No, you cannot legally drive a car without insurance in New Jersey. The state operates under a "no-fault" system, meaning all drivers are required to carry a minimum amount of liability and Personal Injury Protection (PIP) coverage. PIP is a key component of no-fault insurance, covering your own medical expenses after an accident regardless of who caused it. Driving uninsured carries severe penalties, including fines, community service, and even suspension of your driving privileges and vehicle registration.
New Jersey law mandates specific minimum coverage limits. You have choices, but the absolute minimums are often referred to as the Basic Policy. This includes $5,000 in property damage liability (for damage you cause to someone else's property) and PIP coverage for medical expenses. However, the Basic Policy offers very limited protection. The Standard Policy, which provides more robust coverage, includes higher liability limits, such as $15,000 for injury to one person, $30,000 for injuries to all persons in an accident, and $5,000 for property damage.
The state employs an electronic insurance verification system, so police and the Motor Vehicle Commission can easily identify uninsured vehicles. The penalties for non-compliance are significant and escalate with repeat offenses.
| Penalty | First Offense | Second Offense | Subsequent Offenses |
|---|
| Fine | $300 - $1,000 | - | - |
| DMV Surcharge | $250 per year for 3 years | $250 per year for 3 years | $250 per year for 3 years |
| Community Service | May be imposed | - | - |
| License Suspension | Up to 1 year | Up to 2 years | Up to 2 years |
| Registration Suspension | - | - | - |
There is a single, very narrow alternative to traditional insurance: you can satisfy the financial responsibility requirement by posting a $1,000,000 bond with the state or by providing proof of a $1,000,000 deposit with the State Treasurer. For the vast majority of drivers, purchasing an insurance policy is the only practical and affordable option.
