Do you know anything about NJ Car Insurance laws?
Mar 4th, 2010 by AutoInsGuy
jessica s asked:
If I live in a household with my in laws and I get car insurance do I have to add them onto my policy since we are all in the same residence – even if they are not going to drive my car?
Courtney
If I live in a household with my in laws and I get car insurance do I have to add them onto my policy since we are all in the same residence – even if they are not going to drive my car?
Courtney
I wouldn’t think so, especially if they won’t be driving your car, but check with your agent to be sure.
According to the NJ MVC site:
All drivers in New Jersey must provide proof of insurance when operating any vehicle. Failure to do so can result in hefty fines and suspension. Having insurance is just as important as having a title on your car or registering it with MVC.
Insurance requirements:
All vehicles registered in New Jersey require three types of mandatory insurance:
Liability insurance pays others for damages that you cause if you are responsible for an accident. It does not cover medical expenses
Personal injury protection (PIP) pays medical expenses if you or other persons covered under your policy are injured in an automobile accident. Often called No Fault coverage, it pays your medical expenses if you were or were not at fault
Uninsured motorist coverage protects you if you are in an accident with someone who doesn’t have proper insurance coverage
Contact your insurance company for the different insurance coverage choices or check the Department of Banking and Insurance web site.
Required documents:
Your insurance company must give you a New Jersey Insurance Identification Card for each vehicle under your policy.
You must keep the card in the vehicle and present it:
Before an inspection
When involved in an accident
When stopped for a traffic violation
When you are stopped in a spot check by a police officer
Failure to present the card may result in fines.
Driving an uninsured vehicle may result in fines, community service, license suspension and insurance surcharges.
this site may have the answer for you ….
You do not have to add anyone who is not going to drive your car. Even if you some one else drives your car on occasion, they do not have to be named on the policy to be covered.
I doubt your in-laws are under 25, right? So age is not a factor. Do they have a suspended license, history of citations, or any other reason your insurance company would need to be concerned? In most States, insurance follows the car, so if something happens, your policy would be primary. It can be backed up by the driver’s policy as secondary if they have their own.
Look at it this way: the insurance premium you pay helps pay for the claims of others. Likewise, other people’s premium help to pay for your loss. Is it fair for you and your neighbor to pay the same premium if his car is regularly used by his 16-year-old son and his best friend and who know who else? NO.
But (back to your original question) Your car only needs to be insured for those who will drive it. Sometimes it may even help your rates to exclude someone you live with on your policy. Ask a local agent for a copy of the policy for NJ.
If they have their own cars and insurance, no. If they have valid licenses but do not own cars then yes, because if they borrow a car (someone else’s) and get injured the PIP is on your policy or have an at fault accident the liability can come back to you. All licensed operators in a household with car insurance must be on a policy (each can have their own cars and own insurance but if there is only one policy, they all must be drivers on that policy).
You can NOT exclude any drivers on your policy in NJ. It is not an option.