Car insurance in New Jersey, like gas or rent, is expensive yet necessary. It doesn't just protect your car from dents; it protects you and other drivers from both bodily harm and financial ruin. For that reason, New Jersey car insurance isn't just something that drivers in the "Garden State" should have; it's something they must have.

New Jersey auto insurance doesn’t have to break the bank. You may be able to save by shopping around, declining unnecessary coverage and trading high deductibles for lower premiums. Indeed, you can cut costs, but you can't cut corners. If you drive in New Jersey, you need car insurance in New Jersey. Here's what kind and how much, according to New Jersey state law:

1. When buying auto insurance in New Jersey, drivers must purchase property damage liability (PDL), personal injury protection (PIP) and uninsured motorist (UM) coverage; collision, comprehensive and uninsured property damage coverage are recommended, but not required.
2. While New Jersey auto insurance is mandatory, state law does not specify minimum coverage. Still, the state recommends PDL coverage of at least $5,000 per accident and PIP coverage of at least $15,000 per person, per accident, up to $250,000 for permanent or significant injury.
3. In New Jersey, auto insurance comes in two types: The “Basic” policy, which includes only the minimum coverage as required by state law, and the “Standard” policy, which includes extra coverage -- including bodily injury liability (BIL) -- and higher coverage limits.

Action Steps
The best contacts and resources to help you get it done

Browse NJ auto insurance rates online

If you need New Jersey auto insurance, online quotes are a good starting point. Available from all major New Jersey auto insurance companies, they offer a fast and convenient way to research and compare premiums.

I recommend: Get comprehensive online quotes from many a New Jersey auto insurance company at websites like InsWeb, Insurance.com, InsuranceUSA and InsuranceFinder, or from companies like Progressive and Esurance, which quote both their own and competitors' rates.

Solicit NJ car insurance quotes from national providers

Most major car insurance carriers offer auto insurance in New Jersey and all provide competitive New Jersey car insurance rates.

I recommend: When they’re browsing car insurance companies, New Jersey drivers should start with the largest and most popular, including major providers like AIG, Allstate, Chubb, Farmers, GEICO, The Hartford, Liberty Mutual and State Farm. National associations like AAA and AARP are also good sources for affordable auto insurance in New Jersey.

Get car insurance in New Jersey from local and regional companies

In New Jersey, auto insurance rates can vary dramatically; for some of the most affordable, consider locally based providers.

I recommend: For automotive insurance, New Jersey drivers should try New Jersey-based companies like IFA Insurance Company, New Jersey Skylands Insurance and New Jersey Manufacturers Insurance Company. Also consider local programs, such as the New Jersey Automobile Insurance Plan, which is designed for drivers who can't easily find auto insurance in New Jersey, and the Dollar a Day Auto Insurance Policy, or SAIP.

Use an independent agent to find New Jersey car insurance bargains

Buying car insurance in New Jersey via an independent insurance agent can expose you to new resources, practical advice and special rates.

I recommend: To find an independent agent who can sell you car insurance in New Jersey, use the “find an independent agent” feature at the Independent Insurance Agents & Brokers of New Jersey.

Choose NJ auto insurance companies that you can trust

Before doing business with New Jersey car insurance providers, review their records with consumers to make sure they are reliable, reputable and responsible.

I recommend: If you subscribe to Consumer Reports, you can check up on New Jersey car insurance companies. Another good resource is the New Jersey Division of Insurance, which compiles statistics on complaints about New Jersey auto insurance companies on its automobile insurance page.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider buying more coverage than is required by state law; minimum New Jersey car insurance might not be enough to cover car repairs or medical bills after an accident.
• •  Penalties for drivers who don't have New Jersey car insurance include driver's license and license plate suspension, cash fines and even jail time.
• •  If you're leasing or financing your car, dealerships might require you to have more and better New Jersey auto insurance than is required by state law.
• •  Higher deductibles typically mean lower premiums and more monthly savings on auto insurance in New Jersey.

European car insurance is considered a necessity, whether you are visiting for a few months/weeks or moving there. Many people have no idea where to start when it comes to obtaining European auto insurance, or whether they are even required to do so.

As a general rule, even if you are visiting Europe for one day and are renting a car, it is important to have some sort of automobile insurance in Europe. Typically, your current coverage will not cover your rental car in Europe. Here are some facts regarding most European car insurance providers when it comes to rentals:

1. Liability insurance is usually included in any European coverage you buy.
2. Theft and fire coverage might be included, but you need to check with the company to make sure.
3. Collision damage protection is not usually included, so you need to purchase a "Collision Damage Waiver" (CDW) in order to not have to pay for any car damage or repairs.
   

Action Steps
The best contacts and resources to help you get it done

Purchase the CDW when offered auto insurance from the rental company for short-term stays

One quick, easy way to ensure that you are covered completely when it comes to your rental car is to buy the 'Collision Damage Waiver' from the rental car company. A few countries, like Italy, require you to purchase it from the rental company before driving, but in most countries you are given the choice. Although it can be expensive (about 10 to 25 euros each day), buying it when you first pick up the car will enable you to get it over with and be fully covered immediately. Taking this route is best when you plan to stay in Europe for just a few days or weeks.

I recommend: CarRentalExpress.com allows you to just pick the country in which you need car rental insurance and provides you with many options, while Gemut.com specializes in car rentals in a Germany, Austria and Switzerland.

Get information on European car insurance if you're from the UK

If you are permanently relocating to another part of Europe for a job from the UK, you will need to purchase regular car insurance. European car insurance companies abound; you just need to find one with which you will be satisfied. There are also car insurance companies that provide insurance exclusively in the UK.

I recommend: Chubb Insurance Company of Europe offers car insurance for residents of the UK. Get a quote from PhaCar.com, which offers UK car insurance. CarInsurances.co.uk explains that for short-term stays in other parts of Europe, UK car policies are in effect.

Use different European car insurance providers if you are from the United States

Most U.S. policies will not cover you when you are overseas.

I recommend: Ezilon.com has a comprehensive directory of European car insurance providers. Budget Insurance is a good bet, as is AIG Europe, a reputable and affordable choice that offers insurance policies all over the world.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You might have considered using your credit card company to purchase rental car insurance in Europe, but you should know that most credit card companies only provide coverage for up to 30 days and often limit coverage to only cheap cars. For this reason, using the rental or lease sources listed above is a better option.