New Jersey's minimum liability limits just went up. On January 1, 2026, the second phase of P.L.2022, c.87 took effect: standard policies issued or renewed on or after that date must carry at least $35,000 of bodily injury coverage per person and $70,000 per accident, up from 25/50, with property damage staying at $25,000. Uninsured and underinsured motorist minimums rise with them, and insurers must bump renewing policies that would otherwise fall below the new floor.
The increase lands on top of New Jersey's no-fault framework. Every standard policy includes personal injury protection (PIP), at least $15,000 per person, per accident, which pays your own medical bills after a crash regardless of who caused it. Liability coverage then handles what you owe others, which is exactly the part the 2026 change enlarged.
The figures below explain the policy structure used in New Jersey. They do not predict an individual premium. For a broader view of how state rules differ, use our national car insurance directory.
New Jersey minimum car insurance requirements
Most quotes begin with liability coverage. Bodily injury liability addresses covered injury claims made by other people when you cause a crash. Property damage liability addresses covered damage to their vehicles or other property. The legal minimum keeps a policy compliant, but it does not say how much financial risk a household can comfortably retain.
- Coverage
- Bodily injury liability, one person
- Required amount or rule
- $35,000
- What it generally addresses
- Covered injuries to one other person
- Coverage
- Bodily injury liability, one accident
- Required amount or rule
- $70,000
- What it generally addresses
- Total covered injuries in one accident
- Coverage
- Property damage liability
- Required amount or rule
- $25,000
- What it generally addresses
- Covered damage you cause to other property
- Coverage
- PIP or medical coverage
- Required amount or rule
- $15,000 PIP per person, per accident minimum (standard policy)
- What it generally addresses
- Initial covered injury benefits under the no-fault system
- Coverage
- Additional state rule
- Required amount or rule
- UM/UIM minimums track the new liability minimums; a limited Basic Policy alternative exists ($5,000 property damage + $15,000 PIP, bodily injury coverage optional)
- What it generally addresses
- Review the selection or rejection shown on the quote
- Coverage
- Accident framework
- Required amount or rule
- No-fault
- What it generally addresses
- Your own injury coverage may respond first
- Coverage
- SR-22 filing
- Required amount or rule
- This state does not use the SR-22
- What it generally addresses
- Applies only when ordered after qualifying events
| Coverage | Required amount or rule | What it generally addresses |
|---|---|---|
| Bodily injury liability, one person | $35,000 | Covered injuries to one other person |
| Bodily injury liability, one accident | $70,000 | Total covered injuries in one accident |
| Property damage liability | $25,000 | Covered damage you cause to other property |
| PIP or medical coverage | $15,000 PIP per person, per accident minimum (standard policy) | Initial covered injury benefits under the no-fault system |
| Additional state rule | UM/UIM minimums track the new liability minimums; a limited Basic Policy alternative exists ($5,000 property damage + $15,000 PIP, bodily injury coverage optional) | Review the selection or rejection shown on the quote |
| Accident framework | No-fault | Your own injury coverage may respond first |
| SR-22 filing | This state does not use the SR-22 | Applies only when ordered after qualifying events |
What the state minimum covers, and what it leaves with you
A minimum policy is designed to satisfy state law. It is not designed around the value of your car, the size of a possible injury claim or the amount of savings you want to protect. Those are household decisions, so they need a separate review.
A financed or leased vehicle commonly needs collision and comprehensive coverage under the contract even when state law does not require them. For plain-language definitions and buying context, visit our insurance guides before selecting limits.
Rules and risks that matter in New Jersey
State law is only the starting point. These New Jersey-specific details show what to confirm before you compare coverage or buy a policy.
How New Jersey no-fault and PIP work
After an accident, your own PIP pays your medical expenses first, no waiting to establish fault. The standard $15,000 minimum can be raised (options run up to $250,000), and even at the minimum, New Jersey preserves a catastrophic-injury exception that covers certain severe brain and spinal injuries up to $250,000.
No-fault also means choosing a lawsuit threshold. The limitation-on-lawsuit option trades away the right to sue for pain and suffering in most injuries for a lower premium; the unlimited option keeps that right and costs more. It's one of several levers, alongside PIP limits and liability limits, that make two New Jersey quotes hard to compare unless the selections match.
Standard vs. Basic policy
New Jersey uniquely offers a stripped-down Basic Policy: $5,000 of property damage liability, $15,000 PIP, and no bodily injury liability coverage unless you add an optional $10,000. The 2026 minimum increases do not apply to Basic policies, the law explicitly exempts them.
The Basic Policy exists as a low-cost legal-compliance option, but the exposure it leaves is substantial: cause a serious injury with no BI coverage and your assets are on the line. Most New Jersey drivers carry standard policies, and quoting both at once makes the actual price gap, often smaller than expected, visible.
No SR-22s in New Jersey
New Jersey doesn't use SR-22 filings for in-state violations. Instead, the Motor Vehicle Commission runs its own reinstatement process, suspended drivers restore privileges through the MVC with proof of insurance and applicable fees, and high-risk drivers face surcharges rather than a certificate-on-file system. One caveat: a driver who picked up an SR-22 obligation in another state before moving must generally keep satisfying that state's requirement.
Average annual expenditure for auto insurance in New Jersey was $1,413 in 2022, per the NAIC, among the highest in the country, against a $1,127 countrywide average. Dense traffic, high medical costs, and rich mandated benefits all feed that number, and they're also why carrier-to-carrier differences on the same New Jersey driver tend to be large enough to be worth comparing.
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Start a New Jersey quote requestWhat affects car insurance rates in New Jersey?
Average annual expenditure for auto insurance in New Jersey was $1,413 in 2022. This is a historical statewide expenditure benchmark from NAIC 2022 Auto Insurance Database Average Premium Supplement. It combines many types of drivers and policies, so it should be used for market context rather than as a current quote estimate.
Insurers apply their filed rating plans to the household in front of them. Two neighbors can see different prices, and the same household can receive a wide range from different companies because each insurer weighs the inputs differently.
Garaging location
Claim frequency, traffic, repair costs, theft and weather exposure vary across New Jersey ZIP codes.
Drivers and record
Age, driving experience, citations, accidents, claims and continuous insurance history can affect price and eligibility.
Vehicle and use
Repair technology, vehicle value, annual mileage, commute and business use change the potential cost of a claim.
Coverage choices
Liability limits, collision, comprehensive, optional benefits and deductibles determine what the policy is being asked to pay.
Household details
Other licensed drivers, additional vehicles and bundling opportunities can change the account-level price.
Company fit
Insurers target different customer profiles. No one company is consistently cheapest for every driver in every territory.
Before you switch
Read the declarations, not only the price.
The declarations page shows drivers, vehicles, limits, deductibles and selected benefits. Match those fields before deciding that one quote is better.
Learn how a quote becomes a policy →How to compare New Jersey car insurance quotes
Keep the drivers, vehicles, limits, deductibles, dates and payment method the same. Then compare the full-term cost and change only one choice at a time.
Compare insurance companies on price, coverage and service
A familiar name is not automatically the best fit. Compare how each insurer sells and services policies, which optional programs it offers and whether it writes your profile in New Jersey. Availability and underwriting can vary by state.
See how Progressive sells and services policies →
See how GEICO sells and services policies →
See how State Farm sells and services policies →
See how Allstate sells and services policies →Company marks link to independent editorial reviews. They do not identify quote partners or a personalized match.
Browse all company reviews →Compare car insurance by New Jersey city
State law applies across New Jersey, but the garaging address can add a more local rating layer. Use a city guide to review ZIP related factors, vehicle details and the quote worksheet, then return here for the state requirement source.
Check the facts
Rules and market data used on this New Jersey page
The minimum-coverage table is paired with a first-party state reference, and the legal authority named in the guide is N.J.S.A. §39:6B-1, as amended by P.L.2022, c.87; N.J. Dept. of Banking and Insurance Bulletin No. 25-06. Historical premium context is labeled by year and linked to the underlying publication. These sources do not replace a policy contract or individualized legal advice; rules and forms can change, so confirm current requirements with the regulator, insurer or a licensed professional.
State requirement source
New Jersey DOBI — Standard auto policy ↗Official state consumer page describing current standard-policy coverage and minimum limits.
Historical market data
NAIC — 2022 Auto Insurance Database Average Premium Supplement ↗Historical statewide average-expenditure data published by the National Association of Insurance Commissioners in June 2024.
Regulator directory
NAIC — State insurance department directory ↗Directory of state insurance regulators for current consumer guidance, licensing checks and complaints.
Checked by Show my rates · Last updated August 3, 2026
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