The minimum limits for commercial automobile insurance customers in New Jersey will increase effective Monday, July 1, 2024.
Under P.L. 2023, c. 276, intrastate commercial vehicles with a gross vehicle weight of more than 26,000 pounds are required to carry minimum liability limits of at least $1.5 million. Commercial vehicles with a gross vehicle weight rating of 10,001 or more pounds, but less than 26,001 pounds—will be required to carry at least $300,000 of liability coverage.
According to the law, this increase can be satisfied by a commercial auto policy, fleet insurance policy, commercial umbrella insurance policy, commercial excess insurance policy, similar insurance policy, or any combination thereof. This portion of the law has caused some confusion for PIA association members who have reached out to the association for clarification. In response, PIANJ leadership recently met with the New Jersey Department of Banking and Insurance to get further clarification on this new law for both the benefit of our members, their carrier partners, and the commercial insureds they serve.
In response to PIANJ’s inquiry, the DOBI issued Bulletin 24-07: New Minimum Limits of Liability Insurance Commercial Motor Vehicle and/or Autocabs, P.L. 2023, c. 276, which outlines the necessary insurance carrier rate-filing requirements to be in compliance with the law. Important to insurance producers, is that both insurance carriers and producers must inform their insureds of the new commercial auto minimum limits. PIA has developed QuickSource document No. QS29259 to assist producers in notifying their clients of this important change. This resource is available exclusively to PIA Northeast members.
Have your carriers told you how they are handling the July 1 change? Let us know! Reach out to PIA at pia@pia.org.
Learn more about other insurance-related bills going into effect.
Keep PIANJ at the table
For 2024, PIA is working on numerous legislative initiatives to assist our members, and the consumers and businesses they serve, including the elimination of step-down provisions in auto insurance policies.
If you are interested in getting involved with PIANJ’s legislative and advocacy work, there are ways to engage with the association:
- Become a member of New Jersey PIAPAC; and
- Watch your PIA Northeast publications and PIA Northeast’s social-media channels for important New York updates, and share them with your followers.
Shirley Albright, CPIA, CISR
Shirley Albright, CPIA, CISR, joined PIA in 1983 and has worked in many facets of the association over the years. In 1995, she was an integral part of establishing the Industry Resource Center to include the development of the software system to record and track all incoming and outgoing inquiries. She quickly moved from industry resource representative to assistant director and eventually to her current position as director. Currently, Shirley oversees the daily operations of the Industry Resource Center to include the triage of thousands of incoming member inquiries. Her other accomplishments include obtaining her New York state property/casualty broker’s license, CPIA and CISR designations.
