Posted by You may be new to New Jersey, or a homegrown person getting a new car. Whatever category you fall into (even the ones not mentioned) “Do you need insurance to register a car in New Jersey” should definitely be a question on your mind if you’re looking to get a car. This is why we are here!
New Jersey is among the 43 states in the US that require you to get insurance before registering your car (well, you are not alone!). So, avoiding insurance is not an option, you even need it to drive!
This article has all the information that would answer your question about insurance for your car registration in New Jersey; why, costs, risks, types of auto insurance and so much more.
Sit back and enjoy!
Table of Contents
Do you Need Insurance To Register A Car In New Jersey?
Truthfully, Yes, insurance is part of the legal requirements to register your car in New Jersey.
This is under the New Jersey Motor Vehicle Commission regulations. The specific law is N.J.A.C 13:19-10.1, which states that “No person shall operate a motor vehicle in this State unless that person maintains in full force and effect, and thereafter renews, an automobile liability insurance policy for that motor vehicle.”
Although the law doesn’t specifically state that one must have insurance to do a registration, the New Jersey MVC won’t issue a registration to you if you’re car is not insured because this would violate the law.
You may need to know more about the general Auto Transport Insurance Requirements.
What Happens If Your Car Is Not Insured Before Registration In New Jersey?
If you have read this far, you already know that taking an uninsured car for registration in New Jersey already guarantees you no registration. This also means that you’re legally not allowed to drive that car.
If you’re caught driving an uninsured vehicle anywhere in the state, you could be fined up to $500 and even have your license suspended for up to a year. Frankly, it’s not worth all the trouble!
Why Does New Jersey Require Insurance Before Registration Of Cars?
Below are some reasons insurance is legally required for car registration:
- It is the law and everyone must comply with the laid down regulations.
- It is to ensure the protection of drivers and pedestrians on the road. This is important when there is an accident and medical expenses come up.
- To ensure the financial responsibility of drivers on the streets of New Jersey.
Minimum Auto Insurance Requirements In New Jersey
Every state has its auto requirement, and it is important to know what is required in the state you live in. In New Jersey, you are required to have:
1. Liability Insurance:
This generally covers expenses for damages that could be caused by the driver in the case of an accident. It covers the other party involved and the property affected.
- $5,000 per person bodily injury
- $30,000 per accident for bodily injury
- $5,000 for property damage.
2. Personal Injury Protection (PIP):
This is to protect the driver in case of an accident. It is at $15,000.
Cost Of Insurance In New Jersey
The cost of auto insurance in New Jersey is slightly higher than the national average. On the average, insurance costs about $1,548. It is possible to find less expensive insurance policies if you compare plans or companies.
Although the average stands at $1,548, the cost of insurance could be higher or lower depending on several factors that we will discuss next.
If you’re unsure whether you need insurance to register a car in Florida, check out this comprehensive guide.
10 Factors That Affect the Cost Of Auto Insurance In New Jersey
Since we now know that insurance is legally required for car registrations, let’s address the cost factor for acquiring the insurance coverage.
Here is a list of factors that could affect the cost of auto insurance in New Jersey:
- Age
- Driving record
- Location
- Credit score
- Vehicle type
- Annual mileage
- Deductible amount
- Type of Coverage
- Insurance company
- Multi-car discounts
Let’s look at them quickly!
#1. Age:
The younger you are, the more you are likely to pay for the cost of your car coverage. It is a general belief that younger drivers take more risks on the road, which means that insurance companies are likely to have more expenses to cover for young drivers. This therefore affects their premiums.
#2. Driving Record:
If you have a poor driving record, you are most likely to pay more for insurance. Things like speeding tickets and accidents only serve to increase your insurance cost.
#3. Location:
If you live in an area known to have a high rate of criminal activities that affect cars; auto theft, vandalism, etc, you will definitely pay more for insurance coverage.
#4. Credit Score:
Research shows that people with lower credit scores are prone to filing claims. If you happen to have a low credit score, this affects your insurance cost as it would be higher to cover a possible claim.
#5. Vehicle Type:
This is really important because vehicle repair costs vary greatly. The cost of fixing a high-end sports car is definitely more than that of fixing a basic sedan. This in turn affects the cost of one’s insurance policy.
#6. Annual Mileage:
The number of miles you drive per year impacts the rate at which your car breaks down, this also affects your possible insurance coverage cost. You are also prone to more accidents when you drive more often. This is also factored into the cost.
#7. Deductibles:
If you are required to pay more for deductibles, then your actual insurance cost ought to be lower. This is because you will have to pay much out-of-pocket when there is an accident before your insurance coverage kicks in.
#8. Coverage Type:
The type of coverage plan you use matters a lot. If you settle for basic liability insurance, then the cost is less. But if you include collision and comprehensive coverage, then the cost will definitely be higher.
#9. Insurance Company:
Every company has its own rates. You could shop around until you find a company with rates that fall within your budget.
#10. Multi-Car Discounts:
If you have several cars in a household, you could save a lot of money by getting discounts offered by most insurance companies for insuring several cars at once.
Companies You Can Get Insurance For Your Car Registration In New Jersey
Since you already know what to look for. Here’s a list of companies that offer insurance in New Jersey. You can shop through their plans and pick what works for you!
Documents Needed For Car Registration In New Jersey
If you have got your insurance covered, you might want to know what else is required of you.
The following are documents you should have before you go for registration:
- Vehicle title
- Proof of insurance
- Valid driver’s license
- Bill of sale (for new cars)
- Registration fee
- Applicable taxes
- Possible inspection
Let’s discuss them briefly:
1. Vehicle Title:
This means that you are the owner of the vehicle. It must have your name on it for you to do your registration.
2. Proof of Insurance:
After getting your insurance, you get this from your company as part of your registration documents. It must be valid and current to register the car.
Do you really need proof of insurance to register a car? Check out this amazing guide.
3. Valid Driver’s License:
You need a valid and current license to register the car. Without it, you are not even allowed to drive.
4. Bill of Sale:
This is to show that the car was purchased legally. It must be signed by both the buyer and seller. And it should bear the price of the car.
5. Registration Fee:
You will also need to have the stipulated registration fee to make payment for your car registration
6. Applicable Taxes:
This varies from state to state. In New Jersey, the tax rate ranges from 6% to 7% of the purchase price of the car.
How To Obtain Proof Of Insurance For Your Car Registration In New Jersey
In New Jersey, you can obtain proof of insurance in these few ways:
You can request a Certificate of Insurance from your insurance company. This document will list your name, policy number, and the dates your policy is in effect.
You can request an Auto Insurance Card from your insurance company. This card will also list your name, policy number, and the dates your policy is in effect.
These documents must be up-to-date and valid to be used for registration.
Documents That Could Serve As Proof Of Insurance In New Jersey
Some documents can serve as proof of insurance in New Jersey. This is useful for your car registration and if you get pulled over by the cop. They are:
- A valid insurance policy
- A valid insurance binder
- A valid insurance card
- A valid Certificate of Insurance
Steps To Getting Your Car Registered In New Jersey
If you’ve followed so far, then you’re well on your way to getting a good registration. Here’s how to do it:
- Put together the required documents (insurance, title, license, etc.)
- Complete a Vehicle Registration Application form (available online or in person)
- Visit the Motor Vehicle Commission (MVC) agency in New Jersey and submit your documents
- Pay the registration fee
- Pass your mandatory vehicle inspection.
- Receive your registration certificate and license plates.
Frequently Asked Questions
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Conclusion
Having good information is key to making good decisions about what to do. Now you know that you need insurance to register your car in New Jersey. We hope you’ve also learned several other things in this article.
Check out our other articles
Cheers.