It really has more to do with the fact that you still have the vehicle registered
in your name. New Jersey
monitors whether or not vehicles registered in the state are also insured. If you drop the insurance coverage, the state could suspend your license. If you aren't wanting to insure the vehicle anymore, I would recommend contacting your local registration office about returning the vehicle tags. That should clear you up to drop the vehicle from your policy without any penalty. From there, your son would need to insure the vehicle and then register it afterwards.