New Jersey Personal Automobile Insurance Plan (NJ PAIP) in 2026
The New Jersey Personal Automobile Insurance Plan (NJ PAIP) helps high-risk drivers get coverage, though you'll pay higher rates. Drivers seeking high-risk car insurance could pay well over $200/mo for coverage. Below, we'll show you how to secure a policy under New Jersey's automobile insurance plan.
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Insurance Content Team Lead
Tonya Sisler has been a technical insurance writer for over five years. She uses her extensive insurance and finance knowledge to write informative articles that answer readers' top questions. Her mission is to provide readers with timely, accurate information that allows them to determine their insurance needs and choose the best coverage. Tonya currently leads a team of 10 insurance copywrite...
Tonya Sisler
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Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Daniel Walker
Updated September 2024
- NJ PAIP insurance offers coverage to high-risk drivers in the state
- You’ll pay more expensive rates for high-risk car insurance coverage
- Insurers consider you high risk if you’re young or have a driving record
The New Jersey Personal Automobile Insurance Plan, or New Jersey PAIP, offers NJ high-risk auto insurance coverage to drivers who can’t get coverage elsewhere. However, you’ll pay much higher rates for NJ assigned risk auto insurance than for standard coverage.
Read More: Assigned Risk Pool Auto Insurance
Below, we’ll cover the basics, including how much NJPAIP insurance costs and how to find the cheapest NJ high-risk insurance. You should also check out NJPAIP reviews to see if the program is right for you.
PAIP may not be your only option. Enter your ZIP code above to compare free high-risk auto insurance NJ quotes from companies in NJ today.
How to Buy New Jersey’s Personal Automobile Insurance Plan
What is PAIP? The NJ Personal Auto Insurance Plan (PAIP) is a program that offers insurance for high-risk drivers in NJ. The program assigns high-risk drivers that wouldn’t normally qualify for auto insurance to various companies at standard rates. It is also known as assigned risk auto insurance.
Read More: Auto Insurance in New Jersey
High-risk drivers may be new drivers, drivers who have a history of traffic violations, elderly or young teen drivers, drivers with poor credit history, or drivers who live in high-risk areas.Scott W. Johnson Licensed Insurance Agent
Drivers who want to qualify for personal insurance with NJ PAIP have to prove that they cannot find auto insurance coverage through regular means. You must live in New Jersey, have a registered vehicle, and have a valid driver’s license. You can also qualify by having a suspended license due to a lack of insurance.
If you have been in touch with an auto insurance agent in New Jersey, you can ask them about auto insurance for high-risk drivers. You can also visit the NJ PAIP website at njpaip.com, or contact the NJ PAIP insurance phone number at 1-800-446-7467 to compare quotes.
The New Jersey Automobile Insurance Plan (PAIP) will assign you to a New Jersey automobile insurance company, and you’ll have to provide your driver’s license, registration, proof of insurance points, and the names of companies who have denied you.
You can choose between two payment options. You can either pay your premiums in advance or pay 30% of your premium upfront and make payments for the rest of your premium over nine months.
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NJ Personal Automobile Insurance Plan Cost
Regular New Jersey auto insurance is generally more expensive than the national average, and PAIP insurance is generally even higher than that due to the high-risk nature of most drivers insured through the program. For example, you might need PAIP insurance in NJ if you have a spotty driving record.
Read More: Cheap Auto Insurance for a Bad Driving Record
Check out the table below to see how much you could pay for car insurance based on your driving record:
DUI Full Coverage Auto Insurance Monthly Rates vs. Clean Record by Provider
| Insurance Company | Clean Record | One DUI |
|---|---|---|
 | $86 | $240 |
 | $160 | $225 |
 | $117 | $176 |
 | $97 | $166 |
 | $139 | $198 |
 | $80 | $132 |
 | $174 | $234 |
 | $115 | $161 |
 | $105 | $186 |
 | $86 | $202 |
 | $112 | $250 |
 | $99 | $239 |
| U.S. Average | $119 | $173 |
There are two different PAIP auto insurance plans: standard and basic. Rates for the standard NJ Automobile Insurance Plan will be more expensive than basic, but it will also offer more coverage.
One of the biggest factors that affect auto insurance rates is where in New Jersey you live. If you live in a higher risk area, your rates will be higher. For example, if you park your car on the street, your rates will be higher than someone who parks in a garage.
Read More: How to Get a Garaging & Storing Auto Insurance Discount
See if NJ PAIP Insurance Is Right for You
The NJ Personal Auto Ins Plan (PAIP) is a type of New Jersey high-risk auto insurance that drivers to meet the minimum state requirements for auto insurance. However, rates will often be higher than those of regular auto insurance.
If you don’t qualify for PAIP and need help finding cheap car insurance for high-risk drivers in NJ, enter your ZIP code into our free quote comparison tool below.
Read More: How to Evaluate Auto Insurance Quotes
Frequently Asked Questions
What is the purpose of the New Jersey Personal Automobile Insurance Plan?
The New Jersey Personal Automobile Insurance Plan (NJ PAIP) is a program designed to provide NJ auto insurance for high-risk drivers who are unable to obtain insurance through the voluntary market. It is administered by the New Jersey Automobile Insurance Plan (NJAIP) and ensures that all drivers have access to the required minimum auto insurance coverage.
Who is eligible for the New Jersey Personal Automobile Insurance Plan?
The New Jersey Personal Automobile Insurance Plan (PAIP) offers NJ car insurance for high-risk drivers denied coverage for their poor driving record or high-risk factors. Additionally, drivers who are unable to secure coverage at affordable rates in the voluntary market may also qualify for the program.
How does the New Jersey Personal Automobile Insurance Plan work?
The New Jersey Personal Automobile Insurance Plan, also known as 996 New Jersey Automobile Insurance Plan (PAIP), assigns drivers to high-risk insurance in NJ from certain providers. Each participating company is required to accept a certain number of NJ PAIP applicants. The premiums for coverage under the plan may be higher than those in the voluntary market due to the higher risk associated with these drivers.
Can I choose my insurance company under the New Jersey Personal Automobile Insurance Plan?
No, the New Jersey Personal Automobile Insurance Plan assigns drivers to a participating auto insurance company in NJ based on a rotational system. Drivers cannot choose their insurance company under this plan.
What types of coverage are available under the New Jersey Personal Automobile Insurance Plan?
The New Jersey Personal Automobile Insurance Plan provides the same types of coverage as the voluntary market, including liability coverage, personal injury protection (PIP), uninsured/underinsured motorist coverage, and physical damage coverage (comprehensive and collision). However, the availability of additional coverage options may vary among participating companies.
Ready to shop for high-risk car insurance in NJ? Enter your ZIP code into our free quote tool below to compare rates from the top NJ high-risk car insurance providers near you.
Can I get discounts on my New Jersey Personal Automobile Insurance Plan premiums?
The New Jersey Personal Automobile Insurance Plan does not offer the same discounts and rating factors as the voluntary market. Since the plan is designed to provide coverage for high-risk drivers, the premiums are generally higher and do not include common discounts such as safe driver discounts or good student discounts.
How long do I need to be in the New Jersey Personal Automobile Insurance Plan?
Drivers typically remain in the New Jersey Personal Automobile Insurance Plan until they can establish a more favorable driving record or find coverage in the voluntary market at affordable rates. It is important to maintain a clean driving record and demonstrate responsible driving behavior to improve your chances of transitioning out of the NJ PAIP.
Ready to get cheap auto insurance in NJ for high-risk drivers? Use our free quote comparison tool below to find affordable rates from the top car insurance companies in NJ for high-risk drivers.
How can I apply for the New Jersey Personal Automobile Insurance Plan?
To apply for the New Jersey Personal Automobile Insurance Plan, you should contact a licensed insurance agent or broker in New Jersey. They will assist you in completing the necessary application forms and guide you through the process of obtaining coverage under the plan.
Is PIP mandatory in NJ?
Yes, New Jersey law requires drives to carry personal injury protection (PIP) auto insurance coverage.
What is the cheapest car insurance in New Jersey?
Usually, Geico offers the cheapest rates overall in New Jersey, averaging $74/mo with a clean record.
Read More: New Jersey Auto Insurance
What is the NJ Personal Auto Insurance Plan (PAIP) claims phone number?
What is AIPSO NJ?
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