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Drunk Drivers to Pay Much More for Car Insurance in New Jersey Under Proposed Law

  • Shore News Network
  • January 20, 2026
  • 8:07 am
Drunk Drivers to Pay Much More for Car Insurance in New Jersey Under Proposed Law

Drunk driving offenders hit with massive insurance hikes under new NJ Senate bill

Trenton, NJ – A new bill moving through the New Jersey Senate would sharply increase mandatory automobile liability insurance coverage for drivers convicted of driving under the influence, imposing some of the highest post-conviction insurance requirements in state law.

Senate Bill 130, pre-filed for the 2026 legislative session, is sponsored by Sen. James W. Holzapfel of Monmouth and Ocean counties and targets repeat and first-time DUI offenders by significantly raising the minimum insurance limits they must carry after regaining driving privileges.

Under the proposal, a first-time DUI offender who owns or registers a vehicle in New Jersey would be required to maintain enhanced liability coverage for one year after any license forfeiture period expires. That coverage would need to include at least $250,000 for bodily injury or death of one person, $500,000 for bodily injury or death of multiple people, and $100,000 for property damage per accident.

For a second DUI conviction, the bill requires offenders to maintain even higher insurance limits for two years. Those drivers would be mandated to carry coverage of at least $500,000 for injury or death of one person, $1 million for injury or death of multiple people, and $200,000 for property damage. The same coverage levels would apply to third or subsequent offenders, but for a longer four-year period following license restoration.

The legislation builds on New Jersey’s existing DUI penalties, which already include fines, jail time, ignition interlock requirements, license forfeitures, and mandatory participation in Intoxicated Driver Resource Center programs. The new insurance provisions would apply only after offenders are legally permitted to drive again.

The bill amends R.S.39:4-50 and is intended to ensure that drivers convicted of DUI carry insurance coverage commensurate with the risks posed by impaired driving. The measure also includes technical updates to existing statutory language.

If enacted, the law would take effect 90 days after being signed.

A New Jersey Senate bill would force DUI offenders to carry dramatically higher auto insurance coverage for years after conviction.

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