New Jersey is known for its high cost of living, and car insurance is no exception. On average, liability car insurance that meets the state's minimum requirements costs $853 annually, which is significantly higher than the national average by about $350. In contrast, full coverage insurance averages $1,902 per year, only marginally above the national average. Factors contributing to these elevated premiums include rising claim severity due to increased auto parts costs, material shortages, labor deficits, and the impact of severe weather and risky driving behaviors. Despite New Jersey's lower minimum coverage requirements, the state still sees high liability costs, prompting drivers to seek affordable options through diligent comparison shopping and discount hunting. Understanding the state's minimum insurance requirements—15/30/5 for bodily injury and property damage—is crucial, as these may not suffice in serious accidents. Experts recommend higher coverage limits for better protection, especially for newer vehicles.
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