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In New Jersey the legal minimum depends on which policy you pick. The Standard Policy now has minimum liability limits of 35/70/25, up from 25/50/25 after January 1, 2026, while the Basic Policy is a cheaper option that covers only $5,000 of property damage and $15,000 of personal injury protection, with no bodily injury liability unless you add an optional $10,000.
The Basic Policy leaves out uninsured and underinsured motorist coverage, which matters in a state with dense traffic. Every New Jersey vehicle also needs PIP, which pays your medical bills regardless of fault, and Standard Policy buyers choose between an unlimited right to sue and a limited one that restricts pain-and-suffering claims. New Jersey also regulates credit scoring: insurers may use it but cannot use it to deny, cancel or non-renew coverage. Reading each choice on your declarations page matters because low-cost options come with real trade-offs.
| Minimum liability | 35/70/25 (Standard Policy) |
|---|---|
| Other required coverage | Personal injury protection (PIP): at least $15,000 per person, with options up to $250,000 on a Standard Policy; Uninsured motorist (UM) coverage on the Standard Policy; not included in the Basic Policy |
| Fault system | Choice no-fault |
| Credit-based insurance scores | Restricted |
New Jersey minimum liability limits
To register and drive a car in New Jersey you need at least this much liability coverage:
The legal minimum in New Jersey is 35/70/25 (Standard Policy).
Minimum Standard Policy limits rose on January 1, 2026 from 25/50/25 to 35/70/25 under a 2022 law. A lower-cost Basic Policy also meets the legal requirement: it covers $5,000 of property damage and $15,000 of PIP, includes no bodily injury liability (an optional $10,000 is available) and has no uninsured/underinsured motorist coverage.
Tip: The minimum is a legal floor, not a recommendation. If a serious crash costs more than your limits, you could be personally responsible for the rest. See how much liability coverage you may need.
Other required and offered coverage
Besides liability, New Jersey requires:
- Personal injury protection (PIP): at least $15,000 per person, with options up to $250,000 on a Standard Policy
- Uninsured motorist (UM) coverage on the Standard Policy; not included in the Basic Policy
On a Standard Policy, UM/UIM coverage is available up to the liability limits you select.
Learn more about uninsured motorist coverage and personal injury protection.
Is New Jersey a no-fault state?
New Jersey lets drivers choose between no-fault and traditional tort options. The choice you make on your policy affects both your premium and your right to sue another driver after an accident.
On a Standard Policy you choose between an unlimited right to sue and the Limitation on Lawsuit option, which restricts pain-and-suffering claims to certain listed injuries. New Jersey also uses modified comparative negligence (N.J.S.A. 2A:15-5.1): you recover nothing if your fault is greater than the other party's.
Read more: at-fault vs. no-fault states explained.
Can insurers use your credit in New Jersey?
Status: Restricted. Insurers may use an insurance score but cannot use it to deny, cancel or non-renew coverage or for Basic or Special Policy customers. They must consider multiple loan inquiries within 30 days as one and make exceptions for extraordinary life events.
See how credit affects car insurance for the bigger picture.
Penalties for driving uninsured in New Jersey
The Motor Vehicle Commission says driving an uninsured vehicle can lead to fines, community service, license suspension and insurance surcharges. It does not publish specific amounts on its main insurance page, and failing to show proof of insurance when asked can also bring fines.
Insurers report dropped or cancelled coverage, and the MVC's Uninsured Motorist Unit sends suspension notices. Owners resolve them by sending a current ID card, a declarations page, or proof the car is no longer owned.
If you are ordered to file proof of insurance, see what SR-22 insurance is.
Tips for New Jersey drivers
- Compare the Basic and Standard Policy side by side. The Basic Policy has no uninsured/underinsured motorist coverage and no bodily injury liability unless you add an optional $10,000.
- Review your PIP limit and whether your health insurance is primary. DOBI says PIP options range from $15,000 up to $250,000, and some injuries are covered up to $250,000 regardless of the limit you choose.
- Decide on the right to sue deliberately. Choosing the Limitation on Lawsuit option restricts pain-and-suffering claims to listed injuries such as a displaced fracture or permanent injury.
- Check your renewal notice for the new limits. DOBI Bulletin 25-06 required insurers to notify policyholders when limits rose to 35/70/25 for policies renewed on or after January 1, 2026.
- Keep your insurance ID card, paper or electronic, in the vehicle. The MVC says you may need to show it at inspection, after an accident, during a stop, and at a police spot check.
When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.
Official resources
- Insurance regulator: New Jersey Department of Banking and Insurance
- Motor vehicle agency: New Jersey Motor Vehicle Commission
Your state insurance department can answer questions about your rights and handle complaints about insurers.
Frequently asked questions
What is New Jersey's minimum car insurance in 2026?
On a Standard Policy, the minimum liability limits are $35,000 per person and $70,000 per accident for bodily injury and $25,000 for property damage. They rose on January 1, 2026 for new and renewal policies. A Basic Policy is a lower-cost alternative with $5,000 property damage and $15,000 PIP, but no bodily injury liability unless you add it.
What is the difference between a Basic and Standard Policy in New Jersey?
A Standard Policy has higher options for bodily injury, property damage, PIP and uninsured/underinsured motorist coverage, and most drivers choose it. A Basic Policy costs less but covers only $5,000 property damage and $15,000 PIP, offers an optional $10,000 bodily injury, and includes no uninsured or underinsured motorist coverage.
What does the Limitation on Lawsuit option mean?
If you choose the Limitation on Lawsuit option, you agree not to sue the at-fault driver for pain and suffering unless you suffer one of the listed injuries, such as loss of a body part, significant scarring, a displaced fracture, or a permanent injury. It does not affect claims for medical bills or lost wages.
How can New Jersey insurers use credit information?
Under the DOBI's rules, insurers may use an insurance score for tier placement but cannot use it to deny, cancel or non-renew coverage, or for Basic or Special Policy customers. They must give notice of the practice, treat multiple loan inquiries within 30 days as one, and consider extraordinary life events like illness or divorce.
Sources
- New Jersey Department of Banking and Insurance – Bulletin 25-06
- New Jersey DOBI – Everything Auto Insurance 2026 guide
- New Jersey Motor Vehicle Commission – Insurance requirements
- New Jersey MVC – Uninsured Motorist Enforcement FAQs
- New Jersey DOBI – Basic Policy
- Matthiesen, Wickert & Lehrer – Contributory negligence/comparative fault laws in all 50 states
General information only. State rules change. Confirm current requirements with the New Jersey Department of Banking and Insurance or your insurer before you buy. This page is not insurance or legal advice.