New Jersey & New York Auto Insurance

Required Coverages

New Jersey drivers must have at least the following minimum coverages:

1. Bodily Injury Liability (Optional for Basic Policy)
   • Minimum: $15,000 per person and $30,000 per accident
   • Covers injuries to others caused by your driving.
2. Property Damage Liability
   • Minimum: $5,000 per accident
   • Covers damage to others' property caused by your vehicle.
3. Personal Injury Protection (PIP)
   • Minimum: $15,000 per person, per accident
   • Covers medical expenses for you and your passengers, regardless of fault.
   • In some severe cases, coverage can go up to $250,000 for specific injuries (e.g., spinal injuries or brain trauma).
4. Uninsured/Underinsured Motorist Coverage (Optional for Basic Policy)
   • Protects you if you're in an accident caused by a driver without insurance or with insufficient insurance.

Unique Aspects

• No-Fault Insurance State: New Jersey operates under a no-fault system, meaning your PIP coverage pays for your medical expenses regardless of who is at fault.
• Two Policy Options:
  • Basic Policy: Limited coverage, suitable for drivers seeking low-cost insurance.
  • Standard Policy: Offers broader coverage and higher limits, giving you more protection.

Optional Coverages

• Collision Coverage: Pays for damage to your car in an accident.
• Comprehensive Coverage: Covers non-collision events like theft, vandalism, or weather-related damage.
• Medical Payments Coverage: Supplements PIP to cover additional medical costs.

Required Coverages

New York drivers are required to carry the following minimum coverages:

1. Bodily Injury Liability
   • Minimum: $25,000 per person and $50,000 per accident
   • Covers injuries to others in an accident caused by your negligence.
2. Property Damage Liability
   • Minimum: $10,000 per accident
   • Covers damage to someone else's property (e.g., vehicle, fence, or building).
3. Personal Injury Protection (PIP)
   • Minimum: $50,000 per person
   • Covers medical expenses and lost wages for you and your passengers, regardless of fault.
4. Uninsured Motorist Coverage
   • Minimum: $25,000 per person and $50,000 per accident
   • Covers injuries caused by a driver without insurance or in a hit-and-run accident.

Unique Aspects

• No-Fault Insurance State: Like New Jersey, New York also uses a no-fault system. PIP covers medical expenses and some economic losses regardless of fault in an accident.
• Serious Injury Threshold: For lawsuits beyond no-fault claims, the injury must meet a "serious injury" threshold (e.g., significant disfigurement, broken bones, or death).

Optional Coverages

• Collision Coverage: Covers damages to your car regardless of fault.
• Comprehensive Coverage: Protects against non-collision damages like theft, fire, or weather-related incidents.
• Supplementary Uninsured/Underinsured Motorist Coverage: Provides additional protection if you're in an accident with a driver who has insufficient insurance.

1. Policy Structure:
   • New Jersey offers two policy types (Basic and Standard), while New York only mandates a single set of minimum requirements.
2. Minimum Liability Coverage:
   • New York requires higher minimum bodily injury and property damage limits compared to New Jersey.
3. Threshold for Lawsuits:
   • Both states are no-fault, but the criteria to sue for additional damages differ slightly.

When choosing auto insurance in either state:

• Compare Rates: Premiums can vary significantly by insurer, location, driving record, and coverage options.
• Consider Add-Ons: Adding comprehensive, collision, or higher liability limits may provide better protection.
• Understand State-Specific Laws: Each state’s no-fault and liability rules may affect your coverage needs.