New Jersey Car and Motorcycle Insurance Law

Required Minimum Bodily Injury and Property Damage Coverages for Motor Vehicle Insurance Policies and Standard Automobile Insurance Policies

In New Jersey, a Motor Vehicle Insurance Policy includes a motorcycle insurance policy. A Standard Automobile Insurance Policy is different from a Basic Automobile Insurance Policy.

For motor vehicle and standard auto policies, the following minimum Bodily Injury coverage is required:

  • $15,000 per person injured in any one accident and $30,000 for all persons injured in any one accident

In addition, the following minimum Property Damage coverage is required:

  • $5,000 for injury to or destruction of property of others in any one accident

Optional Basic Automobile Insurance Coverage

  • This coverage is a “No-Fault” policy, and it pays medical expenses of the insured, regardless of fault. However, it prevents an injured person from filing suit against a negligent driver. If elected, the bodily injury coverage requirements stated above do not apply. Instead, the insured gets a Personal Injury Protection (PIP) policy, which pays the insured, those riding with him or her, and pedestrians for injuries, regardless of fault. PIP covers medical expenses of $15,000 per person, but cannot exceed $250,000 per person for medical treatment for permanent/significant brain injury, spinal cord injury, disfigurement, or treatment of any other permanent or significant injuries. It limits property damage coverage to $5,000. The insured can then choose whether he or she wants to purchase an optional bodily injury coverage policy of $10,000 per person. This coverage is not available to motorcycle owners.

Compulsory Uninsured Motorist (UM) Coverage.

  • All motor vehicle policies, except basic automobile insurance policies, must provide at least $5,000 of UM coverage.

Optional Uninsured (UM) and Underinsured Motorist (UIM) Coverage Available to those Purchasing Standard Automobile Insurance Policies.

  • UM/UIM is only offered to those purchasing standard automobile insurance policies. If purchased, the coverage must be at least $250,000 per person injured in any one accident, $500,000 for all persons injured in any one accident, and $100,000 for property damage.

Optional Personal Injury Protection (PIP) Coverage Available to those Purchasing Standard Automobile Insurance Policies.

  • PIP coverage is offered to those purchasing standard automobile insurance policies. PIP coverage can be purchased in the maximum amount of $250,000 per person to pay for medical expenses, without regard to fault. Under this coverage, income continuation benefits can also be purchased, with a weekly maximum payout of $100, up to $5,200. Essential service benefits can be purchased, with a maximum payout of $12 per day, up to $4,380. Funeral benefits can also be purchased up to a maximum of $1,000.

Tort Limitation Option Available to those Purchasing Standard Automobile Insurance Policies.

  • In exchange for a reduced premium, purchasers of standard automobile insurance policies can limit their right to sue a negligent driver by electing the tort limitation option. If chosen, the insured can only sue if he sustains a bodily injury that results in death, dismemberment, significant disfigurement, significant scarring, displaced fractures, loss of a fetus, or a permanent injury.

Special Rules for Motorcycle Owners.

  • Optional UM and UIM, PIP, and tort limitation are not available to motorcycle owners.

Need more information on state laws? Learn more about the laws where you live.

Note: Our attorneys are licensed to practice law in Pennsylvania, West Virginia, Ohio, Maryland, and Virginia. This information is not intended to solicit clients for matters outside of the states of Pennsylvania, Ohio, West Virginia, Maryland, and Virginia, although if you are injured in an accident, we have relationships with other personal injury attorneys and lawyers throughout the United States.

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