New Jersey Assembly Bill A151

New Jersey 2022-2023 Regular Session

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

Caption

"Motor Vehicle Insurance Verification Act"; requires Motor Vehicle Commission to establish online motor vehicle insurance verification system.

Impact

If enacted, the A151 bill will significantly alter the way motor vehicle insurance compliance is monitored in New Jersey. The online verification system will replace any pre-existing systems, making this the sole method for insurance verification in the state. By enhancing the ability of law enforcement to ensure compliance with insurance requirements, the bill is expected to reduce the incidences of uninsured driving, which can pose risks to public safety and increase costs for insured motorists.

Summary

The bill A151, known as the 'Motor Vehicle Insurance Verification Act,' mandates the New Jersey Motor Vehicle Commission (MVC) to establish a comprehensive online system for verifying motor vehicle insurance. This system aims to assist law enforcement in identifying uninsured motorists efficiently, thus promoting compliance with mandatory insurance laws. Insurers operating in the state are required to provide their policy information to ensure that the MVC can maintain real-time verification capabilities for law enforcement officers during traffic stops or other relevant scenarios.

Contention

While proponents of the bill argue that it will streamline the process of verifying insurance coverage and help decrease the number of uninsured drivers, there may be concerns surrounding privacy and data security. Critics could argue that mandating insurers to report policy information may lead to issues regarding the handling and protection of sensitive personal data. Furthermore, the requirement for forfeiting vehicle registration for non-compliance raises discussions about fairness and the potential financial burden on low-income drivers who may struggle to maintain insurance.