Major Requirements for Car Insurance in New Jersey

It is mandatory for all registered vehicles in the state of New Jersey to have at least minimum auto insurance coverage. The state provides three liability insurance coverage that drivers can choose from. They can make their choices based on their situation.

Basic insurance: Provides just the minimum requirements.

Standard: This is New Jersey's most popular coverage. It allows for more coverage options and the driver can add more protection.

Self-insurance: Only available to individuals with more than 25 vehicles registered to them.

The basic liability coverage is as follows:

Basic (geared towards young drivers with limited assets)

Bodily injury/death to more than one person: $10,000

Property damage: $5,000

Standard

Bodily injury/death for one person: $15,000

Bodily injury/death to more than one person: $30,000

Property damage: $5,000

Personal injury protection (PIP): $15,000

Uninsured/underinsured motorist injury: $15,000

Motorist must be able to show their proof of insurance if it is requested by a police officer. One of the following can be presented as proof:

A certificate of self-insurance

An insurance identification card that is supplied by the insurer.

The Importance of Added Auto Insurance in New Jersey

The mandatory minimum requirement is more suited for an individual who does not have that much responsibility. A young driver, for example, without any family, property or asset responsibility can take out a basic New Jersey car insurance. Once the situation changes, the need for added insurance will become even stronger. It is understandable that the odds are stacked against young drivers when it comes to obtaining insurance coverage. Insurance companies tend to be hard on them because of the risk associated with insuring these drivers.

Car theft is a common problem throughout the states. In 2006, New Jersey was ranked as the 16th state with the most motor vehicle theft. The figures for vehicles stolen in the state at that time was 24,724. In 2011 the figures for stolen vehicles was 15, 556. The impact on the New Jersey auto insurance ratings is significant. Motorist without added protection cannot place a claim to help them recover their vehicle. Without that added protection they will have to bear the cost on their own. Collision and comprehensive insurance will offer that added coverage.

Most Stolen Cars in New Jersey (compiled by the National Insurance Crime Bureau - NICB)

2000 Honda Civic

1994 Honda Accord

1999 Dodge Caravan

1991 Toyota Camry

1994 Jeep Cherokee

2005 Nissan Altima

1994 Acura Integra

2000 Jeep Cherokee

1997 Nissan Maxima

2000 Dodge Intrepid

New Jersey Car Insurance Rates

New Jersey is one of the nations most costly states for insuring a vehicle. In spite of this, motorist find that their options for obtaining cheap auto insurance in New Jersey increases every day. This is due to a continuous addition of insurance providers being allowed to operate, and the level of competition among insurers to gain clients. The regulatory body for New Jersey auto insurance is the Department of Banking & Insurance. A list of authorized insurance providers along with their contact details can be found on the state agency's website. Motorists will also be able to find information on any restrictions that may be placed on new insurers.

The Department of Banking & Insurance makes it easier for motorists to find insurers from whom they can obtain New Jersey auto insurance quotes. As is the case in other states, there are certain rating factors that insurers are allowed to use to establish the New Jersey car insurance rating. These include the driver's age, sex, type of vehicle, and location. Newark is rated as New Jersey's least safe city to drive in, with the All State Insurance 2011 report indicating that the average collision rate for motorists in that city is once every six years. Auto crashes have declined in New Jersey, but fatalities remain steady. The absolute role that road conditions of the state play in these accident are not readily available. It must be noted that the local road authorities do not seem to have the funds to maintain the road network as they should.

A motorist's insurance coverage is an investment. As is the case with all investments, the motorist must do his homework by comparing several New Jersey car insurance quotes so he can find the one that is more affordable for him. It is just as easy to extend the search for cheap car insurance offers in New Jersey.

A 2004 statistical report on licensed drivers in New Jersey indicated that of the over 5 million drivers in the state, more than half of them were female drivers. The total number was 5,834,500 with females accounting for 2,962,898 while the remaining 2,871,602 were males. Of the over 5 million license drivers 17,220 were suspended that year for serious offenses and points accumulation. Females accounted for only 1,908 (11%) of the suspended drivers while the males accounted for 15,312 (89%).

Seat Belt Usage Laws in New Jersey

The laws of New Jersey as it regards seat belt usage require that motorists observe the following guidelines:

All passengers traveling in vehicles that are required by law to be equipped with seat belts, must wear these seat belts. Passengers between eight and 18 years of age, the driver and front seat passenger must wear seat belts once the vehicle they occupy is using the state's roads. All occupants of a vehicle who are 18 years and older and regardless of their seating position, are required to use their seat belts while the vehicle is in operation. Failure to adhere to this rule is a secondary offense and occupants 18 or older can only be charged if the vehicle is stopped for another violation. Drivers are held responsible for all child passengers younger than 18 years of age who are found have been in violation of the law.

Child safety seats or booster seats must be used for children who are eight years old and weigh less than 80 pounds. The child seat must be secured in the rear of the vehicle. For vehicles without a rear seat, the child must be seated in the front, secured in the child seat or booster seat. If a child is younger than eight years old, but weighs 80 or more pounds, he must wear a seat belt wherever he sits in the vehicle. The same applies to passengers between 8 and 18 years. Seat belts must be used regardless of where they are seated.

In spite of law enforcement efforts, New Jersey based statistics indicate that seat belt usage by back seat passengers has declined for the 14th consecutive year. Only 27 percent of back seat passengers who are 18 years or older are complying with the state law. This is a five percent decrease from 2009. There was also a sharp decrease in compliance among back seat passengers between eight and 18 years old. Compliance fell from 53 percent in 2009 to 37 percent for 2010. New Jersey law enforcers issued a total of 35,671 in 2010 which is 5,771 less than was issued in 2009. Front seat passengers show the strongest compliance with a 94.51 percent compliance in 2011 which is an increase from the 93.73 percent in 2010.

In 2010, New Jersey state officials indicated that based on guidelines set by the National Highway Traffic Safety Administration, a one-percent increase in seat belt compliance would prevent eight people from dying. That one percent would also be equivalent to the prevention of 177 minor injuries and 236 serious injuries. If this could have been achieved back then, it would have saved the state an annual cost of almost $57 million in crash-related expenses. Crash related-cost are paid out for things such as medical bills and insurance premiums.