Guide to New Jersey Car Insurance

New Jersey requires all drivers to carry auto insurance, but you have choices in the type of policy you purchase. The two main options are the Basic Policy and the Standard Policy — each with different levels of protection and cost.

Basic Policy

Minimum coverage:¹

• Property Damage Liability: $5,000 per accident
• Personal Injury Protection (PIP): $15,000 per person/per accident (up to $250,000 for certain catastrophic injuries)
• Bodily Injury Liability: Not included by default, but $10,000 per accident is available as an add-on
• Uninsured/Underinsured Motorist Coverage: Not included
• Right to Sue: Limited only (you can only sue for pain and suffering if you suffer a serious permanent injury)

Standard Policy

Minimum coverage:²

• Bodily Injury Liability: Minimum $35,000 per person / $70,000 per accident
• Property Damage Liability: Minimum $25,000 per accident
• PIP: Minimum $15,000 per person/per accident (up to $250,000 for certain catastrophic injuries)
• Uninsured/Underinsured Motorist Coverage: Included, up to your selected liability limits
• Right to Sue: You choose — Limited or Unlimited

Who Should Choose Which Policy?

Choose the Basic Policy if you:

• Are a younger driver just starting out with limited income
• Have few or no significant assets (savings, property, investments)
• Have few family financial responsibilities
• Need to meet the legal minimum at the lowest possible cost
• Have good personal health insurance that would cover accident injuries

Choose the Standard Policy if you:

• Own a home or have significant savings or investments to protect
• Have a family or dependents relying on your income
• Want the ability to choose your right-to-sue option
• Want uninsured/underinsured motorist protection
• Earn a steady income that could be garnished in a lawsuit judgment

Consider Raising Your Liability Limits

The minimum liability limits on a Standard Policy — $35,000 per person and $25,000 for property damage — can be exhausted quickly in a serious accident. Medical bills, vehicle repair costs, and lost wages can easily exceed these amounts, leaving your personal assets exposed to cover the difference if you are found at fault.

The Standard Policy allows bodily injury coverage up to $250,000 per person / $500,000 per accident and property damage up to $100,000 or more. If you have a home, savings, or steady income, purchasing higher limits is a smart investment in protecting what you’ve built.

Understanding New Jersey’s Choice No-Fault System

New Jersey operates under a “choice no-fault” system, which means your own auto insurance pays for your medical expenses and certain economic losses after an accident — regardless of who was at fault — through your Personal Injury Protection (PIP) coverage. This is the “no-fault” component.

However, New Jersey gives drivers a choice about their right to sue the at-fault driver for pain and suffering (non-economic damages):

• Unlimited Right to Sue: You retain the full right to sue the other driver for pain and suffering from any injury.
• Limited Right to Sue: You give up the right to sue for pain and suffering unless your injuries meet a serious threshold, such as loss of a body part, significant disfigurement or scarring, a displaced fracture, loss of a fetus, a permanent injury, or death.

The Basic Policy automatically comes with the Limited Right to Sue option. On the Standard Policy, you select your preference.

Auto insurance in New Jersey is more expensive than the national average — full coverage is 28 percent higher than the national average, and minimum coverage is nearly double. Higher costs are due in large part to the state’s population density and no-fault system.

Full Coverage

Full coverage in New Jersey averages $3,018 per year ($251/month) statewide. GEICO and NJM are the most affordable options in New Jersey for full coverage.

Minimum Coverage

Minimum coverage averages $1,406 per year ($117 monthly) in New Jersey. GEICO and NJM are also the cheapest options for minimum coverage, along with Plymouth Rock.

1. Shop around. Compare quotes from multiple insurers to find the cheapest rates for your driver profile.
2. Get just the minimum coverage. The cheapest coverage is the minimum the state requires, although you could be responsible for more out of pocket if you cause an accident.
3. Use discounts. Every car insurance company offers discounts for actions like enrolling in automatic payments, taking defensive driving classes, or even for teen drivers getting good grades in school. Ask your insurance agent how you can save.
4. Bundle multiple policies. If you have multiple insurance policies across multiple companies, combine them under one provider to unlock multi-policy discounts.
5. Raise your deductibles. Raising your deductibles will lower your premiums, but keep in mind you’ll be responsible for paying the deductible before your insurance provider contributes to claims.

Since car insurance is a requirement in New Jersey, you’ll need to carry either paper or electronic proof whenever you drive. If a police officer catches you driving without insurance, you could face the following penalties.

Driving Under the Influence

Seat Belt Use

Everyone in a moving car in New Jersey is legally required to buckle up, as long as they are either 8 or older, or under 7 and over 84 inches (4 feet, 9 inches) tall. Enforcement is primary in the front seat and secondary in the back seat. With primary enforcement, law enforcement can pull someone over just for not wearing a seat belt in the front seat. In the back seat, another violation in addition to the unbuckled seat belt would be required for police to enforce this law.

Distracted Driving

New Jersey doesn’t allow drivers to use handheld electronic devices while driving, and drivers with learner’s permits and intermediate licenses can’t use any devices, even hands-free. Here are the penalties for breaking New Jersey’s distracted driving laws, which are under primary enforcement.

Teen Drivers

Statute of Limitations for Claims

Wait no longer than six years to file any claims for property damage or personal injury. Beyond this statute of limitations, your insurance company isn’t required to cover your claims.

Notification Laws: Cancellations and Non-Renewals

Legally, insurance companies must notify you 15 days before canceling your insurance or 60 days before not renewing your insurance at the end of its term. Companies can only cancel your insurance for not paying a premium, having a suspended or revoked license, or committing fraud or misrepresentation on your original application. Non-renewal is more flexible, as it occurs when the policy ends. Learn more about cancellations versus non-renewals.

Self-Insurance

If you have more than 25 vehicles, you can apply to self-insure your cars in New Jersey. However, you’ll have to pay a $1,000 filing fee, and whether or not you’ll be able to insure your own cars is at the discretion of the state’s Commissioner of Insurance. Self-insurance makes more sense for businesses or organizations with large fleets of vehicles, not those with personal vehicles.

Inspection Requirements

New Jersey has requirements for both emissions and safety inspections. Check the inspection sticker on your windshield to determine when you need to get an inspection next, or use the chart below to find out what inspections you need.

If your car is eligible for inspection and the date is coming up, follow these steps:

1. Gather your driver’s license, vehicle registration, and proof of New Jersey insurance.
2. Schedule an appointment online at https://www.njmvis.com/appointments/. Alternatively,  make an appointment over the phone by calling 888-656-6867 toll-free on weekdays from 8 a.m. until 4 p.m., or Saturdays from 7 a.m. until 12 p.m. You can also walk into a nearby office, which you can find via https://data.nj.gov/Transportation/Vehicle-Inspection-Facility-Locations-Map/a7mk-8suc?fac=deic.⁵
3. Go to the appointment and pay the inspection fee, which will be $2.50 at most.

SR-22s

An SR-22 certificate is a form that proves you have the minimum coverage New Jersey requires. You might be legally required to obtain an SR-22 if any of the following statements are true:

• You lost your license or driving privileges previously, but now it’s time to reinstate your license.
• You had multiple traffic infractions or accidents.
• You were convicted of a DUI.⁶

How to Register a Car in New Jersey for the First Time

1. Schedule an appointment online at https://telegov.njportal.com/njmvc/AppointmentWizard. Walk-ins are not allowed.
2. Bring the following documents:
   • Title
   • Driver’s license or other ID
   • New Jersey insurance card or company name and policy number (you need New Jersey insurance for registration but don’t need New Jersey car registration for insurance)
   • Completed Vehicle Registration Application Form BA-49 from https://www.state.nj.us/mvc/pdf/vehicles/BA-49.pdf
   • Power of attorney (if the owner isn’t the person signing the documents)
   • Dealer reassignment documentation, if applicable
   • Lienholder info/financing statement if the vehicle is leased or financed
   • Application for Certificate of Ownership (if you’re transferring registration from another state) from https://www.state.nj.us/mvcbiz/pdf/Business_Licenses/OS-7.pdf
3. Pay the required titling fee plus the registration fee and sales tax. Your registration fee depends on your vehicle type.

   Model year	Weight (in pounds)	Fee
   1970 or older	Under 2,700	$35.50
   1970 or older	2,700-3,800	$44.50
   1970 or older	Over 3,800	$65.50
   1971-79	Under 2,700	$38.50
   1971-79	2,700-3,800	$49.50
   1971-79	Over 3,800	$72.50
   Older than 2 years	Under 3,500	$46.50
   Within 2 years	Under 3,500	$59
   Older than 2 years	Over 3,500	$71.50
   Within 2 years	Over 3,500	$84

   The titling fees are as follows.

   • Standard: $60
   • Financed vehicle, one lien: $85
   • Financed vehicle, two liens: $110

   You can pay by money order, cash, credit card, or a check made payable to the New Jersey Motor Vehicle Commission (NJMVC).

Not every car requires you to personally register it. For example, if you bought your car from a dealership, the dealership will handle the registration for you.

How to Renew Your Registration in New Jersey

There are three ways to renew your registration in New Jersey.

1. Renew your registration online at https://mymvc.state.nj.us/reg-renewal/. You’ll need the following information:
   • Registration renewal form via https://www.state.nj.us/mvc/pdf/vehicles/BA-49.pdf
   • Social Security number
   • Insurance company name and policy number
   • Credit card
2. Renew your registration in person. Make an appointment first via https://www.state.nj.us/mvc/vehicles/regrenew.htm. You’ll need the same documents as you would for a new registration.
3. Renew your registration by mail. You’ll need the following information:
   • Completed Registration Renewal Notice, which you should have received in the mail
   • Return envelope provided with the notice.
   • Check or money order made payable to the NJMVC

   Send the required documents and fee to the return address on the original notice.

New Jersey Motor Vehicle Commission Contact Information

• Email: https://www.state.nj.us/mvc/About/ContactEmail.htm
• Phone: 609-292-6500, extension 5014 for registration
• Mail:
  • Motor Vehicle Commission
  • Customer Advocacy Office
  • P.O. Box 403
  • Trenton, NJ 08666-0403

How to Get a Duplicate Car Title in New Jersey

1. Fill out the form located at https://www.nj.gov/mvc/pdf/vehicles/duplicate-noproof.pdf.
2. Gather the $60 fee.
3. If you aren’t the vehicle owner, get the form notarized.
4. Send the form and fee to this address:
   • New Jersey Motor Vehicle Commission
   • Special Titles Section/Duplicate Titles
   • 225 E. State St.
   • P.O. Box 017
   • Trenton, NJ 08666-0017

State Insurance Department Contact Information

• URL: https://www.state.nj.us/dobi/index.html
• Phone number: 609-292-5360
• Mailing address:
  • 20 W. State St.
  • P.O. Box 325
  • Trenton, NJ 08625

Car repairs in New Jersey cost 5 percent more than the national average at $403.43, which includes both parts and labor. That breaks down to $143.47 for labor and $259.96 for parts, according to CarMD.

Car Theft

New Jersey’s car theft rates are the seventh lowest in the country, with only 116 thefts per 100,000 inhabitants in 2020. That’s 113 less than the national average, based on FBI data.

However, some metropolitan areas, like the greater Philadelphia area (including South Jersey) and Trenton, have higher car theft rates than the rest of the Garden State.

Traffic Fatalities

Fortunately, New Jersey fares well in traffic fatality rates, with only 559 fatalities per 100 million vehicle miles traveled. According to data from the Insurance Institute for Highway Safety, that’s 27 percent less than the national average.

Car insurance in New Jersey comes with more choices — and more costs — than in most states. Understanding the difference between the Basic and Standard Policy, your right-to-sue options, and how New Jersey’s no-fault system works can help you make a more informed decision about your coverage. While rates in the state run higher than the national average, shopping around with New Jersey providers like GEICO and NJM can help you find more affordable options without sacrificing the protection you need.