New Jersey Car Insurance: New 35/70/25 Minimums & Basic vs. Standard (2026)

New Jersey raised its bodily injury liability minimums to 35/70/25 effective January 1, 2026 — up from 25/50/25 — and remains one of the few states offering a genuinely different "Basic Policy" option that skips bodily injury liability coverage almost entirely. For how New Jersey compares to other states, see our car insurance rates by state guide.

New Jersey's 2026 minimum coverage requirements (Standard Policy)

The Basic Policy: New Jersey's unusual second option

New Jersey is one of the only states offering a legally distinct Basic Policy alongside its Standard Policy. The Basic Policy includes property damage liability and PIP, but does not include bodily injury liability coverage at all — meaning if you're at fault in an accident that injures someone, a Basic Policy alone does not cover their injury claim beyond PIP. It's cheaper upfront, but the coverage gap is significant, and most agents recommend the Standard Policy unless cost is a genuine barrier to having any coverage at all.

What minimum coverage actually costs in 2026

Estimates vary between sources, but converge in a rough band: average minimum-coverage premiums run from about $1,431 to $1,591 a year, depending on the data provider. Full coverage runs considerably higher — reported between roughly $2,781 and $3,317 a year — reflecting New Jersey's position as one of the more expensive states in this guide, driven by dense population centers, high litigation costs, and now the 2026 minimum increase.

Why New Jersey raised its minimums

The 2026 increase to 35/70/25 reflects the same trend seen in North Carolina and Virginia's recent increases: rising medical and vehicle repair costs meant older, lower minimums often didn't cover even moderate accident claims, leaving injured parties under-compensated and at-fault drivers personally exposed. See our can you be sued after insurance already paid guide for exactly this scenario.

Frequently asked questions

What is New Jersey's minimum car insurance requirement in 2026?+

35/70/25 liability coverage for a Standard Policy — $35,000 bodily injury per person, $70,000 per accident, and $25,000 property damage — plus $15,000 in PIP, effective January 1, 2026, up from the prior 25/50/25 limits.

What is New Jersey's Basic Policy, and is it a good idea?+

The Basic Policy is a cheaper alternative that includes property damage liability and PIP but does not include bodily injury liability coverage at all. It's legal but leaves a significant coverage gap if you injure someone in an at-fault accident, and most agents recommend the Standard Policy unless cost is a genuine barrier.

How much does car insurance cost in New Jersey?+

Estimates vary by source: minimum-coverage averages run from about $1,431 to $1,591 a year, while full coverage runs from roughly $2,781 to $3,317 a year, reflecting New Jersey's position as one of the more expensive states for car insurance.

Why did New Jersey raise its minimum coverage requirements for 2026?+

The increase reflects rising medical and vehicle repair costs, similar to recent minimum increases in North Carolina and Virginia — lawmakers aimed to ensure the legal minimum actually covers moderate accident claims rather than leaving at-fault drivers personally exposed to lawsuits.