New Jersey is a "choice" no-fault state (you can elect a no-fault or a traditional tort policy), and it requires PIP (Personal Injury Protection) of $15,000.
In a choice no-fault state you decide, when you buy the policy, between a no-fault option (your own PIP pays first, with limited right to sue) and a traditional tort option (you keep the full right to sue the at-fault driver).
New Jersey at a glance
Fault system
Choice no-fault
PIP required?
Yes — $15,000
UM/UIM in minimum?
Yes — $25,000/$50,000
Basic Policy option has lower minimums. Choice no-fault.
New Jersey Fault System — FAQ
Is New Jersey a no-fault state?
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New Jersey is a "choice" no-fault state (you can elect a no-fault or a traditional tort policy), and it requires PIP (Personal Injury Protection) of $15,000. In a choice no-fault state you decide, when you buy the policy, between a no-fault option (your own PIP pays first, with limited right to sue) and a traditional tort option (you keep the full right to sue the at-fault driver). Basic Policy option has lower minimums. Choice no-fault.
Does New Jersey require PIP or uninsured-motorist coverage?
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New Jersey prescribes Personal Injury Protection (PIP) of $15,000 as part of its minimum coverage. Uninsured/underinsured motorist bodily-injury coverage of $25,000/$50,000 is part of the state minimum.
Why does it matter whether New Jersey is no-fault or at-fault?
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It changes who pays and whether you can sue. In a no-fault state your own PIP pays your medical costs first and lawsuits are limited to serious injuries; in an at-fault state the at-fault driver's liability insurance pays and you keep the full right to sue. This affects which coverages you should carry. This is general information, not legal advice — confirm specifics with the New Jersey Department of Insurance or a licensed attorney.
Related guides and tools
Sarah Mitchell
Editorial Lead, Property & Casualty
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed July 2026
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