The proposed bill seeks to repeal New Jersey's existing no-fault automobile insurance law and replace it with a mandatory liability insurance requirement for all motor vehicle owners. Under the new framework, drivers must maintain liability insurance with minimum coverage limits of $100,000 for bodily injury or death of one person, $200,000 for multiple persons, and $5,000 for property damage. The bill eliminates previous options for basic and special automobile insurance policies, which allowed for lower coverage limits, and mandates that uninsured and underinsured motorist coverage be included in all policies. Additionally, disputes regarding these claims must be resolved through binding arbitration.

The bill also amends various sections of the New Jersey Motor Vehicle Security-Responsibility Law, detailing the responsibilities of the Chief Administrator of the New Jersey Motor Vehicle Commission. It establishes rules for when a security deposit is necessary after an accident and allows for the suspension of licenses and registrations for those who fail to provide required security. The legislation further clarifies the conditions under which suspensions do not apply and updates the definitions related to the Unsatisfied Claim and Judgment Fund. Overall, the bill aims to enhance financial protection for individuals involved in motor vehicle accidents by instituting stricter insurance requirements and streamlining the insurance process.

Statutes affected:
Introduced: 39:6B-1, 17:28-1.1, 17:28-1.4, 17:30A-12, 39:6-25, 39:6-26, 39:6-27, 39:6-30, 39:6-62, 39:6-70