New Jersey Auto Insurance can seem confusing. But once you understand the individual types of insurance that makes up a policy, it’s not hard at all. Your NJ Auto Insurance is really a package of individual type of coverage. Together, these make up your  standard New Jersey Auto Insurance policy. Each of these components has its own separate premium. Your premium payment (be it monthly, quarterly or yearly) is the total of these separate premiums.

1. Personal Injury Liability provides protection if you injure or kill someone while someone is operating your car. It also provides for a legal fees if another party a lawsuit against you.
   
   In the event of a serious accident, you need enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets (home, bank accounts etc.).
   
   This  injury liability insurance  covers injury to people, not your car, so it’s standard practice to have the same amount of coverage for all of your cars.
   
    

2. Medical Payments Insurance covers the medical expenses of the injured driver and passengers in your car. There may also be coverage if you are injured by a vehicle as a pedestrian.
   
    

3. Uninsured Motor Vehicle Coverage pays for injuries caused by an uninsured driver or a hit-and-run driver, in a crash that is not your fault. In most cases  is also uninsured motorist coverage for damage to your vehicle.
   
    

4. Comprehensive Damage Coverage pays for losses resulting from matters other than a collision. For example, it covers damage to your car if it is stolen; or damaged by flood, fire or fallen objects.
   
    

5. Collision coverage pays for damage to your car when your car hits, or are hit by another vehicle.
   
    

6. Property Damage Liability protects you if your car damages someone else’s property. It also provides you with legal fees  if another party files a lawsuit against you.
    

7. Rental Reimbursement Coverage pays for a rental vehicle when the insured's vehicle is damaged as a result of a loss covered under the comprehensive or collision policy.