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New Jersey Car Insurance Information

Requirement : Yes

Car insurance is required in New Jersey . Drivers must have a minimum of either Basic, or Standard coverage

Minimum Coverage Car Insurance Requirements:

A minimum Basic insurance policy:

    • $250,000 for very severe injuries – permanent brain damage.
    • $15,000 for personal injury protection – no fault insurance.
    • $5,000 for property damage liability per accident.

Standard insurance policy:

    • $250,000 for very severe injuries – permanent brain damage.
    • $15,000 for personal injury protection – no fault insurance.
    • $30,000 for bodily injury liability per accident.
    • $5,000 for property damage liability per accident.

Right to Sue : For those who have standard coverage, you must choose your right to sue options should you be injured in an accident. Regardless of which right, you may not sue for medical expenses, or loss of income, as those are covered by PIP. Your only options are to sue for pain and suffering.

  • Unlimited Right to Sue:
    • You have the unlimited right to sue a person who caused an accident that injured you. This option comes with higher premiums.
  • Limited Right to Sue:
    • You may only sue for the following injuries: (Only option available to Basic Policy holders.)
      • Loss of a body part.
      • Significant disfigurement.
      • Significant scarring.
      • Displaced fractures.
      • Permanent injury.
      • Death.

Other Car Insurance Coverage Options:

Liability and uninsured motorist coverage are the only requirements for New Jersey motorist to have, there are several other types of coverage available to drivers:

  • Collision – Covers damages to your vehicle due to an accident.
  • Comprehensive – Covers damages due to your non-accident related damages to your car, such as inclement weather.
  • Rental reimbursement – Reimburses you if you have to rent a car after an accident.
  • Roadside assistance/towing coverage – Typically adds coverage for towing, tire changes, lockout services, and more.
  • Note: Comprehensive and or collision coverage is optional, unless the vehicle is being financed or leased, the lending/leasing agency may require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility:

Other legal ways around buying car insurance include: There are no alternative forms of financial responsibility. New Jersey requires all drivers to have minimum coverage.

Proof of Insurance: Yes

You must carry proof of insurance and registration with your vehicle at all times. The insurance company (provider) will give you an insurance card as proof of insurance.

  • Valid forms of proof of insurance:
    • Insurance card.
    • Copy of insurance card.
    • Letter from insurance carrier.

The card will include:

  • Vehicle’s information:
    • Make
    • Model
    • Year
    • Safety Rating
    • Value
  • Your policy name & name of any other drivers insured under the policy.
  • The policy term’s expiration date.
  • A new policy card will be provided every time you renew your car insurance policy.

Insurance Violations:

Violations, Fines & Penalties:

  • Should you be found operating a vehicle without the mandatory minimum insurance coverage, you face:
    • $300 - $1,000 fine for first offense
      • Community service
      • Suspension, revocation of license for up to 1 year.
    • $5,000 fine for subsequent offenses
      • 30 days community service
      • 14 days in jail
      • Suspension, revocation of license for up to 2 years.

  Credit Scores & Determining Your Insurance Premium :

All New Jersey drivers are required to have car insurance, however, insurance providers are reserved the right to deny coverage to high-risk drivers. High-risk drivers should try to find a provider that specializes in high-risk, non-standard drivers.


Other factors that may be used to determine your premiums include:

  • Age
  • Gender
  • Credit history
  • Driving history
  • Year, make, model of car
  • Marital status
  • Neighborhood or city of residence
  • Claim history

Discounts : Yes

Discounts available in New Jersey:

  • Multi-vehicle discount
  • Multi-policy discount
  • Homeowner discount
  • Anti-theft discount
  • Good student discount

Cellphone Use:

All drivers are prohibited from hand held cellphone use while driving. All drivers are prohibited from texting while driving. Cell phone and texting violations are considered primary offenses. Violators are subject to a $100 fine.

New Jersey Minimum Coverage Laws

Carriers in New Jersey

Full Insurance Laws for New Jersey