New Jersey Auto Insurance Minimums Are Changing in 2026

What’s Changing?

Starting January 1, 2026, New Jersey will implement the second phase of its auto insurance reform under P.L.2022, c.87. This affects all new and renewal auto policies issued on or after that date.

• Bodily Injury Liability:
  • Per Person: Minimum increases to $35,000 (up from $25,000).
  • Per Accident: Minimum increases to $70,000 (up from $50,000).
• Property Damage Liability:
  • Minimum remains $25,000.
• Uninsured/Underinsured Motorist (UM/UIM):
  • These limits will also increase to match the new liability minimums.

Why It Matters

• If you currently carry only the state minimum, your coverage will automatically increase at renewal.
• Premiums: Expect modest increases for policies at old minimums.
• Umbrella Policies: Some carriers require base limits to match umbrella requirements; check now to avoid gaps.
• Commercial Fleets: Review contracts and compliance requirements to ensure they align with new statutory minimums.

What You Need to Do Before January 1, 2026

• Review Your Coverage:
  • Check your auto liability and UM/UIM limits.
  • Confirm umbrella coverage still applies with new base limits.
• Talk to Your Broker Early:
  • Renewal cycles vary – avoid surprises.
• Businesses:
  • Audit fleet schedules and Certificates of Insurance.
  • Update contracts to reflect new minimums.
• Individuals:
  • Look at your declarations page and confirm your carrier’s filings.

Bottom Line: These changes are designed to provide better protection for drivers and passengers. If you have questions about how this impacts your policy or want to explore higher limits for added peace of mind, reach out to our Personal Insurance team today.