Attention, New Jersey business owners! If your company uses commercial vehicles, a major change in auto insurance is coming your way. Senate Bill S2841 is set to significantly increase the minimum liability insurance requirements for commercial vehicles like trucks, vans, and taxis.
Why the Change?
The goal is to provide increased protection for everyone on the road. Accidents involving commercial vehicles can be particularly devastating, and this change ensures there’s enough insurance coverage to compensate those injured or whose property is damaged.
Key Takeaways:
- Higher Minimums Based on Weight: Vehicles with a Gross Vehicle Weight Rating (GVWR) of 10,001 pounds or more, but less than 26,001 pounds, will require a minimum of $300,000 in liability coverage.Vehicles with a GVWR of 26,000 pounds or more will require a minimum of $1,500,000 in liability coverage.
- Increased Premiums: While this provides better protection, expect your insurance premiums to rise.
- Enforcement: The new law goes into effect on 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.
- Does the coverage have to come from one policy, or can it come from a combination? 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.
Is Your Vehicle Affected?
The law applies to all commercial vehicles registered or principally garaged in New Jersey. To determine if your vehicle falls under the new requirements, you’ll need to check its Gross Vehicle Weight Rating (GVWR).
How to Check Your GVWR: You can find your vehicle’s GVWR on the manufacturer’s label, typically located on the driver’s side door jamb.
What to Do Now:
Review your policy and give us a call to see how we can help you! This change might seem daunting, but remember, it’s about increasing safety and protection for everyone on the road.