New Jersey Insurance Questions Answered

Popular Questions about New Jersey Car Insurance

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 a Trusted Choice® agent.

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.

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: Not required. 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: Required/minimum $5,000. This is called "property damage liability."
  • Pay your medical bills: Required/minimum $15,000. This is called "personal injury protection" or "PIP."
  • Pay someone else's medical bills: Required/minimum $30,000 per person; $50,000 per accident. This is called "bodily injury liability."

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.

The driver who caused the accident will cover the damages.

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.

Popular Questions about New Jersey Home Insurance

The average premium for homeowners insurance in America is $1,132, but if you live in New Jersey, you might pay less. The average premium is $1,092, making it cheaper to buy home insurance in New Jersey than in most other states.

Sometimes, disasters strike suddenly and with no warning for homeowners. Think of your home insurance as a backup plan that helps you stay afloat after an unexpected catastrophe.

Pays for repairs to your home and your belongings.

  • Example: A tree falls on your house, and rain ruins your 60" Samsung TV.

Pays for someone else's injuries or property damage when it's your fault.

  • Example: Your kid is playing baseball and accidentally smacks the ball through your neighbor's window.

Pays for temporary living expenses when your home is damaged.

  • Example: You need a hotel while your house's roof is being repaired due to a fallen tree.

We can’t be 100% certain, but last year insurance companies spent more than $1.1 billion on home insurance claims in New Jersey. That's a lot of unfortunate events happening to New Jersey homeowners.

Insurance carriers calculate the cost of a home insurance policy by asking, "How likely is it that something bad will happen?" The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. We call these potential disasters "risk." Let’s take a look at how risky New Jersey is compared to the rest of the US.


Break-ins and burglaries are an ongoing problem in New Jersey. In fact, theft is one of the most common homeowners insurance claims.

  • Average number of burglaries per 1,000 homes in NJ: 16.26
  • Average number of burglaries per 1,000 homes in the US: 24.9


New Jersey is famous for long, cold winters that can lead to serious problems for homeowners, like frozen pipes, flooding due to snowmelt, and roof damage.

  • Most common cause of disasters in the state: Floods

Independent insurance agents don't have loyalties to one specific company's insurance plans, so they can help you find the best coverage for your unique needs. Best of all, an independent agent can give you quotes on policies from multiple companies so you can compare rates before you choose a home insurance plan.

  • Agents in NJ: 475 
  • NJ residents helped last year: 5,790

Popular Questions about New Jersey Business Insurance

If you don't have adequate business insurance, you'll have to pay claims out of pocket using your business's revenue to cover the cost of property damage, workplace injuries and liability lawsuits.

40% of small businesses are likely to experience a property or general liability claim in the next 10 years.

  • Theft or burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall: Average cost per claim - $20,000

Pays for damage to your building

  • This is called “commercial property insurance.”
  • Example: A tree falls on your office building.

Pays for damage to your business property

  • This is called “business personal property insurance.”
  • Example: A fire destroys all your computers.

Pays for damage to someone else's property

  • This is called “general liability insurance.”
  • Example: A contractor does a poor job of installing a cabinet, and it falls and breaks a homeowner's kitchenware.

Pays for Someone else’s medical bills

  • This is called “general liability insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pays for accidents in company vehicles

  • This is called “commercial auto insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pays for employee injuries and compensation

  • This is called “workers' compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

There is no one-size-fits-all insurance policy for businesses. Your business is unique and will face personalized risk factors, so you may need additional coverages. To make sure you are protected, we can match you with an independent agent who is experienced in commercial insurance in your field.

New Jersey business owners don't have to purchase commercial insurance policies, but some aspects of coverage are required. If you have a company vehicle, you'll need commercial auto insurance to comply with state laws. If you hire employees, you'll need to carry workers' compensation insurance. A local independent agent can give you details on what coverages are required for your business.

It primarily depends on how risky your business is. The riskier your business, the higher your insurance will be. Here are two examples:

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year

New Jersey commercial insurance premiums are based on several variables, such as the risks for your business property, liability threats, and the amount of coverage you want. Costs for coverage will vary significantly from one industry to the next, so it's always wise to consult with an experienced insurance agent before selecting a policy.

  • There are 475 insurance agents in New Jersey who are ready to help.
  • Last year 5,790 residents were helped by agents.

Popular Questions about Workers' Compensation in New Jersey

Workers' compensation insurance covers a wide variety of injury situations. Sudden accidents such as trips, falls and slips are covered, as are injures that can take longer to manifest, such as repetitive stress injuries or back and neck injuries. 

Illnesses such as heart and lung disease and cancers related to working conditions are also covered by a workers' compensation policy. 

New Jersey workers' compensation insurance even extends beyond the doors of a business. If an employee is traveling for work or a company errand, or even if they are at an after-hours work-related party or networking event when they are injured, they are covered by the workers' compensation policy. 

Workers' compensation policy rates are always set by the state, and New Jersey is no exception. Premium rates are set to reflect job hazards, meaning more hazardous professions will come with higher premium rates than jobs with lower risk of accidents. A good safety record can also help lower an employer’s rate. 

Insurance companies that write workers' compensation policies use class codes to identify the various categories of workers. These codes are then used to assign a premium rate to those employees. 

New Jersey is a bit different in that it doesn’t use the class codes set by the National Council on Compensation Insurance. Instead, The Garden State has established the New Jersey Department of Banking and Insurance, which is responsible for establishing and maintaining regulations and premium rates for workers’ compensation and employers liability insurance.

Class codes are assigned a premium rate, which is the rate you will pay for each of your employees in that particular class. Unlike other states, New Jersey has one set rate, not a range of rates, for each class code. The more dangerous the job, the higher the premium rate assigned to that class code.

Here's an example.

New Jersey carpenters are assigned the class code 5645 with a premium rate of $19.51, which reflects the relatively dangerous work they perform and the likelihood of on-the-job accidents. This base rate is applied to every $100 of payroll. The base rate is multiplied by the employer’s payroll for all of the carpenters they employ to determine their premium.

  • New Jersey classification code: 5645 Carpentry
  • Base rate: $19.51
  • Employer payroll: Example: $100,000
  • Premium calculation: $19.51 per $100 or 19.51% of payroll.
  • Estimated annual premium: $19,510

The majority of employers will have more than one class of employee. They may have clerical, accounting and sales staff, all of whom would fall under different class codes. All of the various class codes and premiums are totaled to determine the full workers' comp premium for the business. 

New Jersey workers' comp rates are extremely high and currently rank as the 3rd highest in the country, according to a recent study. New Jersey workers' compensation rates are roughly 150% higher than the national average.

  • Premium discount: These discounts usually apply to businesses that exceed a certain premium threshold, for example, $10,000. In most cases, the larger your premium, the bigger the discount you can expect.
  • Drug-free workplace: Implementing a drug-free workplace program can result in a discount of up to 5%. The actual discount amount and program details vary by insurer.
  • Group association discount: If your business is part of a professional, industry or trade association, you may qualify for a discount. Average discounts fall in the 4% range. 
  • Safety or fall prevention programs: Businesses that implement and maintain safety or fall prevention programs may qualify for a discount. These programs vary by insurer and may need to be certified by the state.

Medical bills

  • Example: A waiter suffers severe burns and needs to be taken to the hospital. 
  • Injured employees are entitled to medical care for work-related injuries and diseases. This includes medical, surgical, and hospital services, as well as dental services, medical equipment, chiropractic treatment, and nursing care.

Wage replacement

  • Example: An employee needs to miss three days of work to recover from a back injury that happened on the factory floor. 
  • Injured employees are entitled to compensation for lost wages and vocational rehabilitation when injuries arise out of and in the course of employment. 

Death benefits

  • Example: A coal miner’s spouse and dependent children receive compensation after he is killed on the job. 
  • When a death occurs, an employee’s surviving spouse and/or dependents may receive a portion of the deceased employee’s compensation fora certain period following their death, as well as a lump sum payment for funeral expenses. 

New Jersey workers' compensation insurance can be obtained through one of the 400 private insurance companies that are licensed and authorized to sell it in the state . You can purchase a policy directly from the insurer, or through an agent or broker. 

Penalties for failing to secure a workers' compensation policy can be severe. The law states that failing to insure can result in penalties of $5,000 for the first 10 days, with additional assessments of $5,000 for each subsequent 10-day period of failure to insure.