Significant Changes to Property Damage Coverage Are Now in Effect

For the first time since automobile insurance coverage minimums were established over 50 years ago, they are finally being raised to try to match the realities of the extent of damage which automobile collisions cause to both individuals and the vehicles they operate. In August 2022, the Governor of New Jersey signed A-4291/S-481, which increases the minimum coverage to $25,000 for bodily injury for one person in an accident, $50,000 for more than one person in an accident as of January 1, 2023 and later ramping up coverage to $35,000 for bodily injury for one person in an accident and up to $70,000 for more than one person in an accident in 2026.

Additionally, the bill raises the minimum coverage for property damage in an accident from $5,000 to $25,000 after Jan 1, 2023. This increase in coverage not only better protects drivers, but also ensures the facility tasked with making the necessary repairs has the flexibility to do so. Whereas, in the past, $5,000 of coverage led to possible personal exposure of the insured if the repairs exceeded this relatively low policy minimum that many people carried.

Additionally, prior to January 1, 2023, the minimum bodily injury coverage that insurance companies were