All registered vehicles in New Jersey are required to be covered by three types of liability insurance, or “financial responsibility.” The minimum financial responsibility requirements for New Jersey drivers are as follows:

  • A minimum of $5,000 for liability insurance, which pays for damages that you cause to other people’s property.

  • A minimum $15,000 for personal injury protection, which pays for medical expenses if you or other people on your policy are injured in an accident, regardless of who was at fault. This is also called “no-fault insurance” by many insurance providers.

This means that the total minimum amount of financial responsibility you will need is $20,000 to cover liability insurance and personal injury protection or “no-fault insurance.”

  • New Jersey law also requires that your insurance policy include uninsured or under-insured motorist coverage, which protects you in the event you are in an accident with a driver who does not carry the legally required liability insurance.

Special Automobile Insurance Policy Program

Citizens of New Jersey that are enrolled in federal Medicaid are eligible for the New Jersey Special Automobile Insurance Policy program, or SAIP. This is a low-cost insurance policy that pays for medical costs after a car accident. Most authorized New Jersey insurance providers offer plans under the SAIP.

Proof of insurance

New Jersey has very strict regulations for what constitutes proof of insurance. All authorized insurance companies in New Jersey are required to issue New Jersey Identification Cards for each vehicle that is covered under a policy. This card is the only valid form for proof of insurance, and must meet the following regulations:

  • The card must be made of white cardstock that is at least 20 lb weight.

  • The card must be between three by five inches, and five and a half by eight and a half inches.

Each card must display the following information:

  • The insurance company’s name

  • The names of all people covered on the policy, and their associated addresses, which must be listed on the back of the card, and must be identical to the address they use for medical purposes.

  • The insurance policy number

  • The effective and expiration dates of the insurance policy

  • The vehicle’s make, model, and vehicle identification number

  • The heading “State of New Jersey Insurance Identification Card”

  • The authorized insurance company code

  • The name and address of the insurance company or agency

This card must be presented before an inspection, at the scene of an accident, in the event you are stopped for a traffic violation, or when any law enforcement officer spot checks your vehicle.

Violation penalties

Failing to present proof of insurance may result in fines. If you are caught driving an uninsured vehicle in New Jersey, you may face certain penalties including:

  • Fines

  • Community service

  • License suspension

  • Insurance surcharges

For more information, contact the New Jersey Motor Vehicle Commission through their website.

This article originally appeared on YourMechanic.com as Insurance Requirements for Car Registration in New Jersey and was authored by Valerie Johnston.


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