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Auto Insurance in New Jersey

Almost all states require drivers to purchase liability auto insurance. In some cases, additional coverage is mandated by law. If you want to know about all the laws and regulations that can affect drivers in New Jersey, you can read our quick guide. Read on to learn about auto insurance in New Jersey.

Auto Insurance in New Jersey

Like most other states, New Jersey does require drivers to at least have liability auto insurance. What is different about the auto insurance in New Jersey is that there is no exact specified amount of coverage that each driver must have. Due to the New Jersey Automobile Insurance Cost Reduction Act, standard and basic policies are available to all drivers.

Driving uninsured is a risky proposition in this state. Not only do these drivers take economic risks by carrying no insurance, but they also risk incurring severe penalties from law enforcement. Drivers caught without proper insurance are subject to fines, suspension of driving privileges, and jail time.

Minimum Liability Auto Insurance in New Jersey

The standard liability auto insurance policy must cover:

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

It is recommended that you seek auto insurance that protects you above and beyond the minimum standards laid out by your state. Most experts agree that state standards are unable to keep pace with rising costs in medical care. To make sure you have adequate coverage for medical expenses and vehicle repairs in the event of an accident, you should enter your zip code in the form at the top of this page and look for the best auto insurance you can afford.

Uninsured/Underinsured Motorist Auto Insurance in New Jersey

If you are involved in an accident with an uninsured driver, you could face a financial calamity. To help driver avoid this situation, New Jersey currently requires drivers to obtain UM/UIM coverage at least equal to the liability insurance minimum standard.

No-Fault Auto Insurance in New Jersey

New Jersey is a no-fault state with certain requirements for personal injury protection insurance.

Personal Injury Protection (PIP)

This type of coverage helps pay for a wide range of damages resulting from accidents, regardless of whether the insured driver was at fault or not. Drivers are required to carry personal injury protection (PIP) insurance that covers a minimum of $15,000 per person per accident. For certain types of injuries, drivers must carry coverage worth up to $250,000.

SR-22 Requirements

New Jersey requires suspended drivers to file an SR-22 document with the DMV when applying for reinstatement.

New Jersey’s DUI Laws

A DUI conviction can significantly impact your auto insurance premium, but it also can lead to some severe penalties:

- Up to 30 days imprisonment
- $250 to $400
- $300 to $500 if Blood Alcohol Count (BAC) is 0.10% and above
- Three month license suspension
- Seven month to one year license suspension if BAC is 0.10% and above
- Possible installation of ignition interlock device
- Minimum $525 DWI fee
- Three year $1000 auto insurance surcharge
- 12 hours at the intoxicated driver resource center

Additional Information about Auto Insurance in New Jersey

Do you still have questions about auto insurance in New Jersey. The New Jersey Department of Banking and Insurance can provide you with additional information if you call them at (800) 446-7467 or visit their website at

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