Car Insurance in New Jersey
New Jersey raised its Standard policy minimums to 35/70/25 effective January 1, 2026, with $15,000 in personal injury protection (PIP) and uninsured/underinsured motorist coverage at 35/70. As a no-fault state, your own PIP pays your medical costs after a crash regardless of fault.
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New Jersey at a glance
Data as of 2023Average cost
$1,573/yr
≈ $131/mo
vs U.S. average
+23%
above the national avg of $1,282/yr
Required minimums
35/70/25
+ $15K PIP
Source: NAIC (2023). Annual average expenditure per insured vehicle.
New Jersey raised its Standard policy minimums to 35/70/25 effective January 1, 2026, with $15,000 in personal injury protection (PIP) and uninsured/underinsured motorist coverage at 35/70. As a no-fault state, your own PIP pays your medical costs after a crash regardless of fault.
New Jersey also offers a lower-cost “Basic” policy with much lower limits, but most drivers choose the Standard policy for real protection. Comparing quotes is the best way to find an affordable policy that fits.
New Jersey minimum car insurance requirements
New Jersey’s Standard policy requires $35,000 of bodily injury liability per person, $70,000 per accident, $25,000 in property damage liability, and $15,000 in PIP, plus UM/UIM at 35/70. A cheaper “Basic” policy exists with reduced limits, but it leaves significant gaps.
Standard policy minimums rose to 35/70/25 effective January 1, 2026, with PIP at $15,000 and UM/UIM at 35/70. NJ also offers a lower-cost “Basic” policy with reduced limits.
How much does car insurance cost in New Jersey?
The average driver in New Jersey pays $1,573 per year for auto insurance — that's 23% above the U.S. national average of $1,282/yr. Higher-than-average rates often reflect denser traffic, higher claim severity, or stricter state coverage requirements.
New Jersey vs the national average
23% above the national average of $1,282/yr.
Source: NAIC (2023). Annual average expenditure per insured vehicle.
How New Jersey premiums have changed since 2019
Auto insurance costs in New Jersey have risen 13% over the past five years. The 2022–2023 jump mirrors a national trend: rising repair costs (vehicle complexity and parts inflation), more frequent severe accidents, and higher litigation costs pushed premiums up faster than overall inflation.
5-year trend: New Jersey vs national average
New Jersey is up 13% from $1,390 in 2019 to $1,573 in 2023.
Source: NAIC Auto Insurance Database Report (2022/2023), Table 4 — Average Expenditure.
Types of car insurance coverage
A New Jersey policy is built from a few core coverages. Liability is required; the rest are optional but often worth it.
| Coverage | What it covers | Required? |
|---|---|---|
| Liability | Injuries and property damage you cause to others | Required (state minimum) |
| Collision | Repairs to your own car after a crash | Optional* |
| Comprehensive | Theft, fire, weather, vandalism, animal strikes | Optional* |
| Uninsured motorist | Your costs if the at-fault driver has no insurance | Varies by state |
*Collision and comprehensive are usually required by your lender if you lease or finance your vehicle.
Driving without car insurance in New Jersey
Driving uninsured in New Jersey can be costly. Penalties typically include fines, suspension of your license and registration, and reinstatement fees. You may also be required to file an SR-22 certificate to reinstate your license.
How to find cheaper car insurance in New Jersey
Rates for the same driver can vary widely between insurers in New Jersey, so comparing several quotes is the most effective way to save. A few other ways to lower your premium:
- Raise your deductible if you can cover it in a claim
- Ask about every discount you qualify for
- Keep a clean driving record and good credit (where the state allows it as a rating factor)
- Reconsider collision and comprehensive on an older vehicle
For more, see our guides on how to lower your premium and what affects your rate.
Coverage requirements last verified May 28, 2026. Always confirm current minimums with your state’s Department of Insurance.
New Jersey car insurance FAQs
Common questions about auto insurance in New Jersey
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