Driving Without Auto Insurance – What You Need to Know
Like almost all other states, New Jersey requires residents to have adequate car insurance on their vehicles. However, just because insurance is a requirement doesn’t mean all drivers have it. With the average cost of full coverage hovering at $205 a month, many drivers choose to go with minimal coverage or no coverage at all.
The number of uninsured and underinsured motorists is on the rise. New Jersey has an uninsured motorist rate of 10.9%, which is on the lower end, given that the national average is 14%. Washington, D.C. has the highest percentage of uninsured drivers, at 25.2%. Wyoming, on the other hand, has the lowest percentage of uninsured drivers, at 5.9%.
Each state has minimum insurance requirements that drivers must abide by in order to stay legal under the law. For New Jersey, the minimum requirement is 25/50/25:
- $25,000 in bodily injury liability per person per accident
- $50,000 in bodily injury liability total per accident
- $25,000 in property damage liability per accident
Drivers also need to have $15,000 in personal injury protection (PIP) as well as 25/50 in uninsured/underinsured motorist coverage.
While these are the bare minimums, many drivers have more coverage than this. In fact, most insurance experts recommend purchasing a standard policy with more coverage and higher limits.
There are basic policies for those who have limited income. Basic policies were designed by the state to ensure all drivers can afford some auto insurance at an affordable rate. However, a basic policy has lower limits and restricts your ability to buy uninsured and underinsured motorist coverage, comprehensive, or collision coverage either.
Penalties for No Insurance
A person can face various penalties for driving without insurance. For the first offense, they include:
- Fines of up to $1,000
- One-year license suspension
- $100 surcharge for license reinstatement
- Possible community service
For subsequent offenses, a person can face:
- Fines of up to $5,000
- Two-year license suspension
- $100 surcharge for license reinstatement
- 14 days in jail
- 30 days of community service
Keep in mind that if you cause an accident without insurance, you will also have to pay out of pocket for the damages you caused, on top of everything else. Bottom line: While insurance can be costly, it’s even costlier to drive without insurance. The best way to avoid these penalties is to practice safe driving and always have proper insurance on your vehicle.
Contact a New Jersey Personal Injury Lawyer Today
While driving without insurance in New Jersey is illegal, many people still do it. However, they can face serious penalties if caught.
An accident claim involving an uninsured motorist can be tricky. Get the help you need from a Morristown uninsured & underinsured motorist attorney from The Law Offices of Michael P. Burakoff. What makes uninsured and underinsured cases unique is how we will work with insurance companies to recover damages. To schedule a consultation, fill out the online form or call (973) 455-1567.
Source:
bankrate.com/insurance/car/new-jersey-driving-without-insurance/
