Personal Automobile Insurance Plan (PAIP)

PAIP insurance is a type of insurance for high-risk drivers in New Jersey. It is often more expensive than regular auto insurance. One of the most significant factors in determining your rates is where you live and store your vehicle. NJ PAIP insurance is usually a last resort insurance option.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Jul 16, 2021

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Things to Remember

  • PAIP insurance is a type of auto insurance for high-risk drivers in New Jersey.
  • It will often cost more than regular auto insurance, since you are likely to be a high-risk driver.

High-risk drivers searching for auto insurance in New Jersey may have heard about PAIP insurance. But what is it, and is it right for you? Below, we’ll cover the basics, including how much PAIP insurance costs and how to get it.

PAIP may not be your only option. Enter your ZIP code above to compare auto insurance quotes from companies in your area for free today.

What is PAIP insurance?

PAIP insurance is a program set up in New Jersey that assigns high-risk drivers that wouldn’t normally qualify for auto insurance to various auto insurance companies at standard rates. It is also known as assigned risk.

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, drivers who live in high-risk areas, etc.

Drivers who want to qualify for PAIP insurance 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. Or you can qualify by having a suspended license due to a lack of insurance.

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How much is NJ PAIP auto insurance?

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.

There are two different PAIP auto insurance plans — Standard and Basic. Standard PAIP auto insurance rates will be more expensive than Basic, but it will also offer more coverage.

One of the biggest factors taken into account when determining your 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.

How can I buy PAIP auto insurance?

If you have been in touch with an auto insurance agent in New Jersey, you can ask them about insurance for high-risk drivers. You may also contact NJ PAIP through their website ( or call them at (800) 446-7467 to receive PAIP auto insurance quotes.

NJ PAIP will assign you to a PAIP auto insurance company, and you will 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 percent of your premium upfront and make payments for the rest of your premium over nine months.

PAIP Insurance: The Bottom Line

PAIP insurance is a type of insurance for high-risk drivers that allows them to meet the 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 affordable auto insurance, enter your ZIP code into our free quote comparison tool below.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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