New Jersey Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: New Jersey Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: New Jersey Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

New Jersey's minimum coverage liability limits are 25/50/25. The average annual cost of state minimum car insurance in New Jersey is $1,108, which is about $92 monthly.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Nica Gonzales-Villaraza

Updated: October 29, 2024

Advertising & Editorial Disclosure

New Jersey drivers must carry minimum car insurance requirements, which include a $25,000 bodily injury liability per person, $50,000 per accident, $25,000 property damage liability per accident and $15,000 in personal injury protection (PIP). New Jersey is a no-fault state, so car insurance is required. Drivers must rely on their own PIP coverage for any injuries, regardless of who caused the accident.

Drivers in New Jersey can expect to pay around $91 monthly for state minimum coverage car insurance. While the cost can vary depending on individual circumstances and the level of coverage chosen, shopping around for the cheapest car insurance in New Jersey can help ensure you're meeting the legal requirements without overpaying.

TABLE OF CONTENTS

New Jersey Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in New Jersey
Cheapest Companies in New Jersey for Minimum Coverage
Add-On Coverages in New Jersey
Penalties for Driving Without Insurance in New Jersey
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from the New Jersey Division of Insurance and Quadrant Information Services to give you the most accurate cost data for a range of New Jersey drivers.

These rates reflect the cost of minimum coverage car insurance requirements in New Jersey as of November 2024.

25,584Quotes Analyzed

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53ZIP Codes

New Jersey Minimum Coverage Car Insurance Requirements

In New Jersey, drivers are legally required to have minimum car insurance coverage before hitting the road. Here are the specific minimum amounts needed:

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$15,000 for personal injury protection per person

Having the state minimum car insurance coverage can impact your premium, and in New Jersey, the type of system — whether fault or no-fault — plays a role in how insurance claims are handled. New Jersey operates under a no-fault system, meaning that your own insurance coverage is responsible for paying some or all of your medical expenses and lost earnings, irrespective of who caused the accident.

DOES NEW JERSEY REQUIRE COLLISION AND COMPREHENSIVE COVERAGE?

New Jersey does not mandate drivers to carry collision or comprehensive insurance as part of the state minimum coverage. However, if you finance or lease a vehicle, the lender or leasing company will typically require you to maintain both collision and comprehensive coverage to protect their investment against potential loss or damage.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased

The table reflects New Jersey's minimum coverage auto insurance requirements, including personal injury and property damage liability. Remember, your policy's terms and conditions define the coverage specifics.

Average Cost of Minimum Coverage Car Insurance in New Jersey

Age is a significant factor in determining the cost of minimum coverage car insurance. In New Jersey, drivers aged 22 to 29 have the highest premiums due to their higher likelihood of accidents and less driving experience.

The table below shows the average minimum coverage cost in New Jersey per age group.


22-29	$1,178	$98
30-59	$1,108	$92
60 +	$1,074	$90

Cheapest Companies for Minimum Coverage Car Insurance in New Jersey

New Jersey drivers seeking cost-effective options for state minimum coverage auto insurance can find the lowest rates with Plymouth Rock Assurance and GEICO.

Plymouth Rock Assurance: $549 per year; $46 per month.
GEICO: $617 per year; $51 per month.

While securing an affordable rate is essential, it's equally important to ensure your insurance choice aligns with your unique needs and provides adequate protection on the road. Discover more about selecting the best car insurance in New Jersey to make an informed decision.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


Plymouth Rock Assurance	$549	$46
GEICO	$617	$51
NJM	$678	$57
Travelers	$935	$78
Allstate	$1,028	$86
New Jersey Skylands Insurance	$1,058	$88
Progressive	$1,098	$92
Amica Mutual	$1,327	$111
Mercury	$1,354	$113
Foremost	$1,366	$114
State Farm	$1,505	$125
Hanover	$1,780	$148

Optional Add-On Coverages in New Jersey

In New Jersey, optional add-on coverage includes uninsured/underinsured motorist protection, collision, comprehensive, medical payments and rental reimbursement. While state minimum coverage is essential, these additional coverages can provide financial protection against a variety of incidents such as accidents with drivers lacking adequate insurance, vehicle theft and damages from natural disasters. To understand precisely how much car insurance you need, consider the value of your car, your personal financial situation and your willingness to assume risk.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.	Damage to your vehicle if you are at fault or damages that exceed policy limits.
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault.	Vehicle damage or injuries to the other driver.
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down.	Cost of parts or repairs needed after the tow.
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen.	Vehicle depreciation or overdue loan payments.
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event.	Fuel, insurance or other rental extras.
Collision Coverage	Repairs to your car after an accident, regardless of fault.	Damage due to theft, vandalism or natural disasters.
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail.	Damages from a collision or personal injuries.
Towing and Labor Coverage	Towing and basic roadside-assistance labor costs at the site of your vehicle's breakdown.	More extensive repairs needed at a garage.
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems.	Original parts that came with your vehicle.
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident.	Non-accidental death or injuries.
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars.	Regular use like your daily commute.

Penalties for Driving Without Insurance in New Jersey

In New Jersey, the cost of a ticket for driving without insurance varies if you've been caught before. A first offense might lead to a fine, community service and other penalties. Those with a previous offense could face higher fines and more severe consequences.

Additional penalties for driving uninsured in New Jersey may include:

Temporary vehicle confiscation: Your vehicle may be impounded, and you have to pay for the towing and storage.
Suspension of vehicle registration: Authorities might suspend your vehicle's registration, preventing you from driving it legally.
Driver's license suspension: Authorities may temporarily revoke your driving privilege. Once you are eligible, you have to pay to restore your license.
SR-22 requirement: You might need to carry a special insurance certificate (usually called SR-22) to provide financial responsibility. It can increase your premiums for years.
Possible jail time: You can be jailed, especially if you are involved in an accident while uninsured.

Remember, keeping your insurance current helps you avoid these serious penalties and ensures you're covered if an accident happens.

What to Do if Your Policy Is Canceled

If your car insurance policy is canceled in New Jersey, it’s important to find new coverage immediately. Continuing to drive uninsured is illegal and puts you at risk of fines and license suspension. You should contact an insurance agent to explore your options or find another insurance provider that will grant you a policy.

The New Jersey Motor Vehicle Commission (MVC) keeps track of insurance cancellations and will be notified by the insurer. If you fail to secure a new policy, the MVC can penalize you for driving without insurance.

To regain coverage, New Jersey drivers have access to the New Jersey Personal Automobile Insurance Plan (NJ PAIP). If you're unable to get insurance through traditional companies, NJ PAIP will ensure you get the state minimum coverage required, though it may be at a higher cost.

Remember, it's essential to maintain at least the minimum coverage auto insurance in New Jersey to stay on the right side of the law.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in New Jersey may be canceled for a few reasons:

Non-payment of premium: If you miss paying your premium, the insurance company can cancel your coverage.
Fraud: Lying on your application or when making a claim can lead to cancellation.
License suspension: If your driver's license is suspended or revoked, your policy might be canceled.
Too many accidents: Being in several accidents can make you a high risk, which can result in cancellation.
Moving out of state: If you move to a place where your insurer doesn’t offer coverage, your policy may be ended.

FAQ: New Jersey Minimum Coverage Car Insurance

Understanding New Jersey's state minimum car insurance requirements is essential for all motorists in the Garden State. Here, we provide clear information to help ensure you're legally covered.

What is the minimum car insurance coverage in New Jersey?

In New Jersey, the minimum coverage auto insurance includes $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $25,000 for property damage liability per accident. Additionally, it requires PIP of $15,000 per person.

Uninsured/underinsured motorist coverage and medical payments are not mandated for the basic policy. It's essential to ensure you're adequately covered for your needs while maintaining compliance with state laws.

Why does New Jersey require minimum automobile liability coverage for motorists?

New Jersey mandates minimum auto liability coverage to ensure motorists can cover costs associated with damages or injuries they may cause in an accident. This coverage is a legal requirement that helps manage the risks associated with driving, offering a safety net for drivers and accident victims when unforeseen events occur on the road.

Do you need comprehensive insurance in New Jersey?

In New Jersey, comprehensive insurance is not required by law. State regulations mandate only certain liability coverages for drivers. However, if you're financing or leasing a vehicle, your lender may require comprehensive insurance to protect their investment.

Choosing comprehensive insurance can safeguard against non-collision damages, such as theft or natural disasters. It can be a wise decision to include it in your policy for greater protection.

What happens if you drive uninsured in New Jersey?

Driving uninsured in New Jersey can result in severe penalties, including fines of $300 to $1,000 for a first offense. Subsequent offenses may lead to increased fines, community service, license suspension and even potential jail time.

Additionally, an uninsured motorist will be responsible for all costs in the event of an accident. To avoid these risks, securing state minimum coverage is a necessary safeguard.

When operating a vehicle in New Jersey without the necessary insurance, you face financial repercussions and risk legal consequences. The New Jersey Motor Vehicle Commission may suspend your driving privileges for a period, and you might receive a violation surcharge of $250 per year for three years.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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