Final answer:
Liability insurance is mandatory in NJ, while collision and full coverage insurance are optional but recommended.
Step-by-step explanation:
In New Jersey, it is mandatory to have liability insurance for car owners. This type of insurance covers the cost of damages or injuries caused to others in an accident for which the insured is legally responsible.
Collision insurance and full coverage insurance are optional, but highly recommended. Collision insurance covers the cost of repairing or replacing the insured's vehicle after a collision, regardless of who is at fault.
Full coverage insurance typically includes both liability and collision coverage, as well as additional coverage for damage caused by non-collision events such as fire, theft, or vandalism.