New Jersey Auto Insurance Guide

Whether you’re taking the Garden State Parkway to whale watch in Cape May, headed out the Atlantic City Expressway to try your luck at the casinos or commuting along the 78 into Jersey City, car insurance is crucial to being a responsible New Jersey driver.

 

Auto Insurance Resources for NJ State Residents

There are 5,728,975 licensed drivers in the Garden State in 2010. The Insurance Research Council estimates that 9% of New Jersey’s drivers are uninsured. In 2008 (the latest data available), the New Jersey State Police reported 555 fatal car crashes on the state’s 38,123 miles of public road. They also noted that 20.7% of the drivers were legally intoxicated. Those are good reasons for you to make certain you have the adequate car insurance while living and driving in the Garden State.

 

New Jersey State Minimum Auto Insurance

In 1998, New Jersey mandated that the state’s insurance carriers offer two levels of coverage: Basic and Standard. You must carry one or the other. New Jersey is a modified no-fault state, meaning you have the option of rejecting no-fault coverage and retaining your right to sue. New Jersey does not require that you carry Collision and Comprehensive or personal liability insurance in excess of the minimums. However, if you own property or other valuable assets, you would be wise to supplement the minimum requirements shown below.

Basic Policy

• $5,000 property damage liability
• $15,000 personal injury protection

Standard Policy

• $15,000 bodily injury liability per person per accident
• $30,000 bodily injury liability for all persons per accident
• $5,000 property damage liability
• $15,000/$30,000 uninsured/underinsured bodily injury liability
• $5,000 uninsured motorist property damage
• $15,000 personal injury protection

*Both Basic and Standard Policies include a $250,000 personal injury protection limit for permanent or significant injury.

 

New Jersey State Car Insurance Laws

Your insurance company must issue a New Jersey Insurance ID card for each vehicle under your policy. You must keep the card in your vehicle and present whenever a law enforcement officer asks to see it. Failure to do so will result in a fine. Drive without the minimum required car insurance in New Jersey and you face mandatory penalties more stringent than those for a first-time offender drunk driver. These include automatic one-year loss of your driver’s license, a $400 fine and community service as decided by whatever Municipal Court you end up in. You will also, undoubtedly, face car insurance surcharges when you attempt to get a policy. You are required by New Jersey law to register your car within 60 days of establishing residency, or within 10 days of obtaining title on a vehicle. You cannot register your vehicle without proof of insurance.

 

Regulating Agency and References

New Jersey Department of Banking & Insurance
This agency is responsible for regulating vehicle insurance policies sold in the Garden State. For more information, visit their website at www.state.nj.us/dobi.

State of New Jersey Motor Vehicle Commission
This agency is responsible for licensing drivers and registering vehicles. You can learn more about New Jersey auto insurance requirements, penalties and related information at www.state.nj.us/mvc.

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at www.iii.org/

 

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