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New Jersey Car Insurance Requirements
Last updated: 2026 · Data reflects current state minimums and industry averages.
Minimum Liability
35/70/25
Avg. Annual Premium
$1,950
Avg. Monthly
$163
Uninsured Drivers
14.9%
PIP Required
Yes
Minimum Coverage Requirements
New Jersey requires drivers to carry minimum liability insurance of 35/70/25 — meaning $35,000 per person for bodily injury, $70,000 per accident for bodily injury, and $25,000 for property damage. These limits took effect for standard policies effective January 1, 2026; older guides that list 15/30/5 are out of date. Personal Injury Protection (PIP) is also required, covering medical expenses regardless of fault.
Average Car Insurance Costs in New Jersey
Drivers in New Jersey typically pay approximately $1,950 per year ($163/month) for car insurance, based on 2026 industry average data.
Car Insurance Rates by City in New Jersey
| City | Est. Annual Premium |
|---|---|
| Newark | $2,580/yr |
| Jersey City | $2,490/yr |
| Paterson | $2,530/yr |
| Elizabeth | $2,470/yr |
| Trenton | $2,210/yr |
| Camden | $2,390/yr |
| Cherry Hill | $1,890/yr |
State Regulations and Key Rules
New Jersey is a no-fault state offering two policy options: Basic (minimal coverage, no bodily injury liability required) and Standard (full coverage options). PIP is required under both options. New Jersey has some of the most complex insurance laws in the country.
What Makes New Jersey Unique
New Jersey's two-tier policy system (Basic vs Standard) creates significant coverage differences. The Basic policy is cheaper but leaves drivers exposed to major liability. Most financial advisors recommend the Standard policy for adequate protection.
Uninsured Drivers in New Jersey
Approximately 14.9% of drivers in New Jersey are estimated to be uninsured.
Risk Factors Specific to New Jersey
Northern New Jersey's dense urban areas and proximity to New York City produce extremely high accident and theft rates. Coastal New Jersey faces significant flooding risk from nor'easters and tropical storms. I-95 and the Turnpike see high accident frequency.
What New Jersey’s Minimum Actually Covers
New Jersey’s minimum is 35/70/25: $35,000 per injured person, $70,000 total per accident for injuries, and $25,000 for property damage. These limits took effect January 1, 2026 for standard policies (from 25/50/25). With new vehicles averaging roughly $50,000, the $25,000 property damage limit would leave about $25,000 unpaid if you totaled an average new car — and that gap becomes your personal debt. On the injury side, a single hospital admission after a serious crash can exceed $35,000 quickly; anything above the limit can be pursued from your assets and future wages.
No-Fault, PIP, and Required Add-Ons in New Jersey
New Jersey is a choice no-fault state. Drivers carry PIP of $250,000 by default, with options as low as $15,000. The choice you make affects whether you can sue for pain and suffering after a crash, so it is worth reading rather than accepting the default. New Jersey also requires UM/UIM coverage, which pays when the at-fault driver has no insurance or too little.
How New Jersey Compares: Uninsured Drivers and Price
An estimated 14.9% of New Jersey drivers are uninsured — roughly 1 in 7 — a middle-of-the-pack uninsured rate. At that rate, uninsured motorist coverage is one of the most valuable add-ons you can buy.
Our average premium estimate of $1,950 a year puts New Jersey among the ten most expensive states in our 50-state estimates (median $1,395).
How to Save on Car Insurance in New Jersey
Northern New Jersey cities have some of the highest rates in the state — drivers in South Jersey and suburban areas pay significantly less. New Jersey's two-policy system means understanding the Standard vs Basic tradeoff is essential. Telematics programs are widely available and suit the many NJ residents with short or commuter-friendly driving patterns.
- New Jersey's minimum liability requirement of 35/70/25 is the legal floor, not a safe target — since New Jersey already requires PIP coverage, review whether that limit alone would cover a serious injury claim.
- With an estimated 14.9% of New Jersey drivers uninsured, carrying uninsured/underinsured motorist coverage above the state minimum is one of the highest-value add-ons you can buy.
Frequently Asked Questions
What is the minimum car insurance in New Jersey?
35/70/25: $35,000 of bodily injury liability per person, $70,000 per accident, and $25,000 of property damage liability. These limits took effect January 1, 2026 for standard policies (from 25/50/25).
Is New Jersey a no-fault state?
New Jersey is a choice no-fault state. Drivers carry PIP of $250,000 by default, with options as low as $15,000.
Is uninsured motorist coverage required in New Jersey?
Yes. New Jersey requires UM/UIM coverage.
How many drivers are uninsured in New Jersey?
An estimated 14.9% of New Jersey drivers are uninsured, roughly 1 in 7.
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The information on this page is provided for general informational purposes only and reflects estimated industry averages and state requirements as of 2026. Insurance regulations and rates change periodically; always verify current requirements with your state's department of insurance or a licensed insurance professional before making coverage decisions. City-level and statewide premiums shown are approximations — individual rates will vary based on personal factors.