insurance fraud? Very detailed info inside

[StreetEG]

OK so I am in need of help. I will try and shorten up the story as much as possible but I am in dire need of advice. Please read all of the situation.

This past saturday i got pulled over in the state of new jersey for no inspection sticker. When I handed the lady my information she flipped on me for having a new jersey license and registration but a delaware insurance. I have gotten pulled over before and this was never a problem. Now my car is in an impound and I had no idea that could even happen.

On to the bullet points:
-I have had this same setup for 2 years. 1 year in college 1 year out.
-Both years I have lived in delaware (not permanently) commuting back and forth the my NJ address)
-Both of my cars are stored in delaware
-The reason I have this setup is because I am only going to be in DE temporarily for work (12-18 mos) and then will be moving back to the address on my license.


After my car was impounded I got on the phone with the insurance company (progressive)

-The insurance company told me that they HAVE to write a DE policy for me and that they REFUSE to write an NJ policy
-They told me that they did everything legal in issuing me a DE policy because they "filed within the state"

I called the DMV (with the insurance company) because I registered my cars with the DE insurance card and nothing was said.
-They told me that the only thing they checked is that the insurance company writes policys in jersey...so if progressive didnt write jersey policys they would have said something but because they do nobody said a word

I called the department of insurance
-The lady at the NJ Dept insurance told me that the law isnt written anywhere in anything the DMV gives you and is in a "law library" in a document called the New Jersey insurance act

-I now have a trial for insurance fraud I am guessing
-I have 1 of my cars in an impound


My Questions:
1) is there any way to get my car out of the impound (cause its costing a ton to be there) without making myself guilty for the trial

2) Am i Legal to drive in jersey?

3) Possible outcomes? Are there other cases of this that anyone can direct me in

4) Who can I hold accountable for notifying me of this law?

The reason I am so concerned is because this has come out of nowhere.... Now there is fines and fees and jail time? I am so confused! Also any reccomendations of a lawyer? NJ insurance lawyer, DE insurance laqyer?

Any help woul be appreciated

[StreetEG]

Update

Talked to lawyers/prosecutors, and they told me that in fact it was illegal, however the act that I have gotten away with it for 2 years without the insurance comapny or DMV picking up on it is unbelievable. With that in mind they told me to get NJ insurance on cars registered in NJ and they will waive the insurance tickets.

the only thing that really sucks is the fact that nobody can do anything about my car being in the impound.

[The Law]

I'm not 100% familiar with all of the laws in NJ, but they do have laws regulating car insurance. If the car is registered in NJ and your license is in NJ, obtaining insurance out-of-state will be seen as fraud because they will say you're attempting to save money by getting cheaper rates.

As far as the impound is concerned, here's what I found:

39:3-29. The driver's license, the registration certificate of a motor vehicle and an insurance identification card shall be in the possession of the driver or operator at all times when he is in charge of a motor vehicle on the highways of this State.

The driver or operator shall exhibit his driver's license and an insurance identification card, and the holder of a registration certificate or the operator or driver of a motor vehicle for which a registration certificate has been issued, whether or not the holder, driver or operator is a resident of this State, shall also exhibit the registration certificate, when requested so to do by a police officer or judge, while in the performance of the duties of his office, and shall write his name in the presence of the officer, so that the officer may thereby determine the identity of the licensee and at the same time determine the correctness of the registration certificate, as it relates to the registration number and number plates of the motor vehicle for which it was issued; and the correctness of the evidence of a policy of insurance, as it relates to the coverage of the motor vehicle for which it was issued.

Any person violating this section shall be subject to a fine of $150, except that if the person is a driver or operator of an omnibus, as defined pursuant to R.S.39:1-1, the amount of the fine shall be $250. Of the amount of any such fine collected pursuant to this paragraph, $25 shall be deposited in the Uninsured Motorist Prevention Fund established by section 2 of P.L.1983, c.141 (C.39:6B-3).

If a person charged with a violation of this section can exhibit his driver's license, insurance identification card and registration certificate, which were valid on the day he was charged, to the judge of the municipal court before whom he is summoned to answer to the charge, such judge may dismiss the charge. However, the judge may impose court costs.

In addition to and independent of any fine or other penalty provided for under law, the court shall impose a fine of $150 on any driver or operator of an omnibus, convicted of a violation of this section, who does not have a certificate of public convenience and necessity as required pursuant to R.S.48:4-3. The State Treasurer shall annually deposit the monies collected from the fines imposed pursuant to this paragraph to the "Omnibus Safety Enforcement Fund" established pursuant to section 4 of P.L.2007, c.40 (C.39:3-79.23). The fine described herein shall not be deemed a fine, penalty, or forfeiture pursuant to R.S.39:5-41.

Amended 1972, c.200, s.1; 1981, c.242, s.1; 1983, c.403, s.10; 2003, c.89, s.78; 2007, c.40, s.2.

39:3-29.1 Insurance identification cards; rules, regulations.

2.The Commissioner of Banking and Insurance shall, after consultation with the New Jersey Motor Vehicle Commission, promulgate rules and regulations concerning the issuance, design and content of the insurance identification cards required by this act.

The rules and regulations shall contain provisions designed to deter and detect counterfeit or fraudulent insurance identification cards.

L.1972,c.200,s.2; amended 2003, c.89, s.70.

39:3-29.1a Provision of proof of insurance; impoundment of vehicle.

79. a. Upon the issuance of a summons for failing to possess or exhibit an insurance identification card in violation of R.S.39:3-29, the violator or registrant shall have 24 hours from the time of the citation to provide the issuing law enforcement agency with the insurance identification card, or other satisfactory proof of insurance. Failure to provide the insurance identification card or other satisfactory proof of insurance within the 24-hour time frame shall result in the issuance of a warrant for the immediate impoundment of the vehicle that was being operated when the summons was issued. A motor vehicle impounded pursuant to the provisions of this subsection shall be removed to a storage space or garage. The registrant shall be responsible for the cost of the removal and storage of the impounded motor vehicle.

b. (1) If the registrant fails to claim a motor vehicle impounded pursuant to subsection a. of this section and pay the reasonable costs of removal and storage by midnight of the 30th day following impoundment, along with a fine of $100 to cover the administrative costs of the municipality wherein the violation occurred, and after a hearing, the municipality may sell the motor vehicle at public auction. The municipality shall give notice of the sale by certified mail to the registrant of the motor vehicle and to the holder of any security interest filed with the New Jersey Motor Vehicle Commission, and by publication in a form to be prescribed by the director by one insertion, at least five days before the date of the sale, in one or more newspapers published in this State and circulating in the municipality in which the motor vehicle has been impounded.

(2)At any time prior to the sale, the registrant or other person entitled to the motor vehicle may reclaim possession of it upon providing satisfactory proof of motor vehicle liability insurance coverage and payment of the reasonable costs of removal and storage of the motor vehicle and any outstanding fines or penalties; provided, however, if the other person entitled to the motor vehicle is a lessor or the holder of a lien on the motor vehicle, he may reclaim the motor vehicle without payment. In such cases, the registrant shall be liable for all outstanding costs, fines and penalties, and the municipality shall have a lien against the property and income of that registrant for the total amount of those outstanding costs, fines and penalties.

(3)Any proceeds obtained from the sale of a motor vehicle at public auction pursuant to paragraph (1) of this subsection in excess of the amount owed to the municipality for the reasonable costs of removal and storage of the motor vehicle and any outstanding fines or penalties shall be returned to the registrant of the vehicle.

L.2003,c.89,s.79.

39:3-40.6 Proof of valid motor vehicle insurance before release of impounded vehicle.

1.No motor vehicle which has been impounded pursuant to the laws of this State shall be released by the State or local law enforcement authority which impounded the vehicle unless proof of valid motor vehicle insurance for that vehicle is presented to the law enforcement authority. The recovery or salvage of the impounded motor vehicle by, or on behalf of, an insurer, financial institution or other lending entity, shall not require proof of valid motor vehicle insurance for that vehicle.

L.2000,c.61,s.1.