Auto Insurance in New Jersey
No-Fault / PIP State — New Jersey drivers pay an average of $1,999/year for full-coverage auto insurance — above average compared to the nation for cost.
New Jersey Minimum Liability Requirements
State law requires a minimum of 15/30/5 (no-fault, PIP required) (bodily injury per person / per accident / property damage). These minimums are the legal floor — not a recommendation. A single serious accident can easily exceed these limits and expose you to personal liability.
Key New Jersey Auto Insurance Factor
New Jersey is a no-fault state requiring PIP coverage. NJ's property damage minimum ($5K) is the second lowest in the country — significantly below the cost of even minor accidents. Higher coverage is strongly recommended.
What Full Coverage Includes in New Jersey
- Liability: Covers injuries and property damage you cause to others (required by law)
- Collision: Covers damage to your vehicle from an accident
- Comprehensive: Covers theft, weather, fire, and non-collision damage
- PIP (Personal Injury Protection): Required in New Jersey — covers your medical bills regardless of fault
- Uninsured/Underinsured Motorist: Protects you from drivers with no or insufficient coverage
Frequently Asked Questions
What is the average cost of auto insurance in New Jersey?
The average annual cost of full-coverage auto insurance in New Jersey is $1,999/year. Rates vary based on your driving record, vehicle type, ZIP code, age, and coverage levels. Use our estimator above to get a personalized figure.
What are New Jersey's minimum auto insurance requirements?
New Jersey requires minimum liability coverage of 15/30/5 (no-fault, PIP required) (bodily injury per person / per accident / property damage). New Jersey is a no-fault state, so PIP coverage is also required. These are legal minimums — most financial experts recommend carrying significantly higher limits.
Is New Jersey a no-fault auto insurance state?
Yes, New Jersey is a no-fault state. This means your own PIP (Personal Injury Protection) coverage pays for your medical expenses after an accident regardless of who was at fault. New Jersey is a no-fault state requiring PIP coverage. NJ's property damage minimum ($5K) is the second lowest in the country — significantly below the cost of even minor accidents. Higher coverage is strongly recommended.
How can I lower my auto insurance premium in New Jersey?
Common ways to reduce your premium in New Jersey include: maintaining a clean driving record, bundling auto and home insurance, raising your deductible, qualifying for good driver or good student discounts, and shopping multiple insurers annually. Use the estimator above to see how different coverage levels affect your estimated premium.