New Jersey Car Insurance Requirements in 2025 (Minimum Coverage for NJ Drivers)
New Jersey car insurance requirements mandate 15/30/5 of BIL and PDL coverage for standard policies. Basic policies offer limited protection—$5,000 in PDL, but no BIL coverage. Drivers must carry proof of insurance to avoid fines or suspension. Check our New Jersey auto insurance guide to find top insurers.
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Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
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UPDATED: Mar 22, 2025
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Mar 22, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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New Jersey car insurance requirements mandate all drivers to carry at least a basic or standard policy. The minimum liability coverage under a standard policy is $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage.
A basic policy provides $5,000 in property damage liability and $15,000 in personal injury protection (PIP), with up to $250,000 for severe injuries. Choosing a standard policy allows for higher coverage limits and optional uninsured/underinsured motorist protection.
New Jersey Car Insurance Minimum Coverage Requirements
| Coverage | Limits |
|---|---|
| Bodily Injury Liability | $15,000 per person / $30,000 per accident |
| Property Damage Liability | $5,000 per accident |
Drivers must carry proof of insurance at all times, and failure to comply can result in fines, license suspension, and other penalties. Understanding these requirements helps you stay compliant and financially protected.
Compare rates and coverage options to find the best policy for your needs. Enter your ZIP code now to explore car insurance options in New Jersey and secure the right coverage.
- New Jersey car insurance requirements mandate a minimum of 15/30/5
- Basic policies offer limited protection, while standard policies have better coverage
- Failure to maintain coverage can result in fines, license suspension, or penalties
NJ Minimum Coverage Requirements & What They Cover
New Jersey insurance laws require all drivers to carry a minimum 15/30/5 liability policy under a standard plan. This includes $15,000 in bodily injury coverage per person, $30,000 per accident, and $5,000 for property damage.
A basic policy only covers $5,000 in property damage liability and $15,000 in personal injury protection (PIP), with up to $250,000 for severe injuries. While a basic policy meets legal New Jersey auto insurance requirements, a standard policy provides better financial protection in the event of an accident.
New Jersey Minimum Car Insurance: Standard vs. Basic Policy Requirements
| Coverage Type | Minimum Requirement |
|---|---|
| Bodily Injury Liability (BIL) | $15,000 per person / $30,000 per accident |
| Property Damage Liability (PDL) | $5,000 per accident |
| Personal Injury Protection (PIP) | $15,000 per person per accident (up to $250,000 for severe injuries) |
| Uninsured/Underinsured Motorist (UM/UIM) Coverage | Not required but available as an option |
Under a basic policy, drivers automatically have a limited right to sue for additional pain and suffering damages. Choosing a standard policy allows drivers to select either a limited or unlimited right to sue. The limited right to sue lowers insurance premiums but prevents drivers from suing an at-fault party for pain and suffering unless they suffer one of the following:
- Loss of a body part
- Significant disfigurement or scarring
- A displaced fracture
- Loss of a fetus
- A permanent injury (when a body part or organ does not heal and will not function normally, even with further medical treatment)
- Death
Choosing the right car insurance in New Jersey ensures legal compliance and financial protection. A basic policy offers minimal coverage, while a standard policy provides more flexibility and the option to sue for additional damages. Knowing your options helps you make the best decision for your needs.
Read More: Best New Jersey Insurance Agents & Brokers
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Cheapest Car Insurance in New Jersey
Finding the cheapest car insurance in New Jersey depends on factors like your driving history, location, and coverage needs. Typically, basic policies cost less but offer limited protection.
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17,760 reviewsMajor insurers, regional providers, discounts for good drivers, and bundling policies can help lower costs. Comparing rates is the best way to find affordable coverage without sacrificing important protections.
Read More: Best Safe Driver Car Insurance Discounts
Penalties for Driving Without Insurance in NJ
Driving without insurance in New Jersey has severe consequences. The state enforces strict penalties to ensure that all drivers carry the required coverage.
- First Offense: A minimum fine of $300, community service, and a license suspension of up to one year.
- Second Offense: Fines up to $5,000, mandatory community service, a two-year license suspension, and possible jail time of up to 14 days.
- Insurance Surcharges: Additional fees imposed by the state, leading to higher insurance costs when reinstating coverage.
New Jersey enforces a “no-pay, no-play” rule, which limits the ability of uninsured drivers to recover certain damages after an accident, even if another driver is at fault.
This rule can prevent uninsured motorists from receiving compensation for non-economic damages like pain and suffering, making it crucial to maintain proper coverage.
Read More: Is an unregistered car covered by car insurance?
Other Coverage Options to Consider in NJ
Minimum coverage meets New Jersey’s legal requirements, but it may not provide enough protection in an accident. To enhance financial security, consider these options:
- Collision Coverage: Pays for repairs or replacement if your car is damaged in an accident.
- Comprehensive Coverage: Covers theft, vandalism, and non-collision damage like fire or floods.
- Uninsured/Underinsured Motorist Coverage: Protects you if the at-fault driver lacks enough insurance.
- Personal Injury Protection (PIP) Coverage: Increases coverage for medical expenses after an accident.
- Gap Coverage: Covers the difference between your car’s value and what you owe on a loan, helping you avoid financial loss. Gap insurance costs vary based on the insurer and vehicle.
- Roadside Assistance: Provides help for towing, flat tires, and unexpected breakdowns.
Comparing New Jersey minimum coverage car insurance monthly rates by city helps you find the right balance between affordability and protection.
New Jersey Min. Coverage Car Insurance Monthly Rates by City
| City | Rates |
|---|---|
| Atlantic City | $96 |
| Bayonne | $99 |
| Camden | $104 |
| Cherry Hill | $92 |
| Clifton | $98 |
| East Orange | $101 |
| Elizabeth | $110 |
| Hoboken | $107 |
| Jersey City | $108 |
| Lakewood | $94 |
| New Brunswick | $103 |
| Newark | $113 |
| North Bergen | $106 |
| Passaic | $105 |
| Paterson | $106 |
| Perth Amboy | $100 |
| Plainfield | $97 |
| Trenton | $102 |
| Union City | $109 |
| Vineland | $95 |
While these coverages aren’t required, they can prevent major financial losses by providing extra security. Check the table above for a breakdown of minimum coverage rates by city in New Jersey.
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Find the Best New Jersey Car Insurance for Your Needs
Choosing the right car insurance in New Jersey helps you stay compliant with state laws while ensuring financial protection in case of an accident.
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A basic policy meets the minimum legal NJ insurance requirements, but a standard policy offers greater flexibility and coverage options. Additional protections like comprehensive, collision, and uninsured motorist coverage can provide even more security.
Enter your ZIP code now to compare rates and find New Jersey’s best car insurance policy that fits your needs and budget.
Frequently Asked Questions
What is the minimum car insurance NJ drivers must carry?
New Jersey requires drivers to have at least a basic or standard policy. The standard policy includes $15,000 per person and $30,000 per accident for bodily injury, plus $5,000 for property damage.
What are the New Jersey car insurance requirements for liability coverage?
NJ drivers must carry at least 15/30/5 liability insurance under a standard policy. A basic policy offers only $5,000 in property damage liability and limited PIP coverage.
Is uninsured motorist coverage mandatory according to New Jersey insurance requirements?
While not required, uninsured/underinsured motorist coverage is highly recommended to protect against drivers without sufficient insurance.
What are the New Jersey minimum auto insurance requirements for personal injury protection (PIP)?
NJ law mandates at least $15,000 in PIP under a Basic policy, with a Standard policy allowing higher coverage and added protections.
What are NJ auto insurance coverage recommendations for better protection?
Experts recommend a standard policy with higher liability limits, uninsured motorist coverage, and comprehensive/collision insurance for better financial security.
What are the NJ auto insurance minimum requirements for bodily injury liability?
Under a Standard policy, NJ requires at least $15,000 per person and $30,000 per accident in bodily injury liability coverage. Enter your ZIP code to find policies that meet NJ car insurance requirements while offering the best protection for your needs.
What are NJ auto insurance requirements for full coverage?
NJ full coverage auto insurance requirements are not mandated by law but typically include liability, collision, comprehensive, and higher PIP limits.
What do NJ car insurance laws say about penalties for driving uninsured?
New Jersey car insurance laws impose fines, license suspension, and possible jail time for driving without insurance, with harsher penalties for repeat offenses.
What are NJ state car insurance rules for no-fault coverage?
NJ car insurance rules follow a no-fault system, meaning drivers must use their own PIP coverage for medical expenses after an accident, regardless of fault.
Is car insurance mandatory in New Jersey?
In NJ, insurance is mandatory. New Jersey minimum insurance requirements require all drivers to carry at least a basic or standard policy to operate a vehicle legally. Find the best car insurance in your state.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.