New Jersey Governor Signs Law Increasing Mandatory Automobile Liability Insurance

New Jersey Governor Signs Law Increasing Mandatory Automobile Liability Insurance

On August 5, 2022, Governor Phil Murphy signed bill S-481/A-4291, increasing automobile insurance coverage minimums. This is the first increase to the state minimums since they were first established.

 

Pursuant to the new law, the minimum amount of liability coverage for a standard automobile insurance policy increases to “$25,000 for plans issued or renewed on or after January 1, 2023 but prior to January 1, 2026, and $35,000 for plans issued or renewed on or after January 1, 2026, exclusive of interest and costs, on account of injury to, or death of, one person, in any one accident…” S-481(2)(1).

 

The per accident limits have likewise been increased. Under the new law, the minimums increase to “$30,000 for plans issued or renewed prior to January 1, 2023, $50,000 for plans issued or renewed on or after January 1, 2023 but prior to January 1, 2026, and $70,000 for plans issued or renewed on or after January 1, 2026, exclusive of interest and costs, on account of injury to or death of more than one person, in any one accident…” Ibid.

 

These same minimum policy limits apply to uninsured/underinsured coverage as well.

 

Summarily, this means that auto insurance policies issued:

  1. Issued on or after January 1, 2023, must provide liability, uninsured/underinsured motorist coverage in the amount of $25,000 per person, and $50,000 per accident; and
  2. Issued on or after January 1, 2026, must provide liability, uninsured/underinsured motorist coverage in the amount of $35,000 per person, and $70,000 per accident.

Property damage minimums will also increase from $5,000 to $25,000 as of January 1, 2023. S-481(3)(c).

 

While you will only be affected if you have the New Jersey State minimum coverage, the additional protections are being implemented to provide a more adequate recourse for those injured by negligent drivers.

Conclusion

If you have suffered injuries and wish to discuss your legal options, Farrell & Thurman, P.C., offers a variety of convenient ways to schedule a free, no-pressure consultation. You may do so directly on our website (Schedule a Consult), via phone (609-924-1115), or by email (Contact Us).