New Jersey Car Insurance Requirements
New Jersey requires every registered vehicle to carry at least 35/70/25 liability on a Standard Policy as of January 1, 2026: $35,000 in bodily injury per person, $70,000 per accident, and $25,000 in property damage, plus mandatory Personal Injury Protection (PIP) and uninsured motorist coverage under the state no-fault system. Drivers may instead choose a bare-bones Basic Policy, but it carries far lower limits and no required bodily injury liability.
New Jersey minimum coverage explained
As of January 1, 2026, the minimum liability limits on a New Jersey Standard Policy are 35/70/25. That shorthand means $35,000 of bodily injury liability per person, $70,000 of bodily injury liability per accident, and $25,000 of property damage liability per accident. Bodily injury liability pays other people you injure in a crash you cause; property damage liability pays to repair or replace their vehicle, fence, building, or other property.
These numbers are the result of a phased increase written into state law. For policies issued or renewed before January 1, 2023, the per-person bodily injury floor was just $15,000. From January 1, 2023 through the end of 2025, it rose to $25,000 per person and $50,000 per accident. The final step took effect on January 1, 2026, raising those figures to $35,000 and $70,000. The property damage requirement climbed to $25,000 during the earlier phase and stayed there. Because the change applies to new and renewal policies, essentially every insured New Jersey driver now carries at least 35/70/25 once their policy renews in 2026.
Basic Policy versus Standard Policy
New Jersey is unusual because it sells two very different tiers of coverage, and the legal minimum depends on which one you buy. The Standard Policy is what the large majority of drivers choose. It carries the 35/70/25 liability limits described above, includes uninsured and underinsured motorist protection, and lets you buy higher limits and optional coverages.
The Basic Policy is a stripped-down option designed to be inexpensive. It includes only $5,000 of property damage liability and $15,000 of Personal Injury Protection per person, per accident (with up to $250,000 available for certain catastrophic injuries such as brain or spinal-cord damage). The Basic Policy does not include any required bodily injury liability, although drivers can add an optional $10,000 of bodily injury for all persons per accident, and it does not include uninsured motorist coverage at all. While the Basic Policy technically satisfies the law, it leaves you exposed: if you seriously injure someone and have little or no bodily injury liability, your personal assets are on the line. Most consumer guidance, including the state's own materials, treats the Standard Policy as the sensible default.
Key data
| Factor | Filed value | Source |
|---|---|---|
| Standard Policy minimum bodily injury liability (effective Jan 1, 2026) | $35,000 per person / $70,000 per accident | New Jersey Department of Banking and Insurance — Standard Auto Insurance Policy · Jul 2026 |
| Standard Policy minimum property damage liability | $25,000 per accident | New Jersey Department of Banking and Insurance — Standard Auto Insurance Policy · Jul 2026 |
| Minimum Personal Injury Protection (PIP) medical coverage | $15,000 per person (up to $250,000 for certain severe injuries) | New Jersey Motor Vehicle Commission — Insurance Requirements · Jul 2026 |
How New Jersey no-fault and PIP work
New Jersey is a no-fault state, which shapes how injury claims are paid. After a crash, your own Personal Injury Protection (PIP) coverage pays the medical expenses of you and other people covered under your policy, no matter who was at fault. The standard PIP medical limit is $15,000 per person, per accident, with up to $250,000 available for a defined list of severe injuries; PIP on a Standard Policy can also reimburse lost wages, essential services, and death or funeral benefits.
Because injuries are paid first through PIP, New Jersey limits when you can sue the at-fault driver for pain and suffering. Every driver must choose a lawsuit threshold when buying a policy. The Limited Right to Sue option lowers your premium but bars suits for pain and suffering unless your injury meets a statutory threshold (for example, a permanent injury, significant disfigurement, or death). The Unlimited Right to Sue option costs more but preserves your full ability to sue for non-economic damages after any injury. Choosing between them is one of the most consequential decisions on a New Jersey application, and it cannot be changed after a crash occurs.
The three required coverages
The New Jersey Motor Vehicle Commission requires three coverages on every registered vehicle, and the Standard Policy bundles all three:
- Liability insurance — pays others for bodily injury and property damage you cause. On a Standard Policy the minimum is 35/70/25.
- Personal Injury Protection (PIP) — the no-fault medical coverage that pays your own crash injuries regardless of fault, starting at $15,000 per person.
- Uninsured/Underinsured Motorist (UM/UIM) — protects you if you are hit by a driver who has no insurance or not enough. On a Standard Policy, UM/UIM limits generally cannot exceed your liability limits, so at the minimum they mirror the 35/70/25 figures. UM/UIM is not offered on the Basic Policy.
You must keep proof of insurance in the vehicle. New Jersey accepts the insurance identification card in either paper or electronic form, and you must be able to show it before a state inspection, after an accident, during a traffic stop, or at a police spot check.
Penalties for driving uninsured
Driving without the required coverage in New Jersey carries some of the stiffest penalties in the country. Under the compulsory insurance statute, a first offense brings a fine of not less than $300 and up to $1,000, mandatory community service, a one-year driver's license suspension, and insurance surcharges. A second or subsequent offense escalates to fines up to $5,000, up to 30 days in jail, community service, and a two-year license suspension.
Beyond the statutory penalties, driving uninsured has a lasting financial cost. A lapse in coverage flags you as higher risk, so premiums rise sharply once you reinsure, and reinstating a suspended registration or license involves restoration fees. Letting a policy lapse even briefly between cars or renewals can trigger these consequences, so it is worth confirming continuous coverage before you cancel one policy or switch carriers.
Why New Jersey does not use SR-22
Many states make high-risk drivers file an SR-22 — a certificate from an insurer proving they carry at least the state minimum — after serious violations like a DUI or an uninsured-driving conviction. New Jersey does not participate in the SR-22 system. There is no SR-22 or FR-44 filing to obtain through a New Jersey policy, which can surprise drivers relocating from a state where they were told to keep one on file.
Instead, New Jersey handles hard-to-insure drivers through the New Jersey Personal Automobile Insurance Plan (NJ PAIP), the state's assigned-risk pool. If no standard insurer will write a policy for you in the voluntary market, NJ PAIP guarantees access to at least a Basic or Standard Policy so you can meet the legal requirement and keep your registration active. If an out-of-state lender or authority insists on SR-22 proof, you generally have to work that out through the state that imposed the requirement, not through New Jersey.
How much coverage you really need
The 35/70/25 minimum is a legal floor, not a recommendation. Medical bills, lost wages, and vehicle values routinely exceed those limits, and once a claim runs past your liability coverage, the injured party can pursue your savings, wages, and home. For that reason, many New Jersey drivers carry higher liability limits — 100/300/100 is a common step up — and add or raise UM/UIM to match, since uninsured and underinsured drivers remain a real risk on New Jersey roads.
Other coverages fill important gaps. Collision and comprehensive pay to repair or replace your own vehicle after a crash, theft, storm, or animal strike; lenders and leasing companies usually require both. Choosing the Unlimited Right to Sue option preserves your legal rights after an injury, and increasing PIP or coordinating it with your health insurance can reduce out-of-pocket exposure. Think about liability limits in proportion to what you have to protect rather than simply buying the cheapest legal policy.
How to compare New Jersey quotes
Because New Jersey lets you toggle so many variables — Basic versus Standard, lawsuit threshold, PIP limits, and UM/UIM — an apples-to-apples comparison matters more here than in most states. When you gather quotes, hold every coverage selection constant across carriers so that a low price reflects a genuinely cheaper policy and not a quietly weaker one. Confirm each quote uses the same liability limits, the same PIP amount, the same Right to Sue election, and the same deductibles.
Ask specifically whether a quoted price is a Standard Policy or the far skimpier Basic Policy, since the two are not interchangeable in the protection they provide. Look for available discounts — multi-policy, multi-vehicle, safe-driver, and low-mileage or telematics programs are widely offered in New Jersey — and re-shop at renewal, especially in 2026 as carriers adjust to the new 35/70/25 floor. Verify any insurer is licensed to write auto coverage in New Jersey before you buy, and keep proof of your new policy in the vehicle the moment coverage begins.
Frequently asked questions
What is the minimum car insurance required in New Jersey?
On a Standard Policy, New Jersey requires at least 35/70/25 as of January 1, 2026: $35,000 of bodily injury liability per person, $70,000 per accident, and $25,000 of property damage liability. You also must carry Personal Injury Protection (PIP) starting at $15,000 per person and uninsured/underinsured motorist coverage. A cheaper Basic Policy is available but includes only $5,000 property damage and $15,000 PIP, with no required bodily injury liability and no uninsured motorist coverage.
Is New Jersey a no-fault state?
Yes. New Jersey is a no-fault state, so your own Personal Injury Protection (PIP) pays your medical bills after a crash regardless of who caused it. It is also a choice no-fault state: every driver picks either the Limited Right to Sue option, which restricts pain-and-suffering lawsuits to injuries that meet a legal threshold, or the more expensive Unlimited Right to Sue option, which preserves full lawsuit rights.
What is the difference between the Basic and Standard Policy?
The Standard Policy is the fuller coverage most drivers buy; it carries 35/70/25 liability, PIP, and uninsured/underinsured motorist coverage. The Basic Policy is a low-cost minimum that includes only $5,000 of property damage liability and $15,000 of PIP, offers no required bodily injury liability (just an optional $10,000), and provides no uninsured motorist coverage. The Basic Policy meets the law but leaves large gaps in protection.
Does New Jersey require an SR-22?
No. New Jersey does not use the SR-22 certificate of financial responsibility and does not participate in the SR-22 system. Drivers who cannot obtain coverage in the regular market instead get a policy through the New Jersey Personal Automobile Insurance Plan (NJ PAIP), the state assigned-risk pool. If another state requires you to keep an SR-22 on file, you typically must resolve that through that state, not through a New Jersey policy.
What happens if I drive without insurance in New Jersey?
A first offense brings a fine of $300 to $1,000, mandatory community service, a one-year license suspension, and insurance surcharges. A second or later offense can mean fines up to $5,000, up to 30 days in jail, additional community service, and a two-year license suspension. A coverage lapse also raises your future premiums and can require restoration fees to reinstate your license and registration.
What is the difference between Limited and Unlimited Right to Sue?
These are the two lawsuit-threshold options every New Jersey driver must choose. The Limited Right to Sue option lowers your premium but bars claims for pain and suffering unless your injury meets a statutory threshold such as permanent injury, significant disfigurement, or death. The Unlimited Right to Sue option costs more but keeps your full right to sue for non-economic damages after any injury. The choice cannot be changed after an accident.
Sources cited
- New Jersey Department of Banking and Insurance — Standard Auto Insurance Policy — captured Jul 2026
- New Jersey Motor Vehicle Commission — Insurance Requirements — captured Jul 2026
- Insurance Information Institute — Automobile Financial Responsibility Laws by State — captured Jul 2026
- New Jersey Legislature — N.J.S.A. 39:6B-1 Compulsory Motor Vehicle Liability Insurance — captured Jul 2026
- National Association of Insurance Commissioners (NAIC) — Auto Insurance — captured Jul 2026
