Minimum auto insurance requirements and driving laws in New Jersey
If you live in New Jersey or you’re thinking of moving there, you’re going to need a car insurance policy that satisfies your needs plus the requirements of the state. Learn about New Jersey’s laws and regulations, the types of coverage out there, who’s at fault after an accident and more.
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Drivers in New Jersey paid in the ballpark of $1,300 to $1,400 annually for their auto insurance coverage in 2017, slightly above the $1,300 national average. So if you’re looking to buy a standard policy here and you’re older than 25, you can expect to pay something in that range.
Looking for some ways to save money on your auto insurance in New Jersey? No matter what state you’re in, you can use our general tips to lower your premiums and get a better value out of your coverage.
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Jersey handles insurance regulations a bit different compared to other states. To meet the legal minimums, drivers can choose the basic or standard policy, with the option to go beyond these two policies for more coverage.
The standard policy provides more coverage and charges higher premiums than the basic package. Additional coverage include:
You’re looking at steep fines, license suspension and possibly jail time if you’re caught driving without coverage in New Jersey. Here’s a breakdown of what happens if you’re caught without coverage.
First offense
Second and subsequent offenses
If your driver’s license is suspended for driving without insurance, you must submit an application for reinstatement to the DMV director. That director reserves the right to revoke your license longer if he believes you’re likely to drive without insurance again.
As of mid-2015, the state allows you to show proof of insurance with your card or a smartphone or tablet screen.
Approximately 15% of all motorists in New Jersey were driving without the legal standard of insurance in 2015, according to the Insurance Research Council. This is slightly above the national average of 13% and far below the numbers reported by some states — Florida, for example, has a rate closer to 26%.
To better protect yourself and your vehicle from an accident with a driver who doesn’t carry proper insurance, you may want to think about adding underinsured or uninsured motorist coverage to your insurance policy.
Yes, you can. You might need temporary coverage in New Jersey for a short period for a borrowed car or rental car. It’s perfectly legal to purchase short-term car insurance for less than six months, but most insurance companies won’t offer this option.
Your best option might be to call your current insurance provider or contact an online provider to find out your options. It might also be a good idea to find a policy that lets you cancel for no or low fees and transfer to a more long-term option when you’re ready.
Yes, you can get SR-22 insurance in New Jersey, which is a document your insurance provider files with the state that proves you have the minimum coverage required to get behind the wheel. You might need an SR-22 certificate if you’ve gotten a DUI, lost your license or been caught driving without insurance.
While most states around the US share a fairly common set of traffic laws, there are a few specific to New Jersey to make note of before you drive down to the shore.
Every state in the US, including the Garden State, enforces a limit of 0.08% blood alcohol content (BAC) for normal drivers and 0.04% BAC for commercial drivers. Additionally, drivers under 21 are held to a stricter limit of 0.02% BAC.
| First offense | Second offense | Third offense | |
|---|---|---|---|
| Jail | Up to 30 days | Up to 90 days | Up to 180 days |
| Fines | $250–$500 | $500–$1,000 | $1,000 |
| Automobile insurance surcharge | $1,000 a year for 3 years | $1,000 a year for 3 years | $1,500 a year for 3 years |
| Intoxicated Driver Resource Center | Minimum of 6 hours a day for 2 days | 2 days | Detainment in an in-patient alcoholism treatment program |
| License suspension | 3 months to 1 year | 2 years | 10 years |
| Ignition interlock device (IID) required | 6 months to 1 year | 1–3 years | 1–3 years |
If you’re driving on a public road in New Jersey, you’re giving implied consent to be tested for alcohol or drugs when a police officer suspects you’re under the influence. If you refuse a portable breath test or breathalyzer, you’ll pay penalties, even if you were never under the influence in the first place.
| First offense | Second offense | Third offense | |
|---|---|---|---|
| Fines | $300–$500 | $500–$1,000 | $1,000 |
| Automobile insurance surcharge | $1,000 a year for 3 years | $1,000 a year for 3 years | $1,500 a year for 3 years |
| Surcharge for the Drunk Driving Enforcement Fund | $100 | $100 | $100 |
| Referral to an Intoxicated Driver Resource Center | Yes | Yes | Yes |
| License suspension | 7 months to 1 year | 2 years | 10 years |
| Ignition interlock device (IID) required | 6 months to 1 year | 1–3 years | 1–3 years |
A car accident can leave you shaken up, even when it’s just a small fender bender. Stay calm and follow these steps to keep the process as simple as possible.
New Jersey uses the Comparative Negligence Act to determine each driver’s degree of fault in an accident. After an accident, the insurance company investigates and reviews all the facts including police reports and driver and witness statements. They’ll assign a percentage of fault to each person involved in the accident. If you’re found at fault at all, payment from the other driver’s insurance company is reduced by that portion.
If anyone is killed, if there is an injury or if there is property damage greater than $500, report the accident to local law enforcement right away. If law enforcement is not called to the scene of an accident, you’ll need to complete the New Jersey Self-Reporting Crash form within 10 days after the accident. Failure to do so could result in fines between $30 and $100 and suspension of your driver’s license and car registration.
Car insurance is legally required in New Jersey and provides a financial safety net in case of a serious accident. Look into your coverage options to find out what’s best for you once you’ve met the legal minimums.
To learn more, from the best discounts and deals on auto insurance to the different rules and regulations across the country, visit the comprehensive guide to car insurance.