Car accidents are complex under any circumstances—but realizing “My car insurance lapsed and I had an accident” can raise immediate legal and financial concerns. In New Jersey, where insurance laws are stringent, a lapse in coverage can make an already stressful situation far more complicated.
That’s where Petro Cohen, P.C. comes in. Since 1998, our firm has been a trusted advocate for injured drivers throughout South Jersey, including Atlantic County, Cape May County, Camden County, and surrounding areas. We understand how to navigate the complex challenges of uninsured accidents and help clients take the proper steps to protect their rights and minimize potential fallout. Whether you’re unsure what comes next or need help fighting a denied claim, our South Jersey accident attorneys are here to help.
Read on to learn more about what car insurance requirements in New Jersey are, when it is illegal to drive without insurance, and what happens after an accident and you don’t have insurance.
Do I Need Car Insurance in New Jersey?
Yes. New Jersey law requires all vehicle owners to maintain active motor vehicle liability insurance. If your car insurance lapsed and you had an accident, you could be facing serious legal and financial consequences due to this mandatory coverage requirement.
Here are the current and upcoming minimum coverage limits:
- Before January 1, 2023—coverage for $15,000 per person and $30,000 for injury or death in any one accident;
- January 1, 2023 – December 31, 2025—coverage for $25,000 per person and $50,000 for injury or death in any one accident; and
- On or after January 1, 2026—coverage for $35,000 per person in any one accident and $70,000 for injury or death in any one accident.
For insurance policies issued or renewed on or after January 1, 2023, there must be a minimum coverage of $25,000 for damage to property.
Is It Illegal to Drive Without Insurance in New Jersey?
Yes. Driving without car insurance in New Jersey is against the law and comes with severe penalties. Failure to carry this coverage is a violation of New Jersey law and comes with real consequences.
For a first offense, drivers can face:
- A fine between $300 and $1,000,
- Community service (as determined by the court), and
- License suspension for up to one year.
If the driver can show proof of insurance at the time of the court hearing, the court may reduce or eliminate the license suspension. The consequences increase significantly for subsequent violations, including:
- Fines up to $5,000,
- A 14-day jail sentence,
- 30 days of community service, and
- A potential 2-year license suspension.
The court will consider the circumstances of each case, including whether the loss of driving privileges would cause extreme hardship or whether alternative transportation options are available.
What Happens If My Car Insurance Lapsed and I Had an Accident?
When your car insurance lapses in New Jersey, the consequences after an accident can be far more severe than just fines or penalties. The state’s no‑fault insurance system is built on the assumption that every driver carries the required medical expense benefits coverage.
Any person who is required but fails to maintain this mandatory coverage loses the right to sue for compensation after an accident. If you were operating an uninsured vehicle at the time of a crash, you cannot bring a claim for either economic losses (medical bills or lost wages) or noneconomic damages (pain and suffering). In other words, even if another driver caused the accident, New Jersey law bars you from recovering money for your injuries.
This rule emphasizes the importance of maintaining continuous coverage at all times. Even a brief lapse can result in the loss of your legal rights to compensation.
Frequently Asked Questions About Car Insurance Lapses in New Jersey
Can I still recover damages if my car insurance has lapsed in New Jersey?
No. Under New Jersey’s no-fault insurance laws, if your car insurance has lapsed and you have an accident, you lose your right to sue for damages — even if another driver caused the crash. Uninsured drivers cannot recover compensation for medical bills, lost wages, or pain and suffering.
What penalties can I face for driving without active insurance in New Jersey?
Driving without insurance in New Jersey is illegal and carries serious penalties. For a first offense, you could face a fine between $300 and $1,000, community service, and a one-year license suspension. Repeat offenses can lead to higher fines, jail time, and a two-year suspension.
Will the other driver’s insurance cover me if my own insurance has expired?
Usually not. If your insurance has expired, you cannot collect from another driver’s policy for your own injuries, even if they were at fault. However, their insurance may still cover property damage or injuries to others under liability coverage, depending on the case.
Can I be sued personally if I cause an accident while uninsured in NJ?
Yes. If you cause an accident while uninsured, you can be held personally responsible for the damages. This means the injured party can sue you directly, and your personal assets — such as savings or property — could be at risk to satisfy a judgment.
How do I reinstate my insurance after a lapse in coverage?
To reinstate lapsed car insurance in New Jersey, contact your insurance provider immediately. You will likely need to pay any outstanding premiums and may face higher rates or a reinstatement fee. Maintaining continuous coverage prevents future penalties and protects your right to compensation.
Talk to Petro Cohen, P.C. About Your Legal Options
If your car insurance lapsed and you had an accident, you are not alone. At Petro Cohen, P.C., our firm has earned a reputation for trusted, results-driven representation across Southern New Jersey communities including Northfield, Cape May Court House, Cherry Hill, and Hamilton Township.
We know how to defend your rights, work through challenging insurance issues, and fight for your best outcome. With decades of experience, a track record of success, and a commitment to personalized service, our attorneys are here to help you move forward.
Schedule a free consultation today and discover how we can help safeguard your future.
Resources
- N.J.S.A. 39:6B-2, link.
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