A Consumer's Guide to Understanding New Jersey's Auto Insurance Requirements?

Answer 1

New Jersey's auto insurance laws feature unique provisions that give drivers much leeway in how they obtain auto insurance coverage. Many drivers take advantage of this freedom to choose an auto insurance policy that meets their needs.

However, New Jersey drivers who refuse to carry auto insurance face stiff fines that can make life difficult. As a result, here is a brief consumer guide about New Jersey's auto insurance requirements that can help New Jersey drivers take full advantage of their ability to choose whatever auto insurance they wish to purchase.

New Jersey's auto insurance laws feature no minimum coverage requirements.

New Jersey's auto insurance laws require drivers to carry some sort of auto insurance coverage. However, New Jersey's auto insurance laws do not stipulate the type or the amount of coverage drivers must purchase to comply with these laws. These provisions were put into place in to give drivers the flexibility they need to purchase affordable auto insurance that suits their individual needs.

As a result, New Jersey drivers can choose from any combination of auto insurance coverage policies they believe will provide them adequate coverage against the risks of driving in New Jersey. These policies can include casualty coverage, collision coverage, property damage coverage, bodily harm coverage and nearly any other type of auto insurance coverage that covers the risks associated with driving.

Moreover, New Jersey drivers can also purchase as little as $0.01 of auto insurance coverage if they believe that is enough to cover their potential liabilities. However, auto insurance providers in New Jersey are required to provide Garden State drivers a list of potential auto insurance coverage options to ensure that drivers understand the risk of carrying very little insurance coverage.

New Jersey also requires drivers to provide proof of auto insurance coverage on demand.

New Jersey state auto insurance laws require drivers to carry verifiable proof of their auto insurance coverage. As a result, drivers must be able to provide proof of their auto insurance on demand during a routine traffic stop, during a routine inspection, or after an accident.

The penalties for failing to comply with these requirements can be stiff.

For example, first time offenders face fines of up to $250 and up to 15 days of community service. Habitual offenders face fines of up to $1,000 and one year of community service. However, drivers in New Jersey are given a 10 day grace period to provide proof of insurance coverage to avoid these penalties in most cases.

For advice on choosing a New Jersey auto insurance policy, please visit your nearest branch of the New Jersey Motor Vehicle Commission for flyers that contain helpful advice about how to choose an auto insurance policy.