New Jersey drivers pay around $3,265 a year for full coverage — about 21% over the national average — and the state lifted its liability minimum to 35/70/25 effective January 2026. New Jersey is a choice no-fault state that requires PIP. Here's the coverage you must carry, what residents pay, and how to find a cheaper rate.
New Jersey is a choice no-fault state: drivers carry personal injury protection by default but can pick a Basic or Standard policy and choose limited or full tort rights. As of January 2026, the state's minimum liability climbed to 35/70/25 from a long-standing 25/50/25, and the minimum also bundles required UM/UIM and $15,000 PIP — which is why New Jersey's minimum-coverage cost ranks among the highest in the nation. Full coverage averages roughly $3,265 a year, about 21% over the national average, driven by dense traffic and high repair and medical costs.
The coverages below are the minimum a driver must legally carry in New Jersey. Source: Bankrate minimum-coverage requirements and state insurance department filings.
| Coverage | Minimum limit | Notes |
|---|---|---|
| Bodily injury liability | $35k / $70k | Up from 25/50 in Jan 2026 |
| Property damage liability | $25k | Mandatory |
| Personal injury protection | $15,000 | Mandatory — NJ is a choice no-fault state |
| Uninsured / underinsured motorist | $35k / $70k | Compulsory in New Jersey |
Independent market estimates based on Bankrate's 2026 rate data and NAIC filings, shown against the U.S. average. Actual rates vary by ZIP, carrier, and individual profile.
| Coverage level | Est. annual premium | vs. U.S. avg. | Notes |
|---|---|---|---|
| Full coverage | $3,265/yr | 21% above U.S. | Comprehensive and collision included |
| Minimum coverage | $1,413/yr | 68% above U.S. | Reflects pricing before the 2026 limit increase |
Estimates apply national rate-increase multipliers to New Jersey's full-coverage average. Approximate (“~”) figures multiply the state average by a national factor and will vary by carrier.
| Driver profile | Est. annual premium | vs. state avg. | Notes |
|---|---|---|---|
| Clean record, 30–45 | ~$3,265/yr | Baseline | Statewide full-coverage average |
| One at-fault accident | ~$4,669/yr | +43% | 3,265 × 1.43 per Bankrate |
| Speeding ticket | ~$4,049/yr | +24% | 3,265 × 1.24 per Bankrate |
| DUI on record | ~$6,138/yr | +88% | 3,265 × 1.88 per Bankrate |
| Young driver (18–24) | ~$6,530/yr | ≈2× | About double per Bankrate |
| Poor credit score | ~$5,551/yr | +70% | 3,265 × 1.70 per Bankrate |
ⓘ Source: Bankrate 2026 rate data and NAIC filings. Figures are independent estimates, not quotes. Verify pricing with a licensed agent or carrier.
New Jersey's minimum is unusually protective — and unusually expensive — because it folds in higher liability limits (raised in 2026), required UM/UIM, and PIP. The choice-no-fault structure means your tort selection shapes both cost and your ability to sue, so it's worth understanding before buying. Because credit and ZIP code create wide gaps between carriers in this dense market, comparison shopping is the most effective way to soften the high baseline.
New Jersey lands well over the national average, with a highly protective (and pricey) minimum after the 2026 limit increase. Weighing carriers, picking the right tort option, and keeping your credit healthy are the best ways to pull a New Jersey premium down.
Disclaimer: RateWire is an independent lead generation and comparison service. Rate figures for New Jersey are independent market estimates compiled from publicly available Bankrate, NAIC, and state regulatory data — not quotes. Coverage requirements summarized here are for general information only and may change; always confirm current minimums with the New Jersey insurance department. By submitting your ZIP code, you may be connected with licensed insurance agents or carriers who will provide actual quotes based on your individual profile. Always verify coverage terms and pricing directly with a licensed agent before purchasing.