Auto Insurance in New Jersey
Stonebrook is an independent insurance agency in Lakewood, NJ, and we compare car insurance from more than 25 carriers. New Jersey asks drivers to make choices most states don’t, like how much PIP to carry and whether to limit your right to sue. We help you make each one on purpose.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What are the minimum car insurance limits in New Jersey?
Since January 1, 2026, a Standard policy must carry at least $35,000 per person and $70,000 per accident for injuries, $25,000 for property damage, plus PIP and uninsured motorist coverage.
Is the state minimum enough?
Rarely. One serious accident can cost far more than $35,000, and what your policy doesn’t pay can come from your savings, home equity or future wages.
What is PIP?
Personal Injury Protection pays medical bills for you, your household and your passengers after an accident, no matter who caused it.
What limits does Stonebrook recommend?
We usually start at $250,000 per person, $500,000 per accident and $100,000 property damage, with matching uninsured motorist coverage.
What a New Jersey auto policy covers.
An auto policy is a bundle of separate coverages. Each one has its own limit or deductible, and the right choices depend on your cars, your drivers and what you have to protect.
Liability
Pays for injuries and damage you cause to other people, plus your legal defense. Bodily injury is shown per person and per accident; property damage is per accident.
Personal Injury Protection (PIP)
Pays medical expenses for you, your household and your passengers after an accident, regardless of fault. New Jersey lets you choose the amount.
Uninsured / Underinsured Motorist
Protects you when the other driver has no insurance, or not enough. Your limits generally follow your liability limits.
Collision
Repairs or replaces your car after an accident with another vehicle or object. Your lender or lease will usually require it.
Comprehensive
Covers theft, vandalism, fire, falling trees, flood and hitting a deer. Also required by most lenders. At the shore, it is the only coverage that pays if your car floods.
Rental, Towing and Gap
Rental reimbursement while your car is in the shop, roadside help, and gap coverage for the difference between a loan balance and the car’s value.
Carry limits that protect what you’ve built.
New Jersey raised its minimum liability limits in two steps, ending at $35,000 per person, $70,000 per accident and $25,000 property damage on January 1, 2026. That is a floor, not a recommendation.
A single accident with a serious injury can produce medical bills, lost wages and a lawsuit that run well past $35,000. Once your limit is used up, the rest can become your problem.
As a starting point, we like to see 250/500/100: $250,000 per person, $500,000 per accident and $100,000 for property damage, with uninsured motorist coverage to match.
Those limits are also what most umbrella policies require underneath them, so you can add an umbrella policy on top when your assets call for more.
The New Jersey choices, explained.
New Jersey runs a “choice no-fault” system. These are the decisions on your coverage selection form, and what each one means.
| Choice | What it means | What to consider |
|---|---|---|
| Standard or Basic policy | The Standard policy is the one most New Jersey drivers choose and offers the full range of limits and options. The Basic policy costs less but provides far more limited benefits. | Standard, for almost everyone with assets to protect. |
| PIP amount | Standard policies start at $15,000 per person and go to $250,000 or more. Up to $250,000 is available for certain serious injuries regardless of the limit you pick. | Higher PIP if your health plan has high deductibles or excludes auto injuries. |
| Health insurance as primary for PIP | You can lower your premium by making your health insurance pay first, but only if your plan covers auto accident injuries. Medicare and Medicaid cannot be used this way. | Check with your health plan before choosing it. |
| Lawsuit option | “Limitation on lawsuit” costs less but limits your right to sue for pain and suffering unless the injury meets a legal threshold. “No limitation” keeps that right and costs more. | A real trade-off. We walk through it with you. |
| Uninsured / underinsured limits | Pays you when the at-fault driver has too little coverage, which is common with many drivers still near the minimums. | Match your liability limits. |
Standard vs. Basic, side by side.
| Coverage | Standard policy (2026 minimum) | Basic policy | Stonebrook’s starting point |
|---|---|---|---|
| Bodily injury liability | $35,000 per person / $70,000 per accident | None; $10,000 per accident optional | $250,000 / $500,000 |
| Property damage liability | $25,000 per accident | $5,000 per accident | $100,000 |
| Personal injury protection (PIP) | From $15,000; up to $250,000 or more | $15,000; up to $250,000 for certain severe injuries | Often $250,000 |
| Uninsured / underinsured motorist | Required | Not included | Matched to your liability limits |
| Collision and comprehensive | Optional (required by most lenders and leases) | Optional from some insurers | For any car you couldn’t afford to replace |
Source: New Jersey Department of Banking and Insurance, Bulletin 25-06 and the 2026 Auto Insurance Buyer’s Guide.
Coverage selection form: your carrier sends a new one with your policy and when the law changes. It is worth reading line by line, because the defaults are not always what you would choose.
Six things to check on your auto policy.
- Are your liability limits above the minimum?If they read 35/70/25, or a $35,000 combined limit, your assets may be exposed.
- Does uninsured motorist coverage match?It protects you and your family from drivers who carry too little.
- Who is on the policy?Add new drivers when they are licensed, and tell us when a child moves away or a car changes hands.
- Are the deductibles right for your savings?A higher deductible lowers the premium only if you can comfortably pay it.
- Is the car financed or leased?Ask about gap coverage so a total loss doesn’t leave you owing the lender.
- Do you have an umbrella?One policy on top of your home and auto can add $1 million or more of liability protection.
Insuring the whole household, together.
Many of the families we work with have several drivers and several vehicles, from minivans to a new teen driver’s first car. Putting the household together, and pairing it with your home policy, often improves both price and coverage.
Adding a teenager raises premiums with almost every carrier. Good-student discounts, driver training and choosing which car the new driver is rated on can all help, and different carriers price young drivers very differently. That is where comparing 25+ carriers pays off.
Driving a high-value, classic or collector car? Our Private Client carriers offer agreed-value coverage and broader options.
Stonebrook is an independent insurance agency.
We don’t work for one insurance company. We work with more than 25 carriers, so we can compare auto coverage and price across carriers instead of selling you a single company’s policy.
Since 1982 we have helped New Jersey families from our office in Lakewood, and we place coverage in all 50 states through our carriers and partners. When something changes, or when you have a claim, you call people who know you.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Auto insurance questions, answered.
What are the minimum car insurance requirements in New Jersey?
Since January 1, 2026, a New Jersey Standard policy must carry at least $35,000 per person and $70,000 per accident in bodily injury liability, $25,000 in property damage liability, PIP and uninsured/underinsured motorist coverage. A Basic policy is also available with far more limited coverage.
Is the New Jersey minimum enough car insurance?
For most people, no. A serious accident can cost much more than $35,000 per person, and anything above your limits can be pursued from your savings, home equity or wages. We usually recommend starting at $250,000 per person, $500,000 per accident and $100,000 property damage.
What is the difference between a Standard and a Basic policy in NJ?
The Standard policy offers the full range of limits and options and is the one most New Jersey drivers choose. The Basic policy costs less but has much lower limits and fewer options. It can make sense for someone with very few assets, but rarely for a homeowner or a family.
What does “limitation on lawsuit” mean?
It is a lower-cost option that limits your right to sue for pain and suffering after an accident unless your injury meets a legal threshold, such as a permanent injury. Choosing “no limitation” keeps your full right to sue and costs more. Your medical bills are still paid by PIP either way.
Should I make my health insurance primary for PIP?
Only if your health plan actually covers auto accident injuries and you are comfortable with its deductibles. It can lower your auto premium. Medicare and Medicaid cannot be used as primary, so ask your health plan before choosing it.
Why did my auto insurance go up in 2026?
One reason is that New Jersey’s minimum liability limits increased on January 1, 2026, and carriers raised limits at renewal to comply. Repair costs, medical costs and your own driving and claims history also affect your premium. We can compare carriers to see if another fits better.
Does my car insurance cover a rental car?
Usually, in the U.S. Your liability coverage generally extends to a rental car, and collision and comprehensive extend if you carry them on your own car. Check your policy before declining the rental counter’s coverage, especially when traveling abroad.
Can Stonebrook insure a high-value or collector car?
Yes. Our Private Client carriers offer agreed-value coverage for high-value and collector vehicles, so you know what the car is insured for before a loss. See our Private Client page or ask us for a quote.
Do you only sell one company’s car insurance?
No. Stonebrook is an independent agency and compares auto coverage from more than 25 carriers, so we can match you with the carrier that fits your drivers and cars.
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