New Jersey Auto Insurance Laws

Each state sets its own auto insurance regulations, covering vehicle registration, minimum coverage requirements, and insurer licensing. New Jersey, one of the most densely populated states in the U.S., also has some of the highest car theft rates. Understanding New Jersey auto insurance laws is essential for all drivers to stay compliant and avoid costly penalties. Below, we outline key regulations based on the New Jersey Department of Banking and Insurance guidelines.

Minimum Insurance Requirements in New Jersey

All drivers with a registered vehicle in New Jersey must carry active liability insurance meeting or exceeding the state’s minimum requirements. These include:

Note: While bodily injury liability coverage is not mandatory, experts recommend at least $10,000 to protect against potential lawsuits. Drivers with significant assets should consider higher coverage limits to safeguard their finances in a severe accident. Assess your needs carefully, as minimum requirements may not provide adequate protection.

Penalties for Driving Uninsured in New Jersey

Driving without insurance violates New Jersey law and carries severe consequences. Penalties for a first offense include:

• Fines ranging from $300 to $1,000
• Driver’s license suspension
• Possible jail time in some cases

Second-time offenders face harsher penalties, such as:

• Fines up to $5,000
• Up to 14 days in jail
• Two-year license suspension
• Mandatory court costs and community service

With such strict enforcement, it’s critical to maintain proper coverage. Get affordable New Jersey car insurance with Good2Go Insurance to stay compliant and save money.

Distracted Driving Laws

New Jersey prohibits the use of handheld cell phones or smartphones while driving, including texting and browsing the web. Due to the rise in crashes caused by distracted driving, these laws are strictly enforced, with fines starting at $100. Compliance helps save lives and keeps insurance rates lower.

DUI Laws in New Jersey

New Jersey enforces strict DUI laws, with a blood alcohol concentration (BAC) limit of 0.08%. Penalties for exceeding this limit include:

1. License suspension for up to one year
2. Fines exceeding $1,000
3. Jail time of up to 30 days

These measures aim to deter impaired driving and enhance road safety.

SR-22 Requirements in New Jersey

New Jersey does not require SR-22 filings. However, if you move to New Jersey from a state where an SR-22 was required (e.g., after a DUI or major traffic violation), you may need to file one through your previous state’s DMV to maintain compliance.

New Jersey’s $1-a-Day Car Insurance (SAIP)

To address the high cost of auto insurance, New Jersey offers the Special Automobile Insurance Policy (SAIP), commonly called $1-a-day car insurance. This program, costing about $365 annually, helps low-income residents meet legal insurance requirements. To qualify, you must:

• Be enrolled in Medicaid
• Be a legal New Jersey resident
• Hold a valid driver’s license

The SAIP provides limited coverage for severe injuries from accidents but does not include liability for medical injuries or property damage to others. While it reduces the number of uninsured drivers, it falls short of the state’s minimum liability requirements. If you’re on SAIP due to financial constraints, consider upgrading to full coverage when possible. Compare rates with affordable NJ car insurance quotes from Good2Go Insurance.

Find Affordable Auto Insurance in New Jersey

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