New Jersey motor vehicle insurance laws require any NJ registered vehicle to be covered by an auto insurance policy. If your car, that was not working, was still registered with the state than you were required to carry insurance on it by law.

The New Jersey Department of Banking and Insurance notes that if you take a vehicle off the road because it is not operational or because you are not using it, you must surrender your license plates to the NJ Motor Vehicle Commission in order not to be required to have insurance coverage in place for that vehicle.

So unless the registered owner of a vehicle turns in the license plates to the MVC, that vehicle needs to remain insured even if it is not being used or is "junk." The NJ DOBI also states that if you do have a lapse in insurance that you will likely end up paying more for insurance, as you have seen.

For more information on this insurance law contact the NJ DOBI or MVC. If you want to shop around to see if you can find a better insurance rate for your new vehicle, start by clicking here for a free car insurance quote.