Car insurance is required in New Jersey. What trips people up is that the state offers two kinds of policy, and the minimum numbers changed for policies issued or renewed on or after January 1, 2026. Here is how the rules read, using the state's own materials.
| Coverage | Standard policy | Basic policy |
|---|---|---|
| Bodily injury liability | From $35,000 per person / $70,000 per accident, up to $250,000 / $500,000 | Not included. $10,000 per accident is an option |
| Property damage liability | From $25,000 per accident, up to $100,000 or more | $5,000 per accident |
| Personal injury protection (PIP) | From $15,000 per person or accident, up to $250,000 or more | $15,000 per person, per accident |
| Uninsured / underinsured motorist | Available, up to your liability limits | None |
| Collision and comprehensive | Optional | Optional, from some insurers |
Source for the table: the NJ Department of Banking and Insurance (DOBI) Standard Auto Insurance Policy page.
A 2022 law (P.L. 2022, c. 87) raised the minimum liability limits in steps. DOBI Bulletin 22-09 lays out the schedule for Standard policies:
| Limit | Issued or renewed 2023 to 2025 | Issued or renewed on or after Jan 1, 2026 |
|---|---|---|
| Bodily injury, per person | $25,000 | $35,000 |
| Bodily injury, per accident | $50,000 | $70,000 |
| Property damage, per accident | $25,000 | $25,000 |
The same bulletin notes that the Act does not apply to the Basic policy. Insurers also have to tell the named insured when a renewal raises limits to meet the new minimums.
PIP, or personal injury protection, is the medical coverage for injuries you and others covered by your policy suffer in an accident, no matter who caused it. DOBI says certain serious injuries, such as permanent or significant brain injury or spinal cord injury, can be covered up to $250,000 regardless of the PIP limit you picked.
On a Standard policy you choose between the Unlimited Right to Sue and the Limited Right to Sue option. It affects lawsuits for pain and suffering after an accident, and it affects price. Medical expenses and some economic losses are paid up to your PIP limits either way. DOBI says the choice affects how much your insurance costs. The choice applies to you and to family members who live with you and are not covered under another auto policy.
Yes. State law requires owners of motor vehicles registered or principally garaged in New Jersey to maintain liability insurance coverage.
For policies issued or renewed on or after January 1, 2026, the minimums are $35,000 per person and $70,000 per accident for bodily injury, and $25,000 per accident for property damage, according to DOBI Bulletin 22-09.
DOBI describes the Basic policy as providing enough coverage to meet the minimum insurance requirements of New Jersey law. It offers much lower limits, and it does not include bodily injury liability unless you add the optional $10,000. Whether it fits your situation depends on what you could be on the hook for in an accident, which is worth talking through with a licensed agent.
Collision and comprehensive are available as options from some insurers on a Basic policy, per DOBI. They are not part of the base coverage.
Important. Save2Insure is not an insurance company or a licensed insurance agency. We do not sell insurance, issue quotes, or give insurance advice or recommendations. This page is general information only. Coverage, prices and rules vary by state, insurer and person, so check with a licensed agent or your state insurance department before you decide.
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