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The Important Stuffs about New Jersey Car Insurance Law

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.

Top Four Must Known Things about New Jersey Auto Insurance Laws

New Jersey is known for many things from which the historical heritage and their hospitality stand out the most. The drivers in the state of New Jersey, as other drivers in other states, must follow its auto insurance requirements and laws to have the privilege to operate a motor vehicle. Even though that many insurance laws in New Jersey are pretty much the same to insurance laws in other states, they have few specifics that are characteristic for this state.

Minimum Coverage

According to the New Jersey auto insurance laws, all drivers need to carry their accident liability insurance policy in their vehicle in any given moment. Their insurance policy must be according the New Jersey standards and to carry at least $25.000 per person for injuries sustained in an accident cause by the insurer, $50.000 for bodily injuries of two or more people and $25.000 for property damage. The common term used to refer to these minimum requirements is 25/50/25. However, one needs to know that these requirements are designed only for protecting other parties in an accident cause by the insurer. That is the only goal and this coverage does not help for damages to the insurer’s vehicle, property, or person in case of some sort of vehicle accident.


The tort system is how New Jersey deals with traffic accidents. According to the NJ tort law system, one party is always guilty in an accident. Because of that, New Jersey motorists are not obligated to possess personal injury insurance or to have under-insured/uninsured motorist protection. Hypothetically, if you are involved in an accident, you possess the minimum required insurance coverage and the other involved party is uninsured motorists. The tort law says one of the parties needs to be “at fault” for the accident. In case it is your fault, your insurance will cover the other party’s damage. On the other hand, if the other party, that is the uninsured motorist is at fault, you are not entitle to any money compensation from him. Might sound unfair but that is how the law functions and it works as such for a long time.


One needs to be fully aware that New Jersey has heavy penalties for drivers caught behind the wheel without proper auto insurance policy. The law is clear and strict when it comes to penalizing drivers without insurance – every driver that drives uninsured risks 60 to 90 days suspension of his driver’s license. In order to register your vehicle in the State of New Jersey you need to provide written proof of insurance. In addition, if a driver without insurance policy is pulled his vehicle can be towed. In addition to that, the driver risks several more fines if caught driving without it.


The State of New Jersey offers few exceptions to its insurance laws. Here are the exemptions

–              Salvaged or junked vehicles or vehicles with an expired lease

–              Vehicles used seasonally or for agricultural purposes such as farming equipment

–              Repossessed vehicles or vehicles that have been stolen

–              Motorists are not required to insure inoperable vehicles

Even though that this knowledge gives you a glimpse in how the auto insurance in New Jersey system works it won’t help you much in terms getting the best rates. However, one little thing surely can.

Simply enter your zip on the top of this page and get quotes from the cheapest insurance providers. Combine our free quote system with your knowledge in auto insurance laws in New Jersey and you will never overpay your insurance policy.

What Nobody Tells you about New Jersey Auto Insurance Laws

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.


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.