The law has been updated to increase the minimum limits of liability insurance coverage that must be maintained by owners and/or operators of commercial motor vehicles registered or principally garaged (i.e., based-plated or at home) in New Jersey engaged in intrastate or interstate commerce.
While the federal government requires Auto Liability, also known as Bodily Injury Physical Damage (BIPD), a minimum coverage of $750,000 to obtain your MC authority, states are allowed to require stricter limits.
And guess what, New Jersey just decided to increase these minimum requirements!
Starting July 1, New Jersey will require:
- CMVs with a gross vehicle weight of 26,001 or more pounds to have a minimum limit of liability insurance coverage of $1.5 million on account of injury to, or death of one or more persons in any one accident or for damage to property in any one accident
- CMVs with a gross vehicle weight of 10,001 but less than 26,001 pounds to have a minimum limit of liability insurance coverage of $300,000.
This is required by owners and/or operators of commercial motor vehicles registered or principally garaged in New Jersey. In other words, based-plated or at home.
If you are traveling through NJ, you would be okay with the Federal Minimum limits if their company is not based in NJ or any vehicles garaged in NJ.
Still confused? Then think of it this way… the more covered you are, the better since it seems the rule isn’t as crystal clear as the state likes to think it is.
The coverage required by the statute may be satisfied by:
- a commercial auto policy,
- fleet insurance,
- a commercial umbrella policy,
- commercial excess coverage,
- a similar insurance policy, or
- any combination of these types of coverage
Want a better insurance premium?
Reach out to CNS Insurance for help figuring out what coverage you need and we can shop you around in the best markets. If you have any questions or concerns, please call us at 800.724.5523 or email info@cnsinsures.com.
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