The bill proposes significant increases to the minimum amounts of property damage liability, uninsured motorist, and underinsured motorist coverage for automobile insurance policies in New Jersey. It amends existing laws to raise the minimum liability coverage for bodily injury or death from $15,000 to $50,000 for one person and from $30,000 to $100,000 for multiple persons in an accident. Additionally, the property damage liability limit is increased from $5,000 to $25,000. The bill mandates that insurers offer uninsured and underinsured motorist coverage limits of at least $250,000 for bodily injury per person and $100,000 for property damage per accident, with specific exclusions for the first $500 of property damage.

Furthermore, the bill updates terminology and responsibilities within the state’s motor vehicle administration, changing references from "director" to "chief administrator" and clarifying processes for determining security amounts after motor vehicle accidents. It ensures that all motor vehicle liability policies, except basic automobile insurance policies, include coverage for damages from uninsured and underinsured motor vehicles. The legislation aims to enhance consumer protection by ensuring that drivers have adequate coverage in the event of accidents involving uninsured or underinsured motorists. The bill is set to take effect immediately upon enactment.

Statutes affected:
Introduced: 39:6B-1, 39:6-25, 39:6A-3.1