What Are New Jersey’s Auto Insurance Requirements?
All drivers must have proof of auto insurance to operate a vehicle. Your minimum coverage will depend on whether you have a Basic or Standard policy.
The minimum required insurance in New Jersey for a Standard policy includes:
- Liability insurance – This coverage pays for others’ damages if you are responsible for the accident. The minimum requirements for bodily injury coverage are $25,000 per person and $50,000 per accident. It also requires $25,000 in property damage coverage per accident.
- Personal injury protection – Personal injury protection (PIP) coverage pays medical expenses for you and others covered under your policy regardless of fault. You must have a minimum of $15,000 per person or accident.
- Uninsured/underinsured motorist coverage – If you are involved in an accident with an uninsured or underinsured motorist, this coverage will apply. Uninsured/underinsured motorist coverage is available up to the same amounts as liability coverage.
For a Basic policy in New Jersey, you must have a minimum of:
- Liability insurance – The minimum liability coverage on a Basic policy only pays for others’ property damages. This coverage is a minimum of $5,000 per person or accident.
- Personal injury protection – Basic policies also must have a minimum of $15,000 per person or accident in PIP coverage.
Do not confuse full coverage with having the best coverage. Often, people get minimum benefits and liability coverage but are “fully covered” as required by New Jersey Law.
