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New Jersey is a no-fault state. Drivers must carry at least 35/70/25 (Standard Policy, from 2026) in coverage, and the average full-coverage premium is $3,696 a year, 26% above the national average of $2,922. This guide covers what New Jersey requires, what drivers pay, the rules on fault, uninsured drivers, penalties, teen drivers and phone use, and how to pay less.
| Minimum coverage | 35/70/25 (Standard Policy, from 2026) |
| Fault system | No-fault |
| Average full coverage | $3,696 a year ($308 a month), 26% above the national average of $2,922 |
| Uninsured drivers | 14.1% (2023), the 20th highest rate of 51 |
| Filing after serious violations | Proof of financial responsibility, if ordered |
New Jersey requires $35,000 bodily injury liability per person and $70,000 per accident for policies issued or renewed on or after January 1, 2026, with $25,000 property damage liability and personal injury protection (PIP medical options start at $15,000 on the Standard Policy). New Jersey also offers a lower-cost Basic Policy with limited benefits that meets the minimum legal requirement (New Jersey Department of Banking and Insurance, "Auto Insurance Buyer's Guide" (2026)).
The minimums are a legal floor, not a recommendation. Property damage limits in particular don't go far when a new car can cost more than the limit to replace, and anything above your limits is your personal responsibility. See how limits and deductibles work and every type of coverage explained.
The average full-coverage premium in New Jersey is $3,696 a year, 26% above the national average of $2,922. That makes New Jersey the 7th most expensive of 49 (48 states plus D.C.; Alaska and Hawaii aren't in the data) (Experian, "Car Insurance Average Costs by State," published September 9, 2026; full coverage, 12 months to August 2026).
Within New Jersey, prices still vary a lot by ZIP code, driving record and car, and 14.1% of drivers on New Jersey roads were uninsured in 2023, so the coverage you choose matters as much as the premium.
Your own price depends on your ZIP code, age, driving record, car and coverage. Try our car insurance calculator with New Jersey preselected for a personal estimate, and see what determines your car insurance cost.
New Jersey is a no-fault state with a choice: under the "Limitation on Lawsuit" option you agree not to sue the at-fault driver for pain and suffering unless you suffer one of the permanent injuries listed in the law, in exchange for a lower premium; the "No Limitation on Lawsuit" option keeps your full right to sue.
An estimated 14.1% of New Jersey drivers were uninsured in 2023, the 20th highest rate among the 50 states and D.C. (Insurance Research Council, uninsured motorist estimates for 2023, via Insurance Information Institute "Facts + Statistics: Uninsured motorists"). Uninsured and underinsured motorist coverage protects you when one of them hits you. See coverage types.
Car insurance is required for every vehicle in New Jersey, and you must carry proof of it when driving. (New Jersey Department of Banking and Insurance)
A first offense for driving uninsured brings a fine of $300 to $1,000, community service, and a one-year license suspension. A second or later offense can bring a fine of up to $5,000, 14 days in jail, 30 days of community service, and loss of your license for two years. (New Jersey Statutes §39:6B-2)
A conviction for driving uninsured also follows you into your next policy. In CarInsurance.com's rate analysis, it raised the average full-coverage premium in New Jersey from $1,902 to $2,709 a year, an increase of 42% (CarInsurance.com, "Penalty for driving without insurance in every state," updated March 24, 2026; rate analysis).
Beyond the penalties, driving uninsured leaves you personally liable for any damage you cause. See what happens if you drive without car insurance.
If the New Jersey Motor Vehicle Commission or a court requires proof of future financial responsibility after a serious violation, your insurer files it for you, and it must stay in force for the required period.
New Jersey uses graduated driver licensing (Insurance Institute for Highway Safety, "Graduated licensing laws" table):
Adding a teen is usually the biggest single increase in a family's premium. Keeping them on the family policy, a good-student discount and a safe, modest car help most.
A distracted-driving ticket can count against your record and your premium. (Insurance Institute for Highway Safety, "Electronic device laws" table)
SAIP, the “dollar-a-day” policy. Available to New Jersey residents on federal Medicaid with hospitalization, it costs about a dollar a day and pays for emergency care right after a crash, with a higher limit for catastrophic brain and spinal cord injuries. It is medical-only: there is no liability cover for harm to others and no cover for your car, so check whether it suits your situation. (New Jersey Department of Banking and Insurance, "Special Automobile Insurance Policy (SAIP)")
See how to compare car insurance quotes, or get quotes for your ZIP code.
For questions about a policy, a claim or an insurer's conduct, contact the New Jersey Department of Banking and Insurance. It handles consumer questions and complaints about insurers in New Jersey.
AutoInsuranceQuery editorial team. Last reviewed: September 29, 2026.
