Auto Insurance FAQs - New Applicants | NJM

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Auto Insurance Frequently Asked Questions

Auto Insurance FAQs

New Applicant Questions

How can I get additional liability insurance protection?

It is always a good idea to protect your assets, and you can do that with an NJM Umbrella Policy. For a moderate charge, an umbrella policy not only provides additional dollar-amount protection in case a lawsuit is filed against you following a covered auto accident or homeowners liability incident, it also offers protection against personal injury liability, such as libel or slander. Available to those who have NJM Auto Insurance with at least $500,000 in liability limits, an umbrella policy provides coverage above your standard policy, up to your chosen limits.

Is a parking ticket considered a motor vehicle violation?

Parking tickets are not considered motor vehicle violations. However, failure to pay parking tickets can result in a suspension of driving privileges, which can affect eligibility.

Is a zero-point ticket considered a motor vehicle violation?

Your history of motor vehicle violations can affect your premium. The point value assigned to any given offense varies depending on your state, but even zero point tickets are motor vehicle violations.

Can I add my significant other to my car insurance policy?

If your significant other lives with you and drives cars registered to you, you can include him or her for your quote. Your significant other is only an insured driver while operating a car listed on your NJM declarations page. Coverage limitations will apply.

Can I apply if my vehicle is registered out-of-state?

If you are new to the state, you can apply for insurance but will be required to register the vehicle in the state you're applying for coverage within 60 days from the start of your policy.

How do you confirm that I qualify for driver discounts?

The discounts are included in the quote, but documentation will be required to prove eligibility at the time you purchase your policy.

To submit documentation for review, log in and upload them to your online account or email them to Don't have an account yet? Register here.

How do I know what type of anti-theft system I have?

The anti-theft device in your vehicle will be listed on the window sticker (if it was factory installed) or will be explained in the owner's manual. The discount also applies if you use The Club® or another similar device.

What is PIP? (NJ only)

PIP stands for "Personal Injury Protection." This is your medical coverage for injuries you suffer in an auto accident. PIP pays if you or other persons covered under your policy are injured in an auto accident. It is sometimes called "no-fault" coverage because it pays your own medical expenses no matter who caused the auto accident. PIP has two parts:

  • Coverage for the cost of treatment you receive from hospitals, doctors and other medical providers and any medical equipment that may be needed to treat your injuries caused by the accident.

  • Reimbursement for certain other expenses you may have because you are hurt, such as lost wages and the need to hire someone to take care of your home or family.

Should I choose my health insurance as my PIP provider? (NJ only)

Before selecting the health insurance provider option, you should find out if your health insurance will cover auto accident injuries and how much coverage is provided. Medicare and Medicaid do not offer the health insurance provider option. All resident relatives who would be covered under your auto policy would need to have coverage through their health insurance provider.

What is a deductible?

A deductible is a payment you have to make before the insurer pays. For example, a $750 deductible means that you pay the first $750 of each claim out of your pocket.

What deductibles should I choose?

This is a personal decision dependent upon how much you would be able to pay at the time of a loss. A lower deductible will result in a higher insurance premium. A higher deductible will result in a lower insurance premium; however, you will need to pay more out-of-pocket at the time of a loss.

Am I able to apply if I don't have a driver's license in the state where I'm applying?

You may obtain a quote, apply, and purchase a policy without a driver's license number from the state where you're applying for coverage. However, state laws require residents to hold a driver's license in that state, so it is a good idea to get your license as soon as possible.

Can I apply for a policy to cover a vehicle I don't own?

No. For a vehicle to be covered, it needs to be owned or co-owned (e.g. name appears on registration, loan or lease agreement) by one of the named policyholders, or his or her spouse, on the NJM Declaration Page or insurance ID card.

The information contained on this page should not be construed as legal, financial or insurance advice. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy; the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.