Cheapest Liability Car Insurance in New Jersey (2026)

What is liability car insurance?

Liability car insurance pays for injuries or property damage that you, the policyholder, cause to others in an at-fault accident. You’ll often hear it referred to as “minimum coverage,” since every state but New Hampshire requires a minimum amount of liability insurance.

New Jersey also requires all drivers to carry personal injury protection (PIP), which pays for your injuries, no matter who’s at fault, and uninsured motorist (UM) coverage that pays if you get in a crash with someone who has no insurance.^[1]

While liability auto insurance, PIP, and UM are the only coverages mandatory under New Jersey law, full coverage is often a good idea. It includes collision and comprehensive coverage, which provides added protection for your own property damage. If you have an auto loan or lease your vehicle, your lender or leasing company will require you to buy full coverage.

As you compare car insurance quotes in New Jersey, here’s what to know about the state’s rates, requirements, and policy options.

Cheapest liability car insurance in New Jersey

Car insurance in New Jersey costs $183 per month for liability coverage and $254 for full coverage, on average. Factors like your age, driving record, ZIP code, and even your credit can affect your rate.

Take a look at the table below to check out the cheapest car insurance companies in New Jersey for liability coverage.

The below rates in New Jersey are estimated rates current as of: Thursday, July 9 at 5:00 PM PDT. 

Insurance Company	Average Monthly Quote: Liability Only
NJM	$125
CSAA	$132
Plymouth Rock	$136
Progressive	$177
Bristol West	$179
Mercury	$215
GEICO	$224
Liberty Mutual	$262
State Farm	$292
Travelers	$377

Disclaimer: Table data sourced from real-time New Jersey car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in New Jersey may vary based on the policy buyer's unique driver profile.

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Minimum liability car insurance requirements in New Jersey

New Jersey’s minimum coverage requires all drivers to have property damage liability coverage and PIP. The amount of these you must buy depends on whether you buy a standard or basic policy.

New Jersey’s Automobile Insurance Cost Reduction Act requires insurers to offer two types of policies to all drivers. With no minimum required bodily injury coverage and a lower property damage limit, the basic policy offers less protection than a standard one. The standard policy has higher liability limits and additional coverages that you can’t always get with a basic policy.

The standard policy is a smart choice if you’re able to afford the premiums — especially if you add collision and comprehensive coverage to make it a full-coverage policy. The state’s Department of Banking and Insurance recommends drivers only consider a basic policy if they have “few family responsibilities and few real assets.”

The following table illustrates the coverage differences between New Jersey’s standard and basic car insurance policies.

Coverage Type	Basic Policy Minimums	Standard Policy Minimums
Bodily injury liability	Optional $10,000 coverage for all persons, per accident	$35,000 per person, $70,000 per accident
Property damage liability	$5,000 per accident	$25,000 per accident
Personal injury protection	$15,000 per person, per accident	$15,000 per person or accident
Uninsured/underinsured motorist coverage	Not available	Coverage available at selected liability amounts

You can add collision and comprehensive coverage to a standard policy to protect your vehicle. Some insurers that sell basic policies also allow you to add full coverage.

Is minimum liability coverage enough in New Jersey?

The average vehicle repair cost in New Jersey is 5.61% higher than the national average, according to NetCredit. So while minimum liability coverage is legally enough in the Garden State, it often isn’t enough to protect you financially if you’re in an accident.

For example, a policy with only the state-minimum coverage won’t cover:

• Damage to your own vehicle after an at-fault accident

• Medical expenses you incur beyond your PIP limit

• Theft, vandalism, or weather-related damages

• Damages an uninsured driver causes to your vehicle

Having more than just the New Jersey minimum liability coverage makes sense if:

• You have a vehicle loan or lease (lenders typically require full coverage).

• Your car is new or of high value.

• You can’t afford high medical bills or vehicle repairs out of pocket.

• You live in a neighborhood with a high rate of uninsured drivers.

• You have family responsibilities and assets to protect.

Agent Tip: Should you purchase more than liability-only coverage?

“New Jersey’s congested roads and major highways increase your risk of getting into a serious, expensive accident. It’s a good idea to purchase as much protection as you can afford so you have less chance of facing a big repair or medical bill if you cause a crash.”

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Brett ClendenenLicensed P&C Insurance Agent and Sales Manager

Brett Clendenen's bio

Penalties for driving without liability insurance in New Jersey

Driving without liability insurance in New Jersey is illegal, and if a police officer catches you doing so, you’ll face some steep penalties.

A first offense will net you a fine of $300–$1,000, plus community service time decided by a judge. The court could also decide to suspend your license for up to one year.

If you drive without insurance a second time, you’ll go to jail for 14 days, face a fine of up to $5,000, and do 30 days of community service. The court may also suspend your license for up to two years. You’ll also have to pay the state a $250 surcharge for three years for driving without liability insurance.^[2]

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How to find cheap liability car insurance in New Jersey

New Jersey’s average car insurance rates are higher than the national averages. But finding cheap liability car insurance in the Garden State isn’t as hard as it may seem. Here are some things that you can do to reduce rates in any state, including New Jersey:

• Choose the basic policy. New Jersey requires insurers to offer a basic minimum liability policy that’s cheaper than the standard minimum liability policy. Just be aware that it provides less financial protection than a standard policy.

• Complete a defensive driving course. The more points in your driving history, the higher your rates will likely be. Completing a New Jersey-approved defensive driving course can remove two points from your record, potentially making you eligible for lower rates at renewal.^[3] This can have a big effect if you’re a high-risk driver with numerous points on your record.

• Check for membership benefits. Many associations offer benefits to their members. For example, members of the New Jersey State Nurses Association (NJSNA) and New Jersey Education Association can get car insurance discounts from some insurers.

• See if you’re eligible for dollar-a-day insurance. The New Jersey Special Automobile Insurance Policy (SAIP) offers limited medical expense coverage for some drivers who receive federal Medicaid. It costs only $365 per year. But not everyone is eligible, and it doesn’t offer any liability protection.

• Compare car insurance quotes. This is one of the best ways to ensure you get the best possible rates in your area. Check quotes from at least three insurers before choosing a policy.

• Ask about discounts. Almost every car insurer has numerous car insurance discounts to choose from. For example, more than 12% of New Jersey households have more than one vehicle, according to Insurify data, making them eligible for a multi-vehicle discount.

• Bundle policies. Consider bundling your home and auto insurance for a cheaper rate from some insurers. Many companies also offer a multi-policy discount if you bundle renters and auto insurance.

• Raise your deductible. Increasing your deductible will immediately lower your rates, as the two are inversely related. Just be sure you can afford to pay your higher deductible out of pocket if you get in an accident.

Liability car insurance in New Jersey FAQs