New Jersey drivers must have a minimum level of car insurance. This means that driving without insurance is illegal in New Jersey. Drivers caught driving without insurance will be punished severely. It doesn’t matter if you live in New Jersey, or if you are moving to the Garden State. You need to be familiar with the New Jersey car insurance laws as well as the penalties for driving without insurance.
New Jersey car insurance laws
New Jersey requires that all drivers have car insurance. Every driver who has a vehicle that is registered with the New Jersey Motor Vehicle Commission (MVC) is required to carry three types of auto insurance–personal liability insurance, uninsured/underinsured motorist coverage and no-fault insurance.
New Jersey’s minimum personal liability coverage is 15/30/5. This includes $15,000 for bodily injuries per person, $30,000 per accident for bodily injury, and $5,000 per accident for property damage. To satisfy New Jersey’s no-fault insurance laws, drivers must have at least $15,000 personal injury protection (PIP).
Driving without insurance in New Jersey carries severe penalties
Drivers who are caught in violation will face a $300-$1,000 fine and community service. Drivers caught driving without insurance will see their license suspended for a period of one year or until they provide proof. New Jersey charges a $100 reinstatement fee for license renewals.
The penalties for multiple offenses are much more severe. The driver may be fined up to $5,000 and required to complete 30 days of community service. The driver could also be sentenced to up to 14 days in prison. The driver’s license will be suspended for a period of two years. To get it back, they will need to apply to the Chief Administrator at the New Jersey MVC.
A law enforcement officer may choose to seize the vehicle if a driver is stopped and they cannot show proof of insurance. The driver must provide proof of insurance, pay a fee for towing, and pay the vehicle release fee. This could cost hundreds of dollars. The vehicle can be auctioned if the driver does not return it within 30 days.
Drivers caught driving without insurance may be required to buy an SR-22. An SR-22 (also known as SR-22 insurance) is a certificate that shows you have the minimum state-required car insurance. An SR-22 will raise your car insurance premium and will usually stay on your records for three to five year.
In an accident and not having insurance
It is dangerous to get into an accident in New Jersey without insurance. You will not only be fined, suspended your license, and could be sentenced to community service, but you will also be responsible financially for any losses suffered by the other party, including yours.
Uninsured drivers who hit another vehicle will be liable for the driver’s and passenger’s injuries. This covers medical bills, lost wages and property damage. You will be 100% responsible for all legal fees and settlement costs if the driver takes you to court.
Uninsured drivers can hit your car if you’re not insured. You still need to pay the damages. New Jersey is among several states with a No Play, No Pay law, which prevents uninsured drivers collecting compensation for economic or non-economic losses if they’re hit by insured drivers. This law was created to ensure that insured drivers are not able receive the same benefits as uninsured drivers.
If an uninsured driver is hit by an insured motorist and suffers serious injuries, they may be eligible to file a claim with their insurance company to receive reimbursement for their medical expenses. Remember that even if you are not at fault, an accident will impact your car insurance rate.
Questions frequently asked
Which is the best New Jersey car insurance?
Every driver will have a different best car policy in New Jersey. It all depends on many factors such as your budget, the discounts you are eligible for, how much coverage you require, and what kind of coverage you want. New Jersey drivers need to shop around and compare different providers in order to find the best car insurance company for them.
What is the cost of New Jersey car insurance?
The average cost for car insurance in New Jersey for full coverage is $1,706 per year and $727 per year for minimum coverage. The average annual cost of full-coverage insurance in the United States is $1738. New Jersey’s average car insurance rate is slightly lower than the national average. Each driver will pay a different rate depending on their zip code, credit score, and claims history.
What is New Jersey’s no-fault insurance coverage?
Personal injury protection (PIP) is required coverage in New Jersey. No-fault insurance, also known as personal accident protection (PIP), covers you. This insurance covers you for your medical bills, lost earnings, and pain and suffering costs if you are in an accident. New Jersey’s no fault laws do not apply to uninsured drivers.