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Bill > S3120


NJ S3120

NJ S3120
Repeals no-fault automobile insurance law and requires mandatory liability insurance law for motor vehicles.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill repeals the compulsory no-fault automobile insurance law; changes the requirement for bodily injury and property damage liability insurance to at least $100,000 on account of injury to or death of one person and $200,000 on account of injury to or death of more than one person; and makes uninsured and underinsured motorist coverage compulsory, in the same amounts or limits as an insured's motor vehicle liability insurance coverage. With respect to uninsured and underinsured motor vehicle insurance, the bill requires claims disputes to be settled through binding arbitration. Additionally, the bill repeals the mandatory arbitration of certain automobile insurance claims in the courts, the take-all-comers law which requires insurers to insure all "good" drivers who apply, and the basic and special automobile insurance policies. Technical amendments to various statutory provisions to conform with these substantive reforms are accomplished by the bill, as well.

AI Summary

This bill repeals the state's no-fault automobile insurance law and replaces it with a mandatory liability insurance law for motor vehicles, requiring coverage of at least $100,000 for injury or death to one person and $200,000 for injury or death to more than one person in an accident, along with $5,000 for property damage. It also makes uninsured and underinsured motorist coverage mandatory at the same levels as liability coverage, with disputes to be settled through binding arbitration. The bill eliminates the "take-all-comers" law, which required insurers to cover all eligible drivers, and repeals the basic and special automobile insurance policies. Additionally, it removes the mandatory arbitration of certain claims in the courts.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)

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