Insurance requirements for registering a car in New Jersey

Content

Special car insurance program
proof of insurance
Penalties for Violation

All registered vehicles in New Jersey must be insured with three types of liability insurance, or "financial liability." The minimum financial liability requirements for New Jersey drivers are as follows:

A minimum of $5,000 in liability insurance that covers damage you cause to other people's property.
A minimum of $15,000 in personal injury protection that covers medical expenses if you or others named on your policy are injured in an accident, no matter who is at fault. Many insurance companies also refer to this as "no-fault insurance".

This means that the total minimum amount of financial liability you will need is $20,000 for Liability and Injury Protection or “No Fault” coverage.

New Jersey law also requires that your insurance policy include uninsured or underinsured motorist coverage, which will protect you if you are involved in an accident with a driver who is not legally insured.

Special car insurance program

New Jersey citizens enrolled in federal Medicaid are eligible for the New Jersey Special Auto Insurance Policy, or SAIP. This is an inexpensive insurance policy that covers medical expenses after a car accident. Most authorized insurance providers in New Jersey offer plans under SAIP.

proof of insurance

New Jersey has very strict rules about what constitutes proof of insurance. All authorized insurance companies in New Jersey are required to issue New Jersey identification cards for each vehicle covered by an insurance policy. This card is the only valid form of proof of insurance and must comply with the following rules:

The postcard must be made of at least 20 pounds of white card stock.
The size of the card should be between three by five inches and five and a half by eight and a half inches.

Each card must display the following information:

Insurance company name
The names of all persons covered by the insurance policy and their associated addresses, which must appear on the back of the card and must match the address they use for medical purposes.
Insurance policy number
Validity and expiry dates of the insurance policy
Make, model and vehicle identification number
Headline "New Jersey Insurance Identification Card"
Authorized insurance company code
Name and address of insurance company or agency

This card must be presented before inspection, at the scene of an accident, in the event of a stop for a traffic violation, or when randomly checking your car by a law enforcement officer.