New Jersey Car Insurance Law

Car insurance is important in protecting a car and those who ride in the car in case of an accident. New Jersey law requires the state's drivers to have specific types and amounts of auto insurance.

State Regulation

State law requires a car owner to have liability, personal injury and uninsured motorist coverage. An insurance card must be kept in the vehicle at all times.

Types

Liability insurance covers the damage caused by an accident that is your fault, and personal injury insurance covers medical expenses regardless of who is at fault. Uninsured motorist insurance provides coverage if the other driver has inadequate insurance or no insurance at all.

Minimum

New Jersey law requires a driver to have a minimum of $15,000 in coverage for injury or death, $30,000 in coverage for the injury of more than one person, and $5,000 in coverage for property damage.

Not Required

You are not required to have auto insurance on vehicles that are non-operational or for off-road vehicles.

Penalties

Driving without car insurance can result in penalties and fines such as the suspension of a driver's license for up to one year and/or fines up to $1,000. In addition, you might be required to perform community service.

References

• State of New Jersey Department of Banking and Insurance: Automobile Insurance