New Jersey Tightens Commercial Auto Insurance Laws
New Regulations Bring Higher Coverage Requirements
New Jersey businesses operating commercial vehicles are facing a significant change in insurance requirements. The law goes into effect on July 1, 2024. All new commercial policies issued on or after that date must contain at least the new minimum limits. Additionally, any policy that renews on or after July 1, 2024, must also comply with these new limits.
Here is some info During the 2022-23 legislative session, the New Jersey Legislature passed S-2841/A-4292 (P.L.2023, c.276), which was signed into law by Governor Phil Murphy. This new law increases the minimum insurance limits required for most commercial autos.
Here’s what you need to know:
- Commercial vehicles with a gross vehicle weight of more than 26,000 lbs: must carry at least $1.5 million in liability and property damage insurance.
- Commercial vehicles with a gross vehicle weight rating of 10,001 lbs. or more, but less than 26,001 lbs: must carry at least $300,000 of coverage.
These new limits can be met through a commercial automobile insurance policy, fleet insurance policy, commercial umbrella insurance policy, commercial excess insurance policy, or any combination thereof.
Potential Impacts on Businesses
- Increased insurance premiums: The higher insurance requirements will likely lead to increased premiums for businesses operating commercial vehicles.
- Budgetary adjustments: Companies will need to factor in the increased insurance costs into their budgets and operational expenses.
- Potential impact on smaller businesses: Smaller businesses with limited financial resources may find it challenging to comply with the new regulations.
Reasons Behind the Law Change
- Enhanced road safety: The increased insurance limits aim to provide better financial protection for accident victims and their families.
- Addressing rising costs: The law may be a response to increasing costs associated with commercial vehicle accidents.
- Industry standards: New Jersey may be aligning its insurance requirements with other states that have implemented similar measures.
What to Do Next
Businesses operating commercial vehicles should review their current insurance policies to ensure compliance with the new regulations. Contact your insurance agent to discuss necessary adjustments and explore potential cost-saving measures.
Remember: Failure to comply with these new insurance laws can result in significant penalties.
NJ Auto Law Bulletin
Notification Doc from PIA