New Jersey Assembly Bill A1798

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Chaptered: 1/9/24
• Passed: 1/9/24

Caption

Raises minimum amount of liability coverage for commercial motor vehicles to $1,500,000.

Impact

The proposed change will significantly alter the current landscape of automobile insurance for commercial vehicles, which currently mandates much lower coverage limits. Current laws allow minimum coverage of $15,000 for injury to one person and $30,000 for multiple injuries, leaving many accident victims potentially under-compensated in the event of major incidents. This increase to a $1.5 million threshold should improve outcomes for claimants, ensuring that more substantial damages can be addressed. However, businesses reliant on commercial vehicles may face increased insurance costs, which could affect operational budgets or lead to higher costs for consumers.

Summary

Assembly Bill A1798 proposes to raise the minimum amount of liability coverage required for commercial motor vehicles in New Jersey to $1,500,000. This substantial increase aims to ensure that owners or registered owners of commercial vehicles can adequately cover the financial responsibility due to bodily injury, death, or property damage caused while operating their vehicles. The amendment specifically targets liability coverage standards in an effort to enhance road safety and provide financial protection to individuals affected by accidents involving commercial vehicles. By mandating higher coverage limits, the bill intends to mitigate the risks associated with serious accidents involving larger vehicles that may cause extensive damages or injuries.

Contention

While there is a general consensus on the need for increased liability coverage to protect accident victims, there may be contention regarding the financial implications for commercial vehicle owners. Critics may argue that such a significant increase in mandated coverage could result in higher insurance premiums, potentially squeezing small businesses or those operating in low-margin sectors. The debate surrounding A1798 will likely focus on balancing the need for higher coverage limits with the economic realities faced by commercial operators in New Jersey, questioning whether the benefits for public safety outweigh the financial burden on businesses.