If you are a driver or own a car, you have a legal responsibility to make sure that the vehicle you drive is insured in NJ. Failure to carry liability insurance in NJ is a crime in all states and territories, and you do not even have to be in an accident to be fined for failure to have basic coverage. Your legal obligation to carry auto insurance may not be limited to state-required liability coverage.
If your car is financed or leased, your contract may require you to have comprehensive auto insurance coverage on the car, in order to protect the lender’s interest in the car in the event of an accident. Moreover, there are various auto insurance policies that can offer you additional coverage and protection. For example, when a vehicle is totaled, the value of the car may be less than what is owed on the car or the car’s replacement value.
Gap policies will pay for the car’s replacement value and some policies will even provide for a car that is a model year newer than the damaged car. Contents coverage can replace the value of items stolen from the car. There are many options available in car insurance, and exploring all of the various options, their costs, and their coverage is critical when making your decision about auto insurance.