New Jersey Raises Minimum Coverage Limits for Motorists with Standard Auto Policies

On August 5, Governor Murphy signed a law raising the minimum liability, property damage, uninsured motorist, and underinsured motorist coverage limits for personal auto policies. The new law applies to all standard auto policies.

The current minimum coverage for a standard auto policy is $15,000 per person for bodily injury coverage, $30,000 per accident for bodily injury coverage, and $5,000 per accident for property damage coverage. These same minimum limits apply to uninsured and underinsured motorist coverage.

The new law, which was enacted by the State Senate and General Assembly, will be implemented in two phases.

The first-phase increase goes into effect on January 1, 2023, when all new or renewed policies must carry minimums of $25,000 per person for bodily injury coverage, $50,000 per accident for bodily injury coverage, and $25,000 per accident for property damage coverage. These same higher limits will also apply to uninsured and underinsured motorist coverages.

The second-phase increase goes into effect on January 1, 2026, when all new or renewed policies must carry minimums of $35,000 per person for bodily injury coverage and $70,000 per accident for bodily injury coverage. The same $25,000 limit for property damage remains. These same higher limits will also apply to uninsured and underinsured motorist coverages.

Increased minimum liability limits are good for all policyholders, as carrying lower limits exposes you to lawsuits and a subsequent loss of personal assets. The increases will also further protect you in the event of an accident with an underinsured or uninsured motorist.

For questions about the new minimum requirements, contact your insurance agent and we will be happy to guide you.

By Colleen Woods-Esposito