Out-of-State Insurance Could Cost You Your Injury Claim in New Jersey

If you’ve recently moved to New Jersey or are keeping your vehicle here long-term, a recent court decision may directly affect your right to recover damages after a car accident.

In Hernandez v. Kurt, 2024 N.J. Super. Unpub. LEXIS 3049 (App. Div. Dec 17, 2024), the New Jersey Appellate Division ruled against a driver who tried to pursue a personal injury claim after being rear-ended because his car insurance didn’t meet New Jersey’s legal requirements.

Plaintiff, Mr. Hernandez, was living in New Jersey and had been garaging his vehicle here for several months. However, the car was still registered in Maryland, and his insurance policy only included $2,500 in Personal Injury Protection (PIP) coverage. That amount falls well below New Jersey’s minimum requirement of $15,000 in PIP benefits. When Mr. Hernandez filed a lawsuit against the other driver, the defense argued that he was legally barred from recovering damages because his vehicle was uninsured under New Jersey law.

The court agreed. It found that because Mr. Hernandez kept his car in New Jersey—what the law calls “principally garaged”—he was required to have insurance that complied with New Jersey’s standards. Since he didn’t, the court dismissed his injury claim entirely, even though the accident wasn’t his fault.

This case is a reminder that New Jersey takes its auto insurance laws seriously. If you have moved to New Jersey, you’re expected to update your insurance and registration within 60 days. Keeping out-of-state insurance to avoid higher premiums or for convenience could end up costing you far more—your legal right to recover damages if you’re injured in a crash.

Lee and Kim law LLC has extensive experience with car accident cases in New York and New Jersey, which allows us to identify important issues early on and offer clients practical guidance from the start.

If you’ve been involved in an accident and have questions about your options, don’t hesitate to call us at (551) 300-2766 or leave us a submit an online form. We’re here to help you navigate the next steps with clarity and confidence.

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