New Jersey Auto Insurance Requirements & 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 Traditional Standard (tort) or Basic Policy (no-fault) coverage at purchase. All drivers must carry proof of insurance and file it electronically through the Motor Vehicle Commission's system. The state mandates personal injury protection (PIP) regardless of which liability option you choose, setting New Jersey apart from most tort-based states.
Bodily Injury Liability
Property Damage Liability
Personal Injury Protection (PIP)
Uninsured/Underinsured Motorist Coverage
Cost Overview
about $131/mo
Average car insurance spending in New Jersey
Rate data: NAIC Auto Insurance Database, 2023
What Affects Your Rate
- Vehicle theft rates: New Jersey ranks in the top 10 nationally for vehicle theft claims per capita, with Honda Accord, Honda Civic, and Ford F-150 models most frequently targeted, raising comprehensive coverage costs statewide.
Check Your Rate Against the Market
Compare Auto Rates for FreeFrequently Asked Questions
Can I drive in New Jersey with out-of-state insurance?
Yes, if you're visiting or passing through with valid insurance from another state. If you establish New Jersey residency, you must obtain New Jersey-compliant coverage within 60 days and register your vehicle with the Motor Vehicle Commission. Out-of-state policies rarely meet New Jersey's PIP and uninsured motorist requirements.
Coverage Types
Liability Insurance
Covers injuries and property damage you cause to others. New Jersey's 15/30/5 minimums are inadequate for most accidents—upgrading to 100/300/100 adds $20–$40/month and protects personal assets from lawsuits.
Full Coverage
Bundles liability, collision, and comprehensive coverage with enhanced limits. Provides complete protection for your vehicle and legal liability in New Jersey's high-cost claims environment.
Comprehensive Coverage
Covers non-collision damage: theft, vandalism, weather, and animal strikes. Pays actual cash value minus your deductible.
Collision Coverage
Pays to repair or replace your vehicle after an accident, regardless of fault. Required by lenders and lessors.
Uninsured Motorist Coverage
Protects you when hit by a driver with no insurance or insufficient coverage. Matches your bodily injury limits unless declined in writing.
Personal Injury Protection (PIP)
Mandatory coverage paying medical bills, lost income, and essential services up to policy limits regardless of fault. New Jersey requires minimum $15,000 PIP on every policy.