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New Jersey drivers pay an average of $1,500.58 per year for car insurance according to the National Association of Insurance Commissioners (NAIC), that’s about $125.05 per month. New Jersey drivers pay about 26% more than the countrywide national average of $1,189.64.

The NAIC takes into account all car insurance policies within the state such as drivers who select only state minimum coverage, as well as policies that include various levels of comprehensive and collision coverage. Because car insurance rates are influenced by personal factors, you could find yourself paying significantly less.

New Jersey car insurance quick facts

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Minimum liability requirements

15/30/5

Average annual car insurance cost according to the NAIC

$1,500.58

No-fault state

In no-fault states, each driver pays for their own injury-related expenses.

New Jersey state minimum car insurance requirements

Jersey handles insurance regulations a bit differently compared to other states. To meet the legal minimums, drivers can choose a basic or standard policy. We’ll break down your options for each.

    Bodily Injury Liability

    New Jersey bodily injury liability

    Basic policy

    • $10,000 bodily injury for all people per accident, not required

    Standard policy

    • $15,000 bodily injury per person
    • $30,000 bodily injury per accident

    New Jersey lets you choose your bodily injury liability limits with an option between a basic or standard plan. Choosing a basic plan means you don’t have to purchase bodily injury, but have the option of at least $10,000. Choosing the standard plan means you’re required to carry at least $15,000 in bodily injury per person and $30,000 in bodily injury per accident.

    If you choose to buy bodily injury liability with the basic policy your insurer will pay $10,000 total for anyone injured by you in an at-fault accident. If you choose the standard plan your insurer will pay up to $15,000 per person or up to $30,000 per accident if you injure someone in an at-fault accident. Any costs outside of your bodily injury limit are required to come out of your pocket.

    Property damage liability

    New Jersey property damage liability

    Basic and standard policy

    • $5,000 property damage liability

    New Jersey requires drivers to carry $5,000 of property damage liability to legally drive, regardless of whether you choose the basic or standard plan. This is the lowest required property damage limit across the US, with only two other states with required limits this low.

    This means $5,000 is the maximum amount your car insurance company will pay towards damages you cause to another person’s car or property, such as repairs to a car, fence or building. You’ll have to pay out of pocket for any costs beyond your property damage liability limit.

    Personal injury protection or medical payments

    New Jersey personal injury protection

    Basic and standard policy

    • $15,000 personal injury protection

    New Jersey drivers are required to carry $15,000 worth of personal injury protection to legally drive, regardless of which plan they choose.

    This coverage helps pay your or your passenger’s medical expenses if you’re injured in an accident, regardless of fault.

    Finder tip: State minimum coverage isn’t enough

    These state-mandated requirements are the lowest amount of coverage you need to legally drive in New Jersey, but may fall short if you’re in a major accident. To avoid high out-of-pocket costs after an accident, consider raising your liability limits by balancing coverage, your budget and what you can afford to pay out of pocket for certain damage.

    In New Jersey, drivers pay for their own injury expenses

    New Jersey is a no-fault state, which means that you pay for your own medical bills, lost income and other injury expenses after an accident, no matter who’s at fault. File a claim under your personal injury protection for these expenses. However, New Jersey’s no-fault laws don’t apply to property damage like car repairs, according to the legal website Nolo.

    For property damage, New Jersey considers whether drivers are partially at fault under a law called modified comparative fault. Under this law, both drivers are assigned a percentage of fault. Drivers with less than 50% of fault can get reimbursed for damage caused by other drivers.

    For example, if you’re 80% responsible for an accident, your insurance will pay 80% of the other driver’s property damage. However, since you’re over 50% at fault, the other driver isn’t required to pay for your property damage.

    Cheapest rates by age in New Jersey

    Young drivers under age 25 will pay a pretty penny for car insurance in New Jersey. Allstate and USAA run the most competitive rates for most age groups until age 44. However, drivers above age 44 may want quotes from Progressive and Geico.

    AgeAllstateProgressiveGeicoUSAA
    16-24$228.56$267.82$259.21$218.86
    25-34$162.30$189.51$168.66$152.45
    35-44$142.06$174.58$165.90$150.56
    45-54$156.79$148.47$147.24

    Cheapest rates by gender in New Jersey

    Men may find their best bet getting a quote from Geico or USAA. However, women could save over $20 per month by going with Allstate, according to these sample quotes.

    CompanyAllstateProgressiveGeicoUSAA
    Men$178.45$193.31$173.55$167.86
    Women$152.91$186.29$188.02$175.01

    Sample rates in New Jersey from major car insurance companies

    Major brands in New Jersey may cost more than what’s average for the state. However, you could go with Allstate and join its Drivewise or rewards programs to lower your costs further.

    Drivewise tracks your driving and sets a discount according to how a safe a driver you are.

    CompanyAllstateProgressiveGeicoUSAA
    Rate$165.68$189.48$180.79$170.92

    Best car insurance in New Jersey

    Car insurance rates vary wildly in New Jersey, based on your exact car, driving record and address. To get the best value, shop around with both local and national companies. Also, consider a pay-per-mile policy if you use public transportation or don’t drive much.

    We recommend starting with these insurance companies. We chose these companies by looking at ratings from J.D. Power, the Better Business Bureau and National Association of Insurance Commissioners. We also considered companies with ample coverage and significant discounts for the best value.

    Best for safe drivers: Progressive

    Progressive

    Finder rating 4 / 5 ★★★★★

    Progressive is a big name in car insurance with a myriad of coverage options, including extras for custom vehicle parts, gap or rideshare coverage. It also offers the convenience of keeping all your insurance in one place. If you need something insured, Progressive probably covers it — auto, home, RV, classic car, valuable belongings, business insurance and more.

    We've also found Progressive's car insurance rates competitive with other national brands, especially if you're a safe driver. For instance, having a claim-free history could shave up to 31% off your premiums.

    Best for low mileage: Allstate Milewise

    Allstate

    Finder rating 4 / 5 ★★★★★

    Allstate's pay-per-mile policy could shave 20% off your premiums if you drive under 10,000 miles per year — or over 50% if you drive significantly less than that. Milewise charges a base rate as well as a rate per mile. You'll plug a device into your car to track your driving, and then monitor your mileage in the Allstate app.

    Aside from possible savings, you also get a policy backed by one of the largest US auto insurance companies. Allstate brings decades of experience and strong finances to the table.

    Best local company: New Jersey Manufacturers (NJM) Insurance

    NJM

    Finder rating 4 / 5 ★★★★★

    New Jersey Manufacturers takes pride in not wooing customers with commercials. Instead, it offers top-notch service at a value that keeps customers happy, a point proven by thousands of nearly 5-star customer ratings.

    You won't miss out on coverage either. NJM offers everything from gap and rideshare insurance to extended medical expense limits or a combined single liability limit. Plus, NJM is known for paying dividends regularly — an average of 5% of your premiums each year.

    7 factors that affect New Jersey car insurance rates

    Factors are characteristics specific to you that car insurance companies use to set how much you’ll pay for car insurance. The less risky each of your factors is the less you pay, the riskier you are the more you’ll pay. We’ll break down New Jerseyan’s rating factors to keep in mind.

    FactorHow it affects your rates
    Age

    Age

    How old you are is a top factor in determining your car insurance rates. With each passing year, you earn more experience on the road. More experience can equal cheaper rates. Teen drivers pay the most, but rates begin to level off around your 20’s with drivers over 50 paying the least.
    Gender

    Gender

    New Jersey takes gender into account when determining your rates. Our analysis of Quadrant data found that men under 18 pay 17% more for car insurance compared to women of the same age. But, between 31 and 45, women see rates 5% higher than men. After 45, rates differ between men and women by only 1%, with women on the higher end.
    Location

    Location

    Where you live affects your rates, including where you park your car. High theft rates, high traffic and a high number of uninsured drivers could mean higher rates.

    New Jersey’s vehicle theft rate stands at 115.7 vehicle thefts per 100,000 inhabitants, according to the FBI’s most recent report on vehicle theft rates. That’s well below the national average of 246 vehicle thefts per 100,000 inhabitants.

    As for uninsured drivers, 3.1% of New Jerseyans on the road are uninsured. That’s the lowest percentage of uninsured drivers in a state across the US according to Insurance Information Institute.

    Vehicle and mileage

    Vehicle and mileage

    Your car’s make, model and trim directly affect how much you’ll pay for car insurance. Things like its cost, safety ratings, the likelihood of theft and sportiness all help insurers determine its cost to insure.

    Safer and cheaper vehicles score the lowest rates, with luxury vehicles with higher repair costs resulting in higher premiums.

    And, the more you’re on the road, the more at-risk you are to get in an accident, which means higher premiums. However, according to the Bureau of Transportation, New Jerseyans drive an average of 42.3 miles per day, that’s higher than the average across the US of 36.1 miles per day.

    Credit score

    Credit score

    New Jersey is one of five states that can’t use your credit score against you when setting rates. This means you won’t be penalized for bad credit, but you also won’t see any favorable rates for holding a high credit score.
    Coverage

    Coverage

    The more coverage you get and the higher limits you choose, the more protection you’ll have and the more you’ll pay in monthly premiums. And, if you opt for full coverage car insurance that includes comprehensive and collision, the amount of your deductible weighs into your costs too, higher deductibles mean lower monthly premiums.
    Driving Record

    Driving Record

    The better your driving record, the lower your premium. If you’re in an at-fault accident you could see rates increases from 20% to 50%. And DUI’s in New Jersey can increase your rate by around 47%. These types of violations typically stay on your record for about three years.

    Does New Jersey require SR-22 insurance?

    An SR-22 form serves as proof that you’re meeting your state’s minimum insurance requirements, and is typically required if you have serious driving offenses or are deemed a high-risk driver. New Jersey does has minimum liability insurance requirements to be on the road, but doesn’t require SR-22 insurance after violations. Instead, you may be required to pay an annual surcharge for a minimum of three years if you have six or more points on your license, are caught driving without insurance, are convicted of a DUI, or have other serious violations. Learn more about New Jersey’s annual surcharge for high-risk drivers.

    Coverage to consider in New Jersey

    New Jersey is a no-fault state, and on average, and New Jerseyans drive more than the average American. Understanding the risk factors in your state and knowing your needs can help you choose the right coverage.

    New Jerseyans may want more personal injury coverage

    In New Jersey, you’re required to carry $15,000 worth of personal injury protection to legally drive – but realistically, this may not be enough to cover serious injuries. To avoid paying excessive out-of-pocket health costs in the event of an accident, more coverage may be wise.

    Is comprehensive coverage necessary in New Jersey?

    New Jersey has the lowest rate of car theft in the U.S., so adding comprehensive coverage for the sole purpose of protecting yourself from theft doesn’t make much sense. However, comprehensive coverage does more than protect against carjacking. It can help in events such as animal strikes, floods, explosions and fires, falling objects, and much more. Additionally, if you’re financing your car, comprehensive coverage is almost always required anyway.

    Consider comprehensive coverage if . . .

    • You drive a lot.
    • You live in a state with harsh weather.
    • You live in a rural area with lots of wildlife.
    • You’re financing and your lender requires it.

    Collision coverage is worth considering if you drive a lot

    New Jerseyans drive more than the average American – and when you drive more, it can mean a high risk of collison. Collision coverage can help repair or replace your vehicle in the event of a vehicle accident, and it’s required by most lenders if you have a car loan.

    • You drive a lot.
    • You can’t cover major vehicle repairs out of pocket.
    • You heavily rely on your car.
    • You’re financing and your lender requires it.

    Top 10 auto insurance companies in USA that serve New Jersey

    We’ve pulled the top 10 companies by market share that offer coverage in New Jersey according to S&P Global. Compare top companies by three major rating agencies along with our overall score.

    • Better Business Bureau (BBB) rating measures how a business interacts with its customers, with the highest rating being A++.
    • J.D. Power determines customers’ overall satisfaction with their car insurer’s price, billing, claims and customer support. The higher the J.D. Power score out of 1,000, the better.
    • NAIC complaint index shows how a company’s number of complaints compares to similar companies of its size. Scores lower than 1.00 show the company receives less than the average number of complaints, and scores above 1.00 show more complaints than average.
    • Finder’s score shows you an overall look at the company by taking into account scores from each of these agencies as well as the coverage and discounts each company offers.
    Provider
    BBB Rating
    JD Power Rating
    NAIC complaint ratio
    National market share %
    Finder score
    Go to site
    State Farm
    A+
    847/1000
    1.93
    16.2

    ★★★★★ 4/5

    Read review

    Geico
    A+
    832/1000
    1.42
    13.6

    ★★★★★ 4/5

    Read review

    Progressive
    A+
    830/1000
    1.05
    13.3

    ★★★★★ 4/5

    Get Quotes
    Allstate
    A+
    827/1000
    2.71
    10.4

    ★★★★★ 4/5

    Read review

    USAA
    A+
    884/1000
    1.9
    6.3

    ★★★★★ 4/5

    Get Quotes
    Farmers
    A-
    820/1000
    1.64
    4.9

    ★★★★★ 4/5

    Read review

    Liberty Mutual
    A+
    827/1000
    2.2
    4.7

    ★★★★★ 4/5

    ;

    Get Quotes
    Nationwide
    A+
    814/1000
    2.08
    2.3

    ★★★★★ 4/5

    Read review

    Travelers
    A+
    820/1000
    3.28
    2

    ★★★★★ 4/5

    Read review

    Kemper
    A+
    784/1000
    6.42
    1.5

    ★★★★★ 3/5

    Read review

    Cheapest car insurance in New Jersey

    CompanyAverage annual rateLearn more
    $490
    $659
    $705
    $1,420
    $1,427Read review
    $1,728
    $1,734Read review
    $7,798Get a quote

    Which city has the cheapest car insurance in New Jersey?

    Of New Jersey’s largest cities, Toms River has the cheapest rates and Passaic has the most expensive car insurance rates. Passaic drivers could face rates 4 times more than Toms River drivers.

    Car insurance quotes in Toms River

    CompanyAnnual car insurance rate
    Allstate$1441
    Mercury$1861
    Geico$969
    StateFarm$1002

    Car insurance quotes in Lakewood

    CompanyAnnual car insurance rate
    Allstate$1441
    Mercury$2406
    Geico$1154
    StateFarm$1591

    Car insurance quotes in Passaic

    CompanyAnnual car insurance rate
    Allstate$2277
    Mercury$3067
    Geico$1446
    StateFarm$1876

    Car insurance quotes in Bayonne

    CompanyAnnual car insurance rate
    Allstate$1905
    Mercury$2137
    Geico$1007
    StateFarm$1522

    Car insurance quotes in Union City

    CompanyAnnual car insurance rate
    Allstate$2231
    Mercury$2848
    Geico$1306
    StateFarm$1876

    Compare car insurance providers in New Jersey

    Name Product Gap insurance Homeowner discount Telematics Has an app? Available states
    The Zebra
    Yes
    Yes
    Yes
    Yes
    All 50 states
    USAA
    No
    Yes
    SafePilot
    Yes
    All 50 states & DC
    Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
    Quinstreet - Insure.com
    Quinstreet - Insure.com
    Yes
    Depends on provider
    Depends on provider
    Depends on provider
    All 50 states
    Liberty Mutual
    Yes
    Yes
    RightTrack
    Yes
    All 50 states & DC
    Earn free accident forgiveness after five years claims-free and customize your policy anytime.
    Bankrate
    Bankrate
    Yes
    Yes
    Yes
    Yes
    All 50 states
    Compare personalized rates from multiple insurance companies in one go. Plus, access a live agent for any questions along the way.
    loading

    Compare up to 4 providers

    Insurance help for low-income drivers

    If you meet certain requirements, you might qualify for Special Automobile Insurance Policy (SAIP), New Jersy’s low-cost medical coverage-only policy. The cost is just $360 a year if you pay the entire amount upfront, or $365 if you pay in two installments. Drivers who are enrolled in Federal Medicaid with hospitalization are eligible. And you can obtain a policy through most insurance providers.

    Bottom line

    Car insurance is legally required in New Jersey and provides a financial safety net in case of a serious accident. Look into your coverage options to find out what’s best for you once you’ve met the legal minimums.

    To learn more, from the best discounts and deals on auto insurance to the different rules and regulations across the country, visit the comprehensive guide to car insurance.

    Questions about New Jersey car insurance

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    2 Responses

    1. Default Gravatar
      FredMay 18, 2018

      Do you insure imported cars?

      • Avatarfinder Customer Care
        JoanneMay 18, 2018Staff

        Hi Fred,

        Thanks for reaching out.

        You can find imported car insurance by getting several quotes from standard insurers with cover for special vehicles. Then compare these with the quotes provided by specialist insurers.

        On the table displayed on the list of car insurance, you should see providers that might cover your imported car.

        Cheers,
        Joanne

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