Young Driver Insurance New Jersey NJ
Reader’s Question:
Is there any law in New Jersey regarding mandatory car insurance for young drivers who do not yet have a drivers license but only passed their permit test, or is this up to insurance carrier?
Parker
Elizabeth, NJ
The New Jersey DOBI (Department of Banking and Insurance) states that you should notify your insurance company when your teen is ready to get their driving permit. Any changes in your insurance cost will either apply when the young driver receives a permit or license, depending on the insurance carrier’s rating plan.
According to the DOBI, failure to disclose all of the motorists in a household to your insurance company can be construed as a form of insurance fraud, which is subject to cancellation of policy, civil fine, or penalty under the NJ Insurance Fraud Prevention Act. Most insurance company offer discounts for multiple vehicles, so it will most likely cost less for a young driver to be added to their parents’ policy than to buy their own. Any motorist, however, with a vehicle titled and registered in their name can buy insurance. You may check with your insurance agent, broker or insurance carrier to understand the factors to consider when making such a decision.
