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I called my parent’s insurance company to get a quote because I am a newly licensed driver. I found the rate to be more than 1,000. I said thanks and good bye. Since the amount was so high, I decided to not drive at all.
A few days later I recieve a bill stating I am on the policy. I called to cancel and they said that in NJ, any licensed driver in a household must be added on to a policy.

Now I am stuck with a bill. Does anyone know if this is New Jersey state law or not?

3 Thoughts on Any person with a driver’s license in a new Jersey household must be placed in an insurance policy.?
  1. Reply
    Jessica S
    July 18, 2011 at 8:34 pm

    I don’t believe it is a law (but insurance laws vary from state to state), but that is the standard with insurance companies that all licensed household drivers are rated on policies. The premium is then affected by the operators who pose the greatest risk. This is why adding a newly licensed/teen driver will greatly affect the premium.

    Unfortunately, once you are rated the only ways to get “unrated” from your parent’s policy is to actually surrender your driver’s license to the state (if you are truly not driving and have no intention of driving) or possibly find alternate and less expensive insurance for one of the household vehicles with you listed as the principal operator of the vehicle. I don’t know what company you are with, but this may or may not even be feasable depending on any discounts your parents are currently receiving and/or any underwriting requirements regarding liability limits that they may need to carry for any other policies they may have, like an umbrella policy.

    I would have your parents contact your insurance agent and see if there are any discounts that may be available (like a Good Student Discount) that may reduce the premium or consider raising your current deductibles in order to reduce the premium amounts.

  2. Reply
    July 18, 2011 at 8:45 pm

    To add to the poster above me, bear in mind, if you find insurance on your own, your parent’s insurance may be at risk if you are in a situation where your policy limits are exhausted.

    Talk to a good agent.

  3. Reply
    July 18, 2011 at 9:41 pm

    It’s like this in all states. If you have a drivers license and live in the household, you have to be listed on the policy as a driver. If you don’t want to pay the bill, go ahead and surrender your license to the state

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