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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.