Understanding Personal Injury Protection Back in 1972, in response to rising automobile insurance premiums, the New Jersey Legislature passed and enacted no-fault insurance laws. Auto insurance was also made compulsory for all motor vehicles with minimum liability coverage of $15,000. That amount has never been increased despite inflation. For example, the cost of an average U.S. home in 1972 was under $30,000, including land. The original no-fault insurance system of 1972 is