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What Is the Minimum Car Insurance Requirement in New Jersey?

How much car insurance do you need in New Jersey? In order to legally drive your car in New Jersey, you have a carry a state-mandated minimum amount of insurance, which includes:

  • $15,000 per person for injury or death
  • $30,000 per accident for all injuries
  • $5,000 for property damage
  • $15,000 per person for personal injury protection

These are just the minimum requirements and you can pay more for a policy with greater coverage.

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What Does This Minimum Coverage Mean?

Liability insurance is a requirement in most states, including New Jersey. If you cause an accident, this is the coverage that pays for the injuries or death sustained by third parties. In New Jersey, minimum liability limits are expressed as 15/30/5. This means that all drivers need at least $15,000 liability coverage per person and $30,000 per accident with at least $5,000 property damage coverage.

Personal injury protection, expressed as PIP, is insurance that covers you financially for your injuries from a car accident no matter who is at fault. This means that you are eligible to receive benefits whether you are a bystander, a passenger or a driver. PIP coverage can help with several medical expenses as well as non-medical expenses like lost wages. In New Jersey, you need a minimum of $15,000 in PIP coverage.

How Much Does the Minimum Car Insurance Cost in New Jersey?

Car insurance costs in New Jersey can vary greatly based on important factors like your age, driving history, ZIP code, make and model of vehicle, credit score and other factors. Also, different companies might charge different rates for car insurance.

The cheapest minimum car insurance policy in New Jersey is from GEICO and costs an average of $499 per year.

These prices are only estimates based on rates for an average New Jersey driver and should not be used to compare insurance prices.

For this study, MoneyGeek analyzed and compared car insurance rates in New Jersey according to the minimum mandated car insurance limits specified by state law. This is for a 40-year-old sample driver driving a 2010 Toyota Camry with a good credit standing and a clean driving record.

MoneyGeek also ranked the best car insurance companies in New Jersey for those who want strong service and affordable rates.

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What Is the Minimum Car Insurance Requirement in New Jersey While Leasing a Car?

While all drivers are required to carry the state minimum insurance requirements, the leasing company you choose is likely to have a separate set of insurance requirements when you lease a car. In most cases, that will be a full coverage policy with at least 100/300/100 minimum liability limits. In order to ensure that you fulfill the specific requirements of your leasing company, consult with the company and understand the terms of your leasing agreement in detail.

If you are not sure about how much car insurance you should purchase in New Jersey, MoneyGeek recommends getting a full coverage policy with at least 50/100/50 liability limits. New Jersey has a very low risk of uninsured motorists at just 3.1% of drivers. We think a full coverage policy is a good idea if you want yourself and your vehicle protected in the event of an accident.

Penalties for Driving Without Car Insurance in New Jersey

According to New Jersey state laws, there are several penalties in place for driving without insurance. You must always carry proof of insurance while driving and present it immediately when asked to do so by a law enforcement officer. This can be your insurance ID or electronic proof of insurance on your phone.

Driving without insurance is considered a serious offense in New Jersey, and the penalties include:

  • A $300–1,000 fine for first-time offenders
  • A fine of up to $5,000 for repeat offenders
  • Revocation of right to drive for one or two years
  • Jail term of up to 14 days for repeat offenders

Frequently Asked Questions About Car Insurance in New Jersey

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About Mark Fitzpatrick

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Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.