New Jersey follows a Choice No-Fault insurance system. Drivers may choose between a No-Fault and a Tort system. With the former, your insurer will pay for your vehicle’s damage and your medical expenses regardless of who was at fault, while with the latter you are responsible for all damage caused.
New Jersey has minimum requirements for its Basic and Standard insurance policies, and these are as follows:
New Jersey motorists pay more, on average, than the rest of Americans. New Jersey has some of the most expensive cities in the country too. The average car insurance cost in NJ is of $1,846, which is higher than the national average of $1,678.
Car insurance tends to be very expensive — close to or above the $3,000 mark — in some major cities across the state. It costs, for instance, an average of $2,992 in Camden, $3,127 in Newark, $3,003 in Elizabeth or $3,066 in East Orange. Some moderately expensive cities are Edison, with an average of $2,169, Trenton with $2,587 or Jersey with $2,580.
The state of New Jersey has completely banned the use of cellphones when operating a vehicle. Drivers caught using mobile devices risk a $100 fine.
New Jersey uses the Graduated Driver Licensing (GDL) system, a concept meant for aspiring drivers of at least 16 years old to get used to driving on public roads, while still minimizing the incidence of risky situations. Some restrictions apply to young drivers with provisional licenses:
Driving without insurance in New Jersey leads to more severe penalties than driving under influence. You will lose your license for a year, be fined $300 or more and have to do community service. The court costs and insurance surcharges will amount to another $250 per year, for three years. Upon a second offense, you will be fined up to $5,000, sent to jail for 14 days, have to do 30 days of community service and you will have your license suspended for at least two years.