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Snapshot of NJ Law on No Auto Insurance


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One of the many concerns of many automobile owners is to get their cars insured. However, it can never be that easy to avail of an insurance plan for your cars due to the high cost of insurances for cars in New Jersey. Not only in New Jersey but also in several states in the United States and even other countries, the car insurances are among the most expensive insurances that one needs to buy. This is because most of the states and countries now make it compulsory for vehicle owners to have their cars insured to cover for whatever expenses and damages that may be caused by an accident along the road. In New Jersey, the NJ Law on No Auto Insurance has been strictly implemented. It is a legislation enacted allegedly to address the concerns regarding the expensive auto coverage in New Jersey that still confuses many. A number of motorists and vehicle owners do not understand what this new law is and how this new law will operate.

The law is referred to as the Automobile Insurance Cost Reduction Act of 1998. The legislation aims to allow the consumers to have more choice in the selection of coverage limits and to impose measures that would facilitate the reduction of fraud and abuse in insurance. The object of the law is to reduce the cost of what the auto insurance covers such as the medical treatment, the vehicle repair expenses, and the other costs incidental to the filing of the lawsuit. One of the major considerations in drafting the law is the fact that the insurer actually pays more than two billion dollars for the professional fee of doctors, the hospital bills and the legal fees. NJ Law on No Auto Insurance scheme reduces insurance rates for automobiles to over seven hundred million dollars through the elimination of unnecessary medical treatments and frivolous and fraudulent schemes incorporated in automobile insurance.

The law is fairer as it gives the consumer a choice on what insurance coverage one wants to avail of. Under the new legislation, a car owner can choose from a number of options as to the coverage limits that he or she thinks is needed. Likewise, you get to choose whether or not you want to avail of the basic policy which is usually lower amounts or avail of the personal injury protection, the liability coverage, and the uninsured or under insured motorist, or the optional coverage under the Standard policy.

Anthony Thedford has been writing information articles for years. For more information on insurance, please visit our website at


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