Q1. If I own a car in New Jersey, am I required to purchase an automobile insurance policy?

A1. Yes. The insurance laws of New Jersey require the owner of every automobile registered in this State to purchase an automobile liability insurance policy.N.J.S.A.39:6A-3

Q2. What is liability insurance?

A2. "Liability insurance" protects your assets (your property and your income) if you are found to be responsible for an accident. In addition, "liability insurance" provides financial protection for any person injured in an accident that was caused by you. An automobile liability insurance policy provides an amount of money that your insurance company will pay to a person who is injured in an automobile accident and makes a claim against you.

Q3. What are the minimum policy limits for an automobile liability insurance policy?

A3. The insurance laws require every automobile insurance policy to provide minimum limits of liability coverage of $15,000 per person and $30,000 per accident. NJSA 39:6A-3.

Q4. Can I purchase more liability insurance coverage?

A4. Yes. The insurance laws require every insurance company to offer you additional liability insurance coverage up to $250,000 per person/$500,000 per accident or $500,000 single limit. NJSA 17:28-1.1.

Q5. What amount of automobile liability insurance should I purchase?

A5. The minimum liability limits of $15,000 per person/$30,000 per accident are inadequate. Many people purchase insurance with liability limits of $100,000 per person/$300,000 per accident. It is my opinion that this amount of coverage is still inadequate to protect your assets or to provide financial protection to persons injured in an automobile accident. I recommend that you purchase automobile liability insurance with a single limit of $500,000.