New Jersey requires all drivers to maintain minimum amounts of liability insurance. It is illegal to drive in the state without insurance. Knowing the minimum amounts of insurance can come in handy if you are ever involved in an accident with another motorist in New Jersey.
Minimum Amounts of Liability Insurance in New Jersey
Liability insurance covers the damages that you cause to someone else through your negligence. New Jersey keeps up with inflation more than other states when it comes to its insurance laws. The last updates were made in 2023. The amounts of liability insurance are also set to increase in 2026 to the following amounts:
- $35,000 in bodily injury per person
- $70,000 in bodily injury per accident
You will also need to purchase uninsured and underinsured motorist insurance in the same amounts.
Insurers must update policies at renewal, so you will be subject to these higher limits soon.
These are just the minimum amounts the law requires. You can purchase higher amounts of insurance to protect your personal assets.
Basic vs. Standard Policy
New Jersey has a unique insurance system, so the insurance coverage you decide to purchase can impact how much compensation you can potentially recover for your damages after an accident and from whom.
Consumers have the option of purchasing a basic or standard policy when they buy auto insurance. The standard policy provides the option for a limited or unlimited right to sue. This decision affects their premiums, as well as the extent of damages they can hold the at-fault driver accountable for.
With a limited right to sue, drivers cannot file insurance claims against at-fault drivers for pain and suffering or other non-economic damages unless they suffer severe injuries, such as permanent injury, significant disfigurement, or broken bones. With the unlimited right to sue, they can recover compensation for their non-economic injuries.
Basic policies only provide the limited right to sue. Additionally, they don’t come with liability insurance unless the insured decides to purchase it as an option. Instead, it comes with property damage liability of $5,000 and $15,000 in Personal Injury Protection (PIP) insurance, which provides coverage for injuries sustained in an auto accident by the insured or other people covered under their policy, regardless of fault. If a person with a basic policy causes injury to another, they would be personally liable for the damages they cause, including for medical expenses, lost wages, and pain and suffering.
Contact Our Cherry Hill Car Accident Lawyers Today
If you were injured in a car crash caused by someone else’s negligence, an experienced Cherry Hill car accident lawyer from Aronberg, Kouser, Snyder & Lindemann, P.A. can help. Car insurance can be confusing, but our knowledgeable lawyers can review all applicable insurance policies, determine the coverage that applies, and pursue the compensation you deserve. You can learn more about your legal rights and options following a car accident when you call for a free consultation.
