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Auto Insurance Requirements In New Jersey

New Jersey Auto Insurance 

According to the New Jersey state law, all motorists applying for vehicle registration are required to have valid vehicle insurance. This insurance helps cover the costs of damages or injuries you may have inflicted on others if you are responsible for an accident. You must carry evidence of insurance in your vehicle at all times, and provide it to law enforcement and others involved in an accident with you upon request.  

Drivers in New Jersey have the option between two types of insurance:  basic and standard.  Whie basic meets the minimum requirement, standard insurance gives much more comprehensive coverage.  It’s also important to note that, while New Jersey law does not require you to have more comprehensive coverage, you may have to purchase both as part of your car’s finance or lease agreement.

Car Insurance Policy Requirements in the New Jersey

A New Jersey basic insurance policy consists of:

  • Property damage liability coverage of $5,000
  • Personal injury protection (PIP) of $15,000 per person, per accident

*PIP is sometimes referred to as “No-Fault” insurance, because it is used regardless of who is at fault for the accident.  

A standard insurance policy consists of: 

  • $15,000/$30,000 Minimum bodily injury liability
  • $5,000 Minimum property damage liability
  • $15,000/$30,000 Uninsured/underinsured motorist bodily injury
  • $5,000 ($500 deductible) Uninsured motorist property damage
  • $15,000 Personal injury protection

Penalties and Violations

If you are caught driving without insurance in New Jersey, you can be fined $300 to $1000.  You may also be sentenced to community service, and your license may be suspended.

Choosing the insurance that’s actually right for you may seem overwhelming.  It’s important to make sure you’re adhering to the law in whatever state you live.  Don’t go it alone — have one of our friendly, knowledgeable agents help you cut through the nonsense, and get you the security you need while you’re out on the road.  Getting the right insurance is just a few steps away.