New Jersey Auto Insurance Requirements
The auto insurance coverage requirements of each state are different. In New Jersey, for a Standard Policy, state law requires a minimum coverage of $15,000 per injured person up to a total of $30,000 for everyone hurt in an accident, and coverage of $5,000 for property damages. New Jersey also requires UM/UIM with $15,000/30,000 and PIP coverage of $15,000.
Bodily Injury
- $15,000 for the death or injury of any one person, any one accident
- $30,000 for all persons in any one accident
Property Damage
- $5,000 for damage to property of another person
UM/UIM
- $15,000 for the death or injury of any one person, any one accident
- $30,000 for all persons in any one accident
Personal Injury Protection (PIP)
- $15,000
New Jersey Tort Options
The right to recover damages is legally known as tort options. The state of New Jersey requires you to select one of the following tort options to define your right to compensation in the event that another party injures you or members of your household in an auto accident:
- Limited Right to Recover Damages (Limited Tort)
- Full Right to Recover Damages (Full Tort)
Territorial Rating Commission: Rating Territories to be Revised
New Jersey state law places a cap on the Auto Insurance premiums that can be charged in certain areas of the state, even though these areas generate more accidents, claims and lawsuits than other parts of New Jersey. The result is that Auto Insurance premiums in these capped areas are inadequate to cover the losses that are generated there and force other New Jersey Drivers to subsidize the rates. The new reform law mandated a state-appointed commission review and revised these geographic territories for the first time in over 50 years.
