What Changed: Old 15/30/5 vs. New 35/70/25

New Jersey's auto insurance minimum requirements have undergone the most significant overhaul in decades. The changes were enacted under P.L. 2022, c.87 and rolled out in two phases. If you were around before 2023, you remember the old 15/30/5 standard — one of the lowest liability minimums in the entire country. As of January 1, 2026, all standard auto policies must now meet the 35/70/25 threshold.

Here's a full breakdown of how the numbers evolved:

Important: These higher minimums apply to standard auto policies. NJ's basic policy still carries lower minimums, but it comes with significant coverage trade-offs most drivers shouldn't accept.

You can also review how New Jersey's rules compare nationally in this car insurance minimum requirements by state guide.

Why New Jersey Raised Its Car Insurance Minimums

New Jersey's old 15/30/5 limits were set decades ago and were woefully out of step with modern medical and repair costs. The legislature recognized that a $15,000 bodily injury limit could be exhausted by a single ambulance ride and a few hours in an emergency room — leaving accident victims — and at-fault drivers — in a serious financial bind.

Here's why the increase was necessary:

• Rising medical costs: Hospital stays, surgeries, and rehabilitation can easily exceed $50,000–$100,000 for serious accident injuries.
• Higher vehicle repair costs: The average modern vehicle costs significantly more to repair or replace. A $5,000 property damage limit (the old standard) barely covered a fender bender.
• Protection for all parties: Higher minimums mean that injured parties have a better chance of being made financially whole, and at-fault drivers are less likely to face catastrophic out-of-pocket liability exposure.
• Alignment with national trends: Multiple states, including California and Virginia, have also raised their minimums in recent years, reflecting a nationwide push to modernize financial responsibility laws.

The phased approach — from 15/30/5 → 25/50/25 in 2023, then to 35/70/25 in 2026 — gave drivers and insurers time to adjust rather than absorbing a sudden shock.

How This Affects Current Policyholders & Estimated Cost Increases

Your Policy Will Be Updated Automatically

If your standard auto policy renews on or after January 1, 2026, your insurer is required by law to bring your coverage up to the new 35/70/25 minimums. You don't need to call your insurer to request the upgrade — it happens automatically. However, you will see the change reflected in your renewal premium, and your insurer must notify you of the adjustment in writing.

Your uninsured/underinsured motorist (UM/UIM) coverage is also required to match your liability limits, so that increases automatically from $25,000/$50,000 to $35,000/$70,000 as well.

What About Rate Increases?

The honest answer: expect your premium to increase at renewal. New Jersey was already projected to lead the nation in auto insurance rate increases heading into 2026 — and the mandatory coverage hike adds upward pressure. The exact dollar amount varies based on:

• Your driving history and location within NJ
• Your current insurer and their filed rates
• Your vehicle type and how much coverage you already carry

Drivers who were already carrying higher voluntary limits (e.g., 100/300) will see no change in their premium from the minimum increase. The biggest impact falls on policyholders who were carrying the bare minimum.

Penalties for Non-Compliance

Driving in New Jersey without the required minimum insurance is a serious offense. Here's what you're looking at if you're caught:

Beyond legal penalties, if you cause an accident while underinsured, you can be held personally liable for damages that exceed your coverage limits — meaning your savings, wages, and assets could be at risk.

Should You Buy More Than the New Minimums?

The Short Answer: Yes, If You Can

The 35/70/25 minimums are a meaningful step up from where NJ was, but they're still not enough coverage for a serious accident. Consider this: a multi-car pileup on the Garden State Parkway or the NJ Turnpike involving multiple injuries could easily generate claims well above $70,000 per accident. If your limits are exhausted, you pay the rest.

Most insurance professionals recommend New Jersey drivers carry at minimum:

• 100/300/100 — $100,000 per person, $300,000 per accident, $100,000 property damage
• Matching UM/UIM limits — At least $100,000/$300,000 to protect yourself from underinsured drivers
• PIP above the $15,000 minimum — Consider $250,000 or higher PIP for medical expense coverage under NJ's no-fault system
• Comprehensive & Collision — Required if you have a car loan or lease, and highly recommended for any vehicle worth more than a few thousand dollars

NJ-Specific Compliance Checklist

Use this checklist to make sure you're on the right side of the law and well-protected:

• ✅ Confirm your policy is a standard policy (not basic)
• ✅ Verify your declarations page shows at least 35/70/25 liability
• ✅ Check that your UM/UIM matches at $35,000/$70,000
• ✅ Confirm your PIP is at least $15,000 (higher is better)
• ✅ Review your coverage at every renewal — don't auto-renew blindly
• ✅ Compare quotes from multiple NJ-licensed insurers to find the best rate for the required coverage

For a broader look at how coverage limits affect you across the country, visit our car insurance minimum requirements by state guide.

Frequently Asked Questions

Does the 35/70/25 requirement apply to every driver in New Jersey?

The new 35/70/25 minimums apply to standard auto insurance policies in New Jersey. Drivers who hold a basic policy are exempt from these higher thresholds and are still subject to lower baseline requirements. However, basic policies offer very limited coverage and are generally not recommended for most drivers. If you're unsure which policy type you have, check your declarations page or call your insurer directly.

Will my insurer automatically update my policy to the new minimums?

Yes. If your standard auto policy renews on or after January 1, 2026, your insurer is required to automatically bring your coverage up to the new 35/70/25 minimums. You should receive written notification from your insurer explaining the change. Your uninsured/underinsured motorist coverage will also be automatically increased to match your new liability limits.

How much more will I pay for the new minimums?

The premium increase depends on several factors including your insurer, driving record, location in New Jersey, and your prior coverage level. Drivers who were already carrying higher voluntary limits will see little to no change. Those previously at the bare minimum may notice a more noticeable bump. Shopping your policy at renewal is the best way to ensure you're not overpaying for the updated coverage.

What is the difference between a NJ standard and basic auto policy?

A standard policy is the most common type and provides the full range of required and optional coverages, including the new 35/70/25 liability minimums. A basic policy is a stripped-down option available to NJ drivers that carries much lower minimums ($5,000 property damage liability, $15,000 PIP) and doesn't include bodily injury liability by default. Basic policies are exempt from the new 35/70/25 thresholds but offer very limited financial protection.

Is 35/70/25 enough coverage for most New Jersey drivers?

For most drivers, the 35/70/25 minimum is a good start but not sufficient on its own. New Jersey is a densely populated, high-cost state where accidents involving multiple parties can generate claims far exceeding these limits. Most financial advisors and insurance professionals recommend carrying at least 100/300/100 in liability coverage, along with matching UM/UIM limits, to protect your personal assets if you're involved in a serious accident.