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

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 $92 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.

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 insurance coverage is responsible for paying some or all of your medical expenses and lost earnings, irrespective of who caused the accident.

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.

Age is a significant factor in determining the cost of minimum coverage car insurance. In New Jersey, drivers aged 22 to 29 face the highest premiums due to perceived risks and less driving experience compared to older groups.

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

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.

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 financial situation and your willingness to assume risk.

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.

If your car insurance policy is canceled in New Jersey, it’s important to find new coverage immediately. Driving 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, to stay on the right side of the law, you must maintain at least the minimum coverage auto insurance in New Jersey.

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.