How to Find Cheap New Jersey Auto Insurance Rates

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Is it even possible to find cheap New Jersey auto insurance rates anymore? It's possible to get a basic auto insurance policy in New Jersey at a cheap rate. Under the Automobile insurance Cost Reduction Act, residents of this state can get a policy that provides minimal coverage at a reasonable price.

This basic policy provides personal injury protection coverage in the amount of $15,000 per person, per accident. This is the portion of the policy that pays the medical bills for a person injured in the other vehicle in an accident no matter who is at fault.

Along with the $15,000, the policy will also pay out $250,000 for significant or permanent injuries. The exact definition for "significant" and "permanent" will depend on the specific language of the policy. $5,000 in property damage insurance to pay for damage to the other vehicle, a mailbox, sign post, or building is also included in the basic coverage.

You have the option of adding $10,000 in bodily injury coverage to the basic policy if you like. Other types of insurance, such as uninsured or underinsured motorist coverage, collision, and comprehensive coverage, are not included under this plan. You can buy each of them separately, though.

Keep in mind that if you decide to go with the cheapest NJ car insurance coverage available, you do have insurance, but the policy limits are very low. If a serious accident were to occur, you will be held personally responsible for any damages awarded over your policy limit. Having $250,000 in coverage for significant or permanent injuries may seem like a lot but with the rising cost of health care, it won't take long for an injured person to accumulate this amount in medical bills.

It's important to look at the cost of coverage when you are shopping for NJ car insurance but going for the cheapest rate possible may not give you the level of coverage you need. To make a good decision, you will want to look at both factors. The absolute cheapest New Jersey car insurance policy may not turn out to be a bargain in the long run.

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