NJMVC Insurance and Registration 3 — Questions and Answers
Question 1: What happens to your vehicle registration if your auto insurance is cancelled in New Jersey?
- Nothing changes immediately
- Your registration is automatically suspended (Correct answer)
- You have 30 days to obtain new insurance
- You must surrender your license plates only
Correct answer: Your registration is automatically suspended
In NJ, if your insurance is cancelled, MVC is notified and your vehicle registration is automatically suspended.
Question 2: The NJ Standard auto insurance policy differs from the Basic policy primarily because it:
- Costs less than the Basic policy
- Includes mandatory bodily injury liability coverage (Correct answer)
- Eliminates the need for PIP coverage
- Only covers vehicles less than 5 years old
Correct answer: Includes mandatory bodily injury liability coverage
The Standard policy includes bodily injury liability coverage, which protects others if you injure them in an accident.
Question 3: Which of the following is considered proof of insurance acceptable to NJ law enforcement?
- A photo of your insurance card on your phone
- A written note from your insurance agent
- The physical insurance identification card (Correct answer)
- Your bank statement showing premium payments
Correct answer: The physical insurance identification card
New Jersey accepts the physical insurance ID card as proof; some officers may also accept digital versions, but the card is the standard.
Question 4: In NJ, the 'right to sue' threshold on the Standard auto policy affects your ability to:
- Register your vehicle
- Sue another driver for pain and suffering (Correct answer)
- Cancel your policy early
- Transfer your registration to another owner
Correct answer: Sue another driver for pain and suffering
The lawsuit threshold on NJ Standard policies determines under what circumstances you may sue another driver for non-economic damages like pain and suffering.
Question 5: When transferring a vehicle to a family member in New Jersey, which fee is typically reduced or waived?
- Title transfer fee
- Registration renewal fee
- Sales tax on intra-family transfers (Correct answer)
- Insurance premium
Correct answer: Sales tax on intra-family transfers
NJ allows certain intra-family vehicle transfers to be exempt from sales tax under specific qualifying conditions.
Question 6: An NJ driver who is found operating without insurance faces a fine of up to:
- $100
- $300
- $1,000 (Correct answer)
- $5,000
Correct answer: $1,000
Driving without insurance in NJ can result in a fine of up to $1,000 for a first offense, plus license suspension.
Question 7: What color are New Jersey standard passenger vehicle license plates?
- Blue background with yellow letters
- Yellow background with blue letters
- White background with blue letters (Correct answer)
- Green background with white letters
Correct answer: White background with blue letters
Standard NJ passenger vehicle plates feature a white background with blue letters and the Garden State graphic.
NJMVC Insurance and Registration 3
What happens to your vehicle registration if your auto insurance is cancelled in New Jersey?