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Under the New Jersey Merit Rating Program, the state’s Motor Vehicle Commission (MVC) is entitled to charge an insurance surcharge for drivers who have been convicted of certain driving-related offenses. These surcharges are applied over and above any fines, insurance increases, relicensing fees, and other costs associated with the conviction.
Surcharges are applied for offenses that are deemed to pose a severe risk of causing an accident. These include DUIs, driving without insurance, or driving without a license. Surcharges are also applied to drivers who accrue six points on their license in less than three years. Here’s how they work.
What Is a Surcharge?
A surcharge is a fee that you are required to pay directly to the MVC after being found guilty of certain traffic-related offenses. This fee will be charged regardless of any fines or other penalties.
The purpose of New Jersey surcharges is to fund the Market Transition Facility (MTF). The MTF was set up in the early 90s to fund the closure of the state’s separate high-risk insurance pool. To create the MTF, the State of New Jersey floated $705 million in bonds, which need to be repaid. Surcharges are used for the repayment of this debt.
Because much of this closure benefitted drivers with high insurance risks, the state opted to apply surcharges to drivers who were the most likely to drive up costs.
The most obvious reason you can receive a surcharge is if you’re convicted of a DUI. The surcharge will be applied both for drunk and drugged driving, as well as for refusal to submit to a breathalyzer. In fact, all New Jersey drivers who are convicted of a DUI will receive a surcharge, even if your conviction occurs in another state.
Drivers with multiple DUIs will receive multiple surcharges, even if their license is suspended or revoked. However, only one surcharge can be applied for a single DUI. If you are convicted of DUI and failure to submit for the same incident, only one surcharge will be applied.
Another reason you can receive a surcharge is if you accumulate six points on your license in a three year period. In this case, you will continue to be charged a surcharge as long as you’re carrying at least six points.
Not only that, but point reductions don’t count for surcharge purposes. Completing a defensive driving course, for example, can knock some points off your license. This can help lower your insurance rates, but it won’t help you avoid a surcharge.
In fact, it’s just about impossible to avoid paying a surcharge by any means. If you move out of state, you’ll still be required to pay. The fee will still be charged even if you no longer have a license, carry insurance, or own a vehicle.
Finally, there are three more reasons you can be hit with a surcharge. These are driving without insurance, driving without a license, and driving with a suspended license.
Surcharge Fees in NJ
New Jersey surcharge fees are different depending on the offense. Here’s a short summary of what you’ll be charged for any given incident.
| Traffic offense: | Annual surcharge amount: |
| DUI or refusal (first and second offense) | $1,000 |
| DUI or refusal (third or subsequent within three years) | $1,500 |
| Six points on your driving record | $150 |
| Each additional point | $25 |
| Driving without insurance | $250 |
| Driving without a license | $150 |
| Driving while license suspended | $250 |
How Long Do You Have to Pay Surcharges in NJ?
New Jersey MVC surcharges are applied for three years for any given offense. Each surcharge is charged on its own separate three-year time scale.
For example, let’s say that a driver is convicted of a DUI in year one. They will have to pay a $1,000 surcharge in years one, two, and three. Let’s say that in year two, they’re pulled over for driving with a suspended license. They would then have to pay a $250 surcharge in years two, three, and four.
For points-related surcharges, remember that you pay a surcharge based on how many points you’ve accrued in the last three years. If a driver keeps accumulating points, they’ll have to keep paying a surcharge.
What Happens if You Don’t Pay Surcharges?
Drivers who are being charged a surcharge will receive a bill in the mail. If the driver does not pay by the date on the bill, their license will be suspended. At this point, they’ll have to pay a $100 restoration fee in addition to their surcharge. Remember, driving with a license suspended will only cause you to get hit with another surcharge.
Fortunately, you don’t have to pay your entire surcharge at once. If you prefer, you can begin an installment payment plan (IPP) and pay off your surcharge in monthly installments. The minimum payment will be printed on your bill, and the due date will be the same as the due date if you were paying in full. If you take this route, you will then receive a monthly bill for the duration of your surcharge.
If a driver refuses to pay their surcharge, the MVC will file a judgement with the New Jersey Superior Court. At this point, the driver will be liable not just for the surcharge, but also for interest and collection costs. Continued refusal to pay can result in collections action, as well as in the MVC garnishing your state tax return.
How to Pay NJ Surcharge Online
To pay your New Jersey surcharge online, you’ll need to navigate to the state’s official payment portal. There, you’ll be prompted to enter some basic information to help the state find your account.
You can search in five different ways: by driver’s license number, surcharge number, judgement number, IPP number, or notice number. If you have trouble finding this information, the site has a small help page to help you out. Regardless of which number you provide, you’ll also need to enter your date of birth.
At that point, you’ll see a summary of outstanding surcharges, as well as when they’re due. You can make your payments via Visa, MasterCard, Discover, or electronic check.
If you’d rather use a different payment method, the MVC also accepts payments via phone and snail mail, using the same methods. In addition, you can also pay in person at your local DMV office. In person, you can pay with cash as well as a check or card.