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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.
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