Auto insurance is mandatory in New Jersey. The Automobile Insurance Cost Reduction Act mandated that a basic policy be available to all drivers of New Jersey.
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What happens if you are caught without auto insurance in New Jersey?
It is important to have valid insurance while driving if you break the law the penalties for driving uninsured are severe: if we don’t mention the economic losses and fines there is a suspension of driver’s license or registration and even time in jail. In the future, your car may be impounded if you are caught behind the wheel without coverage.
What are the minimum car liability insurance requirements for New Jersey?
Liability coverage is required by law in New Jersey. If you’re had an accident, liability insurance covers damage you have done to the other vehicle, driver, and its passengers.
Liability insurance is made of two main components:
• Bodily Injury
• Property Damage
Most states mandate liability insurance. It also includes uninsured/underinsured motorist coverage, this coverage protects you when an at-fault driver hits you and they have no coverage or not enough coverage.
New Jersey’s average rates of auto insurance
In New Jersey, the average car insurance rate is $1,592 per year or $132 a month. Although, many factors affect this number such as:
1. Age & Gender.
2. Location.
3. Parking Spot.
4. Marital Status.
5. Mileage.
Here’s the average insurance cost in each company we’re about to present:
No. Company Names Per Year Per Month
1. State Farm $1,640 $137
2. GEICO $1,349 $112
3. Progressive $2,141 $178
4. Allstate $5,185 $432
5. Travelers $4,479 $373
5 Best insurance companies in New Jersey
1. State Farm:
www.statefarm.com/
State Farm is the auto insurance provider in the United States with 99 years of A++ (financial strength rating) service. It was founded in 1922, and its headquarters is located in Bloomington, Illinois. After GEICO State Farm has the cheapest rates and is the best choice for students, State Farm has a program for drivers under 25 called Steer Clear; the program includes courses, mentoring, and practice driving hours to help students who drive discounts on their premiums.
TYPES OF COVERAGE OFFERED
• Uninsured & underinsured motorist
• Medical payments
• Emergency road service
• Rideshare driver
2. GEICO:
www.geico.com
The Government Employees Insurance Company, commonly known as GEICO, is an American-based insurance company, and its headquarters is in Chevy Chase, Maryland. GEICO was founded 85 years ago in 1936, and, after State Farm, GEICO is the second-largest auto insurer company in the United States. This company has the best financial stability and A++ (Superior financial strength rating). GEICO holds the honor of having the lowest car insurance premiums in New Jersey and is also holds the second insurer in the United States for customer and claims satisfaction.
DISCOUNTS AVAILABLE
• Seat belt use
• Defensive driving
• Emergency deployment
• Federal employee
• Membership & employee
• Military
• Multi-vehicle
• Multi-policy
3. Progressive:
www.progressive.com/
The Progressive Corporation is an American insurance company founded on March 10, 1937; about 84 ago and it is headquartered in Mayfield Village, Ohio, USA. Progressive insurance offers good policies with average costs; it provides a combination of unique programs and discounts that can get you the most affordable policy. This program is called Name Your Price Tool, where you insert the amount of money you can spend on insurance, and it tells you what policies you can purchase, also it has the Snapshot program, an app that can be installed on your phone that tracks your driving habits. If you are a good driver, you could gain different discounts on your policy that save you a lot of money.
DISCOUNTS AVAILABLE
• Multi-policy
• Multi-car
• Teen driver
• Good student
• Distant student
• Quote and sign online
• Paperless billing
• Pay in full
• Automatic payment
4. Allstate:
www.allstate.com
Allstate Insurance is an American-based insurance company founded in 1931which means 90 years of A+ services. Its headquarters is located in Northfield Township, Illinois, near Northbrook. but J.D. Power Auto Insurance Study gave Allstate the highest customer satisfaction in New Jersey.
TYPES OF COVERAGE OFFERED
• Collision
• Comprehensive
• Liability
• Uninsured & underinsured motorist
• Roadside coverage
• Rental reimbursement
• Classic car
5. Travelers:
www.travelers.com
Travelers insurance offers good policies. It is a stable and established provider for auto insurance needs. Travelers sold its first policy in 1864, and it has been active ever since. It is still operating classically and marketing its policies through agents because they believe in in-person interaction, making it an attractive choice for people who think technology has made people forget about in-person deals.
DISCOUNTS AVAILABLE
• Anti-lock brake
• Anti-theft device
• Multiple policies
• Full-pay
• Safe driver
