Car Insurance in New Jersey: The 2026 Minimums Explained

35/70/25. That's the new bodily injury and property damage floor for a Standard car insurance policy in New Jersey, effective January 1, 2026 — up from 25/50/25, which had been the law since long before most current drivers got their first license. It's the second increase in three years, and it's not the only thing that makes New Jersey car insurance more complicated than the average state.

New Jersey runs a no-fault system, requires Personal Injury Protection on every policy, and is one of just two states that lets drivers choose a stripped-down Basic Policy instead of Standard coverage. Untangling which rule applies to which policy type matters more here than in almost anywhere else.

The Problem: Minimums That Kept Moving

Before 2023, New Jersey Standard Policies sat at 25/50/25 — the same limits plenty of other states still use today. Two rounds of increases later, the number is 35/70/25, a 40% jump in per-person bodily injury liability. Anyone who bought a policy in 2022 and hasn't shopped since is very likely under-covered relative to what the law now demands of new and renewing drivers.

Why the State Raised the Floor

The reasoning regulators gave was straightforward: medical bills and vehicle repair costs have climbed for years while the liability floor stayed frozen. A serious multi-car crash involving a couple of newer vehicles can blow past a 25/50/25 limit fast, leaving the at-fault driver personally on the hook for whatever the policy doesn't cover. Raising the minimum to 35/70/25 was framed as catching the law up to what claims actually cost in 2026, not as a random hike.

The Solution New Jersey Offers That No Other State Does

Here's where New Jersey splits from nearly every other state: it lets you opt into a Basic Policy instead. Before 2026, a driver comparing options saw 25/50/25 Standard against a Basic Policy with no bodily injury liability at all — just $5,000 in property damage and $15,000 in PIP. After 2026, that gap widened. Standard is now 35/70/25; Basic is untouched by the new law and still sits at its older, lower limits.

The trade-off is real. Basic Policy holders pay less but give up meaningful protection — no bodily injury coverage to fall back on if they cause a serious injury, and New Jersey's "verbal threshold" already limits lawsuit rights for anyone opting into the cheaper track. For a driver with a mortgage, savings, or anything else worth protecting from a lawsuit, the math rarely favors Basic once you account for what an at-fault, no-insurance-behind-you injury claim can cost.

What to Actually Buy

• Choose Standard over Basic unless your only asset is the car itself — the bodily injury gap in Basic is the whole ballgame.
• Confirm your UM/UIM matches 35/70/25 if you renewed after January 1, 2026; insurers are required to update it, but double-check your declarations page.
• Carry PIP above the $15,000 floor if you have health insurance with high deductibles — it's the coverage that pays first after any crash, fault aside.
• Re-shop if your last renewal predates 2026 — the new minimums may already be baked into your premium at your next renewal whether you've compared rates or not.

For help deciding whether the state floor is enough for your situation, see our minimum vs. full coverage guide.

Get your next quote against 35/70/25, not the old 25/50/25 number still floating around online — New Jersey car insurance minimums changed, and your coverage should have changed with them.