New Jersey Auto Insurance Requirements & Rates
New Jersey requires 35/70/25 liability coverage and is a no-fault state.
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New Jersey at a Glance
35/70/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
No-fault
Each driver's own policy pays their injuries first, whoever caused the crash
Required
PIP and Uninsured motorist coverage must be on every policy
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
New Jersey operates under a choice no-fault system where drivers select between Standard (traditional tort) or Basic (limited lawsuit threshold) policies at purchase. All drivers must carry proof of insurance and file it electronically through the New Jersey Motor Vehicle Commission's insurance verification system. The state imposes a Surcharge Violation System (SVS) for at-fault accidents and moving violations, adding annual surcharges on top of premium increases.
Bodily Injury Liability
Property Damage Liability
Personal Injury Protection (PIP)
Uninsured/Underinsured Motorist Coverage
Uninsured Motorist Property Damage
Cost Overview
about $131/mo
Average car insurance spending in New Jersey
Rate data: NAIC Auto Insurance Database, 2023
Compare Before You Renew
Compare Auto Insurance RatesCoverage Types
Liability Insurance
Covers injuries and property damage you cause to others, including legal defense costs if you're sued. New Jersey's 15/30/5 minimum hasn't increased since 1972 and is insufficient for most modern accidents — consider 100/300/100 as a practical minimum.
Full Coverage
Combines liability, collision, comprehensive, PIP, and uninsured motorist coverage at elevated limits — typically 100/300/100 or higher with low deductibles. Required by lenders for financed vehicles and recommended for drivers with assets to protect.
Comprehensive Coverage
Covers non-collision damage to your vehicle including theft, vandalism, weather, falling objects, and animal strikes. You select a deductible from $100–$2,000, with $500 being most common — higher deductibles reduce premiums but increase out-of-pocket costs per claim.
Collision Coverage
Pays to repair or replace your vehicle after an accident regardless of fault, minus your chosen deductible. Required by lenders for financed or leased vehicles and recommended until your vehicle's value drops below 10 times the annual premium cost.
Uninsured Motorist Coverage
Protects you and your passengers when an at-fault driver has no insurance or insufficient coverage to pay for your injuries. Automatically included at the same limits as your bodily injury liability unless you reject it in writing — underinsured motorist coverage provides additional protection when the at-fault driver's limits are inadequate.
Personal Injury Protection (PIP)
Covers your medical expenses, lost wages (up to $100/day), and essential services like childcare regardless of who caused the accident. New Jersey requires minimum $15,000 coverage but allows selection up to $250,000, with coverage options limiting protection to Named Insured only, Named Insured and Spouse, or Named Insured and Household Members.