What the law requires
New Jersey requires minimum bodily injury and property damage liability of 25/50/25. Choice no-fault state with two policy formats: Basic and Standard.
What most experts recommend
State minimums rarely cover the full cost of a serious accident. Modern medical bills and vehicle repairs can quickly exceed those numbers, exposing your wages and savings to a lawsuit. A widely cited baseline for drivers with normal incomes is 100/300/100. If you own a home or have meaningful savings, consider 250/500/250 paired with an umbrella policy.
Coverages worth adding
- Uninsured / underinsured motorist — protects you if the at-fault driver has no insurance or not enough.
- Collision & comprehensive — required by lenders; optional once your car is paid off.
- Medical payments / PIP — covers deductibles and copays after a crash.
- Umbrella — extends liability across auto and home for a few hundred dollars a year.
How to lower your premium in New Jersey
- Bundle auto with renters or homeowners insurance.
- Raise deductibles you can comfortably absorb.
- Ask about telematics or low-mileage discounts.
- Compare three quotes at every renewal — pricing varies widely by carrier.
This information is educational and may change as state laws are updated. Always verify current requirements with your state insurance department.