New Jersey car insurance laws and requirements: What is changing in 2025

Q: Is it mandatory to have car insurance in New Jersey?

Yes , New Jersey requires that you carry at least the minimum mandatory coverage. Necessary coverage includes UIMPD, UMBI, UMPD and PIP $15,000.

Q: Will my bare minimum car insurance cover me in another state?

Yes , your car insurance covers claims in another state, even if the minimums are higher in the other state.

New Jersey car insurance laws

New Jersey requires that drivers carry at least 25/50/25.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, coverage limits are very low and will not cover expenses from a serious accident. To be better protected, New Jersey drivers should consider increasing liability limits and adding coverage, such as collision and comprehensive.

New Jersey car insurance requirements

New Jersey requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

New Jersey liability minimums are 25/50/25.

Personal injury protection (PIP). Personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. pays medical costs, such as doctor visits, childcare expenses, and lost wages, for you or your passengers injured in an accident. PIP may be required for drivers who live in at-fault states.

New Jersey PIP requirements are $15,000.

Uninsured/Underinsured motorist coverage (UM/UIM). Uninsured and underinsured motorist coverageAn auto insurance coverage that pays for injuries or damage if you're in an accident with a driver who has no insurance or not enough insurance. helps pay for your medical costs and property damage if the at-fault driver has little or no car insurance. Your insurer would cover expenses up to your limits in addition to any payments from the other insurer.

New Jersey requires uninsured motorist coverage of 25k.

The average cost of a minimum coverage policy is $853. However, NJM has the lowest minimum car insurance rates, averaging $560.

The table below shows the top insurers' average rates for minimum coverage in New Jersey.

Company	Average annual premium	Average monthly premium
NJM	$560	$47
Geico	$588	$49
Plymouth Rock Assurance	$618	$51
Selective Insurance	$895	$75
Allstate	$936	$78
Progressive	$952	$79
Travelers	$983	$82
Farmers	$1,073	$89
State Farm	$1,089	$91

Read our methodology

New Jersey car insurance cost for minimum coverage limits

On average, state minimum car insurance costs $853. Car insurance rates for minimum coverage vary by company and driver. The table below shows average rates for drivers with minimum coverage in New Jersey.

The cheapest company for minimum coverage in New Jersey is NJM at an average rate of $560 annually.

State minimum coverage limit	25/50/25
Average annual premium	$853
Average monthly premium	$71

Read our methodology

Are the New Jersey minimum coverage requirements changing in 2025?

New Jersey car insurance requirements will not change in 2025. You do not need to make any changes if you have minimum coverage. If mandatory coverage changes in the future, your insurer will inform you, along with any rate changes.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated values of coverage and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in New Jersey?

New Jersey requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

New Jersey drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

New Jersey is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protection (PIP) to pay medical costs, such as doctor visits and prescriptions.

Uninsured and underinsured motorist coverage is also required. Uninsured motorist coverage helps pay for coverage when the at-fault driver doesn't have car insurance, and underinsured coverage assists when the at-fault driver doesn't have enough car insurance to cover injury and property damage costs. Without these coverages, you would have to pay for medical and repair costs that the other driver's insurance didn't cover. You may be able to opt out of this coverage.

PEOPLE ASK:

Is New Jersey minimum car insurance enough?

It may not be. Even a moderately serious accident could exceed the state minimum limits of 25/50/25, and minimum coverage may not cover all accident costs. Furthermore, state minimums do not cover your vehicle; you need to add comprehensive and collision coverage.

How much car insurance is enough in New Jersey?

Car insurance isn't one size fits all. The amount of coverage you need depends on your assets, net worth and risk level.

For example, if you are financially stable and can afford to pay out of pocket for medical costs and repairs, you may keep insurance limits low. However, you may be sued for the cost difference if you have a sizeable net worth and don't carry enough insurance to cover expenses.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

New Jersey penalties for driving without car insurance

Since New Jersey requires its drivers to carry car insurance, failing to do so has consequences. Although you may be tempted to skip coverage to save money, you'll wind up paying heavily in the long run.

Failing to carry New Jersey car insurance has penalties including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Fines	$300-$1,000
Other penalties	License suspension
Jail time	No

Read our methodology

New Jersey minimum coverage cost by age group

Younger drivers pay for more car insurance because they lack experience behind the wheel. Fortunately, rates decrease as drivers age.

The table below breaks down the cost of car insurance for various age groups. Geico has the best rates for teens with minimum coverage averaging $1,119. NJM offers the cheapest coverage for adults at $555.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $875, and the average rate for a 40-year-old male is $831, a difference of $44.

Male

Male
Female

Age	Company	Male annual premium	Male monthly premium
16	Geico	$1,086	$91
16	NJM	$2,240	$187
16	Plymouth Rock Assurance	$2,290	$191
16	Allstate	$3,138	$262
16	Travelers	$3,191	$266
16	State Farm	$3,372	$281
16	Selective Insurance	$5,196	$433
16	Progressive	$5,252	$438
16	Farmers	$6,381	$532
16	The Hanover	$7,204	$600
17	Geico	$1,086	$91
17	NJM	$1,900	$158
17	Plymouth Rock Assurance	$2,194	$183
17	Allstate	$2,434	$203
17	Travelers	$2,514	$210
17	Selective Insurance	$3,173	$264
17	State Farm	$3,299	$275
17	Progressive	$4,705	$392
17	Farmers	$4,827	$402
18	Geico	$1,086	$91
18	NJM	$1,570	$131
18	Travelers	$1,966	$164
18	Plymouth Rock Assurance	$2,018	$168
18	Allstate	$2,264	$189
18	Selective Insurance	$2,876	$240
18	State Farm	$3,289	$274
18	Farmers	$3,565	$297
18	Progressive	$3,569	$297
19	Plymouth Rock Assurance	$1,029	$86
19	Geico	$1,034	$86
19	NJM	$1,294	$108
19	Travelers	$1,597	$133
19	Progressive	$1,741	$145
19	Allstate	$1,909	$159
19	Selective Insurance	$2,141	$178
19	Farmers	$2,511	$209
19	State Farm	$2,514	$210
20	Geico	$933	$78
20	Plymouth Rock Assurance	$962	$80
20	NJM	$1,176	$98
20	Travelers	$1,409	$117
20	Progressive	$1,557	$130
20	Allstate	$1,623	$135
20	Selective Insurance	$1,918	$160
20	Farmers	$2,288	$191
20	State Farm	$2,311	$193
21	Geico	$823	$69
21	Plymouth Rock Assurance	$866	$72
21	NJM	$978	$82
21	Travelers	$1,200	$100
21	Allstate	$1,306	$109
21	Progressive	$1,342	$112
21	Selective Insurance	$1,370	$114
21	Farmers	$1,838	$153
21	State Farm	$2,061	$172
22	Plymouth Rock Assurance	$678	$57
22	Geico	$810	$68
22	NJM	$885	$74
22	Travelers	$1,109	$92
22	Allstate	$1,235	$103
22	Progressive	$1,238	$103
22	Selective Insurance	$1,345	$112
22	Farmers	$1,733	$144
22	State Farm	$1,924	$160
23	Plymouth Rock Assurance	$642	$54
23	NJM	$695	$58
23	Geico	$716	$60
23	Travelers	$1,044	$87
23	Progressive	$1,130	$94
23	Allstate	$1,188	$99
23	Selective Insurance	$1,278	$107
23	Farmers	$1,682	$140
23	State Farm	$1,729	$144
24	Plymouth Rock Assurance	$627	$52
24	NJM	$672	$56
24	Geico	$703	$59
24	Travelers	$999	$83
24	Progressive	$1,054	$88
24	Allstate	$1,168	$97
24	Selective Insurance	$1,206	$101
24	Farmers	$1,491	$124
24	State Farm	$1,539	$128
25	Plymouth Rock Assurance	$610	$51
25	Geico	$628	$52
25	NJM	$648	$54
25	Travelers	$903	$75
25	Progressive	$938	$78
25	Allstate	$1,002	$84
25	Selective Insurance	$1,114	$93
25	Farmers	$1,228	$102
25	State Farm	$1,306	$109
30	Geico	$568	$47
30	NJM	$575	$48
30	Plymouth Rock Assurance	$647	$54
30	Progressive	$874	$73
30	Travelers	$913	$76
30	Allstate	$917	$76
30	Farmers	$1,030	$86
30	Selective Insurance	$1,047	$87
30	State Farm	$1,086	$91
35	NJM	$552	$46
35	Geico	$562	$47
35	Plymouth Rock Assurance	$632	$53
35	Progressive	$889	$74
35	Allstate	$917	$76
35	Travelers	$946	$79
35	Selective Insurance	$1,001	$83
35	Farmers	$1,012	$84
35	State Farm	$1,078	$90
40	NJM	$549	$46
40	Geico	$562	$47
40	Plymouth Rock Assurance	$618	$52
40	Progressive	$890	$74
40	Selective Insurance	$912	$76
40	Allstate	$917	$76
40	Travelers	$926	$77
40	Farmers	$1,030	$86
40	State Farm	$1,089	$91
45	NJM	$537	$45
45	Geico	$571	$48
45	Plymouth Rock Assurance	$620	$52
45	Selective Insurance	$869	$72
45	Progressive	$886	$74
45	Travelers	$914	$76
45	Allstate	$917	$76
45	Farmers	$1,013	$84
45	State Farm	$1,089	$91
50	NJM	$519	$43
50	Geico	$569	$47
50	Plymouth Rock Assurance	$618	$52
50	Selective Insurance	$848	$71
50	Progressive	$851	$71
50	Allstate	$878	$73
50	Travelers	$900	$75
50	Farmers	$990	$83
50	State Farm	$1,073	$89
55	NJM	$502	$42
55	Geico	$569	$47
55	Plymouth Rock Assurance	$618	$52
55	Selective Insurance	$831	$69
55	Travelers	$856	$71
55	Progressive	$858	$72
55	Allstate	$878	$73
55	Farmers	$961	$80
55	State Farm	$1,049	$87
60	NJM	$495	$41
60	Geico	$574	$48
60	Plymouth Rock Assurance	$628	$52
60	Selective Insurance	$794	$66
60	Progressive	$863	$72
60	Travelers	$878	$73
60	Allstate	$892	$74
60	Farmers	$939	$78
60	State Farm	$1,025	$85
65	NJM	$500	$42
65	Geico	$575	$48
65	Plymouth Rock Assurance	$643	$54
65	Selective Insurance	$845	$70
65	Allstate	$934	$78
65	Travelers	$945	$79
65	State Farm	$1,011	$84
65	Progressive	$1,045	$87
65	Farmers	$1,094	$91
70	NJM	$514	$43
70	Geico	$575	$48
70	Plymouth Rock Assurance	$684	$57
70	Selective Insurance	$880	$73
70	Allstate	$934	$78
70	Travelers	$998	$83
70	State Farm	$1,022	$85
70	Progressive	$1,045	$87
70	Farmers	$1,361	$113
75	Geico	$580	$48
75	NJM	$588	$49
75	Plymouth Rock Assurance	$766	$64
75	Selective Insurance	$915	$76
75	Progressive	$1,045	$87
75	State Farm	$1,053	$88
75	Allstate	$1,086	$91
75	Travelers	$1,088	$91
75	Farmers	$1,394	$116

Read our methodology

Age	Company	Female annual premium	Female monthly premium
16	Geico	$1,186	$99
16	NJM	$2,185	$182
16	Plymouth Rock Assurance	$2,223	$185
16	Allstate	$2,903	$242
16	Travelers	$2,797	$233
16	State Farm	$2,621	$218
16	Selective Insurance	$5,106	$426
16	Progressive	$5,379	$448
16	Farmers	$5,722	$477
16	The Hanover	$7,485	$624
17	Geico	$1,186	$99
17	NJM	$1,860	$155
17	Plymouth Rock Assurance	$2,129	$177
17	Allstate	$2,311	$193
17	Travelers	$2,272	$189
17	Selective Insurance	$3,116	$260
17	State Farm	$2,600	$217
17	Progressive	$4,950	$413
17	Farmers	$3,943	$329
18	Geico	$1,186	$99
18	NJM	$1,544	$129
18	Travelers	$1,873	$156
18	Plymouth Rock Assurance	$1,960	$163
18	Allstate	$2,158	$180
18	Selective Insurance	$2,631	$219
18	State Farm	$2,570	$214
18	Farmers	$3,007	$251
18	Progressive	$3,535	$295
19	Plymouth Rock Assurance	$1,002	$84
19	Geico	$1,105	$92
19	NJM	$1,280	$107
19	Travelers	$1,594	$133
19	Progressive	$1,711	$143
19	Allstate	$1,843	$154
19	Selective Insurance	$1,994	$166
19	Farmers	$2,214	$185
19	State Farm	$1,973	$164
20	Geico	$1,001	$83
20	Plymouth Rock Assurance	$938	$78
20	NJM	$1,166	$97
20	Travelers	$1,383	$115
20	Progressive	$1,575	$131
20	Allstate	$1,586	$132
20	Selective Insurance	$1,807	$151
20	Farmers	$2,100	$175
20	State Farm	$1,875	$156
21	Geico	$841	$70
21	Plymouth Rock Assurance	$849	$71
21	NJM	$971	$81
21	Travelers	$1,153	$96
21	Allstate	$1,250	$104
21	Progressive	$1,364	$114
21	Selective Insurance	$1,357	$113
21	Farmers	$1,755	$146
21	State Farm	$1,696	$141
22	Plymouth Rock Assurance	$667	$56
22	Geico	$813	$68
22	NJM	$881	$73
22	Travelers	$1,065	$89
22	Allstate	$1,184	$99
22	Progressive	$1,307	$109
22	Selective Insurance	$1,367	$114
22	Farmers	$1,646	$137
22	State Farm	$1,615	$135
23	Plymouth Rock Assurance	$633	$53
23	NJM	$688	$57
23	Geico	$734	$61
23	Travelers	$1,016	$85
23	Progressive	$1,202	$100
23	Allstate	$1,148	$96
23	Selective Insurance	$1,259	$105
23	Farmers	$1,546	$129
23	State Farm	$1,461	$122
24	Plymouth Rock Assurance	$618	$52
24	NJM	$667	$56
24	Geico	$716	$60
24	Travelers	$999	$83
24	Progressive	$1,140	$95
24	Allstate	$1,123	$94
24	Selective Insurance	$1,203	$100
24	Farmers	$1,433	$119
24	State Farm	$1,330	$111
25	Plymouth Rock Assurance	$602	$50
25	Geico	$690	$58
25	NJM	$646	$54
25	Travelers	$941	$78
25	Progressive	$1,048	$87
25	Allstate	$1,050	$88
25	Selective Insurance	$1,106	$92
25	Farmers	$1,210	$101
25	State Farm	$1,208	$101
30	Geico	$629	$52
30	NJM	$589	$49
30	Plymouth Rock Assurance	$643	$54
30	Progressive	$1,027	$86
30	Travelers	$980	$82
30	Allstate	$955	$80
30	Farmers	$1,038	$87
30	Selective Insurance	$949	$79
30	State Farm	$1,086	$91
35	NJM	$570	$48
35	Geico	$620	$52
35	Plymouth Rock Assurance	$630	$53
35	Progressive	$1,032	$86
35	Allstate	$955	$80
35	Travelers	$1,001	$83
35	Selective Insurance	$925	$77
35	Farmers	$1,029	$86
35	State Farm	$1,078	$90
40	NJM	$570	$48
40	Geico	$614	$51
40	Plymouth Rock Assurance	$617	$51
40	Progressive	$1,013	$84
40	Selective Insurance	$879	$73
40	Allstate	$955	$80
40	Travelers	$1,040	$87
40	Farmers	$1,118	$93
40	State Farm	$1,089	$91
45	NJM	$558	$47
45	Geico	$612	$51
45	Plymouth Rock Assurance	$620	$52
45	Selective Insurance	$879	$73
45	Progressive	$1,008	$84
45	Travelers	$1,026	$86
45	Allstate	$955	$80
45	Farmers	$1,127	$94
45	State Farm	$1,089	$91
50	NJM	$539	$45
50	Geico	$580	$48
50	Plymouth Rock Assurance	$618	$52
50	Selective Insurance	$821	$68
50	Progressive	$958	$80
50	Allstate	$878	$73
50	Travelers	$960	$80
50	Farmers	$1,114	$93
50	State Farm	$1,073	$89
55	NJM	$521	$43
55	Geico	$583	$49
55	Plymouth Rock Assurance	$618	$52
55	Selective Insurance	$784	$65
55	Travelers	$900	$75
55	Progressive	$910	$76
55	Allstate	$878	$73
55	Farmers	$1,105	$92
55	State Farm	$1,049	$87
60	NJM	$513	$43
60	Geico	$599	$50
60	Plymouth Rock Assurance	$629	$52
60	Selective Insurance	$802	$67
60	Progressive	$915	$76
60	Travelers	$896	$75
60	Allstate	$892	$74
60	Farmers	$1,016	$85
60	State Farm	$1,025	$85
65	NJM	$516	$43
65	Geico	$611	$51
65	Plymouth Rock Assurance	$644	$54
65	Selective Insurance	$827	$69
65	Allstate	$934	$78
65	Travelers	$956	$80
65	State Farm	$1,011	$84
65	Progressive	$1,076	$90
65	Farmers	$1,094	$91
70	NJM	$530	$44
70	Geico	$611	$51
70	Plymouth Rock Assurance	$681	$57
70	Selective Insurance	$848	$71
70	Allstate	$934	$78
70	Travelers	$997	$83
70	State Farm	$1,022	$85
70	Progressive	$1,076	$90
70	Farmers	$1,363	$114
75	Geico	$616	$51
75	NJM	$608	$51
75	Plymouth Rock Assurance	$763	$64
75	Selective Insurance	$868	$72
75	Progressive	$1,076	$90
75	State Farm	$1,053	$88
75	Allstate	$1,086	$91
75	Travelers	$1,139	$95
75	Farmers	$1,402	$117

Read our methodology

New Jersey minimum coverage cost by city

Trenton drivers pay the least for minimum coverage in New Jersey at $967. However, Clifton pay the most at $1,163.

Car insurance rates vary by city. For example, drivers in larger cities with a high traffic volume or vehicle theft rate pay higher rates.

The table below shows average minimum coverage rates for cities in New Jersey.

City	Average annual premium	Average monthly premium
Trenton	$967	$81
Bayonne	$1,039	$87
Camden	$1,077	$90
Jersey City	$1,085	$90
East Orange	$1,093	$91
Paterson	$1,116	$93
Newark	$1,136	$95
Passaic	$1,149	$96
Elizabeth	$1,154	$96
Clifton	$1,163	$97

Read our methodology

Optional car insurance coverage in New Jersey

New Jersey requires drivers to carry car insurance to pay for injuries and damages caused to others. However, drivers don't have to carry coverage for their vehicle unless required by a loan or lease.

Drivers may choose optional coverages such as:

Collision. Collision coverage pays for damages to your vehicle if you cause an accident.
Comprehensive. This coverage pays for damages to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
Roadside assistance. If you run out of gas, need a tire changed, or have a dead battery roadside assistance will send someone to help.
Gap. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Methodology

Insurance.com commissioned state minimum car insurance rates from Quadrant Information Systems based on a 40-year-old driver with good credit and a clean driving history, driving a 2023 Honda Accord LX. Rates are based on all coverages required by law at minimum coverage limits. Rates were also fielded for various additional age groups. State laws were gathered from state DMV and insurance department websites.

New Jersey car insurance laws and requirements: FAQs

Is it mandatory to have car insurance in New Jersey?

Yes, New Jersey requires that you carry at least the minimum mandatory coverage. Necessary coverage includes UIMPD, UMBI, UMPD and PIP $15,000.

Will my bare minimum car insurance cover me in another state?

Yes, your car insurance covers claims in another state, even if the minimums are higher in the other state.

What happens if I drive without car insurance in New Jersey?

If you're caught driving without car insurance in New Jersey, you may face fines, a driver's license suspension, having your vehicle impounded, and increased car insurance rates. Additionally, you may face jail time, especially for multiple violations.