New Jersey’s auto insurance landscape is undergoing significant changes in 2025, with new requirements aimed at providing better financial protection for drivers. Here’s what you need to know about the updated vehicle insurance requirements in the Garden State:
Increased Minimum Liability Limits
Starting January 1, 2025, New Jersey will implement the second phase of its plan to increase minimum liability coverage:
- Bodily injury liability: $35,000 per person / $70,000 per accident (up from $25,000/$50,000)
- Property damage liability: $25,000 per accident (unchanged from 2023)
- Personal Injury Protection (PIP): $15,000 per person or per accident (unchanged)
Uninsured/Underinsured Motorist Coverage
- Uninsured/underinsured motorist coverage limits will match the new bodily injury liability limits: $35,000 per person / $70,000 per accident
Impact on Drivers
- An estimated 1.4 million New Jersey drivers will be affected by these changes
- Premiums are expected to increase, with the average driver paying about $145 more per year
Additional Considerations
- Basic Policy Option: The changes do not apply to the state’s basic policy option, which remains available for those seeking lower-cost coverage
- Rate Increases: New Jersey drivers may face some of the highest rate increases in the country, with premiums potentially rising by over 15% in 2025
Reasons for the Changes
- To provide better financial protection for drivers
- To bring New Jersey’s insurance requirements more in line with other states
Tips for New Jersey Drivers
- Review your current policy to understand how these changes will affect you
- Consider shopping around for quotes to find the best rates
- Look into available discounts to help offset potential premium increases
- Evaluate whether the basic policy option might be suitable for your needs
While these new requirements may lead to higher costs for some drivers, they aim to ensure better coverage and financial protection in the event of an accident. As always, it’s essential to understand your policy and choose coverage that best fits your individual needs and budget.
Sources
- https://www.goldbergsegalla.com/news-and-knowledge/knowledge/new-jersey-passes-law-imposing-liability-coverage-requirements-on-commercial-motor-vehicles/
- https://www.nj.com/politics/2025/01/happy-new-year-new-jersey-these-new-state-laws-will-take-effect-in-2025.html
- https://evmagazine.com/mobility/auto-insurance-rate-hikes-slow-to-7-5-in-2025
- https://www.bankrate.com/insurance/car/new-jersey-car-insurance-laws/
- https://www.autobodynews.com/regional/northeast-regional-news/state-laws-affecting-auto-insurance-rates-taking-effect-in-2025
