If you are a young adult, there are many things that you have to start worrying about. Most likely, many of these things used to be taken care of by your parents. The good news is that responsibility is a big part of becoming an adult and the auto insurance laws of New Jersey make it easy to make the transition. There are several options to make sure you have sufficient coverage under the law, one of which is specially designed for people like you who are making a transition in their lives.
First, all resident drivers of New Jersey are required to carry insurance in a minimum amount. That’s nothing new. However, there is a special program that provides cheap insurance with lower minimums to residents. This is provided by the Auto Insurance Cost Reduction Act. While the program is available to all people living in New Jersey, it is recommended for those with little in the way of family responsibility and assets. The basic policy coverage provides payouts for property damage in the amount of $5,000. It also includes personal injury protection for $15,000 for normal injuries and up to $250,000 for permanent impairment or death. While bodily injury coverage isn’t required, a rider amount of $10,000 is available with the basic policy.
Of course, if you do have family or assets, there is a standard policy available to better meet your needs. The minimums are a bit higher, but it provides more coverage that may be more fitting for your situation. The policy covers bodily injury to the tune of between $15,000 and $30,000, depending on the circumstances of your accident. Property damage is covered the same as the basic policy, which is $5,000. Personal injury protection jumps to $250,000, though it’s possible to select a lower amount and still be in compliance with the auto insurance law. Uninsured coverage, collision coverage and comprehensive coverage are also available to add on, but are not necessary to meet the minimum requirements. There are plenty of good reasons to have them on your plan, however, so assess your individual situation.
Keep in mind that people in New Jersey who do not carry at least a minimum auto insurance policy can be sued for damages in the event of an accident. Luckily, the state provides a basic policy to make it easy to be protected.