For decades, New Jersey’s minimum auto liability limits were $15,000 per person, $30,000 per accident, and $5,000 in property damage. Those numbers were set in the 1970s and never adjusted. A single night in a hospital could exhaust them.
That changed with P.L. 2022, c.90, which raised the minimums in two steps. The second step took effect January 1, 2026. This guide explains what changed, what it means if you are hit by a driver carrying minimum limits, and why minimum limits are still not enough.
What the law changed
Standard policy bodily injury and property damage liability
| Period | Bodily injury per person | Bodily injury per accident | Property damage |
|---|---|---|---|
| Before Jan 1, 2023 | $15,000 | $30,000 | $5,000 |
| Jan 1, 2023 – Dec 31, 2025 | $25,000 | $50,000 | $25,000 |
| Jan 1, 2026 onward | $35,000 | $70,000 | $25,000 |
Uninsured and underinsured motorist coverage
The law also raised the minimum UM/UIM coverage on a Standard policy to match the new liability minimums. Our guide to UM/UIM coverage in New Jersey explains why that coverage is the one most drivers will actually be glad they have.
What did not change
The Basic policy was not upgraded. It still carries no bodily injury liability coverage (an optional $10,000 can be added), $5,000 in property damage, and $15,000 in PIP. That means a meaningful share of New Jersey drivers still carry effectively zero coverage for the injuries they cause.
How the change rolled out
Carriers were required to raise limits on existing policies to the new minimums at the first renewal after each effective date. If your policy renewed after January 1, 2026, your limits were raised automatically. If you carried limits above the old minimum but below the new one, those were raised as well. Check your current declarations page rather than assuming.
What this means if you are hit by a minimum-limits driver
$35,000 per person is better than $15,000, but it is still small against a serious injury. An emergency room visit, imaging, and a few months of physical therapy can exceed it before pain and suffering is even considered. When the at-fault driver’s policy limits are lower than your damages:
- The at-fault driver’s carrier will typically tender the policy limits and walk away
- Your own underinsured motorist (UIM) coverage becomes the next source of recovery, if you carry UIM limits higher than the at-fault driver’s liability limits
- Pursuing the driver personally is rarely productive
Note that the liability limits apply only to your claim against the at-fault driver. Your medical bills are paid first by your own PIP, regardless of what the other driver carries; see how PIP works in New Jersey.
What you should carry
We are not insurance agents, but after years of seeing what happens when limits run out, our view is simple:
- Liability: $100,000/$300,000 at minimum protects your own assets if you cause a serious crash
- UM/UIM: match your liability limits. UIM only pays when your limits exceed the at-fault driver’s, so low UIM is useless against a $35,000 driver
- PIP: $250,000 medical expense coverage. The difference in premium from $15,000 is modest relative to the exposure
- Lawsuit option: read our post on the verbal threshold before renewing
How Ibrahim Personal Injury Law handles policy-limits cases
When the at-fault driver carries minimum limits, the case turns on stacking every available coverage: the liability policy, your UIM, any other household or resident-relative policies, and, where applicable, commercial or rideshare coverage. We identify every policy before accepting any tender, because settling with the at-fault driver without following the proper notice procedure can forfeit your UIM claim.
Free consultation, contingency fee. Call (844) 315-4878 or contact us online.
Frequently asked questions
What is the minimum car insurance in New Jersey in 2026?
For a Standard policy: $35,000 bodily injury per person, $70,000 per accident, $25,000 property damage, plus $15,000 PIP and matching UM/UIM. A Basic policy requires only $5,000 property damage and $15,000 PIP.
Did my premium go up because of this law?
Drivers who carried the old minimums saw increases at renewal. Drivers already above the new minimums were generally unaffected.
What if the driver who hit me only has $35,000 in coverage?
You can recover up to that amount from their carrier, then turn to your own UIM coverage for the difference, if you carry it at higher limits.
Does the new minimum apply to Basic policies?
No. Basic policies still have no mandatory bodily injury liability coverage.
