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How New Drivers in New Jersey Can Get the Best Car Insurance Rates

Here's what you need to know...
  • If you are new to the state of New Jersey, transfer your auto insurance before you apply for new license plates
  • Under New Jersey law, all you must buy a minimum amount of liability insurance and no-fault insurance in order to register your car and drive legally
  • Since New Jersey has the most expensive auto insurance rates in the U.S., state officials allow carriers to offer a basic policy that only includes $10,000 in bodily injury, $5,000 in property damage, and $15,000 in personal injury protection.
  • Most carriers that offer standard and basic policies in New Jersey offer policy discounts to policyholders who qualify
Out-of-state moves can be very stressful. Not only do you have to worry about taking care of business before you travel to your new home state, but you also have to worry about learning new state laws.

If you’re taking your car to New Jersey, most of the rules of the road will be the same; however, you do still have to learn about New Jersey’s auto insurance laws.

Insurance requirements vary from state to state. When you become a permanent resident in New Jersey, you cannot simply change the address on your old policy and expect it to meet your new state’s requirements.

Instead, you must transfer your coverage to a carrier that’s licensed to do business in NJ. Before you start to price the cost of your premiums, read the following steps that you can take to get the best rates.

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Know What to Expect in New Jersey

AdobeStock_1181532-1600x1600You shouldn’t buy auto insurance before you arrive at your new home in New Jersey. Under state law, you must maintain your previous insurance policy until your vehicle has a valid registration in New Jersey.

Without proper registration, transferring your coverage to New Jersey too soon could result in fines and other penalties.

While you wait for valid registration, you can familiarize yourself with New Jersey’s insurance laws and premiums. Since the average premium for full coverage in the state is around $1,254 per year in New Jersey, many drivers need to reassess their budgets and review their coverage options as they build policies in the state.

What are the standard auto insurance requirements in New Jersey?

Unlike most states, New Jersey offers its residents the option to buy either a standard policy or a basic policy.

While insurance is required, it’s up to you to decide if you want a more comprehensive policy that includes standard coverage options or a basic policy that limits your protection.

If you choose to carry a standard auto insurance policy, you must buy the following coverages: liability, no-fault, and uninsured motorist.

With a standard policy, you do have the right to sue for damages after you’re injured in a loss. Here’s a breakdown of the standard requirements:

  • Bodily Injury Liability – $15,000 per person and up to $30,000 per accident
  • Property Damage Liability – $5,000 per accident
  • Personal Injury Protection – $15,000 per person

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What does a basic auto insurance policy include?

Basic auto insurance is available to families who have few assets. A basic policy is best for people who can’t afford to buy a standard policy but don’t want to break the law by driving uninsured.

A basic policy includes the following coverage:

  • Bodily Injury – not included but a $10,000 combined limit can be added
  • Property Damage – $5,000 per accident
  • Personal Injury Protection – $15,000 per accident
  • Limited right to sue – included

Comparing Auto Insurance Rates Through Multiple Carriers

AdobeStock_31832414-1600x1600New Jersey has a high cost of living, but most new residents are shocked to learn that the state the costliest auto insurance rates in the United States. Since the average premium in the Liberty State is about 49 percent higher than the national mark, finding ways to keep your premiums as low as possible is important.

Buying a basic auto insurance policy should be considered a last resort for saving money.

If you want to keep your standard coverage premiums low, you should compare premiums with multiple carriers.

Every insurance carrier files its rate through the Department of Insurance. These rates will target different segments of the market, making some carriers more competitive than others.

Learn How to Receive the Best Rating Class Possible

Every company uses rating factors to determine how much an applicant should pay for insurance. Underwriters place a policy in a risk class to determine how likely a driver is to experience a loss. Drivers who are more likely to file a claim pay more for coverage.

Knowing the personal factors that will have a bearing on your rates can help you save money as you solicit quotes. If you’re not familiar with the common risk factors that standard insurers use, here’s a list that you can reference:

  • Age, gender, and marital status
  • Driving experience
  • Geographical location (including where you live and where you store your car)
  • Your credit score and insurance score
  • Accident history for the past three to five years
  • Driving record for the past three to seven years
  • Profession
  • Vehicle type, safety rating, size, and claims statistics
  • Driving habits and activity
  • Prior insurance experience discount

How You Can Keep Your Premiums As Low As Possible

AdobeStock_65265779-1600x1600Before you elect to carry minimum coverage, take advantage of low-cost ratings and policy discounts. This is the best way to stay within your budget.

If you’re not sure how to do this, here are some valuable tips to help you:

  • Give your agent your prior license numbers to get credit for being an experienced driver
  • Ask your current insurer for a letter of experience to show your claims history and your insurance experience
  • Insure all of your cars with the same insurer for a multi-car discount
  • Buy another line of insurance with the carrier to receive a multi-line discount
  • Complete driver training or mature driver classes to receive discounts
  • Notify your agent if you qualify for a good student discount

The most effective way to get the best rates is to shop around. If you’re ready to find a low premium, use an online rate comparison tool. Enter your New Jersey zip code and receive instant quotes.

Start comparing auto insurance rates now using the FREE online comparison tool below!

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