New Jersey car insurance: minimums, SR-22 rules and costs

Last updated: November 12, 2026

New Jersey drivers must carry at least $35,000/$70,000 of bodily injury liability and $25,000 of property damage liability, plus personal injury protection (PIP), uninsured motorist (UM) and underinsured motorist (UIM) coverage. In 2023, insured drivers in New Jersey spent an average of $1,572.86 on car insurance, 23% above the national average of $1,281.60, according to the National Association of Insurance Commissioners (NAIC). That makes New Jersey the 5th most expensive of the 50 states and D.C. by that measure.

Minimum car insurance required in New Jersey

Coverage	Minimum
Bodily injury liability, per person	$35,000
Bodily injury liability, per accident	$70,000
Property damage liability, per accident	$25,000
Personal injury protection (PIP)	Required
Uninsured motorist (UM)	Required
Underinsured motorist (UIM)	Required

You'll often see this written as 35/70/25. The first two numbers are the bodily injury limits in thousands of dollars (per person and per accident), and the last is property damage. Those amounts are the most the policy pays for injuries and damage you cause to others. Anything above them can come back to you personally.

New Jersey raised its bodily injury minimums to $35,000 per person and $70,000 per accident for new and renewal standard policies issued on or after January 1, 2026. The property damage minimum stays at $25,000.

New Jersey also has an optional, lower-cost basic policy with much lower limits (10/10/5 according to the Insurance Information Institute) and no uninsured or underinsured motorist coverage. The 2026 increase doesn't apply to it. A Special Automobile Insurance Policy (SAIP) is available for certain drivers; it covers only emergency treatment and a $10,000 death benefit.

Is New Jersey a no-fault state?

Yes. New Jersey is one of 12 states with a no-fault auto insurance law, according to the Insurance Information Institute. Your own personal injury protection pays your medical bills after a crash, whoever caused it. You can only sue the other driver for pain and suffering once your injuries pass a verbal (descriptive) threshold.

New Jersey has a "choice" no-fault law: you can reject the lawsuit threshold and keep the full right to sue, usually for a higher premium.

SR-22 rules in New Jersey

New Jersey's Motor Vehicle Commission (MVC) pages don't describe SR-22 filings. State law (N.J.S.A. 39:6B-1) bars registering or driving a vehicle without the required liability coverage. If the MVC schedules an uninsured motorist suspension, you restore your privileges by sending a copy of your current New Jersey insurance ID card or policy declarations page.

Points matter too: six or more points within three years brings a surcharge, and 12 or more leads to a license suspension.

What drives car insurance costs in New Jersey

Average spending in New Jersey rose 13% from 2019 to 2023, compared with 19% nationwide. Here's average annual spending per insured vehicle, from the NAIC:

Year	New Jersey average	U.S. average
2019	$1,390.44	$1,075.08
2020	$1,334.03	$1,047.76
2021	$1,365.14	$1,060.23
2022	$1,411.47	$1,124.45
2023	$1,572.86	$1,281.60

The NAIC's "average expenditure" is total written premium divided by insured vehicles. It isn't a quote, and your own price depends on your driver profile and the coverage you choose.

Uninsured drivers. An estimated 14.1% of drivers in New Jersey were uninsured in 2023, lower than the national estimate of 15.4%. That's the 20th highest rate among the 50 states and D.C. When more drivers are uninsured, insured drivers' own uninsured motorist coverage pays more claims, which pushes up its price.
Crash deaths. New Jersey recorded 670 motor vehicle crash deaths in 2024, or 0.84 per 100 million miles driven, lower than the U.S. rate of 1.19 (the 6th lowest of the 50 states and D.C.). Severe crashes drive up bodily injury claim costs.
Where and how crashes happen. In 2024, 15% of New Jersey's crash deaths happened in rural areas (U.S.: 41%), 23% involved speeding (U.S.: 29%), and 31% of those killed were pedestrians (U.S.: 18%).
No-fault rules. Mandatory PIP means every policy pays for its own driver's medical costs, which shapes what you pay for that part of the policy.

Ways to save on car insurance in New Jersey

Compare at least three quotes. Insurers weigh the same facts differently, so prices for the same driver in New Jersey can vary widely. More ways to lower your bill.
Check your uninsured motorist limits anyway. Even at 14.1%, uninsured and underinsured drivers are common, and UM coverage is usually inexpensive. How UM coverage works.
Shop at renewal. Even where prices rise more slowly, your own renewal can jump after a claim, a move or a new car. When to compare.
Review your PIP options. In a no-fault state, PIP is a big part of the bill. Ask how different PIP limits, deductibles or coordination with your health insurance change the price.
Pick a deductible you can actually pay. Raising it lowers your premium, but only if you could cover it after a claim. How deductibles work.
Ask about discounts. Common ones include safe driver, multi-car, bundling, paying in full, good student and usage-based programs. They're not always applied automatically.

See other states in our car insurance guides by state.

Sources

Compare car insurance options in your area → It takes about 2 minutes, and we never ask for your name, phone number or email.

DriveCheaper may be paid by companies shown on this site. How we make money. This page is general information, not insurance or legal advice. Laws and prices change, so confirm details with your insurer or your state's insurance department or DMV.