New Jersey announced that the final phase of its auto insurance law took effect Jan. 1, 2026, raising required liability limits to 35/70/25 for all new and renewed policies.
According to The Zebra, New Jersey has been updating its minimum coverage requirements since 2022. Drivers who were previously covered under lower minimums will need to purchase additional coverage to comply with the new standards. Insurance companies are required to notify named insureds of these increased limits at renewal.
Bankrate reports that the annual average cost of car insurance in New Jersey is $3,254 for full coverage and $1,413 for minimum coverage. These costs are significantly higher than the national averages—21 percent higher for full coverage and 72 percent higher for minimum coverage. Factors such as increased minimum requirements and local claims trends contribute to these high insurance costs in the state.
ValuePenguin notes that the average cost of full coverage car insurance in the United States for 2026 is projected at $208 per month or $2,496 per year. Nationally, rates are expected to increase by 0.67 percent. However, New Jersey’s premiums remain notably higher due to state-specific regulations and risk factors.
The New Jersey Department of Banking and Insurance (DOBI) oversees banking, insurance, and real estate industries within the state. It aims to protect consumers by managing licensing, ensuring compliance, and addressing complaints. Additionally, DOBI operates Get Covered New Jersey to help residents access affordable health insurance options.
