Car insurance in New Jersey
New Jersey is a choice (no-fault or tort option) state with a minimum liability requirement of 35/70/25. Here's what that means, what it costs, and what to check before you buy.
What the minimums actually mean
Under New Jersey's Standard Policy, effective January 1, 2026: $35,000 per injured person, $70,000 total per accident for injuries, and $25,000 for property damage (up from 25/50/25; existing policies auto-renew into the new limits). New Jersey also offers a Basic Policy with lower limits (15/30/5) that includes NO bodily-injury liability by default, relying instead on at least $15,000 in PIP - an easy detail to get wrong. Drivers choose between a 'Limitation on Lawsuit' (verbal threshold, cheaper) and 'Unlimited Right to Sue' (full tort rights, pricier) option regardless of which policy type they pick.
Both bodily-injury and property-damage UM/UIM are mandatory and, as of 2026, must match the new Standard Policy limits (35/70); insurers must offer higher limits up to 250/500.
Estimated cost
$1,413 a year for minimum coverage, $3,254 for full coverage2
Average annual premiums in New Jersey for a 40-year-old with a clean record and good credit, driving a 2023 Toyota Camry. Full coverage here means 100/300/50 liability plus collision and comprehensive.
Why this is an average, not a quote
SR-22 & high-risk filings
New Jersey does not use the literal 'SR-22' form - the Motor Vehicle Commission uses its own FS-1 (low-point suspensions) and P-7 (DUI/refusal) forms, which function similarly for reinstatement purposes.
Local conditions worth knowing
New Jersey is the nation's most densely populated state, with heavy traffic congestion and historically elevated insurance-fraud rates, making it consistently one of the most expensive states for car insurance.
Frequently asked
- What is the minimum car insurance requirement in New Jersey?
- New Jersey requires liability limits of at least 35/70/25. Under New Jersey's Standard Policy, effective January 1, 2026: $35,000 per injured person, $70,000 total per accident for injuries, and $25,000 for property damage (up from 25/50/25; existing policies auto-renew into the new limits). New Jersey also offers a Basic Policy with lower limits (15/30/5) that includes NO bodily-injury liability by default, relying instead on at least $15,000 in PIP - an easy detail to get wrong. Drivers choose between a 'Limitation on Lawsuit' (verbal threshold, cheaper) and 'Unlimited Right to Sue' (full tort rights, pricier) option regardless of which policy type they pick.
- Is New Jersey an at-fault or no-fault state?
- New Jersey is a choice (no-fault or tort option) state for car insurance claims.
- Do I need an SR-22 in New Jersey?
- New Jersey does not use the literal 'SR-22' form - the Motor Vehicle Commission uses its own FS-1 (low-point suspensions) and P-7 (DUI/refusal) forms, which function similarly for reinstatement purposes.
- Is uninsured motorist coverage required in New Jersey?
- Both bodily-injury and property-damage UM/UIM are mandatory and, as of 2026, must match the new Standard Policy limits (35/70); insurers must offer higher limits up to 250/500.
Sources
- New Jersey Legislature, S-481: phased increase of minimum auto liability limits.
- Bankrate, using Quadrant Information Services rates (November 2025), Average cost of car insurance, updated June 5, 2026.
Figures checked against these sources on October 2, 2026.
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