New Jersey Insurance Minimums
Car insurance is a legal requirement for all motor vehicle drivers in New Jersey. It is against the law to operate a vehicle without proof of insurance. Drivers must carry at least the required amounts of insurance. Car accident cases can become more complicated if one of the drivers involved does not have adequate coverage. That’s why it’s always important to speak with an experienced New Jersey car accident lawyer if you were involved in an accident.
New Jersey Required Car Insurance (2025)
In New Jersey, carrying automobile insurance is just as important as having your vehicle registered with the Motor Vehicle Commission. State law requires drivers to show proof that they are financially able to pay for motor vehicle accidents they cause. The solution is requiring all motorists to maintain minimum amounts of insurance.
New Jersey Is a No-Fault State
The majority of states use fault-based laws to determine liability, or financial responsibility, for automobile accidents. New Jersey, however, is a no-fault state. This means New Jersey drivers are expected to seek primary coverage from their own car insurance companies after accidents, regardless of who is at fault.
New Jersey’s no-fault law comes with a requirement to carry at least $15,000 in personal injury protection (PIP) insurance. This type of no-fault coverage can pay for a policyholder’s medical bills and lost wages after a car accident, even if the policyholder is at fault. It can pay for the driver as well as vehicle passengers.
Required Liability Insurance
In addition to PIP insurance, drivers in New Jersey are expected to carry minimum amounts of liability coverage. Liability insurance pays for damage and injuries caused to others in car accidents. As of 2025, the required amounts are at least:
- $25,000 in bodily injury coverage per individual
- $50,000 in bodily injury coverage per accident (two or more individuals)
- $25,000 in property damage liability coverage
If one driver is found to be at fault and the other has the right to sue, these amounts should be available to pay for the victim’s medical bills and property repairs. In 2026, the bodily injury insurance minimums in New Jersey are increasing to $35,000 per person and $70,000 per accident.
Optional Coverage
Also available as an option in New Jersey are uninsured/underinsured motorist insurance, collision coverage and comprehensive coverage. These optional types of insurance can help a policyholder pay for his or her own losses after a motor vehicle collision or another harmful event, such as vandalism.
Basic vs. Standard Insurance Policies in New Jersey
When purchasing automobile insurance in New Jersey, drivers have a choice between two different types of policies: basic and standard. A basic policy is the most cost-effective. It comes with $5,000 per accident in property damage liability insurance. It does not come with bodily injury coverage, but $10,000 is available as an option.
A standard policy is more common. It automatically comes with the minimum required amount of insurance according to state law. This type of coverage has a limited or unlimited right-to-sue option that allows a driver to sue another motorist for causing an accident outside of the no-fault system. This right will be based on injury severity (limited right-to-sue) or be present with any injury (unlimited right-to-sue).
Get Help After an Accident Involving an Underinsured Motorist
Although it is against the law to drive without the minimum required amounts of insurance in New Jersey, hundreds of drivers commit this offense daily. If you get involved in a car accident with an uninsured or underinsured driver, contact the personal injury attorneys in New Jersey at the Law Offices of Jeffrey S. Hasson, P.C., for legal assistance. Contact us today.