New Insurance Requirements for Truckers in New Jersey
In just a few weeks, truck drivers in New Jersey will face new liability insurance mandates.
Legislation Overview
In January 2024, Governor Phil Murphy enacted law S-2841/A-4292, which mandates that heavy-duty truck owners secure a minimum of $1.5 million in liability insurance per truck. This is designed to cover potential “injury or death of one or more persons in a single accident or for property damage in a single incident.”
Eligibility for Increased Insurance
This new insurance requirement will specifically apply to commercial vehicles that weigh 26,001 pounds or more. This is significantly higher than the federal minimum, which stands at $750,000.
Effective Date of the Regulation
The updated insurance requirements will be enforced starting July 1, 2024.
Impact on Out-of-State Carriers
The legislation’s language leaves some uncertainty regarding its applicability to out-of-state carriers operating within New Jersey. According to transportation law firm Scopelitis, both intrastate and interstate carriers may be affected. They note, “There is no indication that the legislation is intended only for intrastate New Jersey operations, suggesting a broader application.”
Federal Considerations
The Federal Motor Carrier Safety Administration (FMCSA) has contemplated raising the federal minimum insurance requirements but has not made any changes yet. It’s unclear if New Jersey’s law will inspire similar adjustments at the state or federal level.
Federal Push for Increased Standards
There has been a consistent effort at the federal level to enhance minimum insurance requirements for truckers. Notably, H.R.6884, also known as the Fair Compensation for Truck Crash Victims Act, was introduced in December 2023, proposing to raise the minimum insurance for interstate motor carriers from $750,000 to $5,000,000.
