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 a driver 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. The law is fully in effect, and insurers are required to automatically apply the new limits at renewal.

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

Important: These higher minimums apply to standard auto policies only. NJ's basic policy still carries lower minimums — including $5,000 property damage, $15,000 PIP, and no bodily injury liability by default — but it comes with significant coverage trade-offs most drivers shouldn't accept.

For a broader look at how NJ's rules stack up nationally, see our car insurance minimums 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. 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 serious financial jeopardy. The legislature recognized this gap and passed P.L. 2022, c.87 to modernize the state's financial responsibility framework.

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. The national average bodily injury claim reached approximately $28,278 in 2024 per the Insurance Information Institute — a figure that continues to climb with inflation and rising healthcare costs.
• Higher vehicle repair costs: The average new vehicle transaction price hit approximately $49,275 as of March 2026 — making the old $5,000 property damage limit almost laughably inadequate. See our guide on car insurance rates by state to understand how these costs affect premiums nationwide.
• Protection for all parties: Higher minimums give injured parties a better chance of being made financially whole, while reducing the risk of catastrophic out-of-pocket liability for at-fault drivers.
• Alignment with national trends: Multiple states — including California, Virginia, and North Carolina — have also raised their minimums in recent years, reflecting a nationwide push to modernize financial responsibility laws. Learn more about how car insurance laws differ by state.
• Significant uninsured driver problem: About 10.9% of New Jersey drivers were uninsured as of the most recent data — making strong UM/UIM coverage critical for every NJ motorist on the road.

The phased approach — 15/30/5 → 25/50/25 in 2023, then 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 at renewal. 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 to $35,000/$70,000 as well. Understanding bodily injury liability coverage and what it actually pays for is critical to evaluating whether you have enough protection.

What About Rate Increases?

Expect your premium to increase at renewal. New Jersey leads the nation in auto insurance rate increases in 2026 at 10.46% — the only state with a double-digit projected hike — compared to a national average of just 0.67%. In fact, 32 other states are actually seeing rate decreases in 2026. Specific carriers are filing even steeper hikes: NJM is raising rates as high as 21.18%, Erie by 7.92%, and Plymouth Rock by 6.24%. Full coverage in NJ now averages between $2,988 and $3,254 per year, with minimum coverage averaging around $1,413 annually — about 72% above the national average for minimum coverage. The exact dollar amount for each driver varies based on:

• Your driving history and location within NJ (e.g., Newark drivers can pay $4,100+ annually)
• 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 itself. 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 — in fact, penalties for a first offense can exceed those of a first-offense DUI in terms of license suspension duration. 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. Even a brief lapse in coverage can result in citation, regardless of whether an accident occurred. For a full overview of what states require and what happens when you don't comply, see our guide on state-mandated car insurance requirements.

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 involving multiple injuries could easily generate claims well above $70,000 per accident. The national average bodily injury claim hit $28,278 in 2024 — and severe injuries can easily run into the hundreds of thousands. Find out more about whether state minimum coverage is truly enough for real-world protection.

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 uninsured or underinsured drivers (nearly 11% of NJ drivers have no coverage at all)
• 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 — especially with average new car prices near $49,275 as of March 2026

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 — up to $250,000 for serious injuries)
• ✅ Review your coverage at every renewal — don't auto-renew blindly
• ✅ Compare quotes from multiple NJ-licensed insurers to find the best rate

Need help deciding how much coverage you really need? Our guide on car insurance coverage recommendations walks through how to match your limits to your net worth and financial situation. You can also explore how to choose the right bodily injury limits for a deeper look at coverage tiers like 50/100, 100/300, and 250/500.

Since New Jersey operates as a choice no-fault state, your PIP election matters significantly too. Learn how no-fault insurance and PIP requirements work across states to understand why $250,000 in PIP coverage is often the smarter play for NJ drivers. If you're weighing whether to go beyond minimum limits, our guide on how much car insurance you really need offers a practical framework based on your assets. You can also check our 2026 car insurance rate trends guide to understand what's driving NJ's outsized premium increases this year.

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 remain subject to much lower baseline requirements — including $5,000 property damage and $0 bodily injury liability by default. 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 without needing a new signed selection from you. 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 at $35,000/$70,000.

How much more will I pay for the new minimums?

New Jersey leads the nation in auto insurance rate increases in 2026 at 10.46% — far above the national average of just 0.67%, with 32 states actually lowering rates in 2026. Some carriers like NJM are filing increases as high as 21.18%. Full coverage in NJ now averages roughly $2,988–$3,254 per year, while minimum coverage averages around $1,413 annually — approximately 72% above the national average. Shopping your policy at renewal remains the best way to avoid overpaying — carriers like GEICO, NJM, and Progressive are among the more competitive options in the state.

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 and up to $250,000 in PIP for serious injuries. A basic policy carries much lower limits — $5,000 property damage, $15,000 PIP, and no bodily injury liability by default — and does not include UM/UIM coverage. Basic policies are also exempt from the new 35/70/25 thresholds and restrict your right to sue for pain and suffering except in cases of severe injury. For state-by-state comparisons of policy structures, see our car insurance differences by state guide.

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

For most drivers, the 35/70/25 minimum is a meaningful improvement but not sufficient on its own. New Jersey is a densely populated, high-cost state where multi-vehicle accidents can generate claims that far exceed these limits — and when they do, you're personally on the hook for the remainder. Most financial advisors and insurance professionals recommend carrying at least 100/300 in bodily injury coverage, along with matching UM/UIM limits, to genuinely protect your personal assets if you're involved in a serious accident. You can also use our underinsured coverage check guide to assess whether your current policy truly protects your financial situation.