Can you own a car without insurance in NJ?
New Jersey State Law requires the registered owner to maintain motor vehicle liability insurance coverage. Your vehicle was identified through an insurance carrier as having dropped coverage or cancelled the policy.
In New Jersey, you aren't required to maintain insurance coverage on a vehicle you are no longer driving, but the tags for your vehicle will need to be returned to the state. We recommend contacting your local registration office for more information about what to do with tags on an inoperable vehicle.
| Penalty type | First offense | Subsequent offenses |
|---|---|---|
| Fines | $300 to $1,000 | Up to $5,000 |
| License suspension | Up to one year | Two years |
| NJ MVC surcharge | $100 for license reinstatement | $100 for license reinstatement |
| Jail time | N/A | 14 days |
New Jersey law requires all drivers to carry auto insurance that includes both liability and personal injury protection (PIP) coverages. Uninsured motorist and collision and comprehensive coverages aren't required in New Jersey but can be added to your policy.
Most insurance companies won't allow you to insure a car that you don't legally own. In order to purchase a car insurance policy, you must be able to prove that you have an “insurable interest” in the vehicle. And if the vehicle isn't in your name, you have no insurable interest in it.
Does Your Car Insurance and Registration Have to Be Under the Same Name in New Jersey? The name on the registration and the insurance usually match, but the law doesn't require it. There may be instances when the insurance card doesn't name a driver because the card only lists primary policyholders.
The average monthly car insurance cost in New Jersey is approximately $146 for full coverage and $65 for minimum coverage. New Jersey drivers with a DUI conviction pay average rates that are 88 percent higher compared to drivers with a clean driving record.
Cheapest liability car insurance in New Jersey: Geico
Geico has the cheapest liability-only car insurance quotes in New Jersey. At $49 per month, a policy from Geico is roughly half the cost of the state average. The average cost of minimum-coverage car insurance in New Jersey is $92 per month, or $1,102 per year.
Insurance companies have the right to pursue compensation from an uninsured driver through subrogation. However, the company only seeks reimbursem*nt for the amount paid through your coverage. Unfortunately, this can leave victims of car accidents without the compensation necessary to recover fully.
Currently, ten states have no pay, no play laws on the books: Alaska, California, Iowa, Kansas, Louisiana, Michigan, New Jersey, North Dakota, Oklahoma, and Oregon.
How does no-fault insurance work in NJ?
Under no-fault, your own car insurance coverage (in New Jersey, it's your "personal injury protection" or "PIP" coverage) pays for medical treatment and other out-of-pocket losses incurred by anyone covered under the policy, up to coverage limits, no matter who caused the car accident.
If the other driver is at fault for the accident, but they don't have insurance, you may need to take legal action to recover damages. Depending on the state, you may also be required to report the accident to the police, who may investigate the incident and file charges if necessary.
In order to legally drive your car in New Jersey, you have a carry a state-mandated minimum amount of insurance, which includes: $15,000 per person for injury or death. $30,000 per accident for all injuries. $5,000 for property damage.
While the person who owns a car is usually the one who insures it, most states will allow policies to be paid by someone other than the owner. However, many will not insure a car if the policyholder and car owner are not the same.
You cannot register a car without insurance in New Jersey, as proof of insurance is required at the time of registration. In New Jersey, you are required to have $5,000 in liability coverage for property damage, and $15,000 personal injury protection.
Is proof of insurance required to register a car in New Jersey? In order to register a car in New Jersey, you need to have proof of insurance. You'll need to bring your New Jersey car insurance when registering your car.
Can a car be registered in one name and insured in another? In most states, the names on a vehicle's registration and your proof of insurance don't have to be the same from a legal perspective. However, an insurer can decide not to insure a person whose name is not on the vehicle's registration.
Car insurance companies want to determine the risk they're taking on by offering you an auto insurance policy and thus require you to inform them of all licensed household members and anyone else who frequently drives your vehicles.
Geico will insure a car that's not in your name. However, you need to be able to prove that you have some financial stake in the vehicle.
Why is car insurance so expensive in New Jersey? While it's not the most expensive state for car insurance in the country, New Jersey still ranks 45th for affordability. Car insurance is likely higher due to traffic levels in urban areas, proximity to other major cities and the number of claims in the state.
Is NJ car insurance high?
Car insurance in New Jersey is expensive because it's a no-fault state with the highest population density of any state in the country. In New Jersey, you can expect to pay approximately $6,080 per year for full coverage car insurance or $2,303 per year for minimum coverage.
The first phase of New Jersey's latest car insurance requirements took effect in January 2023 and the second phase will occur in January 2026. The cost for liability car insurance coverage for New Jersey drivers increased by an average of $145 per year due to the required higher coverage limits.
Low-income car insurance in New Jersey
A SAIP only covers injuries you suffer in a car accident. If you qualify, it's all you need to meet the state's car insurance requirements. A SAIP costs $365 a year and is available from almost any state-licensed car insurance company in New Jersey.
Type of vehicle: Small SUVs and minivans generally receive lower auto insurance rates, while sedans and large SUVs cost more to insure. Cheap car insurance is difficult to find for those with pickup trucks, electric vehicles, luxury models and sports cars.
New Jersey Low-income Car Insurance Requirements
The SAIP program is geared toward people who would likely be uninsured because of their financial situation. It costs $365 per year to have SAIP. You make two payments of $182.50, but you get a $5 discount if you pay in full.
