New Year, New Limits: How NJ’s Auto Insurance Law Could Affect Potential Accident Settlements in 2026
As we navigate the opening weeks of 2026, New Jersey drivers are finding themselves on a road that looks very different from a legal and financial perspective. For many decades, our state maintained insurance coverage limits that were among the lower minimum requirements in the country. This frequently meant that when a serious accident occurred, victims were left with settlements that barely scratched the surface of their medical expenses. That being said, the final stage of a multi-year legislative overhaul has officially arrived. As of January 1, 2026, the second phase of New Jersey’s insurance reform is now the law of the land, with insurance coverage increases that apply to all standard auto policies. (These increases don’t apply to New Jersey’s ‘basic’ auto policy, which is treated differently from standard policies.)
At Bramnick, Grabas, Arnold & Mangan, LLC, we have spent decades standing by the side of those injured on our highways and local streets. We have witnessed the frustration of families who realized too late that the driver who hit them carried a policy that was insufficient for the level of harm caused. These 2026 changes represent a proactive shift toward better protection for everyone. Whether you are currently handling an insurance renewal or have recently been involved in a collision, understanding these new limits can be the first step in protecting your future.
The Shift to $35,000 Minimums in 2026
The primary change that took effect on January 1, 2026, involves the mandatory minimum for bodily injury liability on standard policies. Liability insurance is the protection that covers costs if you are found at fault for an accident. More importantly for victims, it is the primary source of compensation when someone else causes you harm.
The evolution of these limits has been a steady climb. Prior to 2023, the state required only $15,000 per person in coverage. That number rose to $25,000 in 2023. Now, in 2026, the law requires a minimum of $35,000 for injury or death to one person and $70,000 for injury or death to more than one person in any single accident. (Property damage liability minimums remain $25,000 per accident.)
While a $10,000 increase from the previous limit might seem like a small adjustment, it is a significant victory for consumer safety. In the context of modern healthcare costs, every thousand dollars of coverage matters. For an accident victim in 2026, this higher floor means there is more immediate financial support available to address the rising costs of emergency care and long term rehabilitation.
How These New Limits Impact Your Settlement Negotiations
When we begin a personal injury case, we immediately look at all available insurance layers. In years past, low bodily injury coverage limits have been common constraints impacting cases that involve even the most severe injuries. If your surgical bills exceeded those amounts, the path to a full recovery was complicated.
The 2026 limits provide more coverage and a higher starting point for these negotiations. This is particularly beneficial for what many consider moderate accidents. For example, a displaced fracture or a significant concussion often generates medical bills and lost wages in the $30,000 to $40,000 range. Under the old rules, these victims could frequently be left with a gap in their compensation, even when pursuing recovery through all avenues, including multiple polices where appropriate. Today, the new $35,000 per person minimum brings the available insurance much closer to the reality of 2026 medical costs.
The same law also raised the minimum Uninsured and Underinsured Motorist (UM/UIM) limits required in standard policies. Your insurer may increase UM/UIM limits at renewal if your existing limits would otherwise fall below the new minimums. This is the portion of your own policy that protects you if you are hit by someone with no insurance or whose limits are too low to pay for your damages. Because the law has raised the bar for liability, it has also raised the bar for your own safety net.
Navigating the Landscape of Commercial and Truck Accidents
While the changes for individual drivers are significant, the 2026 legal environment is even more complex for those involved in accidents with commercial vehicles. New Jersey also has separate minimum liability rules for certain commercial motor vehicles and autocabs. In recent years, New Jersey has taken a much firmer stance on commercial liability. As a result of increases in insurance coverage requirements that went into effect July 1, 2024, depending on the vehicle’s Gross Vehicle Weight Rating (GVWR), required coverage may be $300,000 CSL or $1.5 million CSL.
This is a critical detail for anyone hit by a delivery van, a semi truck, or a tractor-trailer. These accidents often result in catastrophic injuries that require lifetime care. Knowing that these higher limits exist is only half the battle. You need a legal team that knows how to identify all parties in the chain of commerce to ensure that the $1.5 million limit is actually accessible for your recovery. At Bramnick, Grabas, Arnold & Mangan, LLC, our experience in these high-stakes claims allows us to dig deeper into corporate insurance structures to find the coverage you deserve.
The Limitation on Lawsuit Threshold in 2026
Despite the increase in policy minimums, we must still contend with the Limitation on Lawsuit threshold, also known as the verbal threshold. Many New Jersey drivers select this option on their policies to keep their monthly premiums lower. In doing so, they agree that they cannot sue for non-economic damages, such as pain and suffering, unless their injury meets specific legal criteria.
As we move through 2026, this threshold remains a major hurdle. Even with higher policy limits available, an insurance company will still argue that your injury is not permanent enough to qualify for a pain and suffering payout. Our role is to provide the objective medical proof required by New Jersey law to overcome this defense. We work closely with medical professionals to document how an injury has changed your life, ensuring that the 2026 insurance limits are used to compensate you for the full extent of your ordeal.
Putting a Legislator’s Perspective to Work for You
When you are facing an insurance company that is trying to minimize your claim, having a law firm that understands how the law was written is an invaluable asset. Our founding partner, Jon Bramnick, has served as a leader in the New Jersey legislature for many years. This unique dual role gives our firm a perspective that few others can match. We do not just read the statutes; we understand the legislative intent behind the insurance increases we are seeing in 2026.
We know that these laws were designed to protect the “little guy” from being undercompensated after a life-altering crash. When we negotiate with insurance adjusters, we speak with the authority of a firm that has helped shape the legal standards in Trenton. This deep knowledge allows us to anticipate the arguments the insurance companies will use to avoid paying the new $35,000 or $70,000 limits. We are committed to ensuring that the progress made in the legislature translates into real results for you at the settlement table.
Contact Bramnick Law Today for a Consultation About Your Case
If you or someone you love has been injured in a motor vehicle accident in 2026, you may have more options for recovery than you realize. The new insurance minimums are designed to help you, but they are not automatically handed over by the insurance carriers. You need an advocate who understands the nuances of the new law and has the trial experience to back it up.
You can reach us by calling our office or visiting our website to schedule your free consultation. We have offices conveniently located in Scotch Plains, Newark, Clifton, Cherry Hill, Elizabeth, and Westfield to serve you. Our firm operates on a contingency fee basis, meaning we do not get paid unless we recover a settlement or verdict for you. Let us help you navigate these new 2026 standards and fight for the maximum compensation available for your recovery.
Disclaimer: The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.