New Jersey Auto Insurance: Minimum Coverage & Rates
New Jersey requires 35/70/25 liability coverage and is a no-fault state.
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New Jersey at a Glance
35/70/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
No-fault
Each driver's own policy pays their injuries first, whoever caused the crash
Required
PIP and Uninsured motorist coverage must be on every policy
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
New Jersey operates as a choice no-fault state, meaning drivers select between Standard (tort) and Basic (no-fault) policies at purchase. All drivers must carry Personal Injury Protection (PIP) coverage and prove financial responsibility through an insurance ID card carried in the vehicle. The state imposes a Surcharge Violation System (SVS) that adds points-based fees to premiums for at-fault accidents and violations — a penalty structure unique among northeastern states.
Bodily Injury Liability
Property Damage Liability
Personal Injury Protection (PIP)
Uninsured/Underinsured Motorist Coverage
Cost Overview
$124–$182/mo
Typical monthly rate in New Jersey, minimum-coverage policies
Rate data: NerdWallet, ValuePenguin and Insurify, 2026
Find the Lowest Rate That Still Protects You
Find Your Lowest RateFrequently Asked Questions
Is New Jersey a no-fault insurance state?
New Jersey is a choice no-fault state — you select between Standard (tort) and Basic (no-fault) policies when purchasing coverage. Both require Personal Injury Protection (PIP) to cover your own medical bills regardless of fault. The key difference is lawsuit rights: Standard Policy allows unrestricted lawsuits for pain and suffering, while Basic Policy limits those rights to serious injuries meeting the state's verbal threshold.
Coverage Types
Liability Insurance
The only coverage New Jersey legally requires beyond PIP — pays for injuries and property damage you cause to others. State minimums (15/30/5) leave you personally responsible for any damages exceeding these limits, including wage garnishment and asset seizure.
Full Coverage
Combines liability, PIP, collision, and comprehensive — protects both your legal exposure and your vehicle's value. Requires carrying physical damage coverage with a deductible, typically $500–$1,000.
Uninsured Motorist Coverage
Covers your injuries and vehicle damage when hit by a driver with no insurance or limits too low to cover your losses. New Jersey requires insurers to offer this at limits matching your liability — you must decline it in writing.
Collision Coverage
Pays to repair or replace your vehicle after a crash with another car or object, minus your deductible. Not required by law, but mandatory if you finance or lease your vehicle.
Comprehensive Coverage
Covers theft, vandalism, weather damage, falling objects, and animal strikes — all non-collision losses minus your deductible. Optional unless financing requires it.