New Jersey operates under a no-fault insurance system, requiring all drivers to maintain minimum liability coverage. This system ensures that your own insurance covers medical expenses and certain other losses, regardless of who is at fault in an accident. Here’s what you need to know about New Jersey’s car insurance requirements for 2025.
What Every New Jersey Driver Must Carry
As of January 1, 2025, New Jersey mandates the following minimum liability insurance coverage:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $25,000 per accident
- Personal Injury Protection (PIP): $15,000 per person / per accident
- Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person / $50,000 per accident
These limits are designed to cover damages and injuries you cause to others in an accident where you are at fault, as well as medical expenses for you and your passengers.
Coverages To Consider In New Jersey
While not required by law, consider additional coverages to enhance your protection:
- Comprehensive Coverage: Covers damages to your vehicle not involving a collision, such as theft or weather-related incidents.
- Collision Coverage: Pays for damages to your vehicle resulting from a collision, regardless of fault.
- Medical Payments (MedPay): Helps cover medical expenses for you and your passengers after an accident.
- Rental Reimbursement: Assists with the cost of a rental car if your vehicle is being repaired due to a covered loss.
- Roadside Assistance: Provides services like towing, flat tire changes, and battery jumps if your vehicle breaks down.
These optional coverages can provide added financial protection and peace of mind.
Penalties for Driving Without Insurance In New Jersey
Driving without the required insurance in New Jersey can result in:
- Fines ranging from $100 to $300 for a first offense
- Community service requirements
- Suspension of driving privileges for up to one year
- Requirement to file an SR-22 form to reinstate driving privileges
- Possible jail time for repeated offenses or if the violation resulted in injury or death
It’s essential to maintain proper insurance to avoid these penalties and ensure you’re financially protected.
How To Show Proof of Insurance In New Jersey
Drivers must carry proof of insurance and present it when requested by law enforcement or during vehicle registration. Acceptable forms of proof include:
- Paper insurance ID card
- Digital insurance ID card accessible on a mobile device
Always ensure you have valid proof of insurance with you while driving.
Electronic Insurance Verification
New Jersey uses an electronic insurance verification system. The Motor Vehicle Commission (MVC) checks insurance status automatically at the time of vehicle registration and renewal. If coverage cannot be confirmed, you may receive a notice requiring immediate proof or risk registration suspension.
- ✓ Minimum liability: 25/50/25
- ✓ PIP: $15,000 per person/accident
- ✓ UM/UIM coverage: 25/50 required
- ✓ Carry proof of insurance (paper or digital)
- ✓ Maintain coverage to avoid license suspension or fines
Frequently Asked Questions About New Jersey Car Insurance
Is car insurance mandatory in New Jersey?
Yes. New Jersey requires all drivers to carry liability insurance meeting state minimums and to maintain proof of coverage at all times.
What are New Jersey’s minimum insurance coverage requirements?
Drivers must carry 15/30/5 liability limits, personal injury protection (PIP), and uninsured motorist coverage.
Is New Jersey a no-fault state?
Yes. New Jersey operates under a no-fault insurance system, where PIP coverage pays for medical costs regardless of fault.
Does New Jersey use electronic insurance verification?
Yes. The MVC electronically verifies insurance status during vehicle registration and renewal.
What are the consequences of driving uninsured in New Jersey?
Penalties include fines, license suspension, vehicle registration suspension, and mandatory SR-22 filings for repeated offenses.
Want to compare New Jersey’s insurance laws? Check neighboring states:
Delaware,
New York,
Pennsylvania.