State guide
Car Insurance in New Jersey
Updated August 2026
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.
| Coverage | Required minimum |
|---|---|
| Bodily injury liability (per person) | $35,000 |
| Bodily injury liability (per accident) | $70,000 |
| Property damage liability | $25,000 |
| PIP / medical | $15,000 PIP per person, per accident minimum (standard policy) |
| Additional requirements | 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) |
| No-fault state | Yes |
| SR-22 used | No — this state doesn't use SR-22 filings |
Source: 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
Average annual expenditure for auto insurance in New Jersey was $1,413 in 2022. (NAIC 2022 Auto Insurance Database Average Premium Supplement)
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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Frequently asked questions
What are New Jersey's minimum car insurance limits in 2026?+
For standard policies issued or renewed on or after January 1, 2026: $35,000 bodily injury per person, $70,000 per accident, and $25,000 property damage (35/70/25), plus at least $15,000 PIP, under P.L.2022, c.87. Basic policies are exempt from the increase.
Is New Jersey a no-fault state?+
Yes. Every standard New Jersey policy includes personal injury protection (PIP), which pays your own medical bills after a crash regardless of fault. Drivers also choose between a limited and an unlimited right to sue for pain and suffering.
Did my existing New Jersey policy automatically change in 2026?+
If your policy's limits fell below the new 35/70 minimums, your insurer is required to increase them at renewal and notify you — no signed coverage selection form needed, per DOBI Bulletin 25-06.
Does New Jersey require an SR-22?+
No. New Jersey doesn't use SR-22 filings for in-state violations; the Motor Vehicle Commission handles reinstatement and high-risk drivers through its own proof-of-insurance and surcharge system. An SR-22 obligation from another state generally follows you, though.
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