Avoiding Car Insurance Lapse New Jersey NJ
Reader’s Question:
My car broke down so I cancelled my car insurance in New Jersey. During those months, I commute to work and did not drive any car. Now I bought a car and wanting to get car insurance. But I was told that I had a lapse in my car insurance coverage. Do cars need to have car insurance even if you do not use them because they broke down? Can you please let me know more about this.
Mark
Newark, New Jersey
In New Jersey, registered cars are required to be covered by an car insurance policy. If your vehicle broke down, it is registered with the state and you are required to insure it.
According to NJ Department of Banking and Insurance if you take a car off the road for certain reasons, you will need to turn in your license plates to the New Jersey Motor Vehicle Commission so you wont be required to have insurance coverage in place for that car.
So unless the registered owner of a car surrender the license plates to the New Jersey Motor Vehicle Commission, the car needs to be insured even if it not operational. The New Jersey DOBI also notes that if you have a lapse in your car insurance you will likely pay more for your car insurance.
If you want to get more information regarding this you may contact the NJ DOBI or MVC.
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