New Jersey Auto Insurance Rates & Requirements
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 under a hybrid no-fault/tort system allowing drivers to choose between a Standard Policy (tort option with full lawsuit rights) or a Basic Policy (limited lawsuit rights with lower premiums). All drivers must carry proof of insurance and file it electronically through the Motor Vehicle Commission database. The state mandates Personal Injury Protection (PIP) coverage in addition to liability minimums, making it one of 12 states with mandatory no-fault medical benefits, according to the New Jersey Department of Banking and Insurance.
Bodily Injury Liability
Property Damage Liability
Personal Injury Protection (PIP)
Uninsured/Underinsured Motorist Coverage
Medical Expense Benefits (MEB)
Cost Overview
about $131/mo
Average car insurance spending in New Jersey
Rate data: NAIC Auto Insurance Database, 2023
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Compare Rates and Get CoveredFrequently Asked Questions
Is New Jersey a no-fault state?
New Jersey operates a hybrid no-fault/tort system — your PIP coverage pays your medical bills regardless of fault, but you retain the right to sue the at-fault driver if injuries meet the "verbal threshold" of serious, permanent injury. Drivers who choose the Basic Policy give up most lawsuit rights in exchange for lower premiums, creating two distinct legal frameworks within the same state.
Coverage Types
Liability Insurance
The foundation of every policy, covering bodily injury and property damage you cause to others. New Jersey's 15/30/5 minimums are dangerously low — most carriers and financial advisors recommend at least 100/300/100 to protect assets in serious accidents.
Full Coverage
Combines liability, collision, comprehensive, and uninsured motorist coverage into a complete protection package. Covers damage to your own vehicle from accidents, theft, weather, and vandalism while providing high liability limits to protect your assets.
Comprehensive Coverage
Pays for damage to your vehicle from non-collision events: theft, vandalism, fire, flooding, hail, falling objects, and animal strikes. Essential for areas with high theft rates or weather exposure.
Collision Coverage
Covers damage to your vehicle when you hit another car, object, or roll over, regardless of fault. Pays the repair or replacement cost minus your deductible.
Uninsured Motorist Coverage
Protects you when hit by a driver with no insurance or insufficient coverage to pay for your injuries and vehicle damage. Acts as a safety net when the at-fault driver can't cover your losses.
Personal Injury Protection (PIP)
New Jersey's mandatory no-fault medical coverage, paying up to $15,000 (or your selected limit) for medical expenses, lost wages, and essential services after any accident regardless of who caused it.