For standard New Jersey auto policies issued or renewed on or after January 1, 2026, the minimum liability limits are $35,000 per person, $70,000 per accident, and $25,000 for property damage. You also need at least $15,000 in personal injury protection, often called PIP.

What changed on January 1, 2026?

P.L.2022, c.87 raised New Jersey's auto minimums in two phases. For policies issued or renewed on or after January 1, 2023, but before January 1, 2026, the bodily injury floors were $25,000 per person and $50,000 per accident, with $25,000 in property damage. The second phase took effect on January 1, 2026. Bodily injury minimums rose to $35,000 per person and $70,000 per accident. Property damage stayed at $25,000.

DOBI Bulletin 25-06 reminded insurers of that second step. If your old limits no longer meet the new floors at renewal, the insurer is supposed to raise them and notify you. The bulletin also says the insurer does not need a new signed coverage selection form just to make that legally required increase.

If you last shopped in 2024 or early 2025, don't assume the numbers on an old declarations page are still legal. Ask for the current limits in writing, and read the 2026 Buyer's Guide your insurer should give you on a new or renewal policy.

What do those liability numbers actually pay?

Bodily injury liability pays people you injure, or the family of someone who dies, if you cause a crash. The first number is the most the policy will pay for one person. The second is the most it will pay for everyone hurt in that accident, combined. Property damage liability pays for damage you cause to someone else's car or property, up to $25,000 at the legal minimum.

Those floors are not a recommendation. They are the least a standard policy can carry. A serious injury on the Garden State Parkway, or damage to a newer vehicle, can exceed $35,000 or $25,000 quickly. The Buyer's Guide notes that standard-policy bodily injury can be purchased as high as $250,000 per person and $500,000 per accident, and that property damage can be bought at $100,000 or more. Many people also look at an umbrella policy if they have a house or savings to protect.

Uninsured and underinsured motorist coverage on a standard policy can be bought up to the liability limits you choose. After the 2022 law, those coverages follow the same rising minimums on policies that include them. A basic policy, which is a different product, does not include uninsured or underinsured motorist coverage.

What about PIP, and is a basic policy the same thing?

PIP is New Jersey's no-fault medical coverage. It pays medical bills for you and other people covered under your policy, regardless of who caused the crash. On a standard policy, the Buyer's Guide says PIP can be as low as $15,000 per person or accident and as high as $250,000 or more. Even if you choose a lower medical limit, the guide says coverage can still go up to $250,000 for certain serious injuries.

PIP can also include lost wages and the cost of hiring help at home, subject to the options you select. Those choices, and the lawsuit option that goes with a standard policy, deserve their own careful review with an agent. The point here is simpler: a standard New Jersey policy has to include PIP, and $15,000 is the floor, not the only available amount.

A basic policy is not the same as a standard policy. The basic policy includes $15,000 in PIP and $5,000 in property damage liability. Bodily injury liability is not included, though a $10,000 option may be available. Uninsured and underinsured motorist coverage is not included. The basic policy can cost less, and it also leaves large gaps if you cause a serious injury. Don't buy it just because the premium looks lower, without understanding what is missing.

Whatever policy you choose, you still have to keep the required coverage in force on a vehicle registered or principally garaged in New Jersey. Driving without it can bring fines, a license or registration problem, and personal exposure after a crash.

FAQ

What are the current standard-policy liability minimums in New Jersey?

For policies issued or renewed on or after January 1, 2026, they are $35,000 per person and $70,000 per accident for bodily injury, and $25,000 for property damage, plus at least $15,000 in PIP.

Did my policy automatically go up at renewal in 2026?

If your old limits were below the new floors, the insurer was required to increase them and notify you. Still check your declarations page, because you may want higher limits than the legal minimum.

Is $15,000 in PIP enough?

It is the minimum on a standard policy, not a measure of a typical hospital stay. The Buyer's Guide lists higher PIP options, and certain serious injuries can still be covered up to $250,000. Ask an agent to walk through the choices.

Is a basic policy the same as the new 35/70/25 minimums?

No. A basic policy has different, much lower liability features and no uninsured or underinsured motorist coverage. The $35,000/$70,000/$25,000 figures describe a standard policy.

Next step

Ask a licensed local agent to review your current declarations page against the January 1, 2026 minimums, and to quote a standard policy at the legal floor and at higher liability and PIP limits. Bring the 2026 Buyer's Guide to that conversation so you can see what each option includes.

Sources: DOBI, 2026 New Jersey Auto Insurance Buyer's Guide (PDF); DOBI Bulletin 25-06, auto insurance coverage limits; N.J.S.A. 39:6A-3, compulsory automobile insurance coverage; DOBI, auto insurance consumer information.

A standard New Jersey homeowners policy does not cover flood damage. If you want that protection, you need a separate flood policy, through the National Flood Insurance Program or a private insurer. Most NFIP policies have a 30-day waiting period, so buying coverage when a storm is already on the map is often too late.

Why this matters in New Jersey

Flood risk here is not limited to Ocean City or the Meadowlands. Coastal storm surge, overflowing rivers, and heavy rain in inland towns have all put water into basements and first floors. A lender will usually require flood insurance if the home is in a mapped high-risk zone. If it isn't, the requirement may not apply, but the water risk can still be real.

If you're buying a home, New Jersey also has a mandatory Flood Risk Addendum on the seller's property condition disclosure, and a Flood Risk Notification Tool at flooddisclosure.nj.gov. Use those as a starting point, then look at a flood map and an insurance quote. A disclosure is not a policy.

Don't assume a "water" endorsement on a homeowners policy is flood coverage. Sewer backup and sump-pump overflow are often separate, and they are not the same as an NFIP flood. Ask your agent, in writing, what is covered if a storm drain backs up, if a river leaves its banks, or if tidal water comes into the yard.

How long is the wait, and what does NFIP cover?

Most NFIP policies have a 30-day waiting period before coverage starts. There are exceptions, including some purchases made in connection with a loan, but you shouldn't count on an exception unless your agent or the program confirms the start date in writing.

A typical NFIP homeowners policy can insure the building and, separately, the contents. Official FloodSmart guidance says building coverage for a home can go up to $250,000, and contents coverage up to $100,000. Those two limits are chosen separately, and contents coverage is not automatic just because you insured the building.

Building coverage can include the structure and certain built-in items, such as electrical and plumbing systems, furnaces, water heaters, and permanently installed cabinets. Contents coverage can include furniture, clothing, and electronics kept inside the home.

NFIP policies also leave things out. They generally do not cover:

• Temporary housing and additional living expenses while the house is repaired.
• Cars and most self-propelled vehicles.
• Personal property kept in basements, in many cases.
• Property outside the insured building, such as decks, fences, and landscaping.
• Currency and certain valuable papers.

If your house would cost more than $250,000 to rebuild, or you need living-expense coverage after a flood, ask about a private flood policy or excess coverage. Compare deductibles, waiting periods, and what each policy pays for a basement or a finished lower level, which is a common New Jersey question.

How should you decide whether to buy it?

• Look up the address on FEMA's flood map and on flooddisclosure.nj.gov if you're buying or selling.
• Think about nearby creeks, rivers, storm drains, and, at the Shore, tidal flooding even on sunny days.
• Price what it would cost to replace flooring, drywall, a furnace, and a water heater after a few feet of water.
• Compare an NFIP quote with any private flood quote, including the waiting period.
• If you rent, consider contents-only flood coverage. A landlord's policy usually does not replace your furniture.

A policy that costs a few hundred or a few thousand dollars a year is easier to judge once you've priced a single interior rebuild. Don't wait for a hurricane watch or a river forecast to start that math.

If you already have a mortgage in a high-risk zone and the lender escrowed flood insurance, still read the declarations page. Confirm the building and contents limits, the deductible, and the expiration date.

If you live in a building with a homeowners association, ask whether the association carries flood coverage on the building and what, if anything, you still need for your unit and your belongings. A master policy can leave a large gap at the unit level.

After you buy a policy, put the renewal date on your calendar. A lapse followed by a new 30-day wait is a painful way to learn the coverage was not continuous.

FAQ

Does a standard New Jersey homeowners policy cover flood damage?

No. You need a separate flood policy, available through the National Flood Insurance Program or a private insurer.

How long do I have to wait for NFIP coverage to start?

Most NFIP policies have a 30-day waiting period. Some exceptions exist, including certain loan-related purchases. Confirm the start date in writing.

Do I need flood insurance if I'm not in a floodplain?

You may not be required to buy it by a lender, but you can still flood. Inland rivers and heavy rain have flooded New Jersey homes outside high-risk zones.

Can I buy more than the NFIP $250,000 building limit?

You may be able to buy private or excess flood coverage. Ask a licensed agent to compare options, including living expenses, which a standard NFIP policy generally does not include.

Next step

Ask a licensed local agent to quote a flood policy on your address, including the waiting period and whether contents and additional living expenses are covered. If you're buying a New Jersey home, also review the seller's Flood Risk Addendum and the state's flooddisclosure.nj.gov tool.

Sources: National Flood Insurance Program, buy a flood insurance policy; New Jersey Flood Risk Notification Tool; Division of Consumer Affairs, Seller's Property Condition Disclosure Statement instructions (PDF); DOBI, auto and property consumer information.

If you have a problem with a New Jersey auto, home, life, or health insurer, you can file a complaint with the Department of Banking and Insurance. Formal complaints should be in writing and should include the company name, policy number, and supporting documents. Call 1-800-446-7467 if you need help filing.

When should you contact DOBI?

Contact the Department when you cannot resolve a problem with the company, or when you need to know whether a company or producer is licensed. Typical issues include a claim denial you believe is wrong, a cancellation or nonrenewal that does not seem lawful, a premium increase you do not understand, trouble getting a required auto or homeowners policy, or an agent who misrepresented the coverage.

Start with the insurer first, and keep a record of those calls and letters. Then file with DOBI if the company does not fix the problem, or if you need the Department to look at it. A complaint does not automatically keep a canceled policy in force, so if a cancellation date is close, shop for replacement coverage the same week.

DOBI also handles banking and real estate complaints through the same Consumer Inquiry and Response Center, using different forms. Use the insurance form for an insurer or insurance producer. Use the real estate form for a real estate licensee issue, and the banking form for a state-chartered bank problem.

How do you file, and what should you attach?

The Department says the most convenient method is an online complaint. You can also print the insurance complaint form and fax it to 609-777-0508 or 609-292-2431, or mail it to NJDOBI, P.O. Box 471, Trenton, NJ 08625-0471. Phone lines are staffed 8:30 a.m. to 5:00 p.m. Eastern time, Monday through Friday.

DOBI asks that a written complaint include:

• The insurance company name and, if relevant, the agent's name.
• The policy or certificate number.
• A brief description of the problem.
• Documents that support your position.

If they apply, attach a copy of your ID card, the declarations page, a nonrenewal or cancellation notice, a premium-increase notice, and a claim denial. The Department asks you to use dark ink and not to highlight pages, so the file stays readable.

When the complaint is logged, you should receive an acknowledgment and a tracking number. Keep that number, and keep copies of everything you sent.

The online complaint portal is reached from DOBI's consumer assistance page. If a link is down, call the consumer hotline and ask for the current filing address.

What should you expect, and what won't DOBI do?

The Department can review whether a company followed New Jersey insurance law and its filed policy forms. It can also help you understand a letter you received. It is not a substitute for your own attorney if you need to sue, and it does not decide every medical or auto-value dispute the way a court would.

Have a clean timeline ready: when you filed the claim or application, what the company said, and when you responded. Angry summaries without dates and documents are harder to review than a short chronology with attachments.

If the problem is a managed-care medical complaint, including some HMO and PPO issues, follow the managed-care instructions on the same DOBI consumer page, because that path can differ from a general auto or homeowners complaint.

For last-resort property coverage, remember the FAIR Plan. For auto coverage trouble, ask a licensed agent about standard and residual-market options, and still file with DOBI if a denial looks improper.

Work only with licensed companies and producers. If someone offers a policy that "isn't filed in New Jersey" or wants cash outside normal channels, stop and call the Department before you pay.

If your complaint involves a claim already in suit, tell the Department that a lawyer is involved and still file the consumer complaint if you want a regulatory review. The two paths can run at the same time, and your attorney can advise you on what to send.

Keep new mail from the company after you file, including any corrected check or revised denial, and send a copy to DOBI with your tracking number so the Department's complaint file stays current.

FAQ

Can I file a New Jersey insurance complaint by phone only?

You can call 1-800-446-7467 or 609-292-7272 for help. Formal complaints need to be submitted in writing, online, by mail, or by fax, with the policy number and supporting documents.

What address do I use for a mailed complaint?

NJDOBI, P.O. Box 471, Trenton, NJ 08625-0471. Fax numbers listed by the Department are 609-777-0508 and 609-292-2431.

Will a complaint stop a cancellation?

Not automatically. If a policy is ending soon, shop for new coverage right away, then file the complaint with your documents.

Does this process also cover a complaint about a real estate agent?

Real estate complaints use a different DOBI form, through the same consumer center. Insurance issues use the insurance form.

Next step

If you cannot resolve an insurance problem directly with the company, call a licensed local agent about replacement coverage if you need it, and file a written complaint with DOBI at 1-800-446-7467 or through the Department's online complaint page. Attach the declarations page, the denial or cancellation letter, and a short timeline.

Sources: DOBI, how to request assistance; DOBI, insurance complaint form (PDF); DOBI, Division of Insurance consumer protection services.

If you cannot find homeowners insurance in New Jersey's regular market, you may apply to the Insurance Underwriting Association, known as the FAIR Plan. It offers basic property coverage. Theft can be added, and personal liability is not included, so you may still need a separate liability policy.

What does the FAIR Plan cover, and what does it leave out?

DOBI says the plan insures homes, mobile homes, rental units, and most commercial buildings and business property. The coverage is basic property insurance, the kind that can help rebuild or repair after a fire or certain other covered perils, subject to the policy's terms and deductibles.

Two gaps matter for a typical homeowner:

• Personal liability coverage is not part of the FAIR Plan policy. That is the part of a standard homeowners policy that can defend you and pay if someone is hurt on your property, or if you face certain other liability claims. You may need a separate liability policy, sometimes called a stand-alone liability or an umbrella, depending on what a licensed agent can place.
• Theft coverage was not originally part of the basic form. DOBI notes that, since 2009, optional theft coverage has been available as an attachment. If you want theft, ask for that endorsement and the extra premium, and get it in writing.

Flood is not a substitute topic here, and a FAIR Plan policy is not flood insurance. If you need flood coverage, that is a separate NFIP or private policy.

The FAIR Plan is not a bargain program and not a special discount. DOBI says you should consider it only if you cannot obtain insurance from any other source. Premiums, deductibles, and coverage amounts will be those the Association offers on a qualifying property, not necessarily what a standard HO-3 policy would have provided.

How do you apply?

A property owner may apply directly to the Association or through any licensed agent. When a standard company rejects a property, the owner is supposed to be advised of the FAIR Plan. Keep that rejection or nonrenewal letter. It helps document that you tried the regular market.

The Association's consumer information is available through its website, and DOBI lists this contact:

• New Jersey Insurance Underwriting Association
• 570 Broad Street, Suite 500, P.O. Box 32609, Newark, NJ 07102
• Telephone: (973) 622-3838
• Website: www.njiua.org

Ask what inspection is required, what condition problems could delay or block a policy, and whether a binder is available while you meet remaining conditions. If the Association will not write the property, ask for the reasons in writing so you can repair, clean up, or correct occupancy issues and try again.

Work only with a licensed New Jersey producer. If someone offers a "FAIR Plan" policy for cash, or cannot show a license, call DOBI at 1-800-446-7467 before you pay.

What should you do at renewal?

Stay in the regular market if you can. A year of repairs, a new roof, or a change in the local market can make a standard company willing to write the house. At each renewal, ask your agent to shop standard carriers again. If you remain in the FAIR Plan, confirm that optional theft coverage is still the option you want, and look at a separate liability policy if you do not already have one.

A FAIR Plan policy can be the difference between an uninsured fire and a rebuild. It should not be the only insurance conversation you have, especially if you have a mortgage, a rental unit, or visitors on the property.

If you're being nonrenewed by a standard company, don't wait until the last day of the policy. Start the FAIR Plan application and a new regular-market search as soon as the notice arrives, and keep proof of coverage for your lender.

If you rent the property to others, ask whether a landlord policy in the regular market is available before you rely on the FAIR Plan alone, and confirm what the Association will write on a rental dwelling. A lender will also want proof of coverage that meets the mortgage. Share the declarations page, not just a verbal "you're covered."

Coastal and older homes are sometimes harder to place, but location by itself is not a reason to skip a regular-market search. Get written declinations, then apply to the Association if you still need a policy in force.

FAQ

Is the New Jersey FAIR Plan the same as the Insurance Underwriting Association?

Yes. The New Jersey Insurance Underwriting Association is the state's FAIR Plan, the residual market for basic property insurance.

Does a FAIR Plan policy include liability and theft?

DOBI says the plan provides basic property coverage and does not provide personal liability coverage. Optional theft coverage has been available as an attachment since 2009. Ask for both answers in writing on your quote.

Do I have to go through an agent?

No. You may apply directly or through any licensed agent. Many people still use an agent so someone can also shop the regular market and help with a separate liability policy.

Is this a first choice if I just want a lower premium?

No. DOBI says to consider the FAIR Plan only if you cannot obtain insurance from any other source. Shop standard companies first.

Next step

If a standard insurer has turned you down or nonrenewed your homeowners policy, talk with a licensed local agent about a documented search of the regular market and, if needed, an application to the New Jersey Insurance Underwriting Association. Ask how you will cover personal liability and whether optional theft coverage should be added.

Sources: DOBI, New Jersey Insurance Underwriting Association (FAIR Plan); NJIUA, consumer information; DOBI consumer assistance.

On a standard New Jersey auto policy, you choose a PIP medical limit and a lawsuit option. PIP pays medical bills after a crash, regardless of fault. The lawsuit option decides when you can sue for pain and suffering. Don't leave those choices to a blank form or a guess.

What PIP medical limits can you choose?

The Department of Banking and Insurance's 2026 Buyer's Guide describes PIP as medical coverage for you and others insured under the policy when you're hurt in an auto accident. On a standard policy, PIP can be as low as $15,000 per person or accident and as high as $250,000 or more. The guide also says that, regardless of the limit you select, coverage can still go up to $250,000 for certain injuries.

Common medical-limit options discussed in DOBI consumer materials include $15,000, $50,000, $75,000, $150,000, and $250,000. If you do not make a valid choice, do not assume you have the cheapest option. Ask the agent what default applies on your policy, and get it on the declarations page.

PIP can also include benefits besides medical bills, such as a limited amount of lost wages and the cost of hiring help at home, depending on the options you select. Those pieces have their own limits and rules. If you have health insurance, you may be able to make PIP secondary for some medical bills, which can change the premium. That coordination has to be set up correctly. Don't drop auto medical coverage just because you have a health plan, without understanding what a health plan will not pay after a crash.

The basic policy, by contrast, includes $15,000 in PIP and is not a menu of the same standard-policy medical options. If you're on a basic policy, read that product separately.

What is the lawsuit option?

New Jersey lets standard-policy holders choose between a "limitation on lawsuit" option, sometimes called a verbal threshold, and a "no limitation on lawsuit" option. The choice is about pain and suffering, not about whether PIP pays your medical bills.

With a limitation on lawsuit, you generally can sue for pain and suffering only if the injury fits categories set out in the law, such as death, dismemberment, significant disfigurement or significant scarring, a displaced fracture, loss of a fetus, or a permanent injury that meets the statutory test. With no limitation on lawsuit, you can sue for pain and suffering for other injuries as well, including those that do not meet that threshold.

The no-limitation option usually costs more. The limitation option can look like an easy way to cut the premium, but it can also close the door on a pain-and-suffering claim after a painful injury that does not meet the legal test. DOBI materials stress that the choice does not take away your right to recover economic losses, such as medical bills and lost wages that the law allows. It changes the pain-and-suffering path.

You have to complete the coverage selection form for these choices to be effective. If you're not sure what you already selected, look at the declarations page and ask the company for a copy of the form you signed.

How should you think about the two decisions together?

PIP is about paying for treatment quickly, without waiting to prove the other driver was at fault. The lawsuit option is about whether, and when, you can also seek pain-and-suffering damages from a negligent driver. A person with a high PIP limit and a limitation on lawsuit has strong no-fault medical coverage and a narrower lawsuit right. A person with a low PIP limit and no limitation may be able to sue more easily, but can still face a tight medical cap if a health plan does not fill the gap.

Talk through both with an agent, and consider your health coverage, your family, and how much premium you can absorb. If you change your mind later, ask when you can change the selection, usually at renewal, and whether a new form is required.

Keep the Buyer's Guide with your policy. It is the consumer document insurers are supposed to provide on new and renewal business after the 2026 limit changes.

FAQ

If I pick a $15,000 PIP limit, can I still get $250,000 for a serious injury?

The 2026 Buyer's Guide says that, regardless of the selected limit, coverage can still go up to $250,000 for certain injuries. Ask your agent which injuries qualify, and do not treat that exception as a reason to ignore the limit on ordinary treatment.

Does the lawsuit option change whether PIP pays my doctor bills?

No. PIP is no-fault medical coverage. The lawsuit option is about suing for pain and suffering. Economic losses are treated separately.

What injuries meet the limitation on lawsuit?

The statute lists categories such as death, dismemberment, significant disfigurement or scarring, a displaced fracture, loss of a fetus, and a qualifying permanent injury. An ordinary sprain may not meet that test. An attorney can apply the law to a particular injury.

Can I change these choices mid-policy?

Sometimes only at renewal, unless the company agrees otherwise. Ask before you assume you can switch the day after a close call.

Next step

Ask a licensed local agent to review your coverage selection form, including the PIP medical limit and the lawsuit option, and to price the main alternatives. Bring your health insurance card and the 2026 Buyer's Guide so you can see how the auto policy and the health plan would work together after a crash.

Sources: DOBI, 2026 New Jersey Auto Insurance Buyer's Guide (PDF); N.J.S.A. 39:6A-8, tort exemption and limitation on the right to noneconomic loss; DOBI, auto insurance purchasing planner, lawsuit options; DOBI, auto insurance consumer information.

New Jersey offers a standard auto policy and a lower-cost basic policy. The basic policy can cost less, but it leaves out protection a standard policy includes. Compare liability, PIP, and uninsured motorist coverage in DOBI's 2026 Buyer's Guide before you choose the cheaper one.

What does a standard policy include?

A standard policy is the one most New Jersey drivers mean when they talk about auto insurance. For policies issued or renewed on or after January 1, 2026, it must include bodily injury liability of at least $35,000 per person and $70,000 per accident, property damage liability of at least $25,000, and personal injury protection of at least $15,000. You can buy higher liability and PIP limits. Uninsured and underinsured motorist coverage is available, up to the liability amounts you select.

You also choose a lawsuit option, often called a limitation on lawsuit or no limitation on lawsuit, which affects when you can sue for pain and suffering. Collision and comprehensive coverage are optional, as they are on many policies nationwide.

The standard policy is the better starting point if you have assets to protect, or if you simply do not want to be personally responsible for a serious injury you cause. The minimums are a legal floor, not a suggestion that $35,000 will cover a hospital stay or a lawsuit.

What does a basic policy include, and what does it leave out?

DOBI's 2026 Buyer's Guide draws a sharp contrast:

• Bodily injury liability is not included. A $10,000 limit for all persons, per accident, may be available as an option. That is far below the standard-policy minimum of $35,000/$70,000.
• Property damage liability is $5,000 per accident, compared with at least $25,000 on a standard policy.
• PIP is $15,000 per person, per accident, with the same "up to $250,000 for certain injuries" feature described in the guide.
• Uninsured and underinsured motorist coverage is not included.
• Collision and comprehensive may be available from some insurers as options.

If you cause a crash and hurt someone, a basic policy without the $10,000 bodily injury option may leave you personally exposed for that claim. Even with the $10,000 option, a single injury can exceed that amount quickly. Property damage of $5,000 may not replace a modern car. And if an uninsured driver hits you, the missing uninsured motorist coverage is a gap a standard policy is designed to fill.

The basic policy exists as a lower-cost way to meet a form of the insurance requirement, not as a hidden upgrade. Read the coverage selection form, not just the monthly price.

How should you decide?

Start with what a crash would cost you, not only what the premium is this month:

• If you own a home, have savings, or would struggle to pay a judgment, a standard policy with limits above the legal minimum is usually the more careful choice.
• If you are shopping only on price, ask the agent to quote both a standard policy at several liability levels and a basic policy, then put the differences on paper.
• If someone offers a "cheap New Jersey policy" without explaining whether it is standard or basic, stop and get the Buyer's Guide and a declarations page before you pay.
• Keep proof of the policy in the vehicle, and make sure the company and the agent are licensed in New Jersey. You can confirm that and, if needed, file a complaint with DOBI.

You still have to maintain required coverage on a vehicle registered or principally garaged in this state. A lapsed policy, or a policy that was never the product you thought you bought, is a problem at a traffic stop and after a crash.

If your income is very low, ask the agent whether any other state-authorized option applies to you, and get that answer from a licensed producer and the current DOBI materials, not from a social media ad. Do not assume a basic policy is a special "state plan," and do not assume it includes the 2026 standard minimums.

FAQ

Is the basic policy legal in New Jersey?

Yes. It is a distinct product described in DOBI's Buyer's Guide. It is not the same as a standard policy, and it includes much less liability protection.

Does a basic policy have uninsured motorist coverage?

No. The 2026 Buyer's Guide says uninsured and underinsured motorist coverage is not included on a basic policy. It is available on a standard policy, up to the liability limits you select.

Can I add bodily injury liability to a basic policy?

A $10,000 option, for all persons per accident, may be available. That is still far below the standard-policy minimum of $35,000 per person and $70,000 per accident.

If I start with a basic policy, can I switch later?

Usually yes, at renewal or sometimes sooner, subject to underwriting. If your finances or your family situation change, ask for a standard-policy quote rather than waiting for a claim to expose the gaps.

Next step

Sit down with a licensed local agent and compare a standard policy and a basic policy side by side, using the 2026 Buyer's Guide. Ask what each policy would pay if you injured someone, damaged an expensive vehicle, or were hit by an uninsured driver, then choose with those answers in front of you.

Sources: DOBI, 2026 New Jersey Auto Insurance Buyer's Guide (PDF); DOBI, Everything You Wanted to Know about Auto Insurance (2026 PDF); DOBI, auto insurance consumer information.