New Jersey car insurance laws require every registered vehicle in the state to carry liability, personal injury protection, and uninsured motorist coverage, and the minimums went up on January 1, 2026. A standard policy issued or renewed on or after that date must include at least $35,000 in bodily injury liability per person, $70,000 per accident, and $25,000 in property damage liability, along with PIP that defaults to $250,000 per person.1New Jersey Department of Banking and Insurance. DOBI Bulletin 25-06 – Minimum Coverage Increases Drive without coverage and you face fines starting at $300, possible license suspension, and mandatory jail time on a second conviction.
Minimum Coverage on a Standard Policy
The current standard-policy minimums come from P.L. 2022, c.87, which phased in higher limits over several years. For any standard policy issued or renewed on or after January 1, 2026:
- Bodily injury liability: $35,000 per person and $70,000 per accident
- Property damage liability: $25,000 per accident
- Personal Injury Protection: up to $250,000 per person per accident by default, with written options to elect $150,000, $75,000, $50,000, or $25,000 instead
- Uninsured and underinsured motorist coverage, with minimums tied to the same bodily injury limits
The liability figures are set by statute.2Justia. New Jersey Code 39:6A-3 – Compulsory Automobile Insurance Coverage; Limits If you don’t affirmatively select a lower PIP amount in writing, the policy provides the $250,000 level automatically.3Justia. New Jersey Code 39:6A-4 – Personal Injury Protection Coverage, Regardless of Fault
The Basic Policy Option
New Jersey also allows a stripped-down Basic Auto Insurance Policy under a separate statute. It’s legal to drive on, and it costs less, but it provides much less protection than a standard policy.4Justia. New Jersey Code 39:6A-3.1 – Election of Basic Automobile Insurance Policy; Coverage Provided
A basic policy includes $5,000 in property damage liability per accident and $15,000 in PIP medical expense benefits per person, with an exception allowing up to $250,000 for traumatic brain injuries, spinal cord injuries, and other permanent or significant injuries treated at a trauma center. Bodily injury liability is not included at all unless you add an optional $10,000 limit for one or more people in a single accident. Uninsured motorist coverage isn’t part of the basic policy either.5New Jersey Department of Banking and Insurance. New Jersey’s Basic Auto Insurance Policy
The 2026 increases do not apply to the basic policy.1New Jersey Department of Banking and Insurance. DOBI Bulletin 25-06 – Minimum Coverage Increases Its $5,000 property damage limit has never changed. Without the optional bodily injury add-on, a basic-policy driver who causes a crash is personally liable for every dollar of the other person’s medical bills.
How No-Fault Coverage Works
New Jersey is a no-fault state for medical expenses. After a crash, your own insurer pays your medical bills through PIP regardless of who caused it.3Justia. New Jersey Code 39:6A-4 – Personal Injury Protection Coverage, Regardless of Fault PIP covers the named insured, household family members hurt in any auto accident as driver, passenger, or pedestrian, and permitted occupants of your vehicle.
The at-fault driver’s insurance only becomes relevant for additional compensation once PIP is exhausted or the injury meets certain thresholds. That’s where your tort choice comes in.
Choosing a Lawsuit Threshold
When you buy a standard policy, you must choose between two tort options that control when you can sue for pain and suffering.6Justia. New Jersey Code 39:6A-8 – Tort Exemption, Limitation on the Right to Noneconomic Loss
Limitation on Lawsuit (Verbal Threshold)
This is the cheaper option. To sue for non-economic damages, your injury must fall into one of these categories: death; dismemberment; significant disfigurement or scarring; displaced fractures; loss of a fetus; or a permanent injury where the affected body part or organ has not healed to function normally and will not heal with further treatment. Soft tissue injuries and pain without objective medical evidence generally do not qualify.6Justia. New Jersey Code 39:6A-8 – Tort Exemption, Limitation on the Right to Noneconomic Loss
No Limitation on Lawsuit
This option costs more but preserves your right to sue for pain and suffering for any injury, without needing to meet the categories above.
Proof of Insurance
You must keep your insurance identification card in the vehicle or be able to produce it in electronic form. State law requires you to show proof of coverage in four situations: before a vehicle inspection, when involved in an accident, when stopped for a traffic violation, and during a police spot check.7New Jersey Motor Vehicle Commission. Insurance Requirements
You’ll also need your insurance card or your company name and policy number to renew a vehicle registration, whether at an MVC agency or online.8New Jersey Motor Vehicle Commission. Vehicle Registration Renewal
Penalties for Driving Without Insurance
Driving uninsured in New Jersey is a serious offense, and penalties escalate for repeat violations.9Justia. New Jersey Code 39:6B-2 – Penalties
First Offense
A first conviction carries a fine between $300 and $1,000, plus community service set by the court. The judge may also suspend your license for up to one year, though the suspension can be reduced or eliminated if you produce proof of current insurance at the hearing.9Justia. New Jersey Code 39:6B-2 – Penalties
Second or Later Offense
A second or subsequent conviction brings a fine of up to $5,000, a mandatory 14 days of imprisonment, and 30 days of community service. The court may also suspend your license for up to two years. There is no statutory provision to reduce the jail time by later showing proof of insurance.9Justia. New Jersey Code 39:6B-2 – Penalties
Beyond court penalties, a conviction adds MVC surcharges of $250 per year for three years and places insurance eligibility points on your record, which drives up future premiums. New Jersey does not use the SR-22 filing common in other states, but you still must prove current coverage before driving and registration privileges are restored, and you’ll pay a $100 restoration fee for each suspended privilege.10New Jersey Motor Vehicle Commission. Suspensions and Restorations
If Your Coverage Lapses
State law bars registering or operating a vehicle without the required insurance. If your policy lapses, the MVC can suspend your registration, and you cannot legally drive until the Chief Administrator restores it in writing.10New Jersey Motor Vehicle Commission. Suspensions and Restorations Insurers notify the state when a policy is cancelled, so even a short gap can trigger action.
To restore suspended privileges, obtain new coverage, submit a copy of your current insurance card to the MVC, and pay the $100 restoration fee for each privilege that was suspended. Court fines from any citation issued during the lapse are separate.
Reporting an Accident
If you’re in a crash that causes any injury, any death, or property damage over $500 to any one person, you must file a written accident report within 10 days unless a law enforcement officer files one. Failing to report when required can suspend both your driving and registration privileges.11New Jersey Motor Vehicle Commission. MVC Accident Report Form SR-1
Exchange insurance information with the other driver at the scene and notify your own insurer promptly. Under no-fault, your medical claim runs through your own company, so a delay in reporting can slow the PIP benefits you’ll rely on for treatment.