FAQ: Driving without Auto Insurance in New Jersey

How many uninsured drivers are on the road in New Jersey? 

In New Jersey, almost 15 percent of drivers are uninsured. Many others are underinsured, meaning they have insurance but it’s likely insufficient to pay a significant accident or injury claim. 

That’s why drivers in New Jersey must purchase uninsured and underinsured motorist coverage as part of their car insurance policy. 

If you’re in an accident and the at-fault driver is uninsured or underinsured, they may not be able to pay for expenses that they are responsible for. Because New Jersey is a no-fault state, you need to file a claim with your own insurance company first to receive compensation for your medical expenses. But uninsured/underinsured motorist claims can be made for:

• Past and future medical treatment
• Property damage for your vehicle or personal items damaged during the accident
• Lost wages due to missing work while recovering from your injury
• Loss of income if your injuries permanently prevent you from working
• Wrongful death damages if the accident causes a fatality

In these cases, your policy covers your injuries up to the limits of your policy ($15,000 minimum) even if the other driver was at fault. If the at-fault driver is uninsured, your uninsured motorist coverage kicks in to cover any remaining medical and vehicle damage expenses (up to your policy limit). If the at-fault driver is underinsured, his or her liability insurance would kick in after your policy paid its portion followed by your uninsured motorist coverage for the remaining balance. 

If you are going to purchase car insurance in New Jersey, you’ll have to purchase at least the minimum amount of uninsured and underinsured motorist coverage required by law:

• $15,000 for single person injuries
• $30,000 for injuries of all persons involved in an accident
• $5,000 for property damage

You can purchase higher limits, but your uninsured motorist coverage limit may not exceed your policy’s liability coverage limit.

What is the penalty for driving without insurance in New Jersey?

Failure to purchase car insurance in New Jersey can result in fines and even jail time. If you’re pulled over or involved in an accident and you can’t show proof of insurance, you can expect to be fined, or worse. 

The penalties for driving without insurance in New Jersey are as follows:

First offense:

• $300 or $1,000 fine 
• One year license suspension
• Car insurance surcharge of $250 per year for three years

Second offense:

• $5,000 fine
• 14 days in jail
• 30 days community service
• Two-year license suspension

An independent insurance agent in New Jersey can help you get the coverage you need to satisfy the state's requirements, as well as appropriately cover your risks.