NJ DMV NJ DMV Insurance Requirements 1 — Questions and Answers
Question 1: What is the minimum required liability insurance coverage for bodily injury per person in New Jersey?
- $10,000
- $15,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $15,000
New Jersey's basic auto insurance requires a minimum of $15,000 per person for bodily injury liability coverage.
Question 2: What type of auto insurance is MANDATORY for all registered vehicles in New Jersey?
- Comprehensive coverage
- Collision coverage
- Liability insurance (at minimum the Basic Policy) (Correct answer)
- Uninsured motorist coverage
Correct answer: Liability insurance (at minimum the Basic Policy)
New Jersey requires all registered vehicles to carry at minimum liability insurance through a Basic Policy or a Standard Policy.
Question 3: In New Jersey, what does Personal Injury Protection (PIP) coverage pay for?
- Damage to another driver's vehicle
- Medical expenses for you and your passengers regardless of fault (Correct answer)
- Legal defense costs in lawsuits
- Rental car costs when your car is being repaired
Correct answer: Medical expenses for you and your passengers regardless of fault
PIP (Personal Injury Protection) in NJ pays medical expenses for the policyholder and passengers regardless of who caused the accident.
Question 4: What is the minimum property damage liability coverage required under a NJ Standard auto insurance policy?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
The NJ Standard auto insurance policy requires a minimum of $5,000 in property damage liability coverage.
Question 5: Under NJ law, what document must you show a police officer after a traffic stop?
- Your insurance policy declarations page
- Your insurance identification card (Correct answer)
- Your entire insurance policy binder
- A letter from your insurance agent
Correct answer: Your insurance identification card
NJ drivers must carry and present a valid insurance identification card to law enforcement when requested during a traffic stop.
Question 6: What is the difference between NJ's Basic auto insurance policy and the Standard policy?
- Basic covers more — it is for high-risk drivers
- Standard offers higher coverage limits and more options including bodily injury liability (Correct answer)
- Basic and Standard are identical but priced differently
- Standard is mandatory; Basic is optional
Correct answer: Standard offers higher coverage limits and more options including bodily injury liability
The NJ Standard Policy offers higher coverage limits, including bodily injury liability up to $250,000+, while the Basic Policy offers minimal coverage at lower cost.
NJ DMV NJ DMV Insurance Requirements 1
What is the minimum required liability insurance coverage for bodily injury per person in New Jersey?