Insurance in New Jersey

• New Jersey offers two common policy types. Most drivers choose the Standard Policy. The Basic Policy usually costs less but provides limited benefits, and the Department says it is meant to meet the minimum insurance requirements for people with few family responsibilities and few assets to protect.
• The Basic Policy does not include bodily injury liability coverage. A $10,000 per accident option is available.
• The Basic Policy includes the Limited Right to Sue option. On a Standard Policy you choose between Limited Right to Sue and Unlimited Right to Sue. Choosing Limited Right to Sue saves money but limits your right to sue the person who caused an accident for pain and suffering, with exceptions such as death or permanent injury.
• The Special Automobile Insurance Policy (SAIP) is a medical-coverage-only policy for drivers eligible for Federal Medicaid with hospitalization, at a cost of $365 a year.
• A lapse in coverage exceeding 30 days could place you in the assigned risk market, according to the Department. If a registered car is off the road, surrender the license plates to the Motor Vehicle Commission.
• Collision and comprehensive coverage are not required by law, but a leasing or financing contract may require them.
• The Department states that you can change your coverages and limits at any time, even if you are not near your renewal date, and are entitled to a refund of unused premium within 60 days if you select options that save you money.
• New Jersey applies a comparative negligence rule. You cannot recover damages if your percentage of fault is greater than that of the person from whom you seek damages.

General information only. It is not legal advice. Rules change, so confirm with the official sources listed below.