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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.