New Jersey Auto Insurance
Whether you’re commuting to work in Newark or taking a sunrise drive in Cape May, affordable auto insurance coverage can help protect you, your loved ones and your vehicle on every New Jersey journey. So, take a few minutes to learn about cheap car insurance in New Jersey, including which coverages are mandatory and which ones are optional.
New Jersey Car Insurance Laws
Do you have to have car insurance in New Jersey?
New Jersey requires all vehicle owners to have an active car insurance policy. New Jersey auto insurance policies must at least meet the state’s minimum liability coverage limits, as shown below under New Jersey Minimum Car Insurance Requirements.
New Jersey is also a no-fault state that requires you to purchase personal injury protection (PIP), and depending on the type of policy you choose, you may also be required to purchase uninsured/underinsured motorist coverage.
What is a no-fault state?
When people say, “New Jersey is a no-fault state,” what do they mean? Well, in a no-fault state, each person injured in a car accident files a claim with their own insurance company and relies on their own coverage to pay for their medical expenses regardless of who was at fault. If an injured party does not have their own auto insurance, they would file a claim under the policy insuring the vehicle they were occupying at the time of the accident.
In an at-fault state, however, the at-fault driver would be liable for 100% of the injured person’s medical expenses. In this scenario, the at-fault driver's insurance would help cover the accident victim's expenses.
No-fault coverage only applies to personal injuries. In both no-fault states and at-fault states, drivers file property damage claims with the at-fault party’s insurer.
Standard Policies vs Basic Policies
New Jersey offers both standard policies and basic policies. Standard policies are a traditional policy option. Basic policies provide a low-cost option with slightly less protection to individuals with limited assets or family responsibility. Basic policies include many of the same coverages as standard policies, but they’re often available at lower limits. Some coverage options might not be available to purchase with a basic policy.
New Jersey Minimum Car Insurance Requirements
Wondering what your insurance policy needs to fulfill New Jersey’s insurance requirements? Here’s a quick breakdown by coverage and policy type.
|
Coverages |
Is It Required by Law? |
|
Bodily Injury Liability Coverage provides financial protection if you cause an accident that injures another person. It helps pay for their medical expenses and your legal services (if necessary). |
Yes, for standard policies. Not required for basic policies. Standard policies require $25,000 bodily injury per person/$50,000 bodily injury per accident. Basic policies don’t include bodily injury liability coverage, but $10,000 per accident is available as an option. |
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Property Damage Liability Coverage helps pay to repair or replace other people’s property that is damaged in an accident you cause. It typically involves damage to another vehicle, but it could help pay to repair a house, fence, mailbox and more. |
Yes, for both standard policies and basic policies. Standard policies require $25,000 property damage per accident. Basic policies require $5,000 per accident. |
|
Uninsured/Underinsured Motorist Coverage (UM/UIM) helps pay for your medical bills and related expenses if the other driver has no coverage (UM), insufficient coverage (UIM) or can’t be identified due to hit and run. In some states, UM/UIM can also help pay for property damage. |
Yes, for standard policies. Not required for basic policies. Standard policies include coverage up to the amounts selected for liability insurance. |
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Personal Injury Protection (PIP) helps pay for your medical and related expenses stemming from an accident, regardless of fault. |
Yes. $15,000 of medical expense benefit coverage for both standard and basic policies. These options below aren’t required but could be helpful to know depending on the type of policy you purchase. Health Care Primary: If you believe your health insurance coverage would pay for your medical expenses stemming from an automobile accident, you may be able to select this option to save on your car insurance premium. Extra PIP Package Coverage: This add-on option for standard policies can provide non-medical benefits like income continuation or reimbursement for essential services you can’t perform yourself due to injuries stemming from a motor vehicle accident. |
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Collision Coverage helps pay to repair or replace your vehicle if you collide with another car, tree, guardrail or another object, regardless of fault. |
Not required.1 |
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Comprehensive Coverage helps pay to repair or replace your vehicle if it’s damaged by something other than a collision, like fire, floodwaters, falling branches, vandalism or contact with an animal. |
Not required.1 |
IMPORTANT NOTE: While purchasing state-mandated coverage ensures you satisfy New Jersey’s laws, it doesn’t protect you or your vehicle in every circumstance. You might need to add additional coverage, like comprehensive and collision, to protect yourself and your vehicle more fully.
Additionally, New Jersey’s liability limits for standard policies are set to increase to 35/70/25 in 2026, and UM/UIM will equal the new minimum bodily injury limits.
1Your lender may require these coverages if you lease or finance your vehicle. Comprehensive and collision insurance might not be available as an option for basic policies depending on the insurer.
Are there additional coverage options?
For greater peace of mind, New Jersey drivers may have access to add-on services and other coverages depending on the insurer:
New Jersey Proof of Financial Responsibility and Penalties
What if I don't meet New Jersey’s minimum car insurance requirements?
New Jersey takes a strict stance on vehicle owners who don’t meet insurance requirements. The fines and other penalties for driving without insurance vary depending on the nature of the violation. A first offense could lead to a fine of up to $1,000, community service requirements and a suspended license, according to NJ.com. Subsequent offenses could lead to more severe consequences. Therefore, it’s important to maintain continuous coverage and avoid any chance of a lapse in coverage.
Penalties for Driving with a Suspended License in New Jersey
Driving without a valid license can lead to harsh penalties in New Jersey. If you’re caught operating a vehicle while suspended, revoked or otherwise unlicensed, the National Conference of State Legislatures reports you could be facing a steep fines, potential jail time and an increased license suspension depending on which offense it is and your specific circumstances.
SR-22 Insurance in New Jersey
Some states require high-risk drivers to keep an SR-22 (also known as a certificate of financial responsibility) on file with the state verifying they have purchased auto insurance coverage that satisfies the state’s minimum coverage requirements. Depending on your current state, if you recently moved from out of state, or if you’re planning to move out of state soon, you could be required to keep an SR-22 on file if:
- You have committed serious driving violations.
- You have failed to maintain proper liability coverage or have broken state insurance laws.
- You were convicted of a DUI/DWI.
Where can I find the cheapest car insurance rates in New Jersey?
Car insurance costs vary depending on a number of factors, including:
- The amount and type of coverage you choose
- The year, make and model of the vehicle you drive
- How much you drive, where you drive and where you live
- Your demographics
- Your driving record
- Your credit history
Where can I find the cheapest car insurance rates in New Jersey?
Car insurance costs vary depending on a number of factors, including:
- The amount and type of coverage you choose
- The year, make and model of the vehicle you drive
- How much you drive, where you drive and where you live
- Your demographics
- Your driving record
- Your credit history
Other New Jersey Auto Insurance Resources
*Roadside Assistance is not insurance and is administered through Nation Safe Drivers, Boca Raton, FL. Not all benefits available in all states.
**The “Direct Auto Insurance” brand is used by insurers in the National General Group, Winston-Salem, NC to describe their direct-to-consumer auto insurance programs. Direct Auto Insurance branded policies are produced by Direct General Insurance Agency, Inc. dba “Direct Auto Insurance” and by National General Insurance Marketing Inc.