New Jersey Auto Liability Minimums Increase January 1, 2026: What Businesses & Individuals Need to Do Now
Starting January 1, 2026, all New Jersey auto policies (commercial and personal) will see higher mandatory liability limits. Here is what you need to know and do before renewal season hits.
What’s Changing
Effective January 1, 2026, New Jersey’s second phase of auto insurance reform raises the state’s required liability minimums:
- Bodily Injury: $35,000 per person / $70,000 per accident
- Property Damage: $25,000 per accident (unchanged)
These new minimums apply to all new and renewal auto policies issued on or after January 1, 2026.
Insurers are required to update policy forms and notify policyholders. Uninsured/Underinsured Motorist (UM/UIM) limits will also increase since they track liability minimums. (Sources: New Jersey Department of Banking and Insurance (DOBI) Bulletins 22-09 and 25-06 www.nj.gov/dobi/bulletins/blt22_09.pdf; www.nj.gov/dobi/bulletins/blt25_06.pdf).
Why It Matters
Even if you already carry higher limits, this change can affect how your umbrella, renewal, and contract compliance line up.
- Commercial fleets: Review umbrella and excess programs now to confirm your total coverage still meets your exposures and contract requirements.
- Personal auto clients: Check your umbrella policy. Some carriers require matching base limits to keep umbrella coverage active.
- Renewal materials: Insurers were directed to update Buyer’s Guides and forms by 2026. If your renewal still shows old limits, ask your broker to confirm the carrier’s filings.
- Premium increases: Policies at the old minimums will automatically renew at the new limits. Expect modest premium increases and plan ahead.
What Insureds Should Do Now
For Businesses:
- Audit fleet schedules and Certificates of Insurance.
- Confirm vendors and drivers still meet your minimum insurance requirements.
- Update contracts and compliance materials to reflect the new statutory minimums.
For Individuals:
- Review your declarations page for correct limits and forms.
- Confirm your carrier’s 2026 filings are approved and rated correctly.
(Sources: New Jersey DOBI Bulletins 22-09 and 25-06 www.nj.gov/dobi/bulletins/blt22_09.pdf; www.nj.gov/dobi/bulletins/blt25_06.pdf).
Questions or need help preparing? SterlingRisk will continue to monitor DOBI updates and carrier filings as the effective date approaches. For questions about how these changes may affect your coverage or renewal strategy, contact your SterlingRisk Account Executive.
DISCLAIMER: This Client Alert is provided by SterlingRisk Insurance for general informational purposes only and should not be construed as legal or insurance advice. Always review your individual policy terms and consult your broker or legal counsel regarding your specific situation.
