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NJ Personal Auto Insurance Laws and options

Get a basic understanding about your options and requirements in the state, including NJPAIP coverage.

Auto insurance is required in New Jersey. As a New Jersey driver, you have many choices when it comes to purchasing auto insurance. Each choice you make affects the coverage you receive and the amount you pay.
It is important to remember that you have the right to change your coverages and policy limits at any time, even if you are not
near your renewal date.

Auto insurance helps protect you and your family from losses resulting from motor vehicle accidents. It is required in New Jersey. If you drive without insurance, you are breaking the law!

The policy types available are:
Standard Policy — The Standard Policy provides a number of different coverage options and the opportunity to buy additional protection. Most New Jersey drivers choose this policy.
Basic Policy — The Basic Policy usually costs less than a Standard Policy,
but provides limited benefits. It is not for everyone, but it does provide enough  coverage to meet the minimum insurance requirements of New Jersey law.  The Basic Policy could be an option for those with few family responsibilities and few assets to protect (including income from a job).
The Special Automobile Insurance Policy (SAIP) is a new initiative to help make limited auto insurance coverage available to drivers who are eligible for Federal Medicaid with hospitalization. Such drivers can obtain a medical coverage-only policy at a cost of $365 a year. For more information, ask your agent or call the New Jersey Department of Banking and Insurance at 1-800-446-7467. Learn more at