Details provided on New Jersey minimum insurance law
The New Jersey Department of Banking and Insurance provided clarification to Land Line in late June regarding which motor carriers must comply with its new law that requires a minimum of $1.5 million in liability insurance. The new law took effect on July 1.
“Under the law, (for) commercial motor vehicles with a gross vehicle weight of 26,001 or more pounds, the minimum limit of liability insurance coverage required is $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,” Dawn Thomas, acting director of public affairs for the department, said in a statement. “For commercial motor vehicles with a gross vehicle weight of 10,001 or more pounds, but not greater than 26,001 pounds, the minimum limit of liability insurance coverage required is $300,000. Motor vehicles garaged in New Jersey that travel interstate are required to carry the new limits.”
The statement offers clarification to a previous bulletin that suggested the law may apply only to New Jersey-based intrastate carriers.
Justin Zimmerman, acting commissioner of the New Jersey Department of Banking and Insurance, issued a bulletin about the new law on May 24.
“The act amended existing law 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 commerce,” the bulletin stated.
New Jersey increases minimum liability insurance
In January, the New Jersey statehouse passed a law to increase motor carriers’ minimum insurance requirement to $1.5 million for each truck weighing 26,001 pounds or more. The minimum amount of liability insurance coverage for commercial motor vehicles weighing between 10,001 and 26,000 pounds increased to $300,000.
Introduced by Sen. Nicholas Scutari, D-Middlesex, the legislation passed the Senate, State Assembly and the Senate again all on Jan. 8. Eight days later, New Jersey Gov. Phil Murphy signed the bill into law.
New Jersey’s new minimum is double the current federal minimum of $750,000.
The Owner-Operator Independent Drivers Association has fought back against previous attempts to increase minimum liability insurance at the federal level, arguing that research shows the existing minimum covers the cost in over 99% of cases.
“It is beyond outrageous that lawmakers in New Jersey basically pushed through legislation that dramatically affects truckers in the state without any opportunity for public input or scrutiny,” OOIDA President Todd Spencer said. “Then, the state doesn’t even clarify its intent for the law until just days before it becomes effective.” LL