Minimum Car Insurance in New Jersey

Car insurance is required in New Jersey, and drivers choose between two main policy types. The Standard Policy (chosen by most drivers) has bodily injury liability as low as $35,000 per person and $70,000 per accident (35/70), property damage liability as low as $25,000 per accident, personal injury protection (PIP) as low as $15,000 per person or accident (up to $250,000 for certain serious injuries regardless of the limit selected), and uninsured/underinsured motorist coverage. The lower-cost Basic Policy meets the legal minimum with $5,000 property damage liability and $15,000 PIP (up to $250,000 for certain injuries); bodily injury liability is not included but $10,000 is available as an option. A medical-only Special Automobile Insurance Policy (SAIP) is available to drivers eligible for federal Medicaid with hospitalization for $365 a year.

New Jersey is a no-fault state for injuries: PIP pays your own medical expenses no matter who caused the accident. With the Standard Policy you choose a lawsuit option. Under the Limitation on Lawsuit (limited right to sue) option, which the Basic Policy includes, you may sue the at-fault driver for pain and suffering only for loss of a body part, significant disfigurement or scarring, a displaced fracture, loss of a fetus, a permanent injury, or death; the No Limitation on Lawsuit option keeps the right to sue for any injury. Fault for property damage and other liability claims is apportioned among drivers under the Comparative Negligence Act (N.J.S.A. 2A:15-5.2).

With the Standard Policy, a minimum amount of uninsured/underinsured motorist coverage is required, and higher limits (up to the amounts selected for liability coverage) may be purchased. The Basic Policy does not include UM/UIM coverage, though some insurers offer it as an option.