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Compare car insurance in New Jersey

Get the cheapest car insurance in New Jersey for 2021

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

At-fault state

In at fault states, the driver who caused the accident pays for damages.

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.

    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.

    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.
    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.

    Most popular New Jersey auto insurance companies list

    CompanyDirect premiums written (billions)Market share
    Geico$1,740,32521.8%
    NJM$1,046,71913.1%
    Progressive$926,29511.6%
    Allstate$836,90310.5%
    Plymouth Rock of New Jersey$620,7457.8%
    State Farm$612,1987.7%
    Liberty Mutual$557,4637.0%
    USAA$311,1413.9%
    Travelers$289,7113.6%
    Farmers$222,4402.8%

    Average car insurance costs in New Jersey

    Drivers in New Jersey paid in the ballpark of $1,300 to $1,400 annually for their auto insurance coverage in 2017, slightly above the $1,300 national average. So if you’re looking to buy a standard policy here and you’re older than 25, you can expect to pay something in that range.

    However, because car insurance is affected by so many different factors, your costs could also fall well outside of that average range.

    Cheapest car insurance in New Jersey

    CompanyAverage annual rateLearn more
    $490
    $659
    $705Read review
    $1,420Get a quote Read review
    $1,427
    $1,728Get a quote Read review
    $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 Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
    Allstate
    Optional
    13%
    All 50 states
    Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.
    Progressive
    Optional
    30%
    All 50 states & DC
    Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
    Pretected
    Pretected
    Optional
    Yes
    All 50 states
    Get your most compatible insurance options via a "smart matching" method aimed at finding you value.
    The AARP Auto Insurance Program from the Hartford
    Optional
    Yes
    All 50 states
    Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.
    Clearcover
    Optional
    Yes
    AZ, CA, GA, IL, IN, KY, LA, MD, MO, MS, NE, OH, OK, PA, TX, UT, VA, WI & WV
    Get instant online support and score a low rate thanks to online data that sets premiums automatically.
    Root
    52%
    Available in 31 states
    Track your driving to receive a low rate that reflects your driving skills, and enjoy a fully app-based policy experience.
    loading

    Compare up to 4 providers

    Can I get SR-22 insurance in New Jersey?

    Yes, you can get SR-22 insurance in New Jersey, which is a document your insurance provider files with the state that proves you have the minimum coverage required to get behind the wheel. You might need an SR-22 certificate if you’ve gotten a DUI, lost your license or been caught driving without insurance.

    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

      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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