Most people understand the need for having car insurance, both legally and financially. However, not everyone knows what it means to be uninsured in the eyes of the law. Moreover, they may not grasp the consequences of failing to have coverage.
If you live and drive in New Jersey, you need to know about the basic insurance coverage requirements. The personal injury attorneys of Cassidy Law Firm take a look at what might happen if you don't have insurance - including what could occur if you get into a wreck.
The Basic Insurance Requirements in New Jersey
New Jersey mandates that all motorists have insurance that meets the state’s minimum coverage requirements. Those requirements are:
$15,000 per person for bodily injury
$30,000 per accident for bodily injury
$5,000 in property damage coverage
What Does “Uninsured” Mean?
To be “uninsured” in New Jersey means to not have any insurance coverage on your vehicle at all. A similar term, “underinsured,” means to have insufficient coverage.
If you are pulled over and fail to present proof of insurance coverage, you can expect serious legal penalties. Even a first-time violation for lack of insurance can result in:
A fine of between $300 and $1,000
A $750 surcharge, paid at the rate of $250/year for three years
A one-year driver’s license suspension
Community service, for a period that the judge determines
Subsequent violations may lead to:
Fines of up to $5,000
A $750 surcharge, paid at the rate of $250/year for three years
14 days in jail
A two-year driver’s license suspension
Community service of at least 30 days
9 points on your driving record, which will result in insurance premium increases
Personal Liability for an Accident
The above consequences are serious enough and should prompt every driver to double check their coverage. But if you get into an accident in New Jersey and you don’t have any insurance, you could be facing serious legal and financial problems.
The victim could sue you personally for medical bills, lost income, and other damages, the total of which may easily reach into the hundreds of thousands of dollars. The victim can obtain court orders against you, allowing your personal assets to be liquidated.
In other words, without insurance, a car accident victim can take your property in order to satisfy a court judgment against you. It simply makes no sense to leave yourself vulnerable to this level of financial ruin when you could instead purchase an insurance policy.
Options for Victims in Uninsured Accidents
If you were the victim of a car accident in which the at-fault driver did not have insurance, or enough coverage to meet the New Jersey minimum requirements, you may still have options for winning compensation for your injuries. They may include:
Suing the at-fault driver personally: As mentioned above, this may be an option. In many cases, however, the driver will lack sufficient assets to cover the victims’ losses.
Using your UM/UIM coverage: If you carry uninsured motorist/underinsured motorist (UM/UIM) coverage, it may pay for your losses.
MedPay/PIP: You can also potentially use MedPay or Personal Injury Protection (PIP) to cover your medical bills.
Health insurance: Depending on your health insurance policy, it can cover the costs of your medical treatments.
Third-party liability: Some New Jersey car accidents involve negligent third parties like automobile manufacturers and government entities, which could be liable for your losses.
Injured in a Car Accident? We’re Here to Help
You do have compensation options, even if the driver is uninsured, and we can help you explore them. If you were hurt in a New Jersey automobile accident, get in touch with the dedicated team at Cassidy Law Firm. You can schedule your confidential consultation today.