Automobile Law Association
In an attempt to reduce the number of uninsured drivers, the state of New Jersey implemented the Automobile Insurance Cost Reduction Act of 1998. One of the outcomes of this act was to provide drivers with a bare bones, inexpensive “basic” auto insurance policy for individuals who could not bear the cost of purchasing the standard New Jersey automobile policy.
Coverages Offered by New Jersey's Basic Auto Policy
The basic automobile policy in essence provides coverage for the driver and individuals insured under the basic auto policy. It does not provide liability coverage for injured third parties unless the insured elects to purchase the coverage. Coverages and limits are as follows:
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