To drive legally in the state you must comply with the state's financial responsibility law. With most drivers, this means carrying liability insurance.

Ways to Establish Financial Responsibility

Depending on your situation, the state offers three insurance options:

• Liability:

• Basic provides just enough coverage to meet the state's minimum requirements.

• Standard provides more coverage options and the chance to add extra protection. This is the state's most popular coverage.

• Self-insurance is available only if you have more than 25 vehicles registered under your name.

New Jersey Liability Insurance Requirements for Private Passenger Vehicles

Here's the minimum liability coverage the state requires you to carry:

Basic

• $10,000 as an option for injury/death to more than one person

• $5,000 for property damage

Bodily injury liability for one person is not offered under Basic. This policy is generally geared towards young drivers with limited assets.

Standard

• $15,000 for injury/death for one person

• $30,000 for injury death to more than one person

• $5,000 for property damage

• $15,000 Personal Injury Protection (PIP)

• $15,000 for uninsured/underinsured motorist injury

Before settling on a provider, do your homework. Know what kind of coverage your vehicle requires and be sure to compare quotes from several insurance companies; this way, you'll better your chances of finding an affordable rate. And, of course, you always have the option of increasing your protection with additional coverage options.

Proof of Insurance and Financial Responsibility

If a police officer asks for proof of insurance, you must provide one of the following:

• A certificate of self-insurance.

• An insurance identification card provided by your carrier.

Penalties for Failure to Maintain Financial Responsibility

No proof of insurance will result in the following penalties:

• For a first offense you'll be fined $300, face a one year suspension, and be sentenced to community service.

• For a second offense you'll be fined $500, face a two-year suspension, spend 14 days in jail, and be sentenced to 30 days of community service.

If you have questions about the penalties you face for failing to maintain financial responsibility, contact the Motor Vehicle Commission (MVC) at (888) 486-3339.