Skip the auto shop - Our mechanics make house calls

Insurance Requirements for Car Registration in New Jersey

Insurance Requirements for Car Registration in New Jersey

All registered vehicles in New Jersey are required to be covered by three types of liability insurance, or “financial responsibility.” The minimum financial responsibility requirements for New Jersey drivers are as follows:

  • A minimum of $5,000 for liability insurance, which pays for damages that you cause to other people’s property.

  • A minimum $15,000 for personal injury protection, which pays for medical expenses if you or other people on your policy are injured in an accident, regardless of who was at fault. This is also called “no-fault insurance” by many insurance providers.

This means that the total minimum amount of financial responsibility you will need is $20,000 to cover liability insurance and personal injury protection or “no-fault insurance.”

  • New Jersey law also requires that your insurance policy include uninsured or under-insured motorist coverage, which protects you in the event you are in an accident with a driver who does not carry the legally required liability insurance.

Special Automobile Insurance Policy Program

Citizens of New Jersey that are enrolled in federal Medicaid are eligible for the New Jersey Special Automobile Insurance Policy program, or SAIP. This is a low-cost insurance policy that pays for medical costs after a car accident. Most authorized New Jersey insurance providers offer plans under the SAIP.

Proof of insurance

New Jersey has very strict regulations for what constitutes proof of insurance. All authorized insurance companies in New Jersey are required to issue New Jersey Identification Cards for each vehicle that is covered under a policy. This card is the only valid form for proof of insurance, and must meet the following regulations:

  • The card must be made of white cardstock that is at least 20 lb weight.

  • The card must be between three by five inches, and five and a half by eight and a half inches.

Each card must display the following information:

  • The insurance company’s name

  • The names of all people covered on the policy, and their associated addresses, which must be listed on the back of the card, and must be identical to the address they use for medical purposes.

  • The insurance policy number

  • The effective and expiration dates of the insurance policy

  • The vehicle’s make, model, and vehicle identification number

  • The heading “State of New Jersey Insurance Identification Card”

  • The authorized insurance company code

  • The name and address of the insurance company or agency

This card must be presented before an inspection, at the scene of an accident, in the event you are stopped for a traffic violation, or when any law enforcement officer spot checks your vehicle.

Violation penalties

Failing to present proof of insurance may result in fines. If you are caught driving an uninsured vehicle in New Jersey, you may face certain penalties including:

  • Fines

  • Community service

  • License suspension

  • Insurance surcharges

For more information, contact the New Jersey Motor Vehicle Commission through their website.

The statements expressed above are only for informational purposes and should be independently verified. Please see our terms of service for more details
Icon-warranty_badge-02

Skip the repair shop, our top-rated mechanics come to you.

At your home or office

Choose from 600+ repair, maintenance & diagnostic services. Our top-rated mechanics bring all parts & tools to your location.

Fair & transparent pricing

See labor & parts costs upfront, so you can book with confidence.

12-month, 12,000-mile warranty

Our services are backed by a 12-month, 12,000-mile warranty for your peace of mind.

Get A Quote

Need Help With Your Car?

Our certified mobile mechanics make house calls in over 2,000 U.S. cities. Fast, free online quotes for your car repair.

GET A QUOTE

More related articles

Symptoms of a Bad or Failing Flexible Clutch Hose
Common signs include difficulty shifting, low clutch fluid, and feeling no resistance at the clutch pedal.
How to Buy Fuel Treatments
Adding a fuel additive to your gas tank when you fill up is one way to clean vital engine parts of deposits, improve the performance of your engine,...
Insurance Requirements for Car Registration in Kentucky
The Kentucky Transportation Cabinet requires that all drivers in Kentucky carry liability automotive insurance, or “financial responsibility” in order to operate a vehicle legally and maintain vehicle...


Related questions

Q: Is it Legal to Drive With a Damaged or Missing Mirror?

According to the California Vehicle Code, Section 26709, every motor vehicle that is subject to registration in the state of California, except motorcycles, must have two mirrors that reflect to the driver a view of the highway for a distance...

Q: Advice on buying the first car

Unfortunately, I don't want to jinx you, but the first car people get is the first car they wreck. I would say get a nice, used Toyota. You pay less, your insurance will be a lot cheaper. As time goes...

Q: Do I need gap insurance?

Gap insurance is designed to cover the difference between what is owed on the vehicle (your car loan) and what the insurance company may pay out in the event of an accident or loss. Any example might be a situation...