New Jersey Senate Bill S470

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Increases certain minimum limits for motor vehicle and automobile insurance coverages.

Impact

If enacted, S470 would significantly affect current state insurance laws by establishing higher minimum thresholds for required insurance coverage. These changes would apply to all motor vehicles and standard private passenger automobile policies, thus compelling better financial protection for individuals injured in accidents. The bill also suggests adjustments to medical expense benefits within personal injury protection (PIP) coverage, increasing the minimum optional medical expense benefits from $15,000 to $25,000 while maintaining a higher standard for comprehensive care related to serious injuries.

Summary

Senate Bill S470 aims to increase the minimum limits for motor vehicle and automobile insurance coverages in New Jersey. The legislation proposes to raise the liability insurance coverage that motor vehicle owners must maintain from $15,000 to $100,000 for injury or death of one person in an accident, from $30,000 to $200,000 for more than one person, and from $5,000 to $35,000 for property damage. This substantial increase aligns with ongoing efforts to enhance road safety and ensure adequate coverage for accident victims.

Contention

The proposed increases in insurance requirements may lead to concerns about the affordability of premiums for consumers. Advocates for the bill argue that enhanced coverage benefits victims involved in accidents and provides necessary support during critical care. However, critics may view the bill as potentially increasing the financial burden on drivers, especially for those with limited incomes. Stakeholders will likely debate the implications of such an increase in required coverage during discussions leading to the bill's potential enactment.