Important: Driving without insurance in New Jersey can result in fines up to $1,000, license suspension, and vehicle impoundment. Make sure you meet all state requirements.
Minimum Required Coverage in New Jersey
New Jersey operates under a “no-fault” insurance system, which means your own insurance pays for your medical expenses regardless of who caused the accident. All drivers must carry the following minimum coverage:
Bodily Injury Liability
$15,000 per person
$30,000 per accident
Property Damage Liability
$5,000 per accident
Covers damage to others’ property
Personal Injury Protection (PIP)
$15,000 per person
Covers medical expenses regardless of fault
Uninsured Motorist
Optional but recommended
Protects you from uninsured drivers
Basic vs. Standard Policy in NJ
New Jersey offers two types of auto insurance policies:
Basic Policy
- $5,000 property damage liability
- $15,000 PIP coverage
- No bodily injury liability (optional add-on)
- Limited lawsuit rights
Lower cost but limited protection
Standard Policy (Recommended)
- $15,000/$30,000 bodily injury liability
- $5,000 property damage liability
- $15,000 PIP coverage
- Full lawsuit rights available
Better protection for most drivers
Penalties for Driving Without Insurance in NJ
First Offense
$300–$1,000 fine + license suspension up to 1 year
Second Offense
$500–$5,000 fine + license suspension up to 2 years + community service
Subsequent Offenses
Up to $5,000 fine + possible jail time + vehicle impoundment
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