New Jersey Auto Insurance

One of the important things that a person needs to consider when he buys a car is the car insurance policy. A large number of car insurance companies are present that can provide you with the same. Thus, choosing among them can prove to be difficult. Here are a few tips and some basic information about car insurance in New Jersey.

Comparing the rates that various companies and car insurance facilities have to offer is one of the good ways of choosing a particular one from among them. More you search for a company; the more likely you are of finding a company that offers a good insurance policy at cheap rates. To compare these rates, you can either approach the insurance agents from various firms or make use of the internet. Many websites are available that provide you with information regarding the insurance companies in your vicinity and will also provide you with free quotes from the same.

The insurance rates in New Jersey are significantly higher than the national average. The rates have shown a slight decline in the past year but, they are expected to go up again in the latter half of 2008.

The New Jersey government has set the limits for two types of insurance policies viz. basic and standard policies.

Basic Policy Limits:

• It has a property damage liability limit of $5000.
• An individual should have a Personal Injury Protection of $15000.

Standard Policy Limits:

• The Personal Injury Protection limit remains same at $15000 and so does the minimum liability in case of property damage. The limit for property damage by an underinsured individual is also set at $5000.
• The liability in case of bodily damage limit is set at $15000 in case one individual is involved in the accident and the limit for total bodily damage liability per accident is $30000.
• Apart from the above a person must have a protection against uninsured or underinsured drivers of at least $15000 or $30000 depending on whether there are one or more than one such individuals involved.

New Jersey is one of the states that has implemented the no-fault system but made it optional. Thus, a person can either claim the insurance according to the policy of others involved in the accident or he can sue the other persons involved.

Factors that affect your insurance policy are many. But, you can do many things in order to reduce your car insurance rates to some extent. Here are some tips for the same:

• Increasing your deductibles is one of the ways of reducing your car insurance rates.
• Your insurance policy may come with many protection facilities that have not been made mandatory by the government. Cutting down on these will reduce your premium rates.
• Having a good driving record helps as well in reducing the premium rates.

While going for a cheap insurance policy, one should never compromise on the protections that it offers.