What Does My Car Insurance Actually Do for Me?

July 15, 2019

How much does New Jersey car insurance cost?

On average, New Jersey drivers pay more than most other drivers around the nation, but you'll still find an affordable rate for your unique needs when you team up with The Stanford Agency.

Americans pay an average of $1,474 per year for their auto insurance, while New Jersey drivers pay on average about $1,905 per year. Make sure you're getting the best rate by comparing quotes from a variety of insurance companies. The Stanford Agency can provide you with different quotes.

What does my car insurance actually do for me?

Accidents can happen to anyone – even the best drivers. Car insurance protects your finances if you find yourself in a motor vehicle collision. Here's a look at some of the ways your insurance will help.

  • Fix your car: This is called "comprehensive & collision coverage," and though it is not required by the state, it may be required by your lender.
  • Fix someone else's car: This is called "property damage liability." Required/minimum $5,000.
  • Pay your medical bills: This is called "personal injury protection" or "PIP." Required/minimum $15,000.
  • Pay someone else's medical bills: This is called "bodily injury liability." Required/minimum $30,000 per person; $50,000 per accident.

You'll notice that every New Jersey driver is required to have specific insurance coverages at certain minimum liability limits. These policies will pay for someone else's vehicle damage and medical bills, and most states have similar laws to ensure that drivers are prepared for accidents they cause.

Who pays if the accident wasn’t my fault?

The driver who caused the accident will cover the damages.

How many New Jersey drivers are uninsured?

10.3% of NJ drivers are uninsured. A lot of people drive without any insurance or financial backup plan for accidents.

That's where "uninsured motorist coverage" comes in. If you are hit by an uninsured driver, this insurance coverage will pay to fix your vehicle and handle your medical bills.

Typically, your insurance company will attempt to collect compensation from the at-fault driver, but sometimes that can be difficult. So although the state doesn't require you to have uninsured motorist coverage, we highly recommend it.