Car Insurance In New Jersey 2026: Laws, Costs, Requirements & Companies

This guide is designed to help drivers make informed choices about finding car insurance in New Jersey. Having analyzed the market, I’ve seen firsthand how car insurance requirements can change over time and how fluctuating prices can impact drivers. With this information, you’ll be able to figure out the average costs, minimum requirements, and other ways you can save while still getting the best protection.

Does New Jersey Require Car Insurance?

Yes, New Jersey requires that all drivers maintain active car insurance in order to register and operate their cars, proof of which must be maintained at all times, either in a physical ID card or a digital ID card that you can show when requested.

New Jersey is a choice-fault system, which means drivers can choose insurance under a no-fault system or an at-fault system. If no option is selected, the default is a no-fault option.

Note: New Jersey is one of three states that are “choice no-fault.” The other two are Pennsylvania and Kentucky.

There are two main types of policies:

Standard Policies

Standard policies include:

• $35,000 for bodily injury per person and $70,000 per accident.
• $25,000 for property damage per accident.
• $15,000 per person in Personal Injury Protection (PIP)
• ($25,000/$50,000) for Uninsured/Underinsured Motorist

Basic Policies

Basic policies are low-cost options that provide:

• $5,000 for property damage per accident
• $15,000 per person in personal injury protection (PIP)

Additional bodily injury liability worth $10,000 in coverage can be purchased, but it is not applied automatically.

How Much Insurance Should You Get In New Jersey?

State minimums for New Jersey, especially with basic policies, are often considered insufficient for serious accidents, which is why many drivers consider full coverage, which includes collision and comprehensive coverage. This is also typically required by any lender if you have financing for your vehicle.

New Jersey remains one of the most densely populated states and one of the most expensive states when it comes to car insurance, and while basic liability and personal injury protection are required, drivers might also consider:

• Supplementary Uninsured/Underinsured Motorist (UM/UIM) to help offset the cost of your injuries and your property damage if you get hit by a driver who has a basic policy that’s insufficient or has no policy.
• Collision Coverage to help deal with repairs or replacement for single-vehicle accidents, such as hitting a guardrail on the Thruway.
• Comprehensive Coverage to help protect against things like weather damage, vandalism, theft, or fire.
• Loan/Lease Gap Coverage for any New Jersey drivers who have a lease or a loan on their vehicle, as this would pay the difference for what you owe in the event that your car is totaled.
• Roadside Assistance to help with things like dead batteries or towing.
• Additional PIP (Personal Injury Protection) if you want to increase your medical benefits.

These additional forms of coverage can help drivers protect themselves against things like multi-car pileups on the turnpike, I-80, or the parkway, as well as the damages caused by nor’easters or vehicle theft in major cities.

How Much Is Car Insurance In New Jersey?

New Jersey drivers pay an average of $270 per month for full coverage or $118 per month for minimum coverage. New Jersey has some of the most expensive minimum coverage costs across the country, with premiums averaging 70% higher than the national average in large part because of the requirements for personal injury protection and uninsured/underinsured motorist coverage.

Costs vary greatly based on region, with full coverage annual costs for places like Madison hovering above $2,600 per year, but Newark costing $4,400 per year. Other factors that can increase cost include the following:

• Low-income Car Insurance: Residents who are considered low income might be eligible for a Special Automobile Insurance Policy (SAIP), nicknamed the “Dollar-a-Day” insurance plan because it costs around $1 per day, or $365 per year, with only minimum medical coverage (no liability or vehicle damage protection).
• Non-owner Car Insurance: A driver who borrows or rents vehicles but doesn’t actually own a vehicle can still get a non-owner insurance policy for around $700 per year.
• Temporary Car Insurance: Short-term options are available in New Jersey, which can help cover temporary needs, but meeting the state minimum liability requirement averages around $178 per month for a short-term option.
• Senior Car Insurance: Once drivers reach 65, they can expect a cost increase in New Jersey, with the average price per year hovering around $2,600 for a 65-year-old, but by age 75, exceeding $3,000 per year.
• Teen Car Insurance: Teens in New Jersey can opt to be under a family policy or on their own, but on their own, they will face some of the highest rates out of all categories in New Jersey. The average premium for 17-year-olds for full coverage is around $10,000 per year.
• SR-22 Insurance: Drivers who have to carry an SR-22 (financial responsibility filing) face higher premiums, typically between $2,139 and $2,611 per year.
• College Students: College students in New Jersey can expect to pay between $262 and $425 per month.
• Bad Credit: New Jersey drivers with poor credit typically pay 116% more for their premiums compared to a driver with an excellent credit score.
• With a Speeding Ticket: Drivers who have speeding tickets or are otherwise considered high-risk drivers can expect premiums between $3,000 and $6,000 per year, depending on the insurance provider.

These figures are general estimates and can vary depending on the insurer and your personal driving profile.

Which Car Insurance Companies Operate In New Jersey?

New Jersey has dozens of regional and national car insurance providers from which to choose, including the following:

• Allstate
• Amica Mutual Insurance Company
• Farmers Insurance
• GEICO
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• Travelers
• USAA
• New Jersey Manufacturers Insurance Company (NJM)
• Plymouth Rock Assurance
• CURE Auto Insurance
• Selective Insurance
• Erie Insurance
• Mercury Insurance
• Preferred Mutual
• Direct Auto Insurance
• The General
• PURE Insurance
• Hagerty

Note: You can use the New Jersey Department of Banking and Insurer Search or the New Jersey Motor Vehicle Commission Insurance Company Codes tool to find all licensed providers in the state.

Tools like Insuranceopedia make it possible to compare coverage from these companies and find a policy that suits your needs.

How To Get Lower Insurance Premiums In New Jersey

As New Jersey drivers have dealt with particularly high costs of repairs, inflation, and insurance, there are several steps that drivers can take to reduce their premiums in this high-cost market.

Coordinate With Health Insurance (PIP Primary)

As a New Jersey driver, check your private health insurance to see if you can use your health insurance as the primary payer for any medical expenses related to a car accident. If you can, then you don’t have to pay for the personal injury protection part.

Use State-Approved Defensive Driving

Drivers can also complete an MVC-approved defensive driving course; state law mandates that insurance companies take 10% off their premiums for 3 years. What’s more, completing these programs can allow you to take two points off your driving record once every 5 years.

Switch To A “Basic” Policy

If keeping costs low is a priority, you can reduce your premiums by taking advantage of the basic policy. This policy is best for drivers who have very few personal assets or have limited income.

Check Eligibility For SAIP ($365/Year)

New Jersey residents who are currently enrolled in federal Medicaid with hospitalization may qualify for the Special Automobile Insurance Policy (SAIP), which is a medical-only policy that can keep costs low.

Be A Safe Driver

Being a safe driver can actually qualify you for safe driver discounts. This means avoiding speeding tickets or car accidents can give you discounts up to 25%.

Increase Your Deductible

Your deductible is the amount of money that you have to pay out of pocket in the event that you need a repair to your vehicle, like repairing a cracked windshield. If your current deductible is around $200 and you increase it to $500, you can reduce premiums on full comp and collision coverage by up to 30%.

Check On Older Cars

If you have an older vehicle, you must check what kind of coverage you currently have and compare that to the value of the vehicle. Cars with a value less than the cost of your annual premium plus your annual deductible don’t need full coverage.

Proof Of Insurance In New Jersey

New Jersey has very strict rules for driving without insurance. All drivers have to carry a New Jersey Insurance identification card either in an electronic form or a paper form. This card has to display:

1. The insurance company name
2. The policy number
3. Dates of the policy
4. Vehicle description

All drivers must maintain the new minimum requirements as of January 2026.

Penalties For No Proof Of Insurance

Drivers who are caught without proof of insurance can face fines up to $1,000 for a first offense and up to $5,000 for any subsequent offenses. Being caught without proof of insurance will automatically cause your license to be suspended for one year, a mandatory penalty in New Jersey for a first offense or up to 2 years for subsequent offenses.

There may also be community service penalties, surcharges, and jail time. In other cases, a vehicle could be impounded, resulting in additional towing and storage fees.

The Reinstatement Process For Jersey Drivers

If your license has been suspended because you were caught driving without insurance, you have to wait until that full mandatory suspension period is over, again, one full year for a first-time offense and two full years for any subsequent offenses.

Only after that time has passed can you pay all of your surcharges and restoration fees, submit proof of a valid insurance policy, and submit a formal application for reinstatement. If you have been charged for a subsequent offense, that formal application can be denied, meaning your driving privileges may not be restored.

New Jersey State Driving Laws

New Jersey uses a “no-fault” insurance system, but there are many strict requirements for driver conduct and what to do after an accident.

No-Fault State

New Jersey is a “no-fault” state, so your respective insurance company will cover your medical expenses no matter who was responsible, based on your policy limits.

Civil Suit Thresholds

Each policy will include what’s called a limitation on lawsuit, and this refers to the threshold set during a civil suit after an accident; people involved in an accident can’t actually sue for things like pain and suffering unless they sustained serious injuries like dismemberment or permanent disability.

Note: New Jersey drivers can pay a higher premium for an “Unlimited Right to Sue,” removing that threshold.

Uninsured Motorist (UM) Coverage

This is mandatory for all drivers.

Drivers Without Insurance

Driving without insurance comes with serious fines and suspension.

Self-Insurance

People who own more than 25 vehicles can apply to be self-insured via the Commissioner of Banking and Insurance.

When To Report An Accident

Any accidents involving property damage of more than $500, injury, or death must be reported immediately, usually via a 911 call, and then a written report must be filed within 10 days.

Statute Of Limitations

The statute of limitations is around 2 years.

Seat Belt Laws

All occupants must wear seat belts at all times in New Jersey.

Distracted Driving

Using an electronic or handheld device while driving is illegal. It is also a primary enforcement, meaning you can be pulled over for it.

Teen Driving Laws

New Jersey uses a Graduated Driver License (GDL) program, and all teen drivers have to display red decals on their license plates.

Car Inspection Requirements

Every two years, all vehicles must have an emissions inspection except new vehicles, which are exempt for the first 5 years.

SR-22s

New Jersey requires that certain high-risk drivers file an SR22 certificate in order to restore driving privileges, proving they have financial responsibility.

Increased Liability Minimums

As of January 1, 2026, the state minimums increased again to $35,000/$70,000/$25,000.

Non-Renewal Laws

Insurance companies cannot refuse to renew your policy without giving you at least 60 days’ notice, and New Jersey Law requires that they have specific grounds for non-renewal, like fraud or non-payment.

New Jersey Car Insurance Contact Information

The Department of Banking and Insurance and the Motor Vehicle Commission handle all insurance, licensing, and compliance matters, but there are a few other departments you may need to contact.

1. New Jersey Department of Banking and Insurance (NJDOBI)

If you need to file a complaint with your insurance company because they denied one of your claims or you think they provided an unfair settlement, this is who you contact. Similarly, you can reach out to this department if you need help with an insurance dispute, the language in your current insurance policy, or if you need to verify that a particular agent or insurance company is allowed to operate within New Jersey.

Contact Information:

• Consumer Hotline: (800) 446-7467 or (603) 292-7272
• Main Office Address: 20 West State Street, PO Box 325, Trenton, NJ 08625
• Insurance Licensing: (609) 292-7272 | Email: inslic@dobi.nj.gov
• Website: nj.gov/dobi

2. New Jersey Motor Vehicle Commission (NJMVC)

If you need to renew your vehicle registration, resolve an issue with your license plates being temporarily taken, pay an insurance-related surcharge, or verify your insurance through the state, this is who you contact.

Contact Information:

• General Customer Support: (609) 292-6500
• Compulsory Insurance & Accidents: (609) 478-7610 or (609) 777-0201
• Suspensions & Restorations: (609) 292-7500
• Surcharge Administration: (844) 424-6829
• Insurance Certificate Filings: (609) 292-5136
• Website: gov

3. Office of the Insurance Fraud Prosecutor (OIFP)

If you need to report any type of insurance fraud, this is where you go.

Contact Information:

• Fraud Hotline: (877) 55-FRAUD (553-7283)
• Website: njinsurancefraud.org

4. Personal Automobile Insurance Plan (PAIP)

If you were denied a standard insurance policy because of your driving record, but you still need to meet legal requirements by having a high-risk policy, this is a specific plan provided by the state to help you when you can’t find coverage elsewhere.

Contact Information:

• Customer Service: (800) 652-2471

Common New Jersey Car-Related Crime And Fatalities

In 2025, New Jersey enjoyed a decline in vehicle thefts and traffic fatalities, but the state is not without its problems.

Traffic Fatality Data

New Jersey has enjoyed a decline in traffic fatalities and vehicle deaths, which aligns with a national trend where fatalities across the US dropped by over 8%. In 2025, however, New Jersey drivers saw a decrease in traffic accident fatalities of 16.8%, though nearly 600 fatalities were still recorded in 2025.

Vehicle Theft Trends

Car thefts dropped by around 11% across the state, attributed to new automated license plate recognition technology used by law enforcement throughout the state, as well as the implementation of an auto theft task force. Despite a drop in numbers, Honda Accords remained the most frequently stolen vehicles across New Jersey, followed by Kia Optimas and Hyundai Elantras.

Common Accident Causes

Distracted driving is the biggest perpetrator of car accidents and car accident fatalities in New Jersey, responsible for over 26% of all roadway deaths. Behind distracted driving is drug and alcohol use. Over the last few years, exceeding the speed limit has been involved in over 29% of all traffic fatalities, but sudden winter storms and deer collisions from October to December are also issues for drivers.