New Jersey Basic vs. Standard Auto Policy: What's the Difference?

Published by Prominent Insurance Services on August 10, 2026 in Auto Insurance.

New Jersey offers a Basic and a Standard auto policy. Learn what each covers, the state's updated 35/70/25 minimum limits, and why most NJ drivers need more than the Basic policy provides.

Quick answer: New Jersey is one of the only states with two legal tiers of auto insurance. The Standard policy — what most drivers carry — now requires liability limits of at least 35/70/25 following the state's January 1, 2026 increase. The Basic policy is a stripped-down, low-cost option with no bodily injury liability by default and only $5,000 in property damage coverage. The Basic policy satisfies the law, but it leaves most drivers with serious financial exposure.

New Jersey's Updated Minimum Limits

New Jersey has raised its Standard policy minimums in two steps: from 15/30/5 to 25/50/25 on January 1, 2023, and again to 35/70/25 on January 1, 2026. That means a Standard policy now includes at least:

  • $35,000 bodily injury liability per person
  • $70,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

    • Standard policies also include Personal Injury Protection (PIP), which pays your own medical expenses after an accident regardless of fault, and uninsured/underinsured motorist coverage.

    What the Basic Policy Includes — and Leaves Out

    The Basic policy was created as a bare-minimum option for drivers who could not otherwise afford coverage. It includes:

  • $5,000 property damage liability
  • $15,000 PIP per person, per accident (up to $250,000 for certain severe injuries)
  • No bodily injury liability by default — a $10,000 option can be added

    • What it leaves out is significant: with no bodily injury liability, if you injure someone in an at-fault accident, there is no coverage to pay their medical costs or defend you in a lawsuit. Your wages, savings, and assets are exposed. The Basic policy also does not include uninsured motorist coverage, so you have limited recourse if an uninsured driver hits you.

    The Right-to-Sue Choice

    On a Standard policy, New Jersey drivers also choose between an unlimited right to sue and a limited right to sue. With the limited option, you give up the right to sue an at-fault driver for pain and suffering unless your injury falls into defined categories such as death, dismemberment, significant disfigurement or scarring, displaced fractures, loss of a fetus, or a permanent injury. The limited option lowers premium; the unlimited option preserves your rights. Basic policy holders are automatically subject to the limited right to sue.

    Who Should Consider Which Policy?

  • Standard policy (most drivers): Anyone with income, savings, a home, or dependents. Even the new 35/70/25 minimums are modest relative to real accident costs — a single serious injury can exceed $70,000 quickly — so many advisors suggest limits of 100/300/100 where the budget allows.
  • Basic policy (a narrow group): The state itself describes the Basic policy as suited mainly to drivers with few assets and no dependents who would otherwise go uninsured — for example, some students or drivers in temporary financial hardship. It is a floor, not a plan.

    • Don't Forget Umbrella Coverage

    If you have meaningful assets, liability limits on any auto policy can be extended with a [personal umbrella policy](/umbrella-insurance), which adds $1 million or more of liability protection over your auto and home policies. For New Jersey drivers weighing umbrella options, see our guide on [umbrella insurance vs. excess liability in New Jersey](/blog/umbrella-insurance-vs-excess-liability-new-jersey).

    This guide is educational and is not a coverage recommendation; requirements and policy options are set by New Jersey law and vary by insurer. For a personalized comparison of Standard policy options from multiple carriers, [schedule a free strategy session](/strategy-session) or call 302-351-3368. See also our [New Jersey insurance overview](/insurance-new-jersey).

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