NJ DMV Insurance Requirements Flashcards

What is the NJ surcharge for driving without insurance, imposed by the Motor Vehicle Commission?

Answer: $250 per year for 3 years

The NJ MVC imposes a $250 per year surcharge for 3 years (totaling $750) for conviction of driving without insurance.

What is New Jersey's 'No-Fault' insurance system?

Answer: A system where your own insurer pays your medical bills regardless of who caused the accident

NJ's no-fault system requires your own insurer to pay your medical expenses after an accident regardless of who was at fault, through PIP coverage.

In NJ, under the 'limitation on lawsuit' threshold, when can you sue another driver for non-economic damages?

Answer: Only when the injury meets a defined threshold of severity (e.g., death, dismemberment, significant disfigurement, or permanent injury)

Under NJ's verbal threshold (limitation on lawsuit), you may sue for non-economic damages only when the injury meets specific severity criteria such as permanent injury or significant disfigurement.

How long does a NJ insurance company have to notify the MVC after canceling a driver's auto insurance?

Answer: 5 days

New Jersey insurers are required to notify the MVC within 5 days of canceling an auto insurance policy.

What is the minimum PIP (Personal Injury Protection) coverage amount required under a NJ Standard auto insurance policy?

Answer: $10,000

New Jersey requires a minimum of $15,000 in PIP coverage under the Standard auto insurance policy.

If a NJ driver is involved in an accident with an uninsured motorist, what coverage pays for their medical bills?

Answer: Their own PIP and Uninsured Motorist coverage

If struck by an uninsured driver, your own PIP covers your medical bills; Uninsured Motorist (UM) coverage can cover additional damages.