Am I still required to get complete auto insurance coverage for my older vehicle here in New Jersey?

Camille

Camden, NJ

Although you are required by the financial responsibility laws of New Jersey to carry auto insurance, it is not mandated to carry a complete auto insurance coverage package. You only have to get the minimum levels of liability insurance coverage in your state. For New jersey, that would be 15/30/5: $15,000 Total Liability insurance coverage for each person you injure in a car accident, $30,000 minimum total coverage for all persons injured per accident and an additional $5,000 which would pay for repairs or replacement of damaged/ destroyed properties per accident. Whatever further auto insurance coverage policies or amounts you buy would be your choice.

Many people actually find it advantageous to lower, even drop Comprehensive and Collision Insurance Coverage all together on an older, pre-damaged or pre-owned vehicle. The cost of filing an insurance claim for damages to older, less expensive vehicles would not be as cost-effective as it would if the claim is filed for a brand-new top of the line vehicle. You might end up paying a higher deductible and it may prove cheaper to get the repairs done yourself. If your car is on equity loan, however, your lenders may require you to maintain the collision and comprehensive insurance coverage, since these policies under your auto insurance protects, and restores, the financial or monetary worth of your vehicle in the event of loss.