New Jersey Auto Insurance Minimum Limits Increase January 1, 2026: What Drivers Need to Know

New Jersey drivers will soon see another important change to auto insurance requirements. Beginning January 1, 2026, the state will increase the minimum auto liability coverage limits required on most automobile insurance policies. This change is part of a multi-year legislative update designed to better protect drivers, passengers, and pedestrians in the event of an accident.

👉 If you’d like to understand how these changes may affect your premium or explore higher coverage options, you can request an auto insurance quote from LG Insurance Agency at any time.

Why Are Auto Insurance Minimums Increasing?

On August 5, 2022, New Jersey enacted P.L. 2002, c.87, which amended existing auto insurance laws to increase minimum limits for:

• Liability coverage

• Uninsured Motorist (UM) coverage

• Underinsured Motorist (UIM) coverage

These changes apply to standard New Jersey auto policies (excluding basic auto insurance policies) and are being rolled out in two phases.

Phase One: Already in Effect

The first phase took effect for policies issued or renewed on or after January 1, 2023, increasing minimum coverage limits to:

• $25,000 per person

• $50,000 per accident

If your policy was renewed after this date, you’ve already seen this adjustment. If you’re unsure, LG Insurance Agency can quickly review your current limits and provide a quote reflecting today’s requirements.

Phase Two: Effective January 1, 2026

The second and final phase takes effect Thursday, January 1, 2026, and further increases minimum liability limits to:

• $35,000 per person

• $70,000 per accident

The property damage minimum remains unchanged at $25,000 per occurrence.

Policies with lower limits will be adjusted at renewal—but this is also an ideal time to request a quote from LG Insurance Agency to see how higher limits or additional protection may better fit your needs.

What Insurers Are Required to Do

The New Jersey Department of Banking and Insurance (DOBI) issued Bulletin No. 25-06, providing guidance on rates, policy forms, and customer notifications.

Under the law, insurance carriers must notify named insureds upon renewal that:

• Their policy limits have been increased pursuant to N.J.S.A. 39:6B-1

• Their previous limits no longer met New Jersey’s minimum requirements

PIA has also developed a sample notification letter to help agents communicate these changes clearly to clients.

A Reminder on Commercial Auto Liability Minimums

For business owners, commercial auto insurance minimum limits increased effective July 1, 2024:

• Vehicles over 26,000 lbs. GVW: Minimum $1.5 million liability coverage

• Vehicles between 10,001–26,000 lbs. GVWR: Minimum $300,000 liability coverage

These requirements can be met through commercial auto, fleet, umbrella, or excess policies—or a combination of coverage. Due to confusion around implementation, DOBI issued Bulletin 24-07 to clarify compliance.

👉 LG Insurance Agency works closely with business owners to structure compliant and cost-effective commercial auto solutions. Request a commercial auto quote to ensure your coverage meets current New Jersey requirements.

What This Means for You

While meeting state minimums keeps you compliant, minimum limits often aren’t enough to protect your finances in a serious accident. Medical costs, lawsuits, and vehicle repairs can quickly exceed required limits.

Now is the perfect time to:

• Review your auto insurance limits

• Consider higher liability coverage or an umbrella policy

• Compare pricing and options by requesting a quote

Request Your Auto Insurance Quote Today

At LG Insurance Agency, we help New Jersey drivers and businesses stay ahead of regulatory changes while securing the right coverage at the right value.

📞 Request an auto insurance quote or commercial insurance quote from LG Insurance Agency today and make sure your policy is compliant, competitive, and built for the road ahead.