N.J. Stat. tit. 45, ch. 21

N.J. Stat. tit. 45, ch. 21
in effect

N.J. Stat. § 45:21-1 Definitions

As used in this chapter: "Person" means any individual, partnership, association, corporation or joint stock company, their trustees or receivers appointed by any court. "Highway" means any street, avenue, park, parkway, road or other public place. "Owner" means any and every person engaged in the business of renting or leasing motor vehicles, without a driver, to be operated by the lessee or bailee, his agent or servant, for purposes other than the transportation of passengers for hire. "Child restraint" means a child passenger restraint system that conforms to the federal motor vehicle safety standard applicable when it was manufactured. Amended by L. 1985, c. 202, s. 1, eff. Sept. 1, 1985.

N.J. Stat. § 45:21-2 Liability insurance policy to be filed with municipal clerk

Every owner, as defined in section 45:21-1 of this title, shall file with the clerk of the municipality in which he resides or has his place of business a policy of insurance of a company duly licensed to transact business under the insurance laws of this state, insuring such owner against loss from the liability imposed by law upon such owner for damages on account of bodily injury or death suffered by any person other than a person in the employ of such owner, or a person in, on or about such motor vehicle in the status of a driver, passenger for hire or occupant, as a result of accidents occurring by reason of the negligent maintenance, use or operation of such motor vehicle upon the public highways of this state.

N.J. Stat. § 45:21-3 Various provisions of policy

Such policy of insurance shall provide a limit of liability on the part of the insurer, exclusive of court costs and the expenses of investigating and defending suits, for each motor vehicle covered thereby, in the sum of $10,000.00 for bodily injury to or death of any 1 person, and, subject to the same limit of liability for each person so injured or killed, in the sum of $20,000.00 for bodily injury to or death of more than 1 person in any 1 accident, and for damage to property in the sum of $5,000.00; and shall provide for the payment, subject to the aforesaid limits of liability, of any final judgment recovered by any person on account of the ownership, maintenance and use of such motor vehicle by either the owner or the lessee or bailee, his agent or servant, or any fault in respect thereto, and shall be for the benefit of any person suffering loss, damage or injury as aforesaid. Such policy of insurance shall contain a provision for a continuing liability thereunder, subject to the aforesaid limits of liability, notwithstanding any recovery thereon, and shall further provide that nothing contained therein, nor the violation of any of the provisions thereof, shall relieve the insurer, within the limit of liability aforesaid, from the payment of any such judgment; but this provision shall not, as between the insurer and the assured, affect the rights given by the policy to the insurers against the assured because of any such violation or otherwise. The provisions of this chapter, so far as may be requisite, shall be read into and deemed to form a part of any such policy. Amended by L.1959, c. 45, p. 150, s. 1, eff. July 1, 1959.

N.J. Stat. § 45:21-4 One or more policies may be filed

The owner, at his option, may file one policy for each motor vehicle, or one policy covering two or more vehicles, or one policy covering all vehicles operated under the same ownership, with provision for substitution and addition of motor vehicles thereunder, and may file policies of different insurers.

N.J. Stat. § 45:21-5 Owner to file power of attorney for acknowledgment of service of process

Such owner shall, prior to the issuance of any certificate under this chapter, execute and deliver to said clerk a power of attorney, wherein and whereby the owner shall nominate, constitute and appoint said clerk his true and lawful attorney for the purpose of acknowledging service of any process out of a court of competent jurisdiction in any action brought to recover damages against such owner by reason of the negligent maintenance, use, or operation of any such motor vehicle as aforesaid; but no owner shall be required to file and maintain in force more than one power of attorney under this chapter.

N.J. Stat. § 45:21-6 Certificates of compliance; issuance; revocation and surrender

Upon the owner's compliance with the requirements of sections 45:21-2 to 45:21-5 of this title, said clerk shall issue to the owner a certificate for each vehicle, which certificate shall describe the vehicle and certify that the owner thereof has filed a policy and power of attorney as required by this chapter. Said certificate shall at all times be carried in the vehicle, and no lessee or bailee shall remove, or cause or permit to be removed, said certificate therefrom. Said clerk shall revoke such certificate at any time when there is not on file with him a valid policy, in full force and effect, and a power of attorney, as required by this chapter. Upon notice of such revocation, the owner shall surrender such certificate to said clerk or to any person designated by him to receive the same, and shall cease to operate, or cause or permit to be operated, such motor vehicle.

N.J. Stat. § 45:21-7 Cancellation of policy; notice to clerk; replacement of policy; revocation of certificate upon default

Any policy filed under the provisions of this chapter may be canceled, as to accidents occurring subsequent to the effective date of such cancellation, by the insurer or by the owner upon the terms and in the manner therein provided for; but such cancellation shall not be effective unless and until twenty days' notice in writing of such cancellation shall have been given said clerk. Service of such notice upon said clerk may be made either personally or by mail, and if by mail shall be deemed complete when the notice is deposited in the post office, registered, postage prepaid, and directed to said clerk at his official address. Immediately upon receipt of notice by said clerk of the cancellation of any such policy, or if the authority of the insurer to transact such business in this state shall be revoked, he shall require the owner to replace such policy with another good and sufficient policy in accordance with the provisions of this chapter, in default of which the owner's certificate shall be revoked for all motor vehicles covered by such policy, and the owner shall thereupon cease to operate, or cause or permit to be operated, any such motor vehicle. Upon revocation of the certificate of any owner by said clerk, other than for failure to file another policy upon notice of cancellation, as herein above provided for, notice shall be sent by said clerk to the insurer, and such notice of revocation shall operate automatically to cancel such policy for the motor vehicle for which the certificate was revoked, as to all accidents occurring subsequent to the revocation of the certificate, and such insurer shall be liable for the return of the unearned premium upon such policy, as in case of cancellation by the insurer.

N.J. Stat. § 45:21-8 Certain corporations may carry own liability insurance

Such owner, if a corporation of this state with a paid-up cash capital of not less than two hundred thousand dollars, may carry its own liability insurance, as required by the provisions of this chapter, if it can reasonably satisfy the commissioner of banking and insurance as to the permanence and financial standing of its business. Any owner desiring to be exempt from obtaining or filing an insurance policy as required by this chapter shall make application to said commissioner, showing its financial ability to pay such damages, whereupon the commissioner, if reasonably satisfied of the applicant's financial ability, shall by written order make such exemption and deliver a certified copy thereof to said clerk, which certified copy shall remain with him in lieu of such policy or policies of insurance so long as the paid-up cash capital of said corporation remains at not less than two hundred thousand dollars, and the order of the commissioner remains in force. The clerk shall issue to a corporation so exempted a certificate showing such exemption in lieu of the certificate required to be issued by section 45:21-6 of this title. The commissioner may from time to time require further statements of the financial ability of such corporation, and if, at any time in his opinion, the corporation appears no longer able to pay damages, he shall revoke his order granting exemption and notify the clerk of such revocation; whereupon the clerk shall revoke the certificate showing exemption issued by the commissioner, and the corporation shall immediately insure its liability as required by the provisions of this chapter.

N.J. Stat. § 45:21-9 No transportation of passengers for hire

No lessee or bailee shall use, or cause or permit to be used, any such motor vehicle for the transportation of passengers for hire.

N.J. Stat. § 45:21-10 No exemption from complying with motor vehicle statutes

Nothing herein contained shall exempt any person owning or operating any such motor vehicle from complying with existing statutes relating to the ownership, registration and operation of motor vehicles in this state.

N.J. Stat. § 45:21-11 Penalty

A person operating, or causing or permitting the operation of, any such motor vehicle wholly or partly along any public highway in this state, without complying with the provisions of this chapter, shall be deemed guilty of a misdemeanor and subject to the penalties therefor provided by law.

N.J. Stat. § 45:21-12 Register to be kept by persons renting motor vehicles

Every person engaged in the business of renting or leasing motor vehicles to any other person, to be driven by any one other than the person engaged in said business or his agent or servant, shall keep and maintain a daily register, in which shall be entered the date and the time of the renting or leasing of each motor vehicle so rented or leased, the name and address of each person to whom the same is rented or leased, with a description of his business and of the purpose for which the vehicle is to be used, and the name and address of each person who will drive or operate the same, together with the number of his license to drive a motor vehicle and a description of the authority by which the same is issued, which register shall be open to inspection at all reasonable times by any person having a claim for damages incurred by reason of personal injury or property damage in the operation of any such motor vehicle while so rented or leased, his agent or attorney. L.1949, c. 206, p. 676, s. 1.

N.J. Stat. § 45:21-13 Violations of act

Any such person who shall fail to keep, maintain and make available such register for inspection, as aforesaid, or who shall rent or lease any motor vehicle to any other person without requesting the proper information and making the appropriate entries in such register, shall be guilty of a misdemeanor. L.1949, c. 206, p. 677, s. 2.

N.J. Stat. § 45:21-14 Child restraints in rental vehicles

Every owner who rents a motor vehicle to any person shall inform the person of the requirements of P.L. 1983, c. 128 (C. 39:3-76.2a et seq.) with respect to the use of a child restraint and shall provide, at the request of the renter, an appropriate child restraint. The owner shall also supply the person with simple instructions for its use. The owner may charge a reasonable fee and deposit for the use of the child restraint. L. 1985, c. 202, s. 2, eff. Sept. 1, 1985.

N.J. Stat. § 45:21-15 Penalty for violation

An owner who violates this amendatory and supplementary act shall be fined not less than $50.00 nor more than $250.00 for each offense, if the owner received at least 24 hours' advance notice from the customer or his agent that a child restraint system was required. L. 1985, c. 202, s. 3, eff. Sept. 1, 1985.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026