Is New Jersey a no-fault state?

Yes, New Jersey has been a no-fault state since 1973, according to the Insurance Information Institute . This means NJ drivers must carry PIP coverage so their own insurance covers some or all of their medical expenses after a car accident, regardless of who's at fault. No-fault car insurance also restricts your right to sue to only lawsuits that involve severe injuries. However, New Jersey is an optional no-fault state — drivers can reject the right-to-sue limitations, but they must still carry PIP.

How do I lower my car insurance in New Jersey?

You can lower your car insurance premium by maintaining a clean driving record and choosing coverage limits and deductibles that fit your needs. You may also qualify for discounts when you insure multiple vehicles, bundle policies, or meet safe driving requirements. In New Jersey, you may select a Basic Policy, a low-cost option that meets minimum legal requirements. Reviewing your policy regularly and comparing quotes can also help you find the best price on car insurance.

Do I need collision coverage in New Jersey?

New Jersey law doesn't require collision coverage. If you finance or lease your vehicle, your lender may require you to carry collision coverage.

What is the difference between a basic and a standard policy in New Jersey?

New Jersey allows drivers to choose between two main policy types. A Basic Policy provides limited coverage and offers a lower-cost option that satisfies legal requirements. A Standard Policy includes higher liability limits and additional coverage options.

New Jersey car insurance

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Getting car insurance in New Jersey

Selecting car insurance in New Jersey starts with understanding the state's approach to car insurance and the factors that can affect your rate. New Jersey gives drivers more choice than most states when it comes to auto insurance.

Progressive helps New Jersey drivers explore all these choices and more with flexible coverage options and transparent pricing. Plus, our easy-to-use tools help drivers compare policies and find ways to save.

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Required coverages
Discounts
Average insurance cost
Cost factors
Optional coverages
Driving resources
FAQs

What are the minimum auto insurance requirements in New Jersey?

New Jersey offers two types of auto insurance policies: Standard and Basic. Each policy type includes different coverage and requirements.

Standard Policy

Coverage	What it covers	Minimum amount
Bodily injury liability	What it covers Injuries you cause to others in an accident	Minimum amount $35,000 per person $70,000 per accident
Property damage liability	What it covers Damage you cause to someone else's vehicle or other property in an accident	Minimum amount $25,000 per accident
Uninsured/underinsured motorist bodily injury	What it covers Injuries caused by uninsured or underinsured drivers	Minimum amount $35,000 per person $70,000 per accident
Uninsured/underinsured motorist property damage	What it covers Damage to your property caused by uninsured or underinsured drivers	Minimum amount $25,000 with a $500 deductible
Personal injury protection	What it covers Your medical costs due to an accident, plus lost wages and death benefits, regardless of who's at fault	Minimum amount $15,000

Basic Policy

Coverage	What it covers	Minimum amount
Property damage liability	What it covers Damage you cause to someone else's vehicle or other property in an accident	Minimum amount $5,000 per accident
Personal injury protection	What it covers Your medical bills, lost wages, and death benefits	Minimum amount $15,000

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Car insurance discounts in New Jersey

Car insurance discounts in New Jersey can help lower your rate based on how you drive, the vehicle insured, and how you manage your policy. Progressive offers a variety of discounts to help New Jersey drivers get a better deal on car insurance. Popular discounts available in New Jersey include:

Multi-car
Save when you list more than one vehicle on your policy. You can add a car belonging to a spouse, family member, or roommate kept at your address.
Multi-policy
Save when you have two or more policies with Progressive. For instance, bundling auto and boat insurance earns you a discount on one of them.
Paid in full
You can earn a discount if you pay your entire policy premium up front for the term rather than spreading it across monthly installments.

What is the average cost of car insurance in New Jersey?

The average cost of car insurance in New Jersey is generally higher than the national average. Based on Progressive's internal data, New Jersey falls into a group of states that have higher auto insurance costs overall with an average of $165.02 per month.^† That amount is based on a six-month, liability-only policy with one vehicle and one driver.

Factors that impact your auto insurance rate in New Jersey

Many factors can impact how much you pay for auto insurance, including:

Driving history: Tickets, accidents, and prior claims can affect your rate.
Vehicle type and value: Your car's make, model, age, safety technology, and repair costs are factored into your price. Higher vehicle values can lead to higher claim costs.
Location: New Jersey is the most densely populated state in the country, and many drivers commute to New York City and Philadelphia. Heavy traffic on routes including the New Jersey Turnpike, Garden State Parkway, and I-95 corridor may increase accident frequency and insurance claims in some areas.
Weather and environmental risks: Winter storms, ice, and coastal flooding may increase the likelihood of weather-related damage and claims across the state.
Coverage choices and deductibles: The coverages you select, your limits, and your deductible amounts affect your premium.

Recommended additional auto insurance coverages in New Jersey

New Jersey requires drivers to carry bodily injury and property damage liability coverage, uninsured/underinsured motorist coverage, and personal injury protection. However, these coverages may not cover all costs after an accident. Adding optional coverages offers extra protection, can help fill gaps in your policy, and gives you peace of mind:

Coverage	What it covers
Comprehensive	What it covers Cost to repair or replace your car if it's damaged by hail, fire, theft, wind, flood, vandalism, and other covered events
Collision	What it covers Cost to repair your vehicle if it overturns or collides with another vehicle or object

New Jersey driving resources

Learn more about New Jersey's driving laws and insurance requirements. Keep in mind that local governments may have additional rules or requirements.

New Jersey Motor Vehicle Commission (MVC): Find official information on driver licensing, vehicle registration, and other services for New Jersey drivers.
New Jersey Department of Transportation (NJDOT): Explore statewide traffic safety programs, crash data, and road safety initiatives across New Jersey
New Jersey driving FAQs: Get answers to common questions about driving laws, safety rules, and road regulations in New Jersey.

How to get car insurance in New Jersey with Progressive

Progressive makes it easy for New Jersey drivers to compare coverage options, and get a competitive auto insurance quote.

How to get car insurance in New Jersey with Progressive

Progressive makes it easy for New Jersey drivers to compare coverage options, and get a competitive auto insurance quote.

Go online

We ask easy questions, and you customize your coverages.

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Call a rep

Talk with a licensed representative who can guide you through the process.

Call 1-855-347-3939
Through an agent

Connect with an independent agent in your area.

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What else needs protection in New Jersey?

New Jersey car insurance FAQs

Yes, New Jersey has been a no-fault state since 1973, according to the Insurance Information Institute. This means NJ drivers must carry PIP coverage so their own insurance covers some or all of their medical expenses after a car accident, regardless of who's at fault. No-fault car insurance also restricts your right to sue to only lawsuits that involve severe injuries. However, New Jersey is an optional no-fault state — drivers can reject the right-to-sue limitations, but they must still carry PIP.
You can lower your car insurance premium by maintaining a clean driving record and choosing coverage limits and deductibles that fit your needs. You may also qualify for discounts when you insure multiple vehicles, bundle policies, or meet safe driving requirements.
In New Jersey, you may select a Basic Policy, a low-cost option that meets minimum legal requirements. Reviewing your policy regularly and comparing quotes can also help you find the best price on car insurance.