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Auto Insurance in New Jersey

The State of New Jersey currently requires that all drivers be covered under liability auto insurance and that proof of car insurance always be carried within the vehicle at any moment.

Auto insurance is mandatory in New Jersey, but the precise amount of coverage is not specified. The New Jersey Automobile Insurance Cost Reduction Act mandated that a Basic and Standard Policy be available to all drivers. The penalties for driving uninsured are severe — in addition to risking economic loss by not having insurance protection, you risk fines, suspension of driver's license or registration and even time in jail. In the future, your car could be impounded if you are caught behind the wheel without coverage.

New Jersey Standard Liability Coverage

Liability coverage is required by law in the State of New Jersey. The Standard liability amounts for the State of New Jersey are as follows:

  • $15,000 bodily injury per person.
  • $30,000 total bodily injury per accident.
  • $5,000 total property damage per accident.

Remember that these are only the minimum requirements set by the state. Experts always advise that drivers get more than the state-mandated minimums, particularly if you have assets you need to protect, since these limits have not kept pace with the skyrocketing costs of car repairs and medical care. Also, getting liability coverage alone will not cover you in case of damage to your own car, so most drivers will want to add collision and comprehensive coverage to their policies.

Uninsured/Underinsured Motorist Coverage

Some, not all, states will require that drivers carry UM/UIM, also known as uninsured/underinsured motorist coverage. This coverage will protect the driver in the event that an accident occurs and the other party does not have auto insurance.

The State of New Jersey currently requires UM/UIM coverage, with a Standard coverage limit up to the amounts selected for liability coverage

No-Fault Insurance

New Jersey is a no-fault state, so no-fault insurance is required (see PIP below).

Personal Injury Protection (PIP)

PIP is an extension of car insurance available in some U.S. states that pays for medical expenses, rehabilitation, funeral expenses, lost wages, and in-home assistance for you and your passengers injured in an accident, regardless of who is at fault (i.e., no-fault). Passengers who own their own cars collect under their own policies.

As a no-fault state, the State of New Jersey current requires drivers to carry PIP insurance with the following Standard coverage limits:

  • $15,000 per person per accident
  • Up to $250,000 for certain types of injuries

New Jersey SR-22 Requirements

SR-22 is a document that is required to be filed with a state's DMV as proof that the minimum liability coverage for the state is being carried. Not everyone needs an SR-22 filing. SR-22s are typically required for a driver to reinstate their driving privileges after an offense such as a DUI conviction, uninsured auto accident, or driving without proof of insurance.

New Jersey currently requires an SR-22 filing to reinstate a driver's license.

New Jersey DUI Laws

For the first DUI offense in the State of New Jersey, you will face the following maximum penalties:

  • Up to 30 days imprisonment
  • $250 to $400
  • $300 to $500 if Blood Alcohol Count (BAC) is 0.10% and above
  • 3 month license suspension
  • 7 month to 1 year license suspension if BAC is 0.10% and above
  • Possible ignition interlock
  • Minimum $525 DWI fee
  • 3 year $1000 auto insurance surcharge
  • 12 hours intoxicated driver resource center

Additional Information on New Jersey Insurance

For additional information, you can contact the New Jersey Department of Banking and Insurance at (800) 446-7467 or go to their website at

Read more about Car Insurance in NJ.