NJ DMV Insurance Requirements Flashcards

In NJ, what happens to your driver's license if your vehicle registration is suspended due to a lapse in insurance?

Answer: Your driver's license may also be suspended

In NJ, a registration suspension for lack of insurance can also result in driver's license suspension.

What is the New Jersey CURE (Citizens United Reciprocal Exchange) insurance program?

Answer: A nonprofit auto insurer designed for high-risk or hard-to-insure NJ drivers

CURE is a NJ-based nonprofit auto insurer that bases premiums primarily on driving record rather than socioeconomic factors, designed to serve drivers who struggle to find affordable coverage.

Which NJ auto insurance coverage pays to repair or replace your vehicle if it is damaged in a collision with another vehicle?

Answer: Collision coverage

Collision coverage pays to repair or replace your vehicle when it is damaged in a collision, regardless of fault.

What does comprehensive auto insurance cover in New Jersey?

Answer: Non-collision events such as theft, vandalism, weather damage, or hitting an animal

Comprehensive coverage in NJ pays for vehicle damage from non-collision events including theft, flood, fire, vandalism, falling objects, and animal strikes.

What is the NJ insurance requirement for a newly purchased vehicle?

Answer: The vehicle must be insured before or at the time of registration

New Jersey requires vehicles to be insured before registration is issued — you must show proof of insurance to complete the registration process.

Which of these factors is PROHIBITED by NJ law from being used to set auto insurance premiums?

Answer: Gender and marital status as primary factors under the reform law

New Jersey's auto insurance reform laws restrict the use of factors like gender as a primary rating factor, requiring insurers to focus on driving behavior.