Repeals no-fault automobile insurance law and requires mandatory liability insurance law for motor vehicles.
By repealing the no-fault insurance law, S466 represents a significant shift in New Jersey's approach to automobile liability. This change implies that individuals injured in automobile accidents may now need to establish fault and pursue claims accordingly, rather than automatically receiving compensation through their own insurance policies. Consequently, this could lead to increased legal disputes over liability, potentially placing a heavier burden on the state's court system. Furthermore, the mandatory uninsured and underinsured motorist coverage aims to protect policyholders from financial loss due to accidents involving drivers lacking adequate insurance.
Bill S466 is a legislative proposal in New Jersey that seeks to repeal the existing no-fault automobile insurance law and replace it with a mandatory liability insurance requirement for motor vehicles. Under the new legislation, all vehicle owners will be required to maintain insurance coverage that protects against losses from liability for bodily injury and property damage. The required coverage amounts are set at a minimum of $100,000 for injuries or death of one person and $200,000 for injuries or deaths of multiple people in a single accident, alongside $5,000 for property damage.
The proposed bill has faced notable opposition and support. Supporters argue that it will lead to more comprehensive coverage for motorists, while critics assert that it could create complications for accident victims in recovering damages. One contentious point is the requirement for binding arbitration to resolve claims disputes related to uninsured and underinsured motorists; critics fear this may limit individuals' rights to seek full legal redress in court. The bill also repeals several existing laws, including the mandatory arbitration of certain claims, which has raised concerns among consumer advocacy groups regarding potential reductions in consumer protections.