New Jersey Motorcycle Insurance Requirements

What Are the Motorcycle Insurance Requirements in New Jersey?

You must get motorcycle insurance if you register a motorcycle in New Jersey. New Jersey has two kinds of vehicle insurance: Basic and Standard. You will choose one of these types of policies.

Both types of policies include:

Personal Injury Protection. This is sometimes called PIP or No Fault insurance. It pays medical expenses up to your coverage limits if you or another person covered by your insurance is injured in an accident. It’s called No Fault because it doesn’t matter whose fault the accident was.

Property Damage Liability. This pays for property damage you cause during an accident.

 What’s a Basic Policy in New Jersey?

The Basic policy is a low cost option for people who don’t have a lot of assets and who want to pay the lowest possible premiums. It provides the minimum amount of motorcycle insurance required by New Jersey law. You can get it through an insurance provider licensed in New Jersey.

A Basic policy covers:

• $5,000 in property damage liability per accident
• $15,000 PIP per accident with up to $250,000 in protection for certain catastrophic injuries

You can also get $10,000 in bodily injury liability coverage per accident. This coverage pays claims made against you for bodily injury or death resulting from an accident you cause.

Some insurers in New Jersey will also give you the option of getting collision or comprehensive coverage. Collision pays you if your motorcycle is damaged in a collision with anything other than an animal. Comprehensive pays you for many other types of loss, including theft or collision with an animal. Although these options can be purchased with a Basic policy, your premiums will rise with each option you add.

What’s a Standard Policy in New Jersey?

Most drivers in New Jersey get a Standard policy. In general, a standard policy includes:

• Bodily Injury Liability coverage of at least $15,000 per person per accident ($30,000 total per accident).
• Property Damage Liability coverage of at least $5,000 per accident.
• PIP of at least $15,000 per person for one accident with coverage for certain catastrophic injuries up to $250,000.
• Uninsured/Underinsured Motorist coverage available as an option. You can buy this with limits as high as the ones you select for liability coverage.
• Collision and Comprehensive coverage offered as options.

How Do I Choose Between Basic and Standard Motorcycle Insurance?

Ultimately, this is a decision that only you can make, but here are some factors to consider. If you’re found liable in an accident, you could lose your assets (home, vehicle, etc.). If you don’t have a lot of assets or dependents, you may not need as much insurance. You may be less likely to cause expensive injuries or property damage on a motorcycle than someone driving a large vehicle.

You can also consider how great a loss you would suffer if you were injured or your motorcycle was damaged in an accident. If your motorcycle is expensive to replace, it will affect your quotes. But, even though your premiums will be higher, you may decide it is important to give yourself the additional protection of collision and comprehensive coverage if it would be hard for you to replace or repair your motorcycle.

There are other factors to consider, too, such as how much your health insurance would pay if you were injured. The New Jersey state government website offers a number of guides to choosing vehicle insurance in New Jersey, as well as advice on how to lower your premiums, do comparison shopping, and understand your rights when it comes to quotes. Since vehicle insurance in New Jersey comes in many varieties, it is important to get several quotes before making a decision.

How Do I Show Proof of Insurance?

Your insurance company is required to give you an ID card for your motorcycle. Keep the card with you when you ride. You’ll need it if you’re pulled over or involved in an accident and when you get the motorcycle inspected.

What Happens if I Don’t Have Insurance?

The Basic Policy is designed to help you afford the necessary motorcycle insurance no matter what your financial circumstances are. If you don’t purchase any sort of insurance, you may lose your license, have to pay fines, or perform community service. You may also have to pay more when you do get insurance.

Other Things to Know:

New Jersey also has laws regarding minimum safety standards. Talk to your dealer about these standards before you buy to make your motorcycle will comply.