Relocating from New Jersey to Washington can be an exciting new chapter. However, it also brings important changes to car insurance and liability laws.
Each state has its own set of laws governing auto coverage, minimum liability requirements, and insurance regulations. Understanding these differences is essential for legal compliance and ensuring proper financial protection in an accident. Failing to adjust your policy accordingly could lead to coverage gaps, penalties, or unexpected expenses down the line.
Key Differences in Car Insurance Requirements
New Jersey operates under a no-fault system, while Washington follows an at-fault model, meaning drivers must adapt to new processes. Here’s everything you need to know to navigate this transition smoothly.
New Jersey: No-Fault Insurance
With traffic accidents on the rise in New Jersey, navigating the aftermath of a collision can be challenging. The state saw a 14.6% increase in automotive fatalities from 2023 to 2024 despite a nationwide decline.
To manage the financial impact of accidents, New Jersey operates under a no-fault insurance system. This ensures that each driver’s insurance covers their medical expenses, regardless of who was at fault.
This system is designed to reduce litigation but comes with specific requirements:
- Personal Injury Protection (PIP): Drivers must carry PIP coverage to pay for medical expenses, lost wages, and other injuries-related costs, no matter who is at fault.
- Limited Right to Sue: In New Jersey, policyholders have restricted rights to sue unless the injury meets a severe threshold, such as permanent disfigurement or death.
- Minimum Liability Coverage: New Jersey requires a minimum of $35,000 per person, $70,000 per accident, and $25,000 for property damage. According to Bankrate, these updated figures will take effect starting January 1, 2026.
Washington: At-Fault Insurance
Just like New Jersey, Washington is also experiencing a rise in traffic accidents. According to The Bellingham Herald, the state recorded 810 traffic fatalities in 2023. This was an increase from 743 the previous year and the highest number of road deaths since 1990. With accident rates climbing, drivers face greater risks on the road.
However, Washington’s insurance system operates differently from New Jersey’s. Instead of a no-fault system, Washington follows an at-fault car accident model where the responsible driver is liable for all damages. This distinction significantly affects how claims are filed and how compensation is pursued.
- No PIP Requirement: Unlike New Jersey, Washington does not mandate PIP coverage. Medical expenses are covered by the at-fault driver’s liability insurance.
- Full Right to Sue: Victims can sue the at-fault driver without any limitations, allowing for claims of pain and suffering or other non-economic damages.
- Higher Liability Coverage: Washington’s minimum liability requirements are $25,000 per person, $50,000 per accident, and $10,000 for property damage.
What This Means for New Residents
Now that you’ve moved from New Jersey to Washington, it’s important to understand how your insurance coverage will change. From medical expenses to liability rules, the system works differently here. Here are some key differences every new resident should know:
- Loss of Guaranteed Medical Benefits: New Jersey’s PIP covers medical expenses regardless of fault, but this does not apply in Washington. New residents must rely on health insurance or the at-fault driver’s liability coverage.
- Proving Fault: Injury claims in Washington require proof of fault, potentially leading to legal battles if liability is disputed.
- Higher Liability Limits: According to Freeman Law Firm, Washington’s at-fault system raises the risk of lawsuits. This makes higher liability coverage essential to protect assets and avoid large out-of-pocket costs.
Will I need a new insurance policy when moving from New Jersey to Washington?
New residents in Washington must obtain in-state insurance immediately upon establishing residency to comply with state law. Additionally, they have 30 days to register their vehicle and switch to Washington plates. However, updating insurance beforehand is crucial to avoid potential penalties.
What if I get into an accident before switching my policy?
Some insurers offer a grace period for switching states, but coverage varies, so checking with your provider is crucial to avoid gaps. If an accident occurs in Washington with a New Jersey-based policy, the insurer may enforce New Jersey’s limits or deny coverage. Additionally, if another driver is at fault, their Washington-based insurance will follow state liability laws, which differ from New Jersey’s system.
Steps to Update Insurance and Registration
Moving to a new state comes with a long to-do list, and updating your vehicle information is a key priority. Each state has its own requirements for insurance, registration, and licensing. So, it’s essential to complete the necessary updates promptly to stay compliant. Here’s what you need to do when transitioning from New Jersey to Washington:
- Purchase Washington Car Insurance: Choose a policy that meets or exceeds state minimums. Consider higher liability limits for additional protection.
- Register Your Vehicle: Complete vehicle registration with the Washington Department of Licensing (DOL) within 30 days of establishing residency.
- Obtain a Washington Driver’s License: Comply with state residency laws by updating your driver’s license.
- Cancel New Jersey Insurance: Cancel your New Jersey insurance policy and return your NJ license plates to avoid penalties.
When should I contact an attorney after moving from New Jersey to Washington?
Contact an attorney if your insurer denies coverage for an accident before you update your policy. Also, seek legal help if the other driver’s insurer disputes fault. Moreover, if you suffer serious injuries and need to file a personal injury lawsuit, an attorney can help you recover damages.
Overall, moving from New Jersey’s no-fault system to Washington’s at-fault model brings significant changes. It affects how claims are filed, how liability is determined, and how lawsuits are handled. Understanding these differences can help you make informed decisions about coverage, protect your financial assets, and avoid legal complications.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.