Short answer: New Jersey drivers can choose a Basic or Standard auto policy. The Basic policy is a low-cost option with $15,000 of personal injury protection, $5,000 of property damage liability, optional $10,000 bodily injury liability and the limited right to sue. The Standard policy has higher liability limits, more options and a lawsuit-option choice.
The Basic policy
According to the New Jersey Department of Banking and Insurance (DOBI) and its 2026 auto insurance guide, the Basic policy includes:
- Personal injury protection (PIP): $15,000 per person, per accident, with higher amounts for certain serious injuries as described by DOBI
- Property damage liability: $5,000
- Bodily injury liability: none, unless you buy the optional $10,000 coverage
- Uninsured/underinsured motorist coverage: not included
- Limited right to sue: automatically applies
Collision and comprehensive may be available as options.
The Standard policy
The Standard policy includes, at minimum:
- Bodily injury liability of $35,000 per person and $70,000 per accident
- Property damage liability of $25,000
- PIP starting at $15,000, with higher options available
- Uninsured/underinsured motorist coverage options
- A choice of lawsuit option: limited or unlimited right to sue
Check DOBI's current guide for exact minimums and options.
Risks of the Basic policy
- Little or no protection if you injure someone. Without bodily injury liability, or with only $10,000, you could be personally responsible for damages above your coverage.
- Low property damage limit. $5,000 may not cover damage to another car.
- No UM/UIM. You have less protection if an uninsured driver injures you.
- Limited right to sue restricts lawsuits for pain and suffering.
DOBI describes the Basic policy as designed for drivers with few assets who need an affordable way to meet the law. Drivers with assets to protect should consider the Standard policy with higher limits.
PIP and health insurance
New Jersey lets drivers choose PIP options and, in some cases, make their health insurance primary for certain auto injuries. Read DOBI's guide and check your health plan before choosing.
Right to sue
Your lawsuit option affects your ability to sue for pain and suffering. See New Jersey limited vs. unlimited right to sue.
Umbrella policies
Umbrella insurers usually require high underlying auto liability limits, which the Basic policy doesn't meet. See how much umbrella insurance do I need.
Common scenarios
A college student with no assets needs the cheapest legal policy. The Basic policy may fit, but the risks are significant.
A homeowner with savings wants protection from lawsuits. The Standard policy with higher liability limits fits better.
You cause an accident that seriously injures another driver. Basic policy liability may be little or none, leaving you exposed.
You're hit by an uninsured driver. The Basic policy doesn't include UM coverage.
Key terms
- PIP: personal injury protection that pays your medical expenses regardless of fault.
- Bodily injury liability: pays others for injuries you cause.
- UM/UIM: uninsured and underinsured motorist coverage.
- Limited right to sue: restricts lawsuits for pain and suffering unless you meet a threshold.
Questions to ask your broker
- How much more would a Standard policy with higher liability limits cost me?
- What assets and income could be exposed if I cause a serious accident?
- Is my health insurance allowed to be primary for PIP, and does that lower my premium?
- Do I need uninsured and underinsured motorist coverage?
- Which lawsuit option fits my situation?
- Would I qualify for an umbrella policy, and what auto limits would it require?
Answers depend on your budget, assets, health coverage and household drivers. The Basic policy can make sense for drivers with very few assets and tight budgets, but it leaves large gaps for most households. Read the New Jersey limited vs. unlimited right to sue guide before choosing.
Bottom line
The Basic policy can keep a New Jersey driver legal at a low price, but it offers thin protection for you and almost none for the people you might hurt. If you own a home, have savings or earn a good income, compare Standard policy options with higher limits, and review your PIP and lawsuit choices carefully.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in New Jersey.
Frequently asked questions
What does the New Jersey Basic auto policy include?
$15,000 PIP, $5,000 property damage liability, optional $10,000 bodily injury liability and the limited right to sue, according to DOBI.
What are the Standard policy minimums in New Jersey?
At least $35,000 per person and $70,000 per accident for bodily injury and $25,000 for property damage, plus PIP.
Does the Basic policy include uninsured motorist coverage?
No.
Who should consider the Basic policy?
DOBI describes it as designed for drivers with few assets who need an affordable way to meet the law.
Can I choose my lawsuit option on the Basic policy?
No. The Basic policy automatically includes the limited right to sue.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.