permanent bodily injury.
Although the $250,000 injury coverage is reasonable, with costs skyrocketing it is advised to obtain coverage that far exceeds the basic liability limits in order to minimize the risk of forfeiting assets in the event of liability for a serious accident.
Advice for Getting the Best Deals
The New Jersey auto insurance market is served by national as well as regional insurers. Each company uses different methods of determining rates, and no one insurer consistently offers the lowest rates for all drivers and cars. Obtaining multiple quotes from reliable insurance companies that are rated A or higher by A. M. Best is highly recommended, and the J. D. Power consumer satisfaction ratings for each company should also be considered.
New Jersey auto insurance is costly and complex, but our site is here so that New Jersey drivers can get the best possible prices by keeping up with rate changes and obtaining multiple quotes from reliable insurers.
