New Jersey has some of the most complex auto rules in the country — no-fault PIP, the Standard vs. Basic policy choice, and the lawsuit-threshold decision. As an independent agency, we compare multiple carriers and explain every option in plain language, so you get real protection at a fair price — not just the state minimum.
Coverage is subject to eligibility and carrier underwriting.
Since January 1, 2026, a New Jersey Standard auto policy must carry at least these limits (P.L. 2022, c. 87; NJ DOBI Bulletin 25-06).
| Coverage | Minimum (Standard policy) |
|---|---|
| Bodily injury liability | $35,000 per person / $70,000 per accident |
| Property damage liability | $25,000 per accident |
| Personal Injury Protection (PIP) | $15,000 |
| Uninsured / underinsured motorist | $35,000 per person / $70,000 per accident |
$25,000 of property damage coverage may not replace a newer car you hit, and $35,000 of bodily injury coverage can be exhausted quickly by a serious injury. Anything above your limits can become your personal responsibility. If you own a home or have savings, higher limits — and often an umbrella — are worth pricing.
Injuries and damage you cause to others in an at-fault accident, and your legal defense.
New Jersey’s no-fault medical coverage for you and your passengers, regardless of who caused the accident.
Covers your injuries when the at-fault driver has no insurance or not enough of it.
Repairs or replaces your own car after a crash, regardless of fault. Lenders and lessors require it.
Theft, vandalism, fire, flood, falling trees, and hitting a deer.
Rental reimbursement, roadside assistance, gap coverage for loans and leases, and new-car replacement where available.
1. Standard or Basic policy. The Basic policy is a low-cost option with very limited protection: $5,000 of property damage liability, $15,000 of PIP, and bodily injury liability only as an optional $10,000 add-on. It does not include uninsured motorist coverage. The Standard policy carries the minimums shown above and lets you buy higher limits and additional coverages.
2. The lawsuit threshold. On a Standard policy you choose between two options. With Limitation on Lawsuit, you can sue an at-fault driver for pain and suffering only if your injury falls into certain serious categories, such as permanent injury, displaced fractures, or significant scarring; the premium is lower. With No Limitation on Lawsuit, you keep the right to sue for pain and suffering for any injury; the premium is higher. Your medical bills are covered by PIP under either option.
3. Your PIP limit and how it works with health insurance. PIP is available from the $15,000 minimum up to $250,000. Depending on your health plan, you may be able to make your health insurance primary for auto injuries, which can lower the premium — but not every health plan qualifies, and the coordination details matter. We will walk through how your coverage would actually respond.
Each of these is a tradeoff between premium and protection, and the right answer depends on your health coverage, assets, and tolerance for risk. We will lay out what each option means for you; the decision is yours.
Pennsylvania requires at least $15,000 per person / $30,000 per accident of bodily injury liability, $5,000 of property damage liability, and $5,000 of first-party medical benefits. Pennsylvania drivers also choose between limited tort and full tort, which, much like New Jersey’s lawsuit threshold, determines your right to sue for pain and suffering. We write auto policies in both states.
Because we are independent, we compare these carriers side by side — so New Jersey drivers get the right fit, not whatever one company happens to sell.
Do not see your current carrier? We work with additional markets — contact us to review your driving situation.
Answer 5 quick questions and we’ll flag the coverage gaps New Jersey drivers commonly miss — plus send you our free checklist.
Takes about 60 seconds. No account needed — your answers stay private.
A one-page checklist to review your auto policy like a pro — before you renew.
Generally, coverage follows the car when someone you allow to drive it has an accident, though household members who drive regularly should be listed on the policy. Rules vary by carrier, and some policies exclude specific drivers.
It can. At-fault accidents and moving violations commonly affect pricing at renewal, and how much depends on the carrier and the severity. Comparison shopping matters most after a rate change.
They are optional unless your car is financed or leased. For an older car of modest value, the premium and deductible may outweigh the potential payout — we can run the numbers with you.
Often, and many carriers discount multi-policy households. We compare bundled and separate options to find the better total price.
Higher physical damage deductibles, available discounts (multi-policy, safe driver, good student, telematics programs), and comparing carriers at renewal. Cutting liability limits or UM/UIM coverage saves the least and risks the most.
Sample layout — real client reviews coming soon.
Placeholder for a client review about saving on auto insurance and understanding the lawsuit-threshold choice.
Placeholder for a client review about getting help with an auto claim.
Placeholder for a client review about the agency re-shopping the auto policy at renewal.
We will review your limits, your lawsuit-threshold and PIP selections, and your UM/UIM coverage — then compare carriers side by side.
Cadabra Asset Protection LLC is a licensed independent insurance agency serving New Jersey and Pennsylvania. Michael Lindner Jr., licensed insurance producer.
Summary of New Jersey and Pennsylvania auto insurance requirements is for general information. New Jersey minimums are based on P.L. 2022, c. 87 and NJ DOBI Bulletin 25-06 (effective January 1, 2026). Requirements may change; consult the official Buyer’s Guide or Coverage Selection Form for your policy.
Coverage descriptions on this page are general summaries provided for informational purposes only. Coverage, limits, endorsements, and exclusions vary by carrier and by state, and actual coverage is governed solely by the terms of the issued policy. This page is not an offer of insurance and is not a guarantee that coverage will be issued. All coverage is subject to eligibility and carrier underwriting approval.
Nothing on this page is legal advice, and no attorney-client relationship is created by its use or by contacting this agency for insurance services.
