Legal Requirement Overview
New Jersey law mandates that every resident who owns or operates a vehicle must maintain auto insurance issued by a licensed insurer in the state. The policy must be active at all times the vehicle is driven on public roads, and the driver must be able to present proof of coverage when requested by law enforcement.
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Minimum Coverage Limits
The state sets three mandatory liability limits, expressed as a three‑number series: $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $5,000 for property damage. These are the baseline amounts; drivers can purchase higher limits for additional protection.
Proof of Insurance
Drivers must carry an insurance card that includes the insurer's name, policy number, effective dates, and the vehicle's VIN. The card can be a physical paper document or a digital version displayed on a smartphone, provided it is legible and up‑to‑date.
Consequences of Non‑Compliance
If a driver cannot produce valid proof, the vehicle is subject to an immediate suspension. The suspension remains until proof of insurance is filed and any reinstatement fees are paid. Additional penalties may include a $100 fine for the first offense and higher fines for repeat violations.
How to Obtain State‑Issued Coverage
Residents can purchase policies directly from New Jersey‑licensed insurers, either through agents, online portals, or comparison websites. The insurer must issue a policy that complies with NJ statutes, and the driver should verify that the policy's effective date aligns with the vehicle's registration renewal.
Special Situations
Drivers with out‑of‑state plates who temporarily reside in New Jersey for more than 90 days must also secure a New Jersey policy. Similarly, owners of leased or financed vehicles are typically required by the lender to carry comprehensive and collision coverage in addition to the state minimum liability.
Comparison of Common Policy Types
| Policy Type | Coverage Included | Typical Use |
|---|---|---|
| Liability Only | State minimum $15/$30/$5 | Drivers seeking basic legal compliance |
| Liability + Uninsured Motorist | Liability limits plus protection against drivers without insurance | Drivers in high‑risk traffic areas |
| Full Coverage | Liability, collision, comprehensive, medical payments | Leased, financed, or safety‑conscious owners |