New Jersey & New York Auto Insurance

Auto Insurance is mandatory in the states of New Jersey and New York. Everyone who owns a car and wants to drive it needs to have insurance.

The amounts and coverage types vary and many people do not know what the coverages are or how they work, such as Tort Threshold, PIP, Full Glass Coverage, and Property Damage.

Having an experienced Agent to advise you is the value added in working with a professional Agent versus just buying insurance online with no one to guide and advise you.

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.