Insurance in New Jersey: State Rules and Requirements

Car insurance in New Jersey (35/70/25)

Minimum car insuranceA New Jersey Standard Policy must carry at least $35,000 per person and $70,000 per accident of bodily injury liability, $25,000 of property damage liability, and $15,000 of PIP (up to $250,000 for certain serious injuries), plus a minimum amount of uninsured/underinsured motorist coverage. The low-cost Basic Policy instead provides $5,000 of property damage, $15,000 of PIP and optional $10,000 bodily injury coverage, with no uninsured/underinsured coverage. Source
Fault systemNew Jersey is a choice no-fault state: drivers pick either the 'Limitation on Lawsuit' option, which bars pain-and-suffering suits unless the injury is serious or permanent, or the 'No Limitation' option, which keeps the full right to sue. Source

Business insurance rules in New Jersey

Workers’ compensationAll New Jersey employers not covered by federal programs must carry workers' compensation or be approved to self-insure as soon as anyone other than the owner (or, for partnerships and LLCs, the partners or members) works for pay. Out-of-state employers working in New Jersey may also need it, and New Jersey is not a monopolistic state. Source
Contractor licensingHome improvement contractors must register with the New Jersey Division of Consumer Affairs, and registration requires proof of commercial general liability insurance. Source

Home insurance in New Jersey

Home insurer of last resortHurricanes and coastal storms are the main risk. Many policies have a hurricane deductible, often 1% to 10% of the dwelling limit, that applies only when the National Weather Service declares a hurricane and 74 mph sustained winds are measured in New Jersey. Source

Disasters, floods, hail, tornadoes and earthquakes in New Jersey

New Jersey disasters, floods, hail, tornadoes and earthquakes, from federal records
Measure	New Jersey	Rank among the states	Detail
Federal major disaster declarations since 2000	24	#28 (tied) of 51	Most often for severe storm (16), hurricane (4), snowstorm (4). Morris County has been in 13 of them.
National Flood Insurance Program claims, 2005–2025	133,336	#4 of 51	$5.9 billion paid; 10% of claims with a known flood zone were outside FEMA’s high-risk zones.
Homes in high-risk flood zones with a federal flood policy	62%	#2 of 50	100,796 policies for 161,481 homes in the counties FEMA can measure; US: 40%.
Hail reports, 2016–2025	356	#34 of 51	6 of them 2 inches or larger. Largest stone 2.5 inches, Bergen County, July 2021.
Tornadoes, 2016–2025	47	#34 of 51	7 rated EF2 or stronger; 193 recorded since 1950.
Earthquakes of magnitude 4.0+, 2000–2025	0	—	None of magnitude 4.0 or greater recorded in or near the state.

From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.

Look up the storm history of any county in New Jersey.

Worth knowing in New Jersey

New Jersey offers two kinds of auto policy, a full Standard Policy and a stripped-down Basic Policy, and drivers are presumed to choose the limitation-on-lawsuit option unless they reject it.

New Jersey’s insurance regulator

Insurance in New Jersey is regulated by the New Jersey Department of Banking and Insurance, which handles consumer complaints and licenses insurers and agents.

Sam Alishahi holds a nonresident insurance producer license in New Jersey (NPN 21022298), so requests from New Jersey are handled by him directly.

Common questions

What is the minimum car insurance in New Jersey?

A New Jersey Standard Policy must carry at least $35,000 per person and $70,000 per accident of bodily injury liability, $25,000 of property damage liability, and $15,000 of PIP (up to $250,000 for certain serious injuries), plus a minimum amount of uninsured/underinsured motorist coverage. The low-cost Basic Policy instead provides $5,000 of property damage, $15,000 of PIP and optional $10,000 bodily injury coverage, with no uninsured/underinsured coverage.

Is New Jersey a no-fault state?

New Jersey is a choice no-fault state: drivers pick either the 'Limitation on Lawsuit' option, which bars pain-and-suffering suits unless the injury is serious or permanent, or the 'No Limitation' option, which keeps the full right to sue.

Do employers in New Jersey need workers’ comp?

All New Jersey employers not covered by federal programs must carry workers' compensation or be approved to self-insure as soon as anyone other than the owner (or, for partnerships and LLCs, the partners or members) works for pay. Out-of-state employers working in New Jersey may also need it, and New Jersey is not a monopolistic state.

What can a New Jersey homeowner do if no insurer will write the house?

Hurricanes and coastal storms are the main risk. Many policies have a hurricane deductible, often 1% to 10% of the dwelling limit, that applies only when the National Weather Service declares a hurricane and 74 mph sustained winds are measured in New Jersey.

Sources

General information as of October 2026, not legal advice; confirm current rules with the agency.

Tell me what you need insured.

Home, car, business, trucks or something harder to place. One request, and I take it from there.

Alishahi Insurance · Saman Alishahi, independent insurance broker, 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210. General information, not a quote or a promise of coverage.

Insurance in New Jersey