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From 15/30/5 to 35/70/25: Understanding New Jersey's Coverage History
New Jersey's minimum auto insurance requirements have undergone a dramatic transformation over the past few years. For decades, the Garden State had some of the lowest minimums in the country — just $15,000 per person / $30,000 per accident in bodily injury liability, and a paltry $5,000 in property damage coverage. These limits were so low that even a minor fender-bender could leave a driver personally on the hook for tens of thousands of dollars.
In 2022, New Jersey enacted P.L. 2022, c.87, a two-phase law designed to modernize those outdated minimums. Phase 1 kicked in on January 1, 2023, bumping limits to 25/50/25. Phase 2 — the final step — took effect January 1, 2026, bringing the state to the current 35/70/25 standard. As of April 2026, these requirements are fully active and apply to all new and renewal policies.
Here's how the numbers evolved across all three tiers:
| Coverage Type | Pre-2023 (Old Minimums) | 2023–2025 (Phase 1) | 2026+ (Phase 2 — Current) |
|---|---|---|---|
| Bodily Injury (Per Person) | $15,000 | $25,000 | $35,000 |
| Bodily Injury (Per Accident) | $30,000 | $50,000 | $70,000 |
| Property Damage (Per Accident) | $5,000 | $25,000 | $25,000 |
| UM/UIM (Per Person) | $15,000 | $25,000 | $35,000 |
| UM/UIM (Per Accident) | $30,000 | $50,000 | $70,000 |
| Personal Injury Protection (PIP) | $15,000 | $15,000 | $15,000 |
Note: Uninsured/Underinsured Motorist (UM/UIM) coverage must now also match the new liability minimums at $35,000/$70,000. Personal Injury Protection (PIP) remains at the $15,000 minimum — unchanged across all phases, though it can be extended up to $250,000 for severe injuries such as brain trauma or spinal cord damage.
For a broader look at how NJ compares to the rest of the country, see our guide to car insurance minimums by state.
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Why New Jersey Raised the Minimums
New Jersey's old 15/30/5 standard hadn't kept pace with decades of inflation in medical costs, vehicle repair prices, or legal settlements. A single serious injury from a car accident can easily result in medical bills well above $35,000 — let alone $15,000 — which meant victims were frequently left undercompensated while at-fault drivers faced personal lawsuits to cover the gap.
The driving forces behind the increase include:
- Medical cost inflation: Hospital and emergency care costs have risen substantially since the original minimums were set
- Rising vehicle repair costs: Parts, labor, and supply chain pressures have pushed average repair costs far beyond the old $5,000 property damage limit
- Inadequate protection for victims: The old minimums often failed to cover real-world damages in even moderate accidents
- Nationwide trend: New Jersey joined several other states — including California, Virginia, North Carolina, and Utah — in updating their outdated liability floors in 2025 and 2026
Understanding how bodily injury liability coverage works is essential before deciding how much coverage to carry beyond the new state floor.
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How the New Minimums Affect You Right Now
What Happens to Your Existing Policy
If you had a policy in effect before January 1, 2026 with limits that no longer comply, your insurer was required — per the NJ Department of Banking and Insurance Bulletin No. 25-06 — to automatically increase your coverage at renewal and notify you in writing. Insurers had to file updated rates by September 1, 2025 to comply. As of April 2026, all renewing and new policies should already reflect the 35/70/25 standard. If your policy hasn't been updated yet, contact your insurer immediately.
What NJ Car Insurance Costs in 2026
New Jersey is one of the most expensive states in the country for auto insurance, and it leads the nation in 2026 rate increases. Here's how costs break down by coverage type based on the latest available data:
| Coverage Level | Average Annual Cost | Average Monthly Cost |
|---|---|---|
| Minimum Coverage | $1,124–$2,160 | $94–$180 |
| Full Coverage | $2,736–$3,254 | $228–$271 |
Costs vary significantly by city, driving record, age, and insurer. NJM (New Jersey Manufacturers) is consistently one of the most competitive carriers, offering full coverage around $2,134/year and minimum coverage as low as $830/year. GEICO is among the cheapest for minimum liability at around $774/year. For context on how these rates stack up nationally, see our overview of car insurance rates by state.
Rate hikes vary considerably by insurer upon renewal — NJM raised rates by an average of 21.18%, while carriers like Plymouth Rock increased by a more modest 6.24% and Erie by 7.92%. New Jersey leads the nation with a 10.46% average rate increase in 2026 — the only state with a double-digit hike.
Estimated Impact by Driver Profile
| Driver Profile | Likely Impact |
|---|---|
| Drivers already carrying 100/300/100 or higher | Minimal to no impact from mandate |
| Drivers at or near old 25/50/25 minimums | Auto-upgraded to 35/70/25 — moderate premium increase |
| Drivers on basic/stripped-down policies | Most impacted — required upgrades at renewal |
| Commercial fleet vehicles (over 10,001 lbs.) | Separate, significantly higher limits apply |
Penalties for Non-Compliance
Driving without meeting NJ's required minimums carries serious consequences under N.J.S.A. 39:6B-2. Failure to comply can result in:
- First offense: Fine of $300–$1,000 plus court costs, one-year license suspension, community service, and a $250 annual surcharge for three years ($750 total)
- Second or subsequent offense: Fine up to $5,000, mandatory 14 days in jail, two-year license suspension, up to 30 days community service, and the same $250/year surcharge
- 9 insurance points added to your driving record, causing your premiums to spike significantly
- Full personal liability for any accident damages that exceed your coverage — your wages, savings, and assets could all be at risk
Learn more about state-mandated car insurance and why penalties vary so widely across the country.
Should You Buy More Than the New Minimums?
The short answer: yes, in most cases. The new 35/70/25 minimums are a meaningful improvement over what New Jersey required before, but insurance experts, attorneys, and agencies widely agree they still fall short of what most drivers need for real financial protection.
Consider this: a single serious injury involving hospitalization, surgery, and rehabilitation can easily exceed $100,000 — far more than the $35,000 per-person limit. If you're found at fault, you're personally responsible for any costs above your policy limits — putting your income and assets on the line. This is especially important to note for homeowners and higher-income earners with significant assets to protect. Check out our guide on whether state minimum coverage is enough for a deeper look at why minimums often fall short.
Experts generally recommend at minimum a 100/300/100 policy for NJ drivers, with some attorneys suggesting up to a 500/500 combined single limit for those with substantial assets.
Coverage Levels Worth Considering
Key Upgrades to Consider
- Higher Bodily Injury Limits (100/300 or more): Recommended for homeowners, higher-income earners, or anyone with substantial assets to protect. The incremental cost of stepping up from the 35/70 minimum to 100/300 is often surprisingly modest. Learn how to choose the right liability limits for your situation.
- Increased UM/UIM Coverage: Especially important in New Jersey, where a notable share of drivers carry only minimum limits. This coverage protects you when the other driver's policy falls short. Learn more about liability-only coverage and its real-world limitations.
- Higher PIP: The $15,000 PIP minimum hasn't changed across any phase of this law — but in a no-fault state like NJ, this is your primary medical coverage after an accident. Experts strongly recommend $250,000 in PIP if medical costs are a concern, given New Jersey's choice no-fault system. Read more about no-fault insurance states and how PIP works.
- Collision & Comprehensive: Covers damage to your own vehicle regardless of fault — essential for newer or financed vehicles.
You should also consider reading our car insurance coverage recommendations before finalizing your coverage decision — sometimes the step up from minimum to recommended coverage costs less than you'd expect. Most experts agree the minimums are a legal floor, not a financial safety net. To find out if you may already be underinsured, use our underinsurance coverage check.
For a deeper look at how NJ's rates compare nationwide, see our guide to car insurance rates by state. You can also explore how much car insurance you really need with our coverage calculator, or check how car insurance requirements differ by state.
Frequently Asked Questions
What exactly is New Jersey's new 35/70/25 car insurance requirement?
The 35/70/25 standard refers to the minimum liability coverage required for New Jersey drivers as of January 1, 2026. It means your policy must include at least $35,000 in bodily injury liability per person injured, $70,000 total per accident regardless of how many people are injured, and $25,000 for property damage per accident. Your uninsured/underinsured motorist coverage must also match these bodily injury limits at $35,000/$70,000. This is the second and final phase of a two-part law (P.L. 2022, c.87) enacted in August 2022, and it is now fully in effect for all new and renewal policies.
Do I need to do anything, or will my insurer update my policy automatically?
In most cases, your insurer is required to automatically update your policy to meet the new minimums when it renews after January 1, 2026. The NJ Department of Banking and Insurance issued Bulletin No. 25-06 requiring all carriers to file updated rates and notify policyholders. However, policies issued before January 1, 2026, retain prior limits until renewal — so you should proactively check your declarations page or call your agent to confirm your limits have been updated before your next renewal date.
How much does car insurance cost in New Jersey in 2026?
As of 2026, average minimum coverage in New Jersey costs between $1,124 and $2,160 per year ($94–$180/month), while full coverage ranges from $2,736 to $3,254 per year ($228–$271/month) depending on the source and your driver profile. NJM is one of the cheapest full-coverage options at around $2,134/year, while GEICO offers some of the lowest minimum-coverage rates at approximately $774/year. New Jersey leads the nation in 2026 rate increases at 10.46%, making it more important than ever to shop multiple quotes at renewal.
What happens if I'm caught driving without meeting the new NJ minimums?
Driving without meeting New Jersey's required minimums is a violation of the state's financial responsibility laws under N.J.S.A. 39:6B-2. A first offense can result in fines of $300–$1,000 plus court costs, a one-year license suspension, community service, and a $250 annual surcharge for three years. A second offense means mandatory 14 days in jail, fines up to $5,000, a two-year suspension, and additional surcharges including 9 insurance eligibility points. Beyond the legal penalties, if you cause an accident without adequate coverage, you can be held personally liable for all damages and medical costs that exceed your policy limits.
Is the 35/70/25 minimum enough, or should I buy more coverage?
For most New Jersey drivers, the new minimums should be viewed as a legal floor — not a recommended level of protection. A serious car accident involving multiple injuries can quickly generate damages well above $35,000 per person, and medical costs for hospitalization, surgery, and rehab can easily exceed $100,000. Insurance experts and attorneys broadly recommend carrying at least 100/300 bodily injury liability along with higher UM/UIM limits and at least $250,000 in PIP. If you own a home or have significant savings, those assets could be targeted in a lawsuit if your liability coverage runs out.