If you're driving in Manasquan, you're navigating one of the most interesting insurance landscapes in the country. New Jersey's no-fault insurance system gives you choices that drivers in most other states don't get—but it also means you need to understand what you're buying. Whether you're a year-round resident in this charming Monmouth County shore town or you're insuring a beach house near the inlet, here's what you need to know about auto insurance in Manasquan.
Understanding New Jersey's No-Fault Insurance System
New Jersey operates under a no-fault insurance system, which means that after an accident, your own insurance company pays your medical bills regardless of who caused the crash. This is handled through Personal Injury Protection (PIP) coverage, which is mandatory for all drivers. The minimum PIP coverage required is $15,000, though many experts recommend higher limits given the rising cost of medical care.
Here's what makes New Jersey different: you get to choose between a Basic Policy and a Standard Policy. A Basic Policy is the bare minimum—$15,000 in PIP and $5,000 in property damage liability. It's inexpensive, but it offers limited protection. Most Manasquan drivers opt for a Standard Policy, which includes bodily injury liability coverage and higher limits across the board. This is particularly important if you're driving to commute along the Shore or up to jobs in central New Jersey.
Big Changes Coming in 2026
If you're shopping for coverage now, you need to know about the changes coming January 1, 2026. New Jersey is raising its minimum bodily injury liability requirements from 15/30/5 to 35/70/25. That means $35,000 per person for bodily injury, $70,000 per accident, and $25,000 for property damage. The good news? If you already have a policy, your insurance company will automatically update your limits when your policy renews after that date—you don't need to do anything.
Why the increase? Medical costs and vehicle repair expenses have skyrocketed, and the old minimums from decades ago just don't provide adequate protection anymore. Even with these new minimums, many financial advisors recommend buying higher limits—especially if you have significant assets to protect. If you cause a serious accident and someone sues you for more than your policy covers, your personal assets could be at risk.
The Right to Sue Decision: Limited or Unlimited?
One of the most confusing parts of New Jersey auto insurance is the Right to Sue option, and it's a decision that has real financial consequences. If you choose a Standard Policy, you'll need to select either Limited Right to Sue or Unlimited Right to Sue.
With Limited Right to Sue, you give up the ability to sue for pain and suffering unless you meet the "verbal threshold"—meaning you've suffered a permanent injury like a broken bone, permanent scarring, or loss of a body part. This option costs less because you're accepting fewer legal rights. With Unlimited Right to Sue, you can sue for pain and suffering for any injury, no matter how minor. This flexibility costs more, but it gives you the full range of legal options if you're injured.
For many Manasquan families, the Unlimited Right to Sue option provides peace of mind, especially if you're frequently on congested roads like Route 35 or the Garden State Parkway. But if you're budget-conscious and healthy, Limited Right to Sue can save you hundreds of dollars per year while still providing solid coverage for serious injuries.
What Auto Insurance Costs in Manasquan and Monmouth County
Let's talk about the elephant in the room: New Jersey has some of the highest auto insurance rates in the nation. Full coverage averages between $2,736 and $3,443 annually depending on your insurer, age, driving record, and location. That's roughly $228 to $287 per month. And rates increased by an average of 17.2% in 2025, with projections showing another 6% increase expected during the year.
Why so expensive? New Jersey is the most densely populated state in the country, which means more traffic, more accidents, and more claims. Add in the state's no-fault system, high medical costs, and expensive vehicle repairs, and you've got a recipe for premium prices. In Monmouth County specifically, your rates will reflect coastal location factors—insurers know that shore communities see an influx of summer traffic, which increases accident risk. They also factor in exposure to coastal storms, though your auto policy won't cover flood damage to your vehicle (you'd need comprehensive coverage for that).
The good news is that rates vary significantly between insurers, so shopping around is essential. Get quotes from at least three companies. Look for discounts: bundling your auto and home insurance, maintaining a clean driving record, taking a defensive driving course, and installing anti-theft devices can all lower your premium. If you have a teen driver, ask about good student discounts—many insurers offer breaks for students who maintain a B average or better.
Coverage Considerations for Manasquan Drivers
Beyond the state minimums, think about what additional coverage makes sense for your situation. Uninsured and underinsured motorist coverage isn't required in New Jersey, but it's smart to have. This protects you if you're hit by a driver who doesn't have insurance or doesn't have enough to cover your damages. Given that some drivers carry only the bare minimum Basic Policy, this coverage can be a lifesaver.
Comprehensive and collision coverage are also optional but highly recommended, especially if you have a newer vehicle or you're still making car payments. Comprehensive covers non-accident damage like theft, vandalism, fire, and weather-related damage. Collision pays to repair your car after an accident, regardless of who's at fault. If you own your car outright and it's older with low market value, you might skip these coverages to save money. But if you can't afford to replace your vehicle out of pocket, keep them.
For Manasquan residents who drive frequently on the Parkway or commute to jobs in Monmouth, Ocean, or Middlesex counties, rental reimbursement coverage can be worth the small extra cost. This pays for a rental car while yours is being repaired after a covered claim. And if you regularly drive friends or family members, consider increasing your liability limits beyond the minimums—a serious accident can result in damages far exceeding $35,000 or even $70,000 per person.
How to Get the Best Rate in Manasquan
Start by comparing quotes from multiple insurers—both national carriers and regional companies that specialize in New Jersey. Ask about all available discounts. Beyond the common ones like multi-policy and good driver discounts, some insurers offer breaks for paying your premium in full, going paperless, or having certain safety features in your vehicle.
Review your coverage annually. Your needs change—maybe you've paid off your car loan, your teen driver has graduated and moved away, or you've hit a birthday milestone that qualifies you for a new discount. Make sure your policy still fits your situation. And maintain a clean driving record. In a high-cost state like New Jersey, even one speeding ticket or at-fault accident can send your rates soaring.
Auto insurance in Manasquan doesn't have to be a mystery. By understanding New Jersey's no-fault system, choosing the right policy type and coverage limits, and shopping around for the best rate, you can get solid protection without overpaying. And with the 2026 changes coming, now is a great time to review your coverage and make sure you're getting the best deal for your needs.
