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
High-value homes in New Jersey.
Disasters, floods, hail, tornadoes and earthquakes in New Jersey
| 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.
The property risks that matter in New Jersey
Superstorm Sandy in 2012 reshaped how New Jersey shore homeowners think about flood insurance and elevation.
Wind from tropical storms is the defining property risk along the New Jersey coast. Ask whether your policy uses a named-storm deductible, how it is triggered, and whether roof upgrades or shutters earn a mitigation credit.
Standard homeowners and renters policies exclude flood. In New Jersey, flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally carry a 30-day waiting period, so buy before storm season. Check your address on FEMA's Flood Map Service Center.
Nor'easters bring coastal flooding, wind and heavy snow to New Jersey. Wind damage is generally covered; storm-surge flooding needs flood insurance.
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.
What to review each year in New Jersey
- Find your hurricane or named-storm deductible in dollars and set aside that amount.
- Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
- Clear gutters and check for storm-surge flood exposure before winter.
- Landlords: confirm fair rental value and liability on each unit.
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 New Jersey nonresident insurance producer license (#3004487383, NPN 21022298) and places New Jersey policies 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.
Does New Jersey homeowners insurance cover hurricanes?
Wind damage from hurricanes is generally covered, often subject to a separate hurricane deductible. Storm-surge flooding requires flood insurance.
Do I need flood insurance in New Jersey?
If you're in a high-risk flood zone with a federally backed mortgage, your lender will require it. Elsewhere it's optional but worth pricing, because homeowners policies exclude flood.
More answers: New Jersey homeowners insurance guide New Jersey renters insurance and security deposit guide New Jersey small business insurance requirements New Jersey life insurance consumer guide New Jersey flood risk and NFIP guide Newark home and auto insurance guide Jersey City home and auto insurance guide Guía de seguro de inquilinos y depósito de garantía en Nueva Jersey Requisitos de seguro para pequeñas empresas en Nueva Jersey Guía de seguro de vida para consumidores en Nueva Jersey Guía de riesgo de inundación y NFIP en Nueva Jersey
Sources
- New Jersey: Minimum car insurance
- New Jersey: Workers’ compensation
- New Jersey: Home insurer of last resort
- New Jersey: Contractor licensing
- New Jersey: insurance regulator
- NAIC: directory of state insurance departments
General information as of October 2026, not legal advice; confirm current rules with the agency.