Home Page Insurance Insurance Insurance Insurance Carriers

In May, 2015, Governor Christie signed into law new legislation which provides for civil and criminal penalties for residents who fraudulently obtain auto insurance in another state when their primary residence is in New Jersey or they principally keep their insured vehicle in New Jersey. This law was enacted because the NJ Office of the Insurance Fraud Prosecutor has documented an increasing number of cases where NJ residents insure their vehicles in states such as North Carolina and Pennsylvania in order to avoid higher rates. This situation is called "reverse rate evasion", and is now considered a crime in the fourth degree, as well as a violation of the New Jersey Insurance Fraud Prevention Act.

The bill's provisions do not apply to individuals who insure a motor vehicle in another state because they own a secondary residence or attend an educational institution in that other state, as long as the person truthfully discloses to the insurance company or producer of that policy their state of primary residence and where the vehicle is principally garaged.

The bottom line - if New Jersey is your state of primary residency and your vehicles are garaged in the state, then you must have a New Jersey Auto policy or face criminal and civil penalties for insurance fraud.
Posted 2:22 PM  View Comments

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
HomeAbout UsGet A QuoteContact Us  
18 W Passaic St, Rochelle Park, NJ 07662 | 201.507.5100 Powered by Insurance Websites Design