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Complying with the Mandated New Jersey Auto Insurance Laws

The general definition for car insurance is that it is a tool for establishing financial responsibility in case an accident occurs that results in property damage, injury or even death. As with every state, New Jersey Auto Insurance Laws require from the drivers to have insurance policy for coverage of damages that are caused by the insurer. In addition to that, drivers that operate financed or leased vehicles are commonly required by the loan giver to have additional types of coverage – collision and comprehensive.

Unbelievably, but the state of New Jersey is extremely strict when it comes to auto insurance. If you are ever found driving around without proper vehicle coverage, or at least the required minimum coverage, you are surely going to find yourself in hot waters. The reason is that you will not just face severe fines and penalties, but there is also a good chance that your registration might be suspended. In order to get it reinstated, you would need to pay a lot of fee and penalties and you would also have a bad credit count because of this mistake. For this reason, it is necessary for you to acquire in depth details about the basics of auto insurance in New Jersey to be able to get ample coverage with the best policies being offered by top-notch providers in the state of New Jersey.


Basic Insurance Requirements in the State of New Jersey

New Jersey auto insurance laws require from the drivers to have bodily injury insurance that features minimum liability of $25.000 for one injured party as well as minimum of $50.000 per accident. Translated in plain English this means that if the insurer causes an automobile accident, which will result with the injury in one person, the insurance policy must cover at least $25.000 of the total sum requested because of the accident. In case the driver causes an accident in which two or more people are injured the policy must be able to produce minimum $50.000. In addition, the driver needs to have property damage insurance policy that includes minimum liability of $25.000 per accident. Driving without insurance policy in the eyes of the State of New Jersey is a misdemeanor punishable with $1.000 fine and up to one year in jail.

Insurance Reporting

The State of New Jersey demands from all insurance companies to report electronically their insurance policies to the Electronic Insurance Compliance System within thirty days, counting from the first day of purchase. That way the data is stored in that database are available for the law enforcement as well as other state officers. Regardless of that, every driver is obligated to carry their policy in their vehicle in any given time. The insurance companies that make the policies are also obligated to report termination or cancellation to the Department of Driver Services. Once the DDS receives that information it contacts the driver which policy is terminated or canceled and instructs him or her to make new insurance policy. If the driver fails to obtain new insurance policy he risks to be fined or to earn a suspension on vehicle registration.

Alternative Solutions to Financial Responsibility

Even though that most of the drivers in the State of New Jersey prefer to establish some form of financial responsibility within standard auto insurance policies, there happen to be alternative ways to do so. Drivers can secure a deposit, bond, or other means that can guarantee the $100.000 minimum coverage (injury and property damage coverage minimums). These matters are handled by the New Jersey Insurance and safety fire commissioner and you must always make sure that you keep up with the laws of auto insurance in New Jersey if you wish to confirm that you continually get to drive your car around without getting worried about suffering from severe consequences.

To make sure that your family remains safe at home, at all times and you do so by purchasing insurance for them, it is necessary to purchase auto insurance as well to make sure that you get compensated in case any accidents, or even mishaps take place while you are out driving on the road. All of these steps are necessary for your personal security, so make sure that you consider them.

The consumers in New Jersey are required to possess automobile liability insurance, particularly for the minimum limits that are deemed necessary for one to be able to drive on the highways and public road in the state of New Jersey. The minimum liability limits are said to be bodily injury liability and property damage liability. Both of these are priced at about $25,000 per person and $50,000 per occurrence on an individual basis. Then there is liability insurance, which needs to be paid to cover for the damages that were caused by accidents that occurred due to your personal negligence. The fact of the matter remains that if anyone is found without possessing the minimum coverage, the person is going to be subjected to stiff fines that are very high, and the worst part is that your registration might also be suspended. In such a case, reinstating your registration is going to be a terrible ordeal and you would be required to pay high reinstatement fees. Overall, the experience is very not worth it and it is highly recommended for you to purchase ample insurance coverage so that you can drive around without having to worry about issues such as these.

However, even with all the knowledge on the car insurance laws in New Jersey you cannot get the lowest rate if you do not know how to do so. That is something that requires only minutes of your time.

Actually, if you enter your zip code on the top of this page you can instantly get free quotes from plenty of insurance companies. At the end of the day, compliance to the Auto Insurance Laws in New Jersey does not have to mean that you need to overpay for your policy.