---
title: "New Jersey Car Insurance Requirements: Basic and Standard Policies, the Minimums and What to Ask Your Agent"
description: "New Jersey Standard Policies issued or renewed since January 1, 2026 need $35,000/$70,000 bodily injury and $25,000 property damage. See Basic vs. Standard."
url: "https://riskado.com/new-jersey-car-insurance-requirements/"
lang: "en"
published: "2025-12-27"
modified: "2026-09-30"
tags: ["car-insurance-requirements","new-jersey-auto-insurance","personal-injury-protection","basic-policy","limitation-on-lawsuit"]
image: "https://riskado.com/og/blog-new-jersey-car-insurance-requirements.jpg"
---

# New Jersey Car Insurance Requirements: Basic and Standard Policies, the Minimums and What to Ask Your Agent

Riskado

Dec 27, 2025 · 11 min read · Updated Sep 30, 2026

![Cars moving along a multilane New Jersey highway at dusk with headlights on and an overpass ahead](https://riskado.com/blog/new-jersey-car-insurance-requirements/featured.jpg)

Yes, car insurance is mandatory in New Jersey. Every vehicle registered or principally garaged in the state must carry [liability insurance](https://riskado.com/insurance-terms/liability-insurance/), and you choose between a Basic [Policy](https://riskado.com/insurance-terms/policy/) and a Standard Policy (or a Special policy if you qualify through Medicaid). For Standard 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, plus $25,000 for property damage, under [P.L. 2022, chapter 87 (opens in a new tab)](https://pub.njleg.gov/Bills/2022/AL22/87_.HTM). [Personal injury protection](https://riskado.com/insurance-terms/personal-injury-protection/) (PIP) is required on both. A Basic Policy carries $5,000 of [property damage liability](https://riskado.com/insurance-terms/property-damage-liability/) and $15,000 of PIP, with [bodily injury liability](https://riskado.com/insurance-terms/bodily-injury-liability/) only as a $10,000 option, according to the [New Jersey Department of Banking and Insurance (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/basicpolicy.shtml).

### Key takeaways

- **Mandatory**Every vehicle registered or principally garaged in New Jersey must carry liability insurance.
- **Policy types**You choose between a Basic Policy and a Standard Policy, or a Special policy if you qualify through Medicaid.
- **Standard minimums**For Standard Policies issued or renewed on or after January 1, 2026, $35,000 per person and $70,000 per accident for bodily injury, plus $25,000 for property damage.
- **PIP**Personal injury protection is required on both the Basic and the Standard Policy.
- **Basic Policy**$5,000 of property damage liability and $15,000 of PIP, with bodily injury liability only as a $10,000 option.

## Who has to carry insurance in New Jersey?

The duty sits with the owner and the vehicle. Every owner or registered owner of a motor vehicle registered or principally garaged in New Jersey must maintain motor vehicle liability insurance under N.J.S.A. 39:6B-1, as amended in [P.L. 2022, chapter 87, section 2 (opens in a new tab)](https://pub.njleg.gov/Bills/2022/AL22/87_.HTM). A Standard, Basic, or Special [Automobile Insurance](https://riskado.com/insurance-terms/personal-auto-policy/) Policy each satisfies the law.

Registered vehicles must stay insured whether or not you drive them often. All drivers must be able to show proof of insurance when operating a vehicle, according to the [New Jersey Motor Vehicle Commission (opens in a new tab)](https://www.nj.gov/mvc/vehicles/insurancerequirements.htm). Driving without the required coverage is a separate offense with its own penalties, covered further down.

## Basic Policy vs. Standard Policy: what each one includes

New Jersey's two main policy types are built very differently, so identify which one you are being quoted before you compare prices. The Standard Policy is the broader private-passenger policy; the Basic Policy is a lower-coverage option.

New Jersey Standard Policy and Basic Policy compared

Hover or tap a row to highlight it.

| Coverage | Standard Policy | Basic Policy |
| --- | --- | --- |
| Bodily injury liability | $35,000 per person and $70,000 per accident (issued or renewed on or after Jan. 1, 2026) | Not included; optional $10,000 per accident |
| Property damage liability | $25,000 per accident | $5,000 per accident |
| PIP | At least $15,000 per person or accident, with higher options | $15,000 per person per accident |
| PIP for specified serious injuries | Up to $250,000 | Up to $250,000 |
| Uninsured and underinsured motorist | Included by statute | Not included |
| Collision | Optional | Optional from some insurers |
| Comprehensive | Optional | Optional from some insurers |
| Lawsuit option | Your choice of limited or unlimited | Limited right to sue |

Sources: [NJDOBI Standard Policy (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/standardpolicy.html), [NJDOBI Basic Policy (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/basicpolicy.shtml), and [P.L. 2022, chapter 87 (opens in a new tab)](https://pub.njleg.gov/Bills/2022/AL22/87_.HTM).

The biggest difference is bodily injury liability. On a Basic Policy, nothing pays for injuries you cause to other people unless you add the $10,000 option. If you are considering Basic to lower your premium, ask the agency to show you in writing what each missing coverage would mean for you after a crash.

![Two blank policy folders side by side on a desk with a car key and a pen between them](https://riskado.com/blog/new-jersey-car-insurance-requirements/policy-choice.jpg)

A Basic Policy pays nothing for injuries you cause unless you add the $10,000 option.

## What changed on January 1, 2026

The Standard Policy bodily injury minimums went up. For policies issued or renewed from January 1, 2023 through December 31, 2025, the minimums were $25,000 per person and $50,000 per accident. For policies issued or renewed on or after January 1, 2026, they are $35,000 and $70,000. The $25,000 property damage minimum has applied since January 1, 2023, under [P.L. 2022, chapter 87 (opens in a new tab)](https://pub.njleg.gov/Bills/2022/AL22/87_.HTM).

Because the change attaches to the issue or renewal date, an existing policy moves to the new minimums when it renews. Check your next renewal declarations page to confirm the new limits appear.

New Jersey Standard Policy minimums by issue or renewal date

Hover or tap a row to highlight it.

| Coverage | Issued or renewed Jan. 1, 2023 to Dec. 31, 2025 | Issued or renewed on or after Jan. 1, 2026 |
| --- | --- | --- |
| Bodily injury liability | $25,000 per person / $50,000 per accident | $35,000 per person / $70,000 per accident |
| Property damage liability | $25,000 | $25,000 |

## What PIP covers

PIP is [New Jersey's no-fault medical coverage](https://riskado.com/new-jersey-pip-coverage/). It pays covered medical expenses after an accident without regard to who caused it, subject to the policy and the limits you select, according to [NJDOBI (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/standardpolicy.html). A Basic Policy provides $15,000 per person per accident. A Standard Policy starts at $15,000 and offers higher limits. Both include up to $250,000 for specified serious injuries.

Standard Policy buyers also choose a PIP deductible and whether to make their health insurer pay first for auto accident injuries. Under the [health-insurer PIP option (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/pipoption.htm), you give your health insurer's name and policy or group number. Medicare and Medicaid cannot be chosen as the primary insurer for auto injuries. If your health coverage later ends, your auto insurer pays PIP medical benefits and an additional $750 deductible applies, so tell your agent right away if your health plan changes.

![An empty clinic examination room with a padded table, a stool and soft window light](https://riskado.com/blog/new-jersey-car-insurance-requirements/pip-medical.jpg)

PIP pays covered medical expenses after an accident, whoever caused it.

## Uninsured and underinsured motorist coverage

Every non-Basic motor vehicle liability policy must include [uninsured and underinsured motorist (UM/UIM) protection](https://riskado.com/do-i-need-uninsured-motorist-coverage/) under [P.L. 2022, chapter 87 (opens in a new tab)](https://pub.njleg.gov/Bills/2022/AL22/87_.HTM). This coverage helps pay for your losses when the at-fault driver has no insurance or too little.

For policies issued or renewed on or after January 1, 2026, UM/UIM bodily injury limits are $35,000 per person and $70,000 per accident. Since January 1, 2023, the law also provides $25,000 in aggregate UM/UIM property damage coverage, subject to a $500 exclusion per insured. You may buy higher UM/UIM limits up to amounts set in the statute, tied to your liability limits. A Basic Policy has no UM/UIM coverage. Ask your agency to confirm the exact UM/UIM limits on your policy form.

## The limitation on lawsuit option

Every Standard Policy requires you to [choose a lawsuit option](https://riskado.com/new-jersey-limitation-on-lawsuit/), according to [NJDOBI (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/standardpolicy.html). The choice affects your right to sue an at-fault driver for noneconomic loss, such as pain and suffering. With the limited right to sue, you can recover noneconomic damages only for specified injury types listed in the policy. With the unlimited right to sue, you keep that right for any injury. A Basic Policy comes with the limited right to sue.

This is a real trade-off between price and legal rights, so read the injury list on your coverage selection form and ask the agency how each option changes your premium.

## What the coverage selection form asks you to choose

New Jersey insurers must give applicants a Buyer's Guide that explains the policy types, coverages, options, and consumer rights, and a coverage selection form that records your choices. NJDOBI's [Purchasing Planner (opens in a new tab)](https://www.nj.gov/dobi/autoplanner.htm) walks through the same decisions:

- Basic, Standard, or Special Policy.
- Bodily injury and property damage liability limits.
- PIP medical expense limit, PIP deductible, and additional PIP benefits.
- Whether your health insurer pays PIP first.
- UM/UIM coverage.
- Collision and comprehensive, with deductibles.
- Limited or unlimited right to sue.

The [NJDOBI Division of Insurance (opens in a new tab)](https://nj.gov/dobi/division_insurance/index.htm) lists Buyer's Guides effective January 1, 2026, including a separate commercial private-passenger edition. If your vehicle is insured under a business policy, your options may differ from a personal policy.

## Can someone drive your car if they are not on your policy?

A borrower can be covered, but coverage depends on who the driver is and how often they drive. New Jersey's PIP law covers a person using the named insured's car with the named insured's permission, according to [P.L. 1998, chapter 21 (opens in a new tab)](https://pub.njleg.gov/bills/9899/al98/21_.HTM). Permission does not make the borrower a named insured, though, and a policy may treat occasional borrowers, regular drivers, household members, business use, and excluded drivers differently.

Household drivers are the part to get right. Insurers may ask about all licensed drivers in your household, according to the [NJDOBI Consumer Bill of Rights (opens in a new tab)](https://www.nj.gov/dobi/autorights.htm), and the [NAIC auto shopping tool (opens in a new tab)](https://content.naic.org/sites/default/files/consumer-auto-shopping-tool.pdf) advises giving complete information about other drivers. Before a friend borrows the car or a teenager starts driving, ask the agency whether that person must be listed and whether liability, PIP, UM/UIM, collision, and comprehensive all apply to their use.

## What the MVC needs for registration and proof

For a first New Jersey registration, the [MVC (opens in a new tab)](https://www.nj.gov/mvc/vehicles/reginitial.htm) asks for:

- A New Jersey insurance card, or the insurance company name and policy number.
- The vehicle title.
- A driver's license or other identification.
- A completed Vehicle Registration Application, Form BA-49.
- Lienholder and financing information if the vehicle is leased or financed.

Your insurer must issue a paper or electronic New Jersey Insurance Identification Card for each vehicle, showing the insurer, insured, policy number, effective and expiration dates, and vehicle description with VIN. Keep it in the car or available on your phone for inspection, after an accident, at a traffic stop, and at a police spot check, according to the [MVC (opens in a new tab)](https://www.nj.gov/mvc/vehicles/insurancerequirements.htm). Failing to show it can lead to fines.

If you are moving to New Jersey, you must transfer your out-of-state license and your vehicle title and registration within 60 days of the move, or before your current license or registration expires if that comes first, according to the [MVC's new resident page (opens in a new tab)](https://www.nj.gov/mvc/Licenses/Replacing.htm). You need New Jersey insurance information for that transfer, so line up a policy before your MVC visit.

![A smartphone in a dashboard mount showing a blurred card image, seen from the driver seat](https://riskado.com/blog/new-jersey-car-insurance-requirements/insurance-card.jpg)

Keep the insurance identification card in the car or on your phone.

## Penalties for driving uninsured

The penalties under N.J.S.A. 39:6B-2, as amended by [P.L. 2013, chapter 237 (opens in a new tab)](https://pub.njleg.gov/bills/2012/AL13/237_.PDF), are:

- **First offense:** a fine of $300 to $1,000, community service set by the court, and a one-year suspension of your right to drive. The suspension may be reduced or eliminated if you show satisfactory proof of insurance at the hearing.
- **Subsequent conviction:** a fine of up to $5,000, 14 days in jail, 30 days of community service, and loss of driving privileges for two years, according to the [statutory text reproduced in A2216 (opens in a new tab)](https://pub.njleg.gov/Bills/2018/A2500/2216_I1.HTM). After that period, you may apply to the MVC for a license at the Chief Administrator's discretion.

Penalties for driving uninsured in New Jersey

Hover or tap a row to highlight it.

| Offense | Fine | Other penalties |
| --- | --- | --- |
| First offense | $300 to $1,000 | Community service set by the court and a one-year suspension of your right to drive, which may be reduced or eliminated with satisfactory proof of insurance at the hearing |
| Subsequent conviction | Up to $5,000 | 14 days in jail, 30 days of community service, and loss of driving privileges for two years |

The [MVC (opens in a new tab)](https://www.nj.gov/mvc/vehicles/insurancerequirements.htm) adds that uninsured driving can also bring insurance surcharges.

## What a lender or leasing company may require

Collision and comprehensive are optional under New Jersey law, but a finance or lease contract can require them because the car is collateral. Auto finance contracts generally require comprehensive and collision coverage, and some allow the lender to buy collateral protection insurance and charge you if you let it lapse, according to [CFPB supervisory findings (opens in a new tab)](https://files.consumerfinance.gov/f/documents/cfpb_supervisory-highlights_issue-24_2021-06.pdf).

[GAP coverage](https://riskado.com/is-gap-insurance-worth-it/) pays the difference between your loan balance and what your primary insurance pays after a theft or total loss. GAP is generally optional unless the contract specifically requires it, according to the [CFPB (opens in a new tab)](https://www.consumerfinance.gov/ask-cfpb/am-i-required-to-purchase-an-extended-warranty-or-guaranteed-asset-protection-gap-insurance-or-credit-insurance-from-a-lender-or-dealer-to-get-an-auto-loan-en-807/). Ask the lender or lessor for its insurance requirements in writing, including deductibles.

![A new sedan parked in a dealership lot with a blank folder of paperwork resting on its hood](https://riskado.com/blog/new-jersey-car-insurance-requirements/lender-contract.jpg)

A finance or lease contract can require collision and comprehensive.

## Cancellation, nonrenewal, PAIP, and SAIP

A New Jersey insurer may cancel a policy midterm for fraud, a suspended license, or nonpayment, and must send a 15-day warning notice first, according to the [NJDOBI Consumer Bill of Rights (opens in a new tab)](https://www.nj.gov/dobi/autorights.htm). A nonrenewal notice must arrive in writing at least 60 calendar days before the policy expires. You can appeal a cancellation to NJDOBI, but NJDOBI cannot promise reinstatement, so start shopping for replacement coverage at the same time.

If no voluntary insurer will cover you, the [New Jersey Personal Automobile Insurance Plan (opens in a new tab)](https://nj.gov/dobi/division_insurance/propcas.htm) (PAIP) is the residual market for personal auto risks, established October 1, 1992. PAIP also administers the Special Automobile Insurance Policy (SAIP), a limited medical policy for people enrolled in Federal Medicaid with hospitalization benefits. SAIP covers emergency treatment right after an accident, up to $250,000 for serious brain and spinal cord injuries, and a $10,000 death benefit, but no liability, collision, or comprehensive coverage, according to [NJDOBI's SAIP page (opens in a new tab)](https://nj.gov/dobi/division_consumers/insurance/saip.htm). It costs $365 a year, or $360 paid upfront, as listed on that page in October 2026. A producer confirms eligibility from your Medicaid card, and not every Medicaid program qualifies.

## Check the agency and know where to complain

Look up any producer or agency in the NJDOBI Licensee Search, reached through the [Insurance Licensing and Education page (opens in a new tab)](https://www.nj.gov/dobi/inslic.htm), to see license status and lines of authority. For a complaint, the [NJDOBI Consumer Inquiry and Response Center (opens in a new tab)](https://www.nj.gov/dobi/consumer.htm) accepts online complaints and calls at 609-292-7272 or 1-800-446-7467. Include the insurer or producer name, policy documents, notices, dates, and a clear description of the problem.

## Questions to ask your agent

These come from NJDOBI's planning materials and the [NAIC auto shopping tool (opens in a new tab)](https://content.naic.org/sites/default/files/consumer-auto-shopping-tool.pdf):

- Is this quote for a Basic, Standard, or Special policy?
- What are the bodily injury, property damage, and UM/UIM limits?
- Which PIP limit and deductible are used, and is my health insurer primary?
- What does the limited or unlimited lawsuit option change for me?
- Does the policy cover every household driver and an occasional borrower?
- Are there regular-use, business-use, or excluded-driver provisions?
- What deductibles apply to collision and comprehensive, and how is a total loss valued?
- Are rental reimbursement and towing included, and what are the caps?
- Does my lender or lessor require specific coverage or GAP?
- How do payment deadlines, cancellations, and claims reporting work?

**Quiz: Check what you know about New Jersey car insurance requirements**

1. What are the Standard Policy bodily injury minimums for policies issued or renewed on or after January 1, 2026?
   - $25,000 per person and $50,000 per accident
   - $35,000 per person and $70,000 per accident **(correct answer)**
   - $15,000 per person and $30,000 per accident
2. How much property damage liability does a Basic Policy carry?
   - $5,000 **(correct answer)**
   - $15,000
   - $25,000
3. Does a Basic Policy include uninsured and underinsured motorist coverage?
   - Yes
   - No **(correct answer)**
4. Which lawsuit option comes with a Basic Policy?
   - Unlimited right to sue
   - Limited right to sue **(correct answer)**
5. How much written notice must an insurer give before nonrenewal?
   - 15 days
   - At least 60 calendar days before the policy expires **(correct answer)**
   - 30 days

[Riskado's directory](https://riskado.com/agencies/new-jersey/) lists insurance agencies across New Jersey by city and category, so you can find a local office to walk through these choices.

## New Jersey car insurance FAQ

### Does the 2026 increase apply to my current policy right away?

It applies to Standard Policies issued or renewed on or after January 1, 2026. A policy issued before that date moves to the $35,000 and $70,000 bodily injury minimums at its next renewal.

### Is "full coverage" a type of New Jersey policy?

No. "Full coverage" is not a specific policy term, according to the [NAIC (opens in a new tab)](https://content.naic.org/sites/default/files/consumer-auto-shopping-tool.pdf). Ask the agency to list each coverage and limit instead, especially collision and comprehensive.

### Can a Basic Policy satisfy my car loan?

A Basic Policy meets the state's insurance requirement, but your finance contract may require collision and comprehensive, which are optional from only some Basic insurers. Read the contract's insurance clause before you choose.

### What happens if my health insurance ends after I picked the health-insurer PIP option?

Your auto insurer then pays PIP medical benefits, and an additional $750 deductible applies, according to [NJDOBI (opens in a new tab)](https://www.nj.gov/dobi/division_consumers/insurance/pipoption.htm). Tell your agent about the change.

### What can I do after a nonrenewal notice?

You get at least 60 days of written notice, which gives you time to shop. If no voluntary insurer will write the policy, ask a licensed producer about placement through PAIP.

## Your next step

Find out which policy type you have or are being quoted, check the limits against the 2026 minimums, and make sure your insurance card is current and in the car. Then take the open questions, from household drivers to lender requirements, to a licensed New Jersey agency you have checked through NJDOBI.

### Terms used in this guide

Tap a term to see what it means.

**Basic Policy.** New Jersey's lower-coverage auto policy, with $5,000 of property damage liability, $15,000 of PIP and bodily injury liability only as a $10,000 option.

## More articles

- [Delaware Car Insurance Requirements: The Minimum Coverages, Required PIP and What to Ask Your Agent](https://riskado.com/delaware-car-insurance-requirements/): Delaware requires $25,000/$50,000 bodily injury, $10,000 property damage and $15,000/$30,000 PIP on every registered car. See proof, lapse and lender rules.

- [Maryland Car Insurance Requirements: Minimum Coverage, PIP, Uninsured Motorist and What to Ask Your Agent](https://riskado.com/maryland-car-insurance-requirements/): Maryland requires 30/60/15 liability, $2,500 of PIP unless waived, and uninsured motorist coverage on every registered car. See the rules and lapse penalties.

- [DC Car Insurance Requirements: Minimum Coverage, Uninsured Motorist, PIP Offers and What to Ask Your Agent](https://riskado.com/dc-car-insurance-requirements/): DC requires 25/50/10 liability plus uninsured motorist coverage on every registered car. See the PIP offer, DMV rules, lapse fines and what to ask an agent.

- [Georgia Car Insurance Requirements: Minimum Limits, Proof of Insurance in GEICS, What Full Coverage Means and the Uninsured Motorist Offer](https://riskado.com/georgia-car-insurance-requirements/): Georgia requires 25/50/25 liability on every registered car, reported to the state through GEICS. See what full coverage means, the UM rules and lapse fees.

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