Under the new law, P.L. 2023, c. 276, commercial vehicles registered or principally garaged in the State of New Jersey with a gross vehicle weight over 26,000 pounds will now be required to carry minimum liability limits of at least $1.5 million. For vehicles with a gross weight between 10,001 pounds and 26,000 pounds, the minimum required liability coverage will be $300,000. This change will go into effect for all insurance policies issued or renewed on July 1, 2024, or thereafter. 

For your convenience, below is a FAQ highlighting some of the major changes under the new law. They recommend you reach out to your agent at your earliest convenience so they can review your current situation, vehicle list and coverage to ensure compliance with these new requirements. 

Please do not hesitate to contact your agent if you have any questions or need assistance in adjusting your coverage. They are here to help you navigate this change but must hear from you to help ensure your coverage meets the new requirements. 

Thank you for your attention to this important matter. 

A: Yes, During the 2022-23 legislative session, the New Jersey Legislature passed S-2841/A-4292 (P.L.2023, c.276). That bill, which was signed into law by New Jersey Governor Phil Murphy, increases the minimum insurance limits required for many commercial autos.

Q: What are the insurance limits being increased to?

A: That depends on the size of the vehicle.

1. Commercial vehicles with a gross vehicle weight of more than 26,000 lbs. will be required to carry minimum liability limits of at least $1.5 million.
2. Commercial vehicles with a gross vehicle weight rating of 10,001 lbs. or more, but less than 26,001 lbs. will be required to carry at least $300,000 of liability coverage.

Q: Does the coverage have to come from one policy, or can it come from a combination?

A: The law specifies that the new insurance requirements may be satisfied by a commercial automobile insurance policy, fleet insurance policy, commercial umbrella insurance policy, commercial excess insurance policy, similar insurance policy, or any combination thereof.

Q: When does the new law go into effect?

A: The new law goes into effect July 1, 2024. All new commercial policies issued on or after that date must contain at least the new minimum limits. Any policy that renews on or after July 1, 2024, must also contain at least the new minimum limits.

Q: What Should I Do Next?

A: You should call your agent as soon as possible if you have a vehicle over 10,001 lbs. to confirm that you have the appropriate limit. If necessary, they can make the change effective your next renewal.

Depending on the year, make and model, they may not have the accurate GVW on file. Please contact them to provide updated information and discuss coverages required by the new law!

Resources provided by PIA National Association of Professional Insurance Agents & The Barclay Group