New Jersey Car Insurance Laws—All You Need to Know

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  • Requirements
  • No-fault state
  • Liability
  • Uninsured/underinsured coverage
  • PIP coverage
  • Limits
  • Is minimum enough?
  • No insurance penalties
  • Optional coverage
  • Where to buy
  • FAQs
Drivers in New Jersey must have liability coverage, uninsured/underinsured motorist protection, and personal injury protection that meet the state-mandated minimums.
Driving without car insurance is illegal in New Jersey—and for good reason. Insurance protects you if you ever get into an accident. Without it, you’re responsible for the property damage and medical expenses out of pocket… and it’s not hard for them to get out of hand quickly.
Thankfully, Jerry is here to help you make sure you’re properly covered without breaking the bank. Jerry brings you competitive car insurance quotes from top insurance providers so that you can find the best deals—without the hassle and hard work of comparison shopping.
Here’s everything you need to know about New Jersey car insurance laws.
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Car insurance requirements in New Jersey

Minimum liability coverage: 15/30/5Uninsured/underinsured motorist coverage: 25/50Personal injury protection (PIP)Right to sue
$15,000 bodily injury per person$25,000 bodily injury per person$15,000 per personLimited or unlimited
$30,000 bodily injury per accident$50,000 bodily injury per accident
$5,000 property damage per accident

New Jersey is a no-fault state

New Jersey is a no-fault state for car accidents. This means that all drivers must carry insurance and in the event of an accident, each person harmed or with damages makes claims to their own provider.
This system lessens the need for third-party claims, as well as the likelihood of suing an at-fault driver or their insurer.

Liability coverage in New Jersey

Liability coverage covers the medical expenses and property damage of others when you are at fault in an accident. This might include things like another driver’s hospital bills or repairs for a dented car door.
Liability coverage does not cover your medical expenses or property damages.

Uninsured/underinsured motorist coverage in New Jersey

Uninsured/underinsured motorist coverage covers you in the unfortunate case that you’re a victim of a car accident where the at-fault driver does not have insurance. This coverage takes care of medical expenses like ambulance and hospital bills.

Personal injury protection (PIP) in New Jersey

Personal injury protection (PIP) covers your medical expenses if you are harmed in a car accident—regardless of who is at fault.
New Jersey is a no-fault state, which means that drivers must have PIP and must exhaust their own car insurance policies after a collision before making a claim for coverage with the at-fault driver’s provider.

Right to sue in New Jersey

When you purchase car insurance in New Jersey, you can choose whether your policy has a limited or unlimited right to sue for pain and suffering resulting from an accident (for instance, if you lost a loved one to a car accident).
The limited option restricts you and your household’s right to sue for pain and suffering resulting from an accident. The unlimited option allows you and your household to sue for pain and suffering resulting from an accident.
Key Takeaway New Jersey is a no-fault state, so all drivers must have liability coverage, uninsured/underinsured motorist coverage, and personal injury protection (PIP).

State-mandated car insurance limits

A car insurance “limit” is the maximum amount of coverage your provider will give you in a particular coverage category. A state-mandated car insurance limit is a legally required minimum that you must have with your insurance provider.

State-mandated limits for liability coverage in New Jersey

  • $15,000 in bodily injury coverage per person means that your insurance provider will contribute no more than $15,000 in bodily injury coverage per person in an accident where you are at fault
  • $30,000 in bodily injury coverage per accident means that your insurance provider will contribute no more than $30,000 in bodily injury coverage in total per accident in an accident where you are at fault
  • $5,000 in property damage coverage per accident means that your insurance provider will contribute no more than $5,000 in property damage coverage per accident in an accident where you are at fault

State-mandated limits for uninsured/underinsured motorist coverage in New Jersey

  • $25,000 in bodily injury coverage per person means that your insurance provider will contribute no more than $25,000 in bodily injury coverage per person for you and/or other passengers if you were in an accident with an uninsured or underinsured at-fault driver
  • $50,000 in bodily injury coverage per accident means that your insurance provider will contribute no more than $50,000 in bodily injury coverage in total per accident for you and/or other passengers if you were in an accident with an uninsured or underinsured at-fault driver

State-mandated limits for personal injury protection (PIP) in New Jersey

Drivers must have at least $15,000 per person in PIP coverage. With this limit, your provider would pay no more than $15,000 per person for you and/or passengers harmed in a collision, regardless of who was at fault.
Key Takeaway New Jersey’s state-mandated limits follow a 15/30/5 pattern for liability coverage and a 25/50 pattern for uninsured/underinsured motorist coverage. The state-mandated limit for PIP is $15,000 per person.

Do New Jersey’s required insurance minimums provide enough coverage?

Though New Jersey’s required coverages are on par with most other states, New Jersey’s mandated minimums are rather low. For example, a $15,000 personal injury limit can be hit quickly if you or a passenger are hospitalized after a car accident.
It’s always a good idea to purchase higher limits for your insurance, as well as additional coverages for unforeseen circumstances.

Penalties for driving without insurance in New Jersey

Driving without insurance is illegal in New Jersey. There are various penalties for driving without insurance or proof of insurance in New Jersey:
First offense
  • $300 to $1,000 fine
  • Period of community service determined by court
  • Forfeiture of right to operate a motor vehicle for one year
Subsequent offenses
  • Up to $5,000 fine
  • Imprisonment for 14 days
  • Community service for 30-day period
  • Forfeiture of right to operate a motor vehicle for two years
Key Takeaway There are various penalties for driving without proof of insurance in New Jersey, including fines and forfeiture of the right to operate a motor vehicle.

Optional auto insurance coverage in New Jersey

There are additional forms of car insurance coverage you should look into for driving in New Jersey:
  • Comprehensive coverage can cover the costs of physical damages to your vehicle that are not the result of a collision (e.g., vandalism)
  • Collision coverage can help you cover the cost of repairs for your vehicle after a collision with another vehicle or fixed object
  • Medical payments coverage covers the cost of medical bills or funeral expenses resulting from a collision
  • Roadside assistance helps with things like fixing flats, towing, or jumping batteries—the coverage will vary between policies and companies
  • Rental car reimbursement will cover the cost of a rental vehicle while it’s being repaired after a claim

Where to buy car insurance in New Jersey

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FAQs

Is it mandatory to have car insurance in New Jersey?

Yes, all New Jersey drivers must have liability coverage, uninsured/underinsured motorist coverage, and personal injury protection (PIP). The state-mandated limits follow a 15/30/5 pattern for liability coverage and a 25/50 pattern for uninsured/underinsured motorist coverage. The state-mandated limit for PIP is $15,000 per person.

What does it mean that New Jersey is a no-fault state?

New Jersey is a no-fault state. This means that all drivers must carry insurance and in the event of an accident, each person harmed or with damages makes claims to their own provider.
Under this system, you must exhaust your own policy limits before making a claim with an at-fault driver’s insurer.
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