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An Overview of Auto Insurance Laws in New Jersey

There are a number of laws and regulations that are applicable to all drivers in the state of New Jersey and herein are some of them in detail. The most common law of them all states that all motorists are required to have auto insurance in New Jersey or have financial responsibility in case they cause an accident. This law is common in many states in the US but unlike the other states, New Jersey does not have specific coverage limits. However all drivers must have 3 mandatory coverages as stipulated in the law.

These coverages are liability coverage, personal injury coverage and uninsured motorist coverage. As recommended by the Department of Banking and Insurance in New Jersey (DOBI), there are certain specific limits that any motorist should carry as coverage under the basic minimum policy. You can also go with the coverage outlined in their standard policy.

The Basic minimum policy has outlined the minimum requirements as follows;

  • Minimum liability coverage for bodily injury per person per accident is $10,000,
  • Minimum liability coverage for personal injury protection (PIP) per person per accident is $15,000
  • Minimum liability coverage for damage to property is $5,000 and
  • In case of permanent or considerable injury as stipulated in the policy, then the amount is fixed at $250,000.
  • It is also worth noting that the basic minimum policy does not include minimum liability requirements for bodily injury to one person per accident as is common in most of the states.

The standard policy has the limits set as follows:

  • Liability coverage for bodily injury to one person per accident is $15,000,
  • Liability coverage for all individuals in an accident, per accident is $30,000,
  • Liability coverage for damage to property is $5,000,
  • PIP coverage pee individual per accident is $250,000 and
  • Liability coverage for permanent or considerable injury as stipulated in the policy is $250,000 notwithstanding the limit selected.

These are just but some of the auto insurance laws in New Jersey that need to be observed by every motorist. In addition to the above laws, every motorist is required by law to carry with them an insurance Identification card for every car that is covered under an auto insurance policy, every time they are driving. Failure to do so will result in hefty fines and penalties in addition to the traffic fine you were pulled over for. Violation of auto insurance in New Jersey will lead to a number of penalties according to your violation status i.e. if you are first time offender or a repeat offender. You may even end up doing some community service or go to jail altogether.

Avoid going the wrong side of the law by getting yourself a New Jersey car insurance coverage. We can help you locate a cheap option that will suit your pocket by just entering your zip code above. Try it right now and you will not be disappointed.