Teen Driver Insurance in New Jersey: Parents' Guide
New Jersey requires 35/70/25 liability coverage and is a no-fault state.
Compare Teen Driver Insurance RatesNew Jersey at a Glance
35/70/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
No-fault
Each driver's own policy pays their injuries first, whoever caused the crash
Required
PIP and Uninsured motorist coverage must be on every policy
16
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
Minimum Coverage Requirements in New Jersey
The state operates a graduated licensing system: teens receive a learner's permit at 16, an intermediate license at 17 (with passenger and curfew restrictions), and can apply for an unrestricted license at 18 after holding the intermediate license for one year. New Jersey law mandates that all insurers offer good student discounts to policyholders under 25 who maintain a B average or better, making it one of the few states where this discount is legally required rather than optional.
Liability Insurance
Uninsured/Underinsured Motorist Coverage
Personal Injury Protection (PIP)
Collision Coverage
Comprehensive Coverage
What Drivers Pay in New Jersey
$326–$579/mo
Typical monthly rate in New Jersey, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
Find the Right Policy for Your Teen
Compare Teen Driver Insurance RatesRules for new drivers
Night driving
11pm-5am
Passengers
no more than 1 passenger
Source: IIHS and state DMV records, verified July 2026
Coverage Types
Adding Teen to Parent's Policy vs. Standalone Coverage
Adding a teen to a parent's existing policy is almost always cheaper than purchasing standalone coverage. Parents typically pay $3,200–$5,800/year more when adding a 16–17-year-old, while standalone policies for the same teen often cost $7,000–$12,000/year.
Full Coverage for Teen Drivers
Full coverage (liability + collision + comprehensive + PIP + UM/UIM) protects both the teen's vehicle and the family's assets. For financed vehicles or newer cars worth over $10,000, lenders require full coverage regardless of driver age.
Liability-Only Coverage for Teens in Older Vehicles
Parents placing teens in vehicles worth under $5,000 often choose liability-only coverage (meeting state minimums plus UM/UIM) to avoid paying collision/comprehensive premiums that can exceed the vehicle's value after a single claim.
Good Student Discount (Mandated)
New Jersey law requires all insurers to offer discounts to policyholders under 25 who maintain a B average (3.0 GPA) or appear on the honor roll or dean's list. This is not an optional carrier program but a state-mandated benefit.
Telematics and Usage-Based Programs
Telematics programs use a mobile app or plug-in device to monitor driving behavior—braking, acceleration, cornering, speed, and time of day. Safe drivers earn discounts of 15–30%, making these programs especially valuable for parents who want to verify and reward safe teen driving.
Named Driver Exclusion (Use With Caution)
Some parents attempt to exclude a teen driver from their policy to avoid premium increases. In New Jersey, this means the excluded driver has zero coverage if they drive any vehicle on the policy, and the parent can be held personally liable for damages.