The state of New Jersey deems it necessary for every single driver in the state to present a proof of their financial responsibilities towards their vehicles by purchasing what is known as a liability insurance policy. However, in certain cases that are extremely rare, it is possible for individuals to even get their vehicles self-insured by approaching the Office of Insurance and Safety Fire Commissioner. In order to get a vehicle registered, it is necessary for the owner to present a proof of insurance. Back in the year 2002, the state of New Jersey deemed it necessary for all the companies of auto insurance in New Jersey to submit and electronic copy of the information of the policyholder to the New Jersey Electronic Insurance Compliance System.

In the year 2010, the minimum liability insurance requirements in New Jersey for the ownership of a car have been set at what is generally known within the state as 25/50/25. The first two basic numbers, which are 25/50 are basically represented in thousands of dollars and are indicative of the limit that has been set for personal bodily injury liability. The last number, which is 25, is used to indicate the limit that has been set by the state for property damage liability. For instance, consider that an accident takes place and is caused by a driver that has minimum liability insurance, than every single person that is injured in the other car is going to receive up to $25,000 with a limit per vehicle of up to $50,000. Any additional expenses that occur can easily be acquired by the injured party by filing a suit against the driver. Damages that have been caused to the vehicle will be paid for up to $25,000. However, if the injured party wants to, they can pursue any additional property damage claims in court as well.

People that possess a lease or an outstanding car note are required to buy more than the preset minimum liability insurance. The leasing company has the potential to protect the investment that it has made in the car by fixing its very own minimum liability amount. However, the owner of the car has the ability to increase the coverage amount on their vehicle so that they can be protected against lawsuits just in case an accident is caused because of them. This additional coverage amount plays a major role in averting them from lawsuits that might be filed against them in case an accident takes place because of their negligence or carelessness.

Lapses in coverage and the fines those are applicable on them

•             Fines for Lapses in Coverage

•             The state of New Jersey allows a 30-day grace period for new insurance information to be electronically submitted to its database. As of 2005, if there is an additional lapse of 10 days without NJ auto insurance, the car owner will be charged a lapse fee. If the lapse fee has not been paid within 30 days, the car’s registration will be suspended, and an additional reinstatement fee will be added. A second lapse within a five-year period requires a mandatory registration suspension of 90 days. A third lapse within a five-year period requires a six-month suspension and a higher reinstatement fee. If the car was sold, stolen, or repossessed, the former owner must submit an affidavit to the New Jersey Department of Driver Services to have the fines removed.

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Even though it’s not the case with some states, New Jersey auto insurance laws needs to be taken very seriously because of many reasons,  but mainly that it treats harshly anyone that doesn’t follow them. In order to be able to drive legally on the roads and highways in the state of New Jersey every driver needs to fulfill the minimum insurance requirements. Even though that the state minimum will help you to drive legally many recommend a bigger policy. Here follow the minimum requirements, what that means to you as a driver, why it is a good idea to purchase a bigger auto insurance policy and how to obtain the best rate.

Minimum Insurance Requirements in New Jersey

The minimum insurance policy can cover costs up to $25.000 per person for body injuries, $50.000 for body injuries for more than one person and up to $25.000 for property damages. Without this policy, no one can legally operate a vehicle in the state of New Jersey. However, the law recognizes few exceptions. The state of New Jersey doesn`t require any insurance policies for motorcycles, certain seasonal agricultural vehicles, stolen vehicles, non-drivable vehicles, junked  or salvaged vehicles. This is important to know because in case you with your vehicle are involved in accident with the vehicles that are on the exceptions lists, your insurance policy will cover the damage regardless whose fault is. This is because of the tort system, which is still in force in New Jersey.

Can You Trick The System?

If you don`t want to mess with the state of New Jersey once you purchase your policy, you need to make sure that you have it all time in your vehicle and to renew it when the time comes to do so. The renewable date is something that you can check on your car insurance policy papers. In case you forgot to renew it, the state of New Jersey can send you a small fine. That is if you don`t renew it within the first ten days after the expiration of the renewal date. Another way to check your renewal date is to go online and visit the official web site of the Department of Revenue.

Why Go For Bigger Insurance Policy?

The main reason for going for more expensive policy is because in many accidents the minimum insurance doesn`t cover the cost of the accident, regardless if it is for hospital costs, car repair or other property damage. The thing is that nowadays even simple hospital procedures can cost a lot, not to mention that you hit some luxury car. $50.000 per accident are too often, too many times too little to cover such costs.

How to Deal With That?

In order to make the most of your money is to look for great deals on insurance policies. The easiest ways is right in front of your nose, just enter your zip code above on this same page, and wait for a while. After a while you`ll get quotes from some of the cheapest car insurance companies. It can easily happen to pay less and buy more. Stick to what you read and not only will you never be in trouble with auto insurance laws in New Jersey but you will get the best insurance deals.

Each state has its own set of insurance laws, from which large numbers are pretty similar or same. New Jersey car insurance laws, at least good percentage comply with most of the insurance laws in the other states. However, there are few auto insurance laws in New Jersey that are typical for only few more states. Everyone that purchases auto insurance policy in New Jersey needs to comply with New Jersey’s insurance regulations if he wants his vehicle to be registered. Not complying means that you will drive your vehicle illegally and there is a big chance that you will be penalized for that.

According to the state if New Jersey auto insurance regulations every driver is obligated to obtain both types of coverage. In addition to that, everyone in your household that uses the auto needs to possess such coverage or have proof of it, when using the vehicle. The point is that the insurance coverage is needed per person rather than per car. However, there are few exemptions to this regulation. That is in cases when the vehicle is salvaged, wrecked, junked, when the lease is terminated or the ownership is transferred to another state. The exemption is applicable to owners of motorcycles and agricultural vehicles used for season work as well.

In case that none of the mentioned exceptions is applicable to your situation, you and every one of your family that uses the car are obligated by law to obtain injury liability coverage. According to the law in New Jersey, the minimum coverage for one person is at least $25,000, for more persons per accident the minimum is $50,000, and for damage property, the minimum is set at $25,000. That is commonly known as 25/50/25.

The state of New Jersey is not a no-fault state. That means that in case of a car accident, the involved parties are not obligated to cover their own medical or other expenses cause by the accident, if any. Only the driver who caused the accident through his insurance policy pays the bill. In addition to that, the innocent party has the legal right to seek further compensation from the party who is found at fault.

The best way to be sure that you are fully covered is to buy a bigger insurance policy. The thing is that the minimum required basic policy is rarely enough to cover any expense that is having in mind how much hospitals charge for a simple procedure or what if you hit some luxury car. The $50.000 in that case is just a fraction of the cost and it may easily be required to pay from your own pocket for the rest of the bill.

Getting a good rate on any auto insurance policy in New Jersey is not as hard as one would think. The best way to do so is by getting quotes from different insurance companies.

If you wondered how to do so, just look above on this same page and you will see a sign that says enter your zip code. Once you see it simply enter your zip code and you will get plenty of quotes from a number of companies.  Find the lowest for the coverage you had in mind and you will be sure that the car insurance laws in New Jersey will not make you awake at night.

New Jersey auto insurance laws are rather strictly enforced in the state of New Jersey, for which reason it is necessary for you to make sure that you never drive your car insurance having an insurance policy at hand.

It is necessary for motor vehicle owners that are situated in New Jersey to make sure that their mandatory auto liability insurance coverage over their cars are regularly maintained. The vehicle needs to be legally driven, should have a New Jersey based license plate or tags, and the tags should be renewed, replaced, or even transferred to the original owners’ name.

In terms of the minimum amount of auto insurance that you need to carry, well that is subjected to about $25,000 for every person in terms of bodily injury, around $25,000 for every accident for property damage, and about $50,000 for bodily injury that might occur on around a minimum of two people. However, if you ever get involved in a serious offense and cause major damage, than you are bound to find that these car car insurance requirements in NJ would not suffice.

In order to satisfy the requirements of law, every single car being driven in the state of New Jersey needs to possess at least this basic minimum auto insurance coverage. For those that are interested in renting a car in this state, by law, the rental company needs to provide the necessary liability auto insurance to the state. However, just in case the current car insurance policy that you own does not cover auto insurance that is meant for rental cars, then it is necessary for you to acquire liability auto insurance straight from the company from which you are renting the car.

If you allow your auto insurance to lapse, not only would you be susceptible to stiff penalties, there is also a fair chance that the automobile registration of your car might be suspended by the authorities. A lapse in the state of New Jersey occurs when 10 continuous days pass by without you having auto insurance coverage. In terms of a lapse, you will be subjected to a $25 penalty lapse fee together with a reinstatement fee that comes to about $60. Both of these need to be paid before having your license plates renewed. The fees would continue to increase in terms of a second or third offense, so you need to be very careful. By the third offense, you can rest assured that your reinstatement fees would be reaching up to about a full $160. You will also be charged with a misdemeanor just in case you are caught driving around with a registration that has a suspended status.

The state of New Jersey is known to follow what is known as a Tort system, which implies that you are not required to acquire PIP or personal injury protection insurance coverage. You also do not need to acquire Uninsured/Underinsured motorist coverage or UN/UIM. However, there is a plethora of people across New Jersey that purchases this to enhance their auto insurance policies.

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New Jersey is known for many things and for some for its strict enforcement of its car insurance laws. New Jersey auto insurance laws are specific for New Jersey and are much different from the parallel laws in other states. The important thing to remember is not to drive without the minimum required insurance or with suspended, cancelled, or revoked tag. Each of the vehicle owners and lessees in New Jersey are obligated to possess continuous car liability insurance policy on their vehicle/vehicles in order to:

–              Replace, renew, or transfer their current New Jersey license tags (plates).

–              To register and possess New Jersey license tags (plates).

–              Legally drive their vehicles in the state of New Jersey.

According to New Jersey auto insurance laws every driver on its roads needs to possess insurance policy that covers $25.000 for bodily injury, $50.000 for bodily injury, per accident is there are two or more people involved, and at least $50.000 per accident in case of property damages. Unfortunately, in many cases these insurance requirements are far from enough for many serious accidents.

Rental auto insurance requirements: The state of New Jersey requires every car on its roads and highways to possess at least the minimum car insurance coverage. Rent-a-cars as such are no exceptions. In case you are staying in the state of New Jersey and you rent a car for whatever purpose the rental company is obligated by law to provide you with insurance policy. If the insurance policy that you possess or your credit card is not enough to cover auto insurance for rentals, than you need to purchase liability car insurance from the car rental service.

In case you allow your auto insurance to lapse, you risk to be fined by the authorities. According to New Jersey insurance laws, “laps” is defined as ten or more days without insurance coverage. The fine for that is $25 along with additional $60 for reinstatement to renew your license tags. For second offence, the fee will increase, by the third offense the reinstatement feel will raise to $160. If you keep on ignoring your insurance, renewal if caught you can and will be charged with a misdemeanor.

Another very important thing to remember about the auto insurance in this state is that it follows a tort system. Tort system means that the state does not require from its motorists to have underinsured/uninsured motorist coverage, nor PIP (personal injury protection). Regardless of that, many motorists in the state of New Jersey possess some of these insurances. The thing with the tort system is that if the other involved party in the accident is a motorist without any insurance coverage, your insurance covers the damages, or injuries regardless whose fault is.

Even though that the tort system is not the most perfect insurance system in the world it`s still in power in New Jersey. Many motorists know that, have sense for that, and buy some type of insurance coverage. Regardless if you are, a motorist or a car driver, the best way to obtain auto insurance is by getting quotes from as much as possible insurance companies. You can do that now if you just enter your zip code above on this page and wait for a while. Once you find your lowest quote, you can buy your insurance policy and make sure that you abide all auto insurance laws in New Jersey.

New Jersey car insurance laws are one of the strictest and at the same time strangest laws in the United States. Not knowing them can cost you from you heard earn dollars. However, if you are familiar with what the insurance law requires from every driver in the state of New Jersey you`ll probably be all right. Here follow an overview on some of the things about auto insurance laws in this great state that nobody has told you about before unless they are imposed to you.

The Tort System

New Jersey is one of the few states that follow this system when it comes to traffic accidents. This system was and still is a subject of many debates, but regardless it is still in force. Here is what it is about. The law in New Jersey says that for every traffic accident someone needs to be at fault. There is no problem up to this point, and it makes perfect sense. However, there is one law that says that motorists in New Jersey are not required to own an insurance policy. In case you as a driver are involved in an accident with a motorist that does not own any insurance policy, your policy will cover all the damage regardless whose fault it is.

More Exceptions

Another way to pay for someone’s mistakes is if you are involved in an accident with vehicles that are allowed on the roads and at the same time as with motorcycles are not covered by insurance policies. Vehicles used seasonally for agricultural purposes do not need to be covered with an insurance policy. However, that does not mean that accidents with those vehicles do not happen. On the contrary, there happen and as with motorcycles their insurances cover the cost regardless whose fault is it. Once again the car driver`s insurance policy covers the damage caused in the accident.

The Alternatives

The alternative to purchasing car insurance policy is to secure a bank deposit or a bond that can guarantee that you have the minimum coverage (injury and property damage coverage minimum) $100.000. If you want to go down that road, you need to address the New Jersey Insurance and safety fire commissioner for that matter.

25/50/25

This is often used to describe the minimum requirements for auto insurance for the state of New Jersey. 25/50/25 has the following meaning:

–              The policy must be able to cover at least $25.000 per person, per accident.

–              The policy must be able to cover at least $50.000 per accident if two or more people are hurt in the accident.

–              The policy must be able to produce at least $25.000 for property damages.

*This is under the assumption that the insurer is at fault for the accident.

In case if you are involved in an accident in which the other party does not possess any insurance (motorcycle or agricultural vehicle) you are not entitle to any money compensation.

Even though that this sounds bit unreal and unfair those are the car insurance laws which are in force for now. The only thing that one can do is to make sure that he is not overpaying on his insurance rates.

The best way to make sure you do not do that is to enter your zip above and check out some of the offered quotes. You might not be able to change car insurance laws in New Jersey, but you can definitely change your insurance rates.