🚗 NJ Mandatory Auto Insurance Limits Are Increasing in 2026 — Here’s What Drivers Need to Know
If you live in New Jersey and carry auto insurance, there’s an important change coming in 2026 that could impact your policy — and your wallet.
Effective January 1, 2026, New Jersey will implement the second phase of a multi-year overhaul of its minimum auto insurance requirements. These changes are designed to reflect rising medical costs and repair expenses and ensure drivers have more robust financial protection after an accident. NJ.gov+1
🆕 What’s Changing?
Under the update to state law (P.L.2022, c.87), the minimum required liability coverage that every standard auto policy must include is increasing. Here’s how the new limits look:
🔹 Bodily Injury Liability
- Per person: $35,000 (up from $25,000)
- Per accident: $70,000 (up from $50,000)
🔹 Property Damage Liability
- Per accident: $25,000 — remains the same
These increases apply to all new and renewal personal and commercial auto policies issued on or after January 1, 2026. NJ.gov+1
📌 Why the Increase Matters
The goal behind these new minimums is straightforward: make sure insurance keeps pace with the real-world costs of accidents. Medical care, emergency treatment, legal fees, and vehicle repairs have all climbed significantly in recent years — often far beyond older coverage minimums. Without higher limits, drivers can be left paying out-of-pocket after a serious crash. Insurance.com
Here’s what this means:
✅ Better financial protection — higher liability limits mean your coverage can pay more for someone else’s injuries or property damage if you’re at fault.
✅ Automatic adjustment at renewal — insurers are required to increase limits to the new minimum when your policy renews after January 1. NJ.gov
📈 Will Your Premium Go Up?
Probably — if you currently carry the old, lower limits, your premium will likely increase when your policy renews with the new minimums in 2026. However:
- If you already carry limits above the new minimum requirements, you probably won’t see a change due solely to the statutory update. Insurance.com
- Many drivers who choose higher limits for added protection may already be ahead of the curve.
📋 What Policyholders Should Do Now
Here are a few steps every New Jersey driver can take before the 2026 changes take effect:
🔁 Review your current coverage limits
See where you stand compared to the upcoming minimums — especially if your coverage has stayed at or near the old minimum.
💬 Talk to your agent or broker
They can explain how the new limits affect your renewal and whether it makes sense to increase liability or other coverage types (like uninsured/underinsured motorist or an umbrella policy).
📑 Check umbrella & excess policies
Some umbrella insurers require your underlying auto limits to meet or exceed certain minimums — so this change may impact your broader protection strategy.
🛡️ Why Higher Limits Are Worth Considering
While the state mandates minimums, they’re just that — minimum. Serious accidents can generate medical bills and legal costs that far exceed $35,000/$70,000. Choosing higher liability limits and optional coverages like:
- Underinsured/Uninsured Motorist Coverage
- Comprehensive and Collision
- Umbrella insurance
can help protect your financial future if something goes wrong.
🧠 Bottom Line
New Jersey’s auto insurance minimums are going up in 2026 — and most drivers will automatically transition to these new limits on renewal. While the change gives many drivers stronger baseline protection, it’s also a timely opportunity to reassess your overall coverage strategy.
If you’re unsure how these changes affect you or your clients, reach out to Landsman Insurance Services, or your preferred insurance agent soon, before your 2026 renewal hits.