What Happens If the Person at Fault in an Accident Has No Insurance in New Jersey?

New Jersey operates under a "no-fault" auto insurance system, as outlined in N.J. Stat. § C.39:6A-4. This means that after an accident, each party typically relies on their insurer to cover medical expenses and certain out-of-pocket losses, regardless of fault. However, the extent of liability and available remedies can differ based on whether a driver holds a basic or standard insurance policy.

An at-fault driver who lacks insurance entirely is not only personally liable for any damages that exceed what the injured party's policy covers, but also stripped of the legal protections usually granted by no-fault rules. The injured party may file a third-party lawsuit for economic and non-economic damages if the injuries meet the statutory threshold.

Driving without insurance is a serious offense under New Jersey traffic violations and infractions, and it carries severe consequences—including driver's license suspension, fines, mandatory community service, and even potential jail time.

Is It Illegal To Drive Without Insurance In New Jersey?

Yes. In New Jersey, operating a vehicle without insurance is strictly prohibited. According to C.39:6A-3, all vehicle operators must meet a minimum insurance requirement before their vehicles can be deemed roadworthy. Failure to present evidence of insurance upon request may result in substantial fines, community service, insurance surcharges, and even a suspension of the driver's license.

What Is the Minimum Insurance Requirement in New Jersey?

In New Jersey, all drivers are mandated to have liability insurance and Personal Injury Protection (PIP) to operate a vehicle legally. Drivers can choose between a standard or basic insurance policy. The minimum limits for both policy types are outlined below:

Standard Plan

This policy also protects against uninsured drivers.

Basic Plan

What To Do After A Car Accident With an Uninsured Driver in New Jersey

After an accident, it is recommended that the involved parties:

Step 1: Contact the police

Following an accident with any driver, the initial action is to notify the police. The responding officer at the scene will generate an official report documenting the incident.

Step 2: Report the Accident (where applicable)

The victim of a car crash can complete an SR-1 form for self-reporting, which is accessible online if no law enforcement agent can make it to the crash site. This completed form can then be submitted to the New Jersey Motor Vehicle Commission (NJMVC).

Step 3: Reach Out to the Insurer

Typically, individuals with standard insurance are protected if they are involved in an accident with an uninsured driver in New Jersey. This protection does not extend to those with basic insurance.

Step 4: File a Lawsuit

If one's insurance coverage does not cover the damages, the injured party can file a civil lawsuit. Despite New Jersey being a no-fault state, both types of insurance policyholders—standard and basic—can initiate legal action. However, while those with standard insurance face no limits in suing for damages, individuals with basic insurance have restrictions. Although suing can be a pathway to recover damages after a collision, there is no guarantee that the plaintiff will receive adequate compensation to address the losses resulting from the accident.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Driving uninsured in New Jersey always carries significant repercussions. These include

• Legal Penalties: Even if a driver is not at fault for an accident, they are still liable for committing a traffic violation by operating a vehicle without insurance. This can lead to fines, vehicle impoundment, community service, or even the suspension of their registration and license.
• Lack of Damage Compensation: Another major downside of lacking insurance is that the affected, uninsured driver may not receive adequate compensation for damages. Even if they choose to file a lawsuit, the fact that they were already violating the law may hinder their claims.

Drivers should ensure they have at least basic insurance, as it can protect them in various situations.

Can I Sue an Uninsured Driver in New Jersey?

Yes. Carrying insurance that covers specific damages in the event of an accident does not eliminate the option to sue another driver, particularly if the uninsured driver is to blame. As stated in NJ Rev Stat § 2A:15-5.3, affected individuals can pursue legal action against another party to seek compensation for damages if that party's contribution to the incident exceeds 60%.

However, the compensation that can be awarded depends on the extent of the damages and the court handling the case. For instance, small claims courts only address disputes involving damages of $5,000 or less.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in New Jersey?

Typically, an insurer will only cover damages caused by an at-fault uninsured driver if the insured has chosen a specific provision in their policy. In New Jersey, Uninsured Motorist (UM) or Underinsured Motorist (UIM) coverage is included with standard insurance. Collision and comprehensive coverage are usually optional.

On the other hand, this principle does not hold for basic insurance coverage; as a result, a driver with only this type of insurance may need to pay out of pocket for any economic damages that are not covered.

What Is Uninsured Motorist Coverage in New Jersey?

In New Jersey, uninsured motorist coverage is a type of insurance add-on. It is generally part of standard policies but excluded from basic policies. It provides coverage for damages in situations where one party involved in the accident is uninsured or underinsured. A driver with this insurance is protected and does not have to pay for damages out of pocket when involved in a collision with an at-fault uninsured driver.

What If I Don't Have Uninsured Motorist Coverage in New Jersey?

A driver without uninsured motorist coverage has limited options for recovering compensation for damages if an accident involves an uninsured or underinsured driver. However, there are a few options that one can explore:

• Suing the At-Fault Driver: This is typically the first option to consider. However, the extent of damages one can be compensated for often depends on the at-fault party's financial capacity.
• Requesting a License Suspension for Unpaid Judgments: After the court has issued a judgment, if the at-fault driver fails to comply with the court order within the stipulated time, the affected driver can ask the New Jersey DMV to suspend the offender's license.
• Applying to a Victim Compensation Fund: This option is only available if the accident victim's injury or loss is caused by a driver under the influence. Individuals exploring this option can begin by contacting any law enforcement agency within the state. The petitioner can apply to the Victims of Crimes Compensation Office and provide a police report of the crash. The department will then determine if the individual qualifies.

How Do I Get Compensation from an Uninsured Driver in New Jersey?

In New Jersey, civil litigations, including those involving uninsured at-fault accidents, generally follow a similar process, beginning with the filing of a complaint. The appropriate court for filing depends on the claim amount. For claims of $5,000 or less, individuals must file with small claims courts. For claims up to $20,000, cases can be filed with a special civil court.

Once a petition is filed, the respondent must be served with a copy of the papers. This can be done by a law enforcement agent or a neutral person, as chosen by the court. The discovery period begins soon after the defendant responds to the complaint. During this period, evidence presented by both parties is reviewed. Typically, the duration of this period depends on the complexity of the case. In cases where the defendant does not respond, a default judgment may be entered.

Both parties can choose to settle outside of court or proceed to trial. However, any judgment reached becomes binding. Nevertheless, any party can still choose to appeal the case.

How Much Can You Recover From an Uninsured At-Fault Driver in New Jersey?

Auto accident victims can pursue a civil case for damages under NJ Rev Stat § 2A:15-5.3. However, the extent of recovery from an at-fault uninsured driver depends on the type of insurance they hold, the court's judgment, and the offender's financial assets.

Additionally, the court handling the case affects potential compensation. For example, small claims courts impose a damage cap of $5,000. Therefore, in such cases, the judgment, regardless of the financial impact of the damages, is limited to this amount.

How To Find Out If the At-Fault Driver Has Insurance in New Jersey

If an accident occurs, drivers typically exchange insurance information on-site. This allows individuals to determine if the at-fault driver has insurance, as drivers are required to carry proof of insurance in their vehicles.

Individuals involved in a crash can also request police reports from law enforcement or query the NJMVC directly to determine a driver's insurance status. Additionally, if the case progresses to court, all parties will be required to provide evidence and documentation during the discovery stage, which can reveal insurance details.

Are Accidents Public Record in New Jersey?

According to the NJ Open Records Act, all government records are open and accessible to the public for review and duplication. Accident or crash reports are public records that interested individuals can obtain. However, these reports have a retention period of six years, after which they are destroyed.

Although anyone can request a crash report in NJ, access is subject to restrictions on certain sensitive information, which may be excluded from public reports.

Individuals can order a crash report online, with fees varying by the type of report. For example, a non-toll crash report costs $13, while a toll crash report costs $5. Additionally, contacting local law enforcement is a viable option for obtaining reports.

Can You Go to Jail for Causing an Accident Without Insurance in New Jersey?

No. Individuals are charged with an infraction for failing to provide proof of insurance or a misdemeanor for driving without insurance in New Jersey. The penalties for these offenses do not include jail time.

In contrast, individuals who present fraudulent insurance documents may face jail time, fines of up to $15,000, and license suspension.

Can You Settle With an Uninsured Driver Out of Court in New Jersey?

Yes. Before a civil case begins, the court typically offers both parties a dispute resolution process. This could involve mediation, where both parties work together to reach an agreement, or arbitration, where a neutral third party makes a decision for both sides. Most cases are resolved this way, as it is often faster and less expensive than court trials. Settlements are legally binding in New Jersey.

Can I Get Compensation If I Was Partially at Fault?

Yes. A driver involved in a crash can receive compensation from the insurer of the other driver based on the percentage of comparative negligence. This principle is outlined in New Jersey Statutes Annotated (NJSA) 2A:15-5.2. Comparative negligence applies when seeking compensation from the other driver's insurer, which will investigate to determine the percentage of fault for each party. If the individual seeking compensation is found to be more than 50% at fault, they will not obtain any compensation. Those interested in learning more about this process can review the comparative negligence resource provided online by the Department of Banking and Insurance.