New Jersey Increases Minimum Liability Insurance

cars driving on a highway

Currently, New Jersey drivers can insure their vehicles with as little as $15,000 in liability coverage.However, a new law has been passed that increases the minimum auto liability insurance requirements in New Jersey to $25,000 beginning in 2023, and a minimum of $35,000 starting in 2026. The new law also requires $50,000 of coverage for accidents involving more than one person starting on 2023, and $70,000 when more than one person is involved starting in 2026. These amounts are commonly referred to as 25/50 or 35/70. The first number is the most the insurance policy will pay out (in thousands of dollars) to any one single person injured in an accident, and the second number is the most the policy will pay out no matter how many people are injured in the accident.

Motor Vehicle Liability coverage comes into play when a driver’s negligence causes injury to another. In such a case, the injured party can receive compensation from the driver’s insurance company for the injuries suffered, including pain and suffering. The insurance company is required under the liability policy to defend the driver and/or owner from such claims. If the driver is found to be at fault, and the liability policy is insufficient to compensate the injured party, the liability policy will pay out the limit of their policy, and the injured party can seek to recover any excess amount from the driver or vehicle owner directly.

Thus, having higher policy limits protects a vehicle owner and its driver’s individual assets when a claim is brought by a party they injured due to negligent operation of a vehicle. Higher policy limits also help the injured party have a chance of receiving fair compensation for their injuries.

Of course, $35,000 may still be a woefully insufficient amount to compensate someone seriously injured in a motor vehicle accident, but it is a step in the right direction.

In New York, the minimum required liability insurance policy for a motor vehicle is $25,000 for one injured party and $50,000 for multiple injured parties in a single incident (25/50). The 25/50 minimum policy has been in effect for many years, with no indication of any expected changes.

The law firm of Zalman, Schnurman, & Miner is experienced in handling automobile accident cases. All consultations are free and each case is handled on a contingency fee basis. For a free consultation call 1-800-LAWLINE (1-800-529-5463) or email

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