Auto insurance in New Jersey: what’s required, and what isn’t
New Jersey is the only state that sells two different statutory auto policies, and the cheaper one — the Basic policy — contains no bodily injury liability coverage at all. It is also a no-fault state with a compulsory tort election that defaults to the more restrictive option if you do not choose. And its Standard policy minimums rose to 35/70/25 in 2026. More of a New Jersey premium is decided by structural choices than by anything about how you drive.
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What New Jersey requires you to carry
| Bodily injury, per person | $35,000 |
|---|---|
| Bodily injury, per accident | $70,000 |
| Property damage, per accident | $25,000 |
New Jersey also requires
- Personal injury protection — $15,000 per person, per accident
- New Jersey is a no-fault state and PIP is compulsory on both policy types. Certain severe injuries are covered up to $250,000 regardless of the limit you selected.
- A choice between the Basic and Standard policy
- New Jersey is the only state that offers two statutory policy types. The Standard policy carries real liability limits. The Basic policy does not include bodily injury liability at all — see below before assuming it is simply a cheaper version.
- A tort election — limited or unlimited right to sue
- Standard policyholders must choose. If you make no choice, the Limited Right to Sue option is imposed by law. The Basic policy carries the Limited Right to Sue and offers no alternative.
These are floors, not recommendations. New Jersey sets the minimum a driver may legally carry. It does not assess whether that amount would cover a claim you caused. Anything above your limits is your personal exposure.
How New Jersey enforces it
New Jersey verifies coverage electronically and treats driving uninsured seriously, with fines, licence suspension and community service on a first offence. The state also requires insurance to register a vehicle, and a lapse can suspend the registration.
How rates are set in New Jersey
New Jersey is a no-fault state. Your own personal injury protection pays your medical costs first regardless of who caused the crash, and whether you can sue the at-fault driver for pain and suffering depends on the tort option attached to your policy.
The Department of Banking and Insurance regulates carriers and publishes the buyer’s guide that explains both policy types. The Basic policy exists as a lower-cost alternative for drivers for whom Standard coverage is cost-prohibitive or who might otherwise drive uninsured — the state’s own framing, and worth taking at face value: it is designed to be better than nothing, not to be adequate.
The Standard policy minimum is $35,000 per person and $70,000 per accident bodily injury with $25,000 property damage. The Basic policy is fixed at $5,000 property damage with no bodily injury liability included and no uninsured or underinsured motorist coverage available at all.
Credit-based insurance scores in New Jersey
New Jersey permits credit-based insurance scores in rating. New Jersey premiums run well above the national average, so the absolute dollar effect of any rating factor is larger here than in most states — but the policy-type and tort decisions below move a New Jersey premium far more than any rating factor does.
What actually moves your premium here
The Basic policy has no bodily injury liability in it
This is the most important sentence on this page. New Jersey’s Basic policy includes $15,000 of PIP and $5,000 of property damage liability — and no bodily injury liability at all, though $10,000 for all persons per accident is available as an option. The state’s own guidance is blunt about the consequence: your assets are at risk, including wage garnishment if a judgment is entered against you.
The minimums went up in 2026
The Standard policy minimum is now $35,000 per person and $70,000 per accident for bodily injury, with $25,000 property damage. If you have not re-shopped recently, confirm which limits your policy actually carries rather than assuming it tracked the change.
The tort election defaults against you
If a Standard policyholder makes no choice between the limited and unlimited right to sue, the Limited Right to Sue option is imposed by law. It is the cheaper option and it is the default — which means a meaningful number of New Jersey drivers gave up the right to sue for pain and suffering by not filling in a box.
Density without much rural relief
New Jersey is the most densely populated state in the country and carries enormous through-traffic on the Turnpike and Parkway corridors. High frequency plus high repair and medical costs is most of why premiums sit where they do.
See what you’d be matched with in New Jersey
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Comparing carriers in New Jersey
Establish which policy type a quote is for before you compare anything else. A Basic policy quote will always undercut a Standard one, and the difference is not a discount — it is the absence of the coverage that protects everything you own.
Then check the tort election. Limited and unlimited right to sue are different products at different prices, and quotes that differ on this are not comparable.
One habit matters more than any single carrier choice: re-check every year or two, and again after anything that changes your risk profile — a move across town, a new vehicle, a driver added or removed, or a violation ageing off your record. Carriers re-weight their rating factors continuously, so the one that priced you best three years ago is often not the one that prices you best today.
If you need an SR-22 in New Jersey
New Jersey does not use the SR-22 form the way most states do. Reinstatement after an insurance-related suspension runs through the Motor Vehicle Commission and requires proof of current coverage plus restoration fees. If you are arriving from another state with an active SR-22 obligation, that obligation belongs to the state that imposed it.
New Jersey auto insurance FAQ
- What is the minimum car insurance required in New Jersey?
- On a Standard policy, $35,000 per person and $70,000 per accident for bodily injury plus $25,000 property damage, and $15,000 of personal injury protection. The Basic policy is a separate statutory product with $5,000 property damage, $15,000 PIP and no bodily injury liability included.
- What is the difference between the Basic and Standard policy in New Jersey?
- The Standard policy carries real liability limits and a range of coverage options. The Basic policy includes PIP and $5,000 of property damage liability, offers $10,000 of bodily injury liability only as an option, and makes no uninsured or underinsured motorist coverage available. It exists as an alternative to driving uninsured, not as an equivalent to Standard coverage.
- What happens if I do not choose a tort option in New Jersey?
- The Limited Right to Sue option is imposed by law. That is the more restrictive choice — it limits your ability to sue an at-fault driver for pain and suffering — and it applies by default to anyone who does not actively select the alternative.
- Did New Jersey raise its insurance minimums?
- Yes. The Standard policy minimum is now $35,000 per person and $70,000 per accident for bodily injury, with $25,000 property damage. If you have not re-shopped recently it is worth confirming which limits your policy actually carries.
- Is New Jersey a no-fault state?
- Yes. Personal injury protection pays your medical costs first regardless of fault, and your right to sue for pain and suffering depends on the tort option attached to your policy.
Sources
Requirements on this page were verified against New Jersey’s own regulator and motor vehicle agency on the date shown at the top. Rules change — if you are making a decision that turns on an exact figure, confirm it at the source.
- NJ DOBI — New Jersey’s Basic auto insurance policy
- NJ DOBI — Standard auto insurance policy
- NJ DOBI — Auto insurance buyer’s guide
Consumer help in New Jersey: New Jersey Department of Banking and Insurance, (800) 446-7467.