Liability-Only Auto Insurance in New Jersey

In New Jersey, drivers must carry minimum auto liability coverage of 35/70/25. New Jersey is a choice no-fault state. Coastal home insurance costs are elevated due to hurricane and flood risk. In 2023, the average New Jersey driver spent $1,573 per insured vehicle (NAIC Auto Insurance Database Report, 2023 data), and where liability-only auto insurance fits into that depends on your coverage level and profile.

Liability-only auto insurance pays for bodily injury and property damage you cause to other people in an accident. It does not cover damage to your own vehicle. Every state except New Hampshire requires some form of liability coverage, making it the baseline legal requirement for most drivers.

This type of policy is split into two parts: bodily injury liability (BI) and property damage liability (PD). Bodily injury covers medical bills, lost wages, and legal fees for the other party, while property damage covers repairs to their vehicle or other property you damage.

Liability-only is the most affordable way to stay legal on the road. It's a practical choice for drivers with older vehicles where the cost of collision and comprehensive coverage would exceed the car's value. However, if you're in an at-fault accident, you'll pay for your own vehicle repairs and medical bills out of pocket.