What the New 35/70/25 Minimums Mean for Your Wallet
If you live in the Garden State, January 1, 2026, brought a significant change to your policy. New Jersey has officially completed the final phase of its auto insurance reform, raising the mandatory minimum liability limits for the first time in decades.
The New Numbers Previously, many drivers carried “25/50/25” coverage. As of 2026, the new legal baseline is 35/70/25:
- $35,000 for bodily injury per person (Up from $25k).
- $70,000 for bodily injury per accident (Up from $50k).
- $25,000 for property damage (Unchanged).
Why the Change? Rising medical costs and the high cost of high-tech car repairs meant that the old $25,000 limits were often exhausted after a single ER visit, leaving drivers vulnerable to personal lawsuits.
What You Need to Do: Your insurer likely adjusted these limits automatically at your 2026 renewal. However, you should check your “Declarations Page.” If you have an Umbrella Policy, you must ensure your new auto limits still meet the “underlying limit” requirements of your umbrella carrier to avoid a massive gap in your protection.