A New Jersey Standard Policy must include at least $35,000 of bodily injury liability per person, $70,000 per accident and $25,000 of property damage liability, plus $15,000 of personal injury protection (PIP) and uninsured motorist coverage. Those limits apply to policies issued or renewed on or after January 1, 2026.
New Jersey also allows two lower-cost policies, the Basic Policy and the Special Automobile Insurance Policy. And if you buy a Standard Policy, you’ll pick a lawsuit option that decides whether you can sue for pain and suffering after a crash.
Key Takeaways
- A New Jersey Standard Policy requires 35/70/25 liability, $15,000 of PIP and uninsured motorist coverage at the same 35/70/25 minimums.
- The Basic Policy meets the legal requirement with $5,000 of property damage liability and $15,000 of PIP, but it has no bodily injury liability unless you add a $10,000 option.
- If you don’t choose a lawsuit option in writing, the law puts you on “limitation on lawsuit,” which restricts pain-and-suffering claims to certain serious injuries.
- A first conviction for driving uninsured brings a $300 to $1,000 fine, community service and a possible license suspension of up to a year, plus a $250 surcharge each year for three years.
New Jersey Minimum Car Insurance at a Glance
These are the minimums for a Standard Policy, the policy most New Jersey drivers buy:
| Coverage | Standard Policy requirement |
|---|---|
| Bodily injury liability | $35,000 per person and $70,000 per accident |
| Property damage liability | $25,000 per accident |
| Personal injury protection (PIP) | $15,000 per person per accident, with higher options available |
| Uninsured motorist | $35,000 per person, $70,000 per accident and $25,000 for property damage |
| Underinsured motorist | Insurers must offer it. It’s optional. |
| Collision and comprehensive | Not required by law, but usually required by lenders and lessors |
The limits come from N.J.S.A. 39:6A-3, and the Department of Banking and Insurance (DOBI) lists them in its auto insurance buyer’s guide. They rose from 25/50/25 at the start of 2026, so older guides may show outdated numbers. RateFrog’s guide to liability limits explains what the numbers mean.
Standard, Basic and Special Policies Compared
| Standard Policy | Basic Policy | Special Automobile Insurance Policy | |
|---|---|---|---|
| Bodily injury liability | At least $35,000/$70,000 | None, unless you add the $10,000 option | None |
| Property damage liability | At least $25,000 | $5,000 | None |
| Medical coverage | PIP of at least $15,000 | PIP of $15,000, or up to $250,000 for certain serious injuries | Emergency treatment and certain serious injuries up to $250,000, plus a $10,000 death benefit |
| Uninsured and underinsured motorist | UM required; UIM optional | None | None |
| Right to sue | You choose | Limited | Limited |
| Who can buy it | Any vehicle owner | Any vehicle owner | Vehicle owners enrolled in federal Medicaid with hospitalization; DOBI lists the cost as $365 a year |
Both the Basic Policy and the Special Automobile Insurance Policy (SAIP) satisfy New Jersey’s insurance law. DOBI says the Basic Policy “could be an option for those with few family responsibilities and few assets to protect (including income from a job).” Keep in mind that a Basic Policy without the bodily injury option gives you no bodily injury liability coverage if you injure someone, and the SAIP doesn’t include liability, collision or comprehensive coverage at all.
Choosing Your Lawsuit Option
A Standard Policy asks you to choose between two lawsuit options. DOBI’s buyer’s guide describes them this way:
- Limitation on lawsuit: you agree not to sue the at-fault driver for pain and suffering unless you have one of the listed injuries: death, loss of a body part, significant disfigurement or scarring, a displaced fracture, loss of a fetus, or a permanent injury.
- No limitation on lawsuit: you keep the right to sue the at-fault driver for pain and suffering for any injury.
If you don’t make a choice in writing, N.J.S.A. 39:6A-8.1 treats you as choosing limitation on lawsuit. The Basic Policy and the SAIP always come with the limited right to sue. Ask your insurer to quote both options so you can see the price difference before you decide. Pennsylvania offers a similar choice, which RateFrog covers in its Pennsylvania guide.
PIP Choices in New Jersey
New Jersey is a no-fault state, so your own PIP pays your medical bills after a crash no matter who caused it. On a Standard Policy, DOBI’s guide lists PIP medical limits of $15,000, $50,000, $75,000, $150,000 and $250,000. You also choose a deductible between $250 and $2,500, and you pay a 20% copayment on medical expenses between your deductible and $5,000.
You can also choose to have your health insurance pay first for accident injuries. DOBI says to check first whether your health plan covers auto accident injuries and how much, and it notes that Medicare and Medicaid can’t be used for this option. RateFrog’s guide to PIP and no-fault insurance explains how PIP works in other states.
Uninsured and Underinsured Motorist Coverage
Under N.J.S.A. 17:28-1.1, a Standard Policy must include uninsured motorist (UM) coverage of at least $35,000 per person and $70,000 per accident, plus property damage coverage. Underinsured motorist (UIM) coverage is an option that insurers have to offer. A few rules to know:
- UIM applies only when the at-fault driver’s liability limits are lower than your UIM limits.
- Your UIM limit is reduced by what you recover from the at-fault driver’s liability insurance.
- You can’t stack UM or UIM limits across cars or policies.
- Claims for property damage under these coverages exclude the first $500 of damage.
For example, say you carry $100,000 of UIM and the at-fault driver’s insurer pays its $35,000 limit. Your UIM can pay up to $65,000 more. RateFrog’s guide to uninsured and underinsured motorist coverage explains how these coverages work.
Proof of Insurance in New Jersey
Your insurer has to give you a New Jersey Insurance Identification Card for each vehicle, on paper or electronically, according to the Motor Vehicle Commission. Under N.J.S.A. 39:3-29, you have to show it when a police officer or judge asks. You can show it on your phone, and doing so doesn’t give the officer consent to look at anything else on the device.
Failing to show your insurance card carries a $150 fine. The judge may dismiss the charge if you bring your driver’s license, insurance card and registration that were valid on the day you were cited. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.
Penalties for Driving Without Insurance in New Jersey
Under N.J.S.A. 39:6B-2, the penalties are:
| Offense | Penalty |
|---|---|
| First offense | A fine of $300 to $1,000 and community service. The court may also suspend your license for up to one year. |
| Later offenses | A fine of up to $5,000, 14 days in jail and 30 days of community service. The court may suspend your license for up to two years. |
| MVC surcharge | $250 a year for three years, or $750 in total |
Any license suspension is up to the court. For a first offense, the court can shorten or drop the suspension if you give it satisfactory proof that you have liability insurance at the time of the hearing. The surcharge is billed separately by the Motor Vehicle Commission. Since 2021, unpaid surcharges no longer suspend your license, but the MVC can send them to collections.
You Can Lose the Right to Recover Damages
Driving uninsured can also cost you if you’re hurt. Under N.J.S.A. 39:6A-4.5, a driver who was required to carry PIP but didn’t has no right to sue for economic or noneconomic losses from a crash that happened while driving the uninsured car. RateFrog’s guide to what happens when insurance lapses covers the broader risks.
Does New Jersey Use SR-22 Filings?
RateFrog didn’t find an official New Jersey page describing SR-22 filings. If the Motor Vehicle Commission asks you for proof of insurance after a suspension, ask exactly what it needs. For how SR-22 filings generally work, see RateFrog’s SR-22 guide.
If You Can’t Find Coverage
New Jersey’s Personal Automobile Insurance Plan (PAIP) assigns drivers who can’t get coverage in the regular market to an insurer. DOBI’s consumer guide says the plan “is not an insurance company” and that its rates “may also be substantially higher.” Drivers with too many insurance eligibility points in the past three years may not qualify for regular coverage, and newly licensed drivers start with three points for inexperience. To find a producer who can apply for you, call 1-800-652-2471. AIPSO, which lists the plan as the New Jersey Automobile Insurance Plan, uses the same number.
How New Jersey Insurers Set Rates
DOBI’s consumer guide lists rating factors that include your driving record, the type of vehicle, where you live, your gender and age, your marital status, how you use the car and your insurance score. Insurers can use an insurance score in pricing, but DOBI says they “are prohibited from using your insurance score to deny, cancel or non-renew coverage.” RateFrog’s guide to the factors that affect car insurance rates explains how these work.
New Jersey also limits cancellations. DOBI says a policy can be canceled mid-term only for fraud, a suspended license or unpaid premium. State law adds one more reason for new policies: in the first 60 days, an insurer can cancel if you don’t meet its underwriting rules. A 15-day notice must be sent before a nonpayment cancellation. Nonrenewal notices must go out at least 60 days before the policy expires, and you can appeal a cancellation to DOBI. RateFrog’s guide to car insurance grace periods explains what usually happens when a payment is late.
Is New Jersey’s Minimum Coverage Enough?
The Standard Policy minimums are higher than they used to be, but a serious crash can still pass $35,000 per person. The Basic Policy leaves much more exposed, since it has no bodily injury liability coverage unless you add the $10,000 option. If a claim is more than your limits, you could owe the rest. RateFrog’s guide to how much car insurance you need can help you choose, and you can compare car insurance quotes at several coverage levels.
Where to Get Help
The New Jersey Department of Banking and Insurance runs a consumer hotline at 1-800-446-7467, weekdays from 8:30 a.m. to 5 p.m., and accepts complaints online through its consumer page.
Frequently Asked Questions
What Is the Minimum Car Insurance in New Jersey?
A Standard Policy needs at least $35,000 of bodily injury liability per person, $70,000 per accident, $25,000 of property damage liability, $15,000 of PIP and uninsured motorist coverage. The Basic Policy is a lower-cost alternative that also meets the law.
What Happens If I Don’t Choose a Lawsuit Option?
New Jersey law treats you as choosing limitation on lawsuit, which means you can sue for pain and suffering only if you have one of the listed serious injuries.
Is the Basic Policy Enough in New Jersey?
It meets the legal requirement, but it has only $5,000 of property damage liability and no bodily injury liability unless you add $10,000. DOBI says it could suit people with few family responsibilities and few assets to protect, including income from a job.
Can I Show Proof of Insurance on My Phone in New Jersey?
Yes. New Jersey law allows an electronic insurance card, and showing it doesn’t give the officer consent to look at anything else on your device.
Sources
- New Jersey DOBI: Auto Insurance Buyer’s Guide (PDF)
- New Jersey DOBI: Everything Auto Insurance (PDF)
- New Jersey MVC: Insurance Requirements
- New Jersey MVC: Surcharges
- N.J.S.A. 39:6A-3
- N.J.S.A. 39:6A-3.1
- N.J.S.A. 39:6A-3.3
- N.J.S.A. 39:6A-4.5
- N.J.S.A. 39:6A-8.1
- N.J.S.A. 39:6B-2
- N.J.S.A. 39:3-29
- N.J.S.A. 17:28-1.1
- AIPSO: New Jersey Automobile Insurance Plan
- New Jersey DOBI: Consumer Assistance