Every vehicle that is registered or mainly kept in New Jersey must have automobile liability insurance coverage. A driver cannot register or have a vehicle inspected unless they provide proof that the vehicle has at least the minimum amount of liability insurance.

Minimum requirements

New Jersey has a no-fault insurance system. This means that if a driver is in an accident, the driver’s insurance company pays for their injuries regardless of whether or not the accident was the driver’s fault.

There are two types of minimum insurance coverage that a driver can choose:

Basic Policy
New Jersey requires a driver to have at least the following insurance coverage on a vehicle:

• $5,000 for property damage for any one accident; and
  
• $15,000 limit on medical payments for any one person in any one accident which is controlled by requirements for type of treatment to be provided, and limits the right to sue for any injuries suffered; or
  
• optional $10,000 limit for injury or death of any person in any one accident

Standard Policy
If a driver does not choose the Basic Policy, a vehicle must have at least the following insurance coverage:

• $15,000 limit for injury or death of any person in any one accident;
  
• $30,000 limit for injury or death of more than one person in any one accident;
  
• $5,000 limit for property damage for any one accident; and
  
• $250,000 limit on medical payments per person for injuries in any one accident.

If a vehicle is not insured, its driver can be fined, his or her driver’s license suspended, and may even go to jail.