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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.