On Jan. 14, 2026, the New Jersey Department of Banking and Insurance said New Jersey is increasing minimum auto insurance liability coverage requirements to $35,000 per person and $70,000 per accident effective January 1, 2026. The change is expected to increase the cost of insurance for consumers across New Jersey.
The change is part of the final phase of New Jersey’s 2022 auto insurance reform law. The updated requirements mean all new and renewed policies must meet the 35/70/25 standard: $35,000 bodily injury per person, $70,000 per accident, and $25,000 for property damage. Insurers are required to notify policyholders of the higher limits at renewal. This completes the phased increases set by P.L. 2022, c.87. According to The Zebra.
New Jersey first raised minimum limits in January 2023 to 25/50/25 as part of the same law. The upcoming increase updates coverage requirements for both bodily injury and property damage. Drivers with older policies will see their coverage adjusted upward at renewal to comply with state law, affecting standard auto policies across New Jersey. According to a bulletin from the department.
Insurers are required to notify policyholders of the higher minimum limits at the time of renewal and may implement the increase without obtaining a new signed coverage selection form. The adjustment applies to all new and renewing policies and ensures drivers maintain coverage that meets current state requirements. Many New Jersey households already face elevated auto insurance costs, and the mandated change adds to required spending for compliance.According to a department bulletin.
The New Jersey Department of Banking and Insurance regulates the insurance industry in the state and oversees compliance with coverage requirements, rate filings, and consumer protections. The department issues bulletins to insurers on law changes, reviews rate applications, and maintains resources for residents on policy requirements and affordability issues. It enforces statutes including updates to minimum liability limits that affect drivers statewide.According to information from the department.
