NJ DMV NJ DMV Insurance Requirements 2 — Questions and Answers
Question 1: What is the NJ surcharge for driving without insurance, imposed by the Motor Vehicle Commission?
- $100 flat fee
- $250 per year for 3 years (Correct answer)
- $500 one-time fine
- $1,000 upon conviction
Correct 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.
Question 2: What is New Jersey's 'No-Fault' insurance system?
- A system where neither driver is ever at fault
- A system where your own insurer pays your medical bills regardless of who caused the accident (Correct answer)
- A system that eliminates the need for any auto insurance
- A system where the state pays for accident damages
Correct 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.
Question 3: In NJ, under the 'limitation on lawsuit' threshold, when can you sue another driver for non-economic damages?
- After any fender bender
- Only when the injury meets a defined threshold of severity (e.g., death, dismemberment, significant disfigurement, or permanent injury) (Correct answer)
- Whenever the other driver is at fault
- Only when your medical bills exceed $1,000
Correct 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.
Question 4: How long does a NJ insurance company have to notify the MVC after canceling a driver's auto insurance?
- 24 hours
- 5 days (Correct answer)
- 10 days
- 30 days
Correct answer: 5 days
New Jersey insurers are required to notify the MVC within 5 days of canceling an auto insurance policy.
Question 5: What is the minimum PIP (Personal Injury Protection) coverage amount required under a NJ Standard auto insurance policy?
- $5,000
- $10,000 (Correct answer)
- $15,000
- $250,000
Correct answer: $10,000
New Jersey requires a minimum of $15,000 in PIP coverage under the Standard auto insurance policy.
Question 6: If a NJ driver is involved in an accident with an uninsured motorist, what coverage pays for their medical bills?
- The at-fault driver's liability insurance
- Their own PIP and Uninsured Motorist coverage (Correct answer)
- State emergency medical funds
- Collision coverage only
Correct 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.
NJ DMV NJ DMV Insurance Requirements 2
What is the NJ surcharge for driving without insurance, imposed by the Motor Vehicle Commission?