New Jersey Car Insurance Requirements (Updated for 2025)

New Jersey law requires all drivers to carry auto insurance. The state offers both “Basic” and “Standard” policies, and driving without insurance can lead to severe penalties including fines, license suspension, and even jail time.

Minimum Liability Coverage in New Jersey

New Jersey offers two types of car insurance policies:

• Basic Policy: $10,000 property damage liability per accident, optional $10,000 bodily injury liability, and $15,000 Personal Injury Protection (PIP).
• Standard Policy: $25,000 bodily injury per person / $50,000 per accident, $25,000 property damage liability, and $15,000 PIP (higher limits available).

The Standard Policy is recommended for more comprehensive coverage and better legal protection.

Personal Injury Protection (PIP)

PIP is required in New Jersey and covers your medical expenses regardless of who caused the accident. The default limit is $15,000 per person per accident, but you can choose higher limits up to $250,000 for serious injuries.

Uninsured/Underinsured Motorist Coverage

This coverage is included in the Standard Policy and protects you if you’re hit by a driver with little or no insurance. It’s not available with the Basic Policy.

Optional Coverages to Consider

• Collision Coverage
• Comprehensive Coverage
• Medical Payments (MedPay)
• Rental Reimbursement
• Roadside Assistance
• Higher PIP Limits

Proof of Insurance Requirements

Drivers must carry proof of insurance (paper or digital) and present it during traffic stops, accidents, or registration. New Jersey also uses an electronic verification system to confirm active insurance policies.

Penalties for Driving Without Insurance

• First Offense: Minimum $300–$1,000 fine, community service, and license suspension for up to one year.
• Subsequent Offenses: Mandatory fines, license suspension for two years, possible jail time, and vehicle impoundment.
• Reinstatement: Must show proof of insurance and pay applicable restoration fees.

“No Pay, No Play” / Choosing the Right Policy

The Basic Policy offers limited protection and no right to sue for pain and suffering. Many drivers choose the Standard Policy for better coverage and the ability to sue if seriously injured.

Compare Auto Insurance Quotes in New Jersey

New Jersey’s car insurance rates vary based on your age, ZIP code, driving history, and vehicle. Compare quotes below to find the best policy for your situation:

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FAQs

Is car insurance required in New Jersey?

Yes. New Jersey mandates that all vehicles be insured under either a Basic or Standard Policy.

What’s the difference between Basic and Standard Policies?

Basic Policies offer minimal coverage and no right to sue. Standard Policies offer broader protection, higher limits, and the option to sue for pain and suffering.

Can I be jailed for driving without insurance in New Jersey?

Yes, repeat offenses may result in jail time, especially if you’re caught without insurance after a prior violation.