Each state in the U.S. has different requirements for auto insurance. The minimum requirements usually have to do with what is called liability coverage. This is the coverage that drivers purchase as a way to cover the property damage and medical expenses of the other party should the driver (the insured) him or herself cause the accident.

Minimum requirements for liability coverage are listed using three figures, all listed in dollars. An example would be 25/50/20. The first figure refers to the amount covering personal/bodily injury per person. The second figure refers to the amount covering personal/bodily injury per entire accident (i.e., maximum amount payable per accident). The third figure refers to the amount covering property/vehicle damage per accident.

To find out the minimum figures in New Jersey, check out the State of New Jersey Department of Banking & Insurance website. (However, at the time of this writing, the requirements in New Jersey were: 15/30/5.)

How New Jersey Is Unique

Buying car insurance in New Jersey is similar to that of most other states. However, there are some things that make New Jersey a bit unique. First of all, most insurers in New Jersey do not offer online quotes, so calling around might be a quicker way to find the cheapest insurance quote.

Also, like just a few other states such as California, New Jersey has enacted the "Personal Responsibility Act" which puts pressure on all drivers to carry liability insurance.

Finding The Cheapest New Jersey Car Insurance

To find the cheapest New Jersey car insurance, you are going to want to accomplish three things:

1. Determine the very minimum coverage you will need.
2. Understand the discounts that may apply to you.
3. Shop around with multiple insurers to get the cheapest quote.

How To Determine The Minimum Coverage

It is important to note that the minimum coverage you may want to buy for yourself in New Jersey may be higher - or even much higher - than what the state mandates you purchase. For example, in the case of liability coverage, if you have a moderate or high net worth but only purchase the minimum liability coverage required by law, the other party could sue you in court and recover some of your assets.

Also, remember that accidents can also result in property and/or personal injury to yourself or the passengers in your vehicle, regardless of who was at fault. This is why you may want to consider buying collision coverage, personal injury protection (PIP) coverage, and/or uninsured/underinsured motorist coverage.

The point is: you may not be required to buy all of these types of insurance, but that does not mean that you do not need any of them. At the same time, you will want to purchase as little insurance as you will actually need.

Tip: to get the cheapest car insurance in New Jersey, look into adjusting these other optional items (depending upon the policy/insurance company): adjust your collision and comprehensive deductibles, your PIP deductible and limits, your lawsuit options, and your vehicle options.

Look for the cheapest New Jersey car insurance deals in these major NJ cities:

Bayonne, Bloomfield, Camden, Clifton, East Brunswick, East Orange, Edison, Elizabeth, Hackensack, Irvington, Jersey City, New Brunswick, 14Passaic, Paterson, Perth Amboy, Plainfield, Toms River, Trenton, Union, Union City, Vineland, Wayne, West New York