If you insurance policy is paid up and in force at the time of an accident, it will usually take claims even if your license was expired at the time of the incident. However, if there are exclusions stated in the policy that the policyholder and other drivers must have a valid license then the insurance company may be able to deny a claim.

Typically, the license status at the time of a claim does not change the policy status and the claim would be paid. Insurance company guidelines and terms of policy differ though so check with your agent to see if your insurance provider would allow claims to be placed in a situation such as you described. To find out if New Jersey has an insurance law regulating this, check with the NJ Department of Banking and Insurance.