This bill amends existing motor vehicle liability insurance requirements in New Jersey by exempting farm tractors and traction equipment used for farm operations from certain commercial motor vehicle liability coverage mandates. Specifically, it establishes that owners of these farm vehicles, when registered, must maintain a minimum liability coverage of $300,000, rather than the higher $1.5 million required for other commercial motor vehicles. This change aims to alleviate the financial burden on farmers while still ensuring a level of liability coverage is maintained.

Additionally, the bill clarifies the definition of "commercial motor vehicle" to exclude farm tractors and traction equipment from the higher coverage requirements, while still including them under the lower coverage threshold. The bill's provisions are designed to support agricultural operations by making insurance requirements more manageable for farm vehicle owners, thereby promoting the agricultural sector in New Jersey. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 39:6B-1