Do You Know the Laws that Affect NJ Car Insurance Rates?

Driving laws are in place for a reason. Not only do they help keep people safe on roadways, but insurers are willing to reward you with lower rates when you follow those laws. There are also NJ car insurance laws that you can use to save money when you buy a policy.

PIP Regulations

NJ drivers are required to purchase PIP or Personal Injury Protection in the amount of $15,000 for each person injured with $250,000 maximum in coverage. PIP pays for medical expenses regardless of who is responsible for the accident. Under a new law passed in late 2012, there are now caps on reimbursement rates to help keep NJ car insurance premiums affordable. Because of the $250,000 cap, there has been an increase in fraud cases reported to state insurance officials.

Hands-Free Laws

Like most states, NJ has passed laws that regulate how and when drivers can use cell phones and other mobile devices. Distracted driving is an increasingly common cause of accidents. Following are the specific restrictions related to this law:

  • Adult drivers - permitted to speak on cell phones with hand-free options but are banned from texting
  • Teen drivers - those with learner's permits or have reached the intermediate phase are not permitted to use cell phones for talking or texting while driving
  • Bus drivers - banned from talking or texting on cell phones while driving

These are primary offenses so a police officer can pull you over and ticket you on the spot if he catches you using a cell phone while driving. The state may pass a law that allows a police officer to review your cell phone activity at the scene of an accident or if he pulls you over for reckless driving. Currently, fines are doubled for violating hands-free laws in the state.

Left-Lane Driving

The left lane of freeways is intended to be the primary passing lane. But some drivers like to use it because it has less traffic. Accidents and incidents of road rage has become a problem in the state. As a result, legislators passed a law imposing stiffer penalties on drivers who misuse the left lane. Fines up to $300 are now in place to discourage left-lane driving for reasons other than those permitted by law.

When you follow these laws, you have a better chance of getting affordable NJ car insurance. Laws change and new ones are added on a regular basis in the state. Staying current on and abiding laws that affect NJ car insurance rates help you keep premiums low.

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