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Ross Martin

Insurance Writer

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  • 4+ years in the Insurance Industry

Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

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Mark Friedlander

Director, Corporate Communications, Insurance Information Institute

Mark Friedlander has over 30 years of experience in the insurance industry. He is the Director, Corporate Communications, at the Insurance Informatio…

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Kristine Lee

Insurance Analyst

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  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Here's what you need to know when driving in New Jersey

The average driver in New Jersey pays $1,459 per year for car insurance — roughly 4% more than the U.S. average. However, your location isn't the only thing that impacts your premiums. Auto insurance rates are made up of many different factors, including your age and driving history. The Zebra's experts analyzed average New Jersey car insurance rates to help you find an affordable policy with these factors in mind.

Read on to learn how much auto insurance costs in New Jersey based on these variables, or submit your ZIP code above to receive personalized quotes from top insurers.

The best car insurance companies in New Jersey

1st place medal
USAA

Along with topping The Zebra's Customer Satisfaction Survey, USAA received a score of 896 (out of 1,000) in J.D. Power's 2021 U.S. Auto Insurance Study for the Mid-Atlantic region.

2nd place medal
NJM Insurance

NJM topped the J.D. Power 2021 auto study and gets a 4.5 out of 5 from The Zebra.

3rd place medal
Erie Insurance

Erie Insurance's auto product placed third with a score of 856 in J.D. Power's 2021 customer satisfaction survey. It receives a 5/5 from The Zebra.

Key takeaways
  • Drivers in New Jersey pay about 5% less for car insurance on average
  • The cheapest major car insurance company in New Jersey is GEICO
  • New Jersey has one of the lowest rates of uninsured drivers in the country [1]

The cheapest car insurance companies in New Jersey

These companies offer the cheapest rates in the following scenarios.

GEICO logo
Cheapest for full coverage: GEICO

The cheapest full coverage rates are from GEICO at $1,262 annually, or $105 per month.

NJM logo
Cheapest for those with bad credit: NJM

If you have bad credit, check out NJM for some of the cheapest average rates.

NJM logo
Cheapest for teens: NJM

Teen drivers should look at NJM for the cheapest average rates.

Company Avg. Annual Premium
GEICO $1,261
New Jersey Manufacturers $1,367
State Farm $1,450
Travelers $1,506
Allstate $1,788
Amica Mutual $1,834
Progressive $2,505

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.


New Jersey auto insurance laws

Like most every other state, New Jersey requires all drivers to carry car insurance. The lowest legal amount drivers can carry If you choose the legal minimum coverage level in New Jersey, expect to pay an average of $908 annually. This expenditure is more expensive than the nationwide average by 68%. 

State minimum coverage

For policies effective on or after January 1st, 2023, New Jersey's state minimum coverage requirements are as follows:

Liability:

  • Bodily Injury $25,000 per person
  • Bodily Injury $50,000 per accident
  • Property Damage $25,000 per accident

In New Jersey, you can select one of two common policy options:

  • A standard policy, with typical Bodily Injury limits ($25,000/$50,000/$250,000/$500,000)
  • A basic policy, with optional Bodily Injury coverage up to $10,000

Uninsured/Underinsured Motorist:

  • Bodily Injury $15,000 per person
  • Bodily Injury $30,000 per accident
  • Property Damage $5,000

Personal Injury Protection:

  • $15,000 PIP coverage per person (Primary or Secondary to health coverage)

Right to Sue:

  • Limited or Unlimited

Optional coverage in New Jersey (varies by carrier):

  • Additional PIP
  • Extended Medical Benefits
  • Funeral Expense Coverage
  • Death Benefit Coverage
  • Comprehensive Coverage
  • Collision Coverage
  • Rental Car Reimbursement
  • Roadside Assistance/Towing and Labor
car with blue windshield

If you want better coverage, you can purchase a policy with comprehensive and collision coverage, which will protect against damages caused by car-versus-car collisions, theft or weather conditions. Better auto insurance coverage comes at a cost: in New Jersey, a comprehensive policy with a $1,000 deductible costs $1,546, 70% more than liability-only coverage. For comprehensive insurance coverage with a $500 deductible, you can expect to pay around $1,578 per year.

The Zebra's guide to New Jersey car insurance laws


Learn more about car insurance requirements in the state of New Jersey with our helpful guide.


Compare car insurance rates from the best companies in New Jersey.

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New Jersey car insurance premiums by rating factor

There are many individual factors at play when it comes to your car insurance rates, including your driving history, location and age. Explore average premium costs by rating factor below to get a better sense of how much you should be paying for auto insurance in New Jersey.

 

Cheap auto insurance in New Jersey for minimum coverage

The less coverage you carry, the cheaper your annual rates. It should come as no surprise then that carrying the minimum legal coverage brings some of the cheapest rates you can find. However, your aim shouldn't just be to find the rock bottom price, but to find the best auto insurance for the best price. Use the table below as a starting point to see which companies may offer cheaper rates.

Company Avg. Annual Premium
State Farm $246
GEICO $467
New Jersey Manufacturers $503
Amica Mutual $524
Travelers $757
Allstate $982
Progressive $1,967

Cheap auto insurance in New Jersey with bad credit

Your credit history is closely aligned with your car insurance rates. Carriers see those with a poor credit score as being higher risk, meaning you'll likely pay a lot more for your policy. On average, New Jersey drivers with poor credit pay around $2,148 more per year than those with exceptional credit. Have a look at some common rates by credit tier below. NJM tends to offer the cheapest rates among larger insurance companies.

Company Avg. Annual Premium
New Jersey Manufacturers $2,167
GEICO $2,752
Allstate $3,009
State Farm $3,018
Travelers $3,130
Amica Mutual $3,257
Progressive $3,435

Cheap auto insurance in New Jersey with an at-fault accident

Your driving history plays a big part in how much you pay. If you have a recent at-fault accident on your record, insurance companies will likely determine that you pose a higher level of risk as a customer. An at-fault accident could see your car insurance rates increase to an average of $2,379 per year.

Safe driver discounts

In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.

Company Avg. Annual Premium
New Jersey Manufacturers $1,367
GEICO $1,702
Amica Mutual $2,062
State Farm $2,348
Travelers $2,383
Progressive $3,556
Allstate $4,081

Cheap auto insurance for young drivers in New Jersey

Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In New Jersey, teen drivers pay especially high rates: $5,154 per year — more than 253% more than a typical New Jersey driver.

Company Avg. Annual Premium
New Jersey Manufacturers $2,926
GEICO $2,952
State Farm $4,005
Allstate $5,996
Travelers $6,685
Amica Mutual $7,155
Progressive $9,662

New Jersey auto insurance rate by violation

If you have a clean driving record in New Jersey — no speeding tickets, DUIs or other recent citations — you'll probably pay less for car insurance. Conversely, a bad driving record will cause your rates to skyrocket: car insurance premiums typically increase by 94% after a DUI, 51% after an at-fault accident, and 77% after a reckless driving charge.

See below average auto insurance rates in New Jersey after a few common citations.

Accident/Violation Avg. Annual Premium % Rate Increase $ Rate Increase
None $2,043 0% $0
One Med/PIP claim $2,057 1% $13
Not-at-fault accident $2,140 5% $96
One comp claim $2,198 8% $155
Two Med/PIP claims $2,249 10% $205
Failure to show documents $2,275 11% $232
Speeding 6 - 10 MPH over limit $2,301 13% $258
Speeding 11 - 15 MPH over limit $2,311 13% $268
Driving without lights $2,347 15% $304
Failure to wear a seat belt $2,391 17% $348
Child safety restraint $2,391 17% $348
At-fault accident - less than $1000 $2,428 19% $385
Driving with expired registration $2,437 19% $394
Driving too slowly $2,469 21% $426
Two comp claims $2,494 22% $451
Wrong way/wrong lane $2,517 23% $474
Failure to yield $2,530 24% $487
Failure to stop at a red light $2,543 24% $499
Illegal turn $2,593 27% $550
Cell phone violation $2,604 27% $561
Texting while driving $2,604 27% $561
Speeding 16 - 20 MPH over limit $2,639 29% $596
Speeding in school zone $2,668 31% $625
Operating a vehicle without permission $2,702 32% $659
Following too closely $2,725 33% $682
Improper passing $2,733 34% $690
Passing school bus $2,827 38% $784
In 65 MPH zone $2,852 40% $809
Speeding 21 - 25 MPH over limit $2,916 43% $873
At-fault accident - $1000-$2000 $3,072 50% $1,029
At-fault accident - greater than $2000 $3,092 51% $1,049
Open container $3,277 60% $1,234
Reckless driving $3,618 77% $1,575
Racing $3,775 85% $1,732
Refusal to submit to a chemical test $3,972 94% $1,928
DUI $3,972 94% $1,928
Leaving scene of an accident/hit and run $4,029 97% $1,986
Driving with a suspended license $4,116 101% $2,073

New Jersey DWI laws

In New Jersey, a DWI offense can increase your annual car insurance premium to an average of $3,972. That’s a rate increase of $1,928. Finding affordable auto insurance in the wake of a DWI violation isn’t simple. In fact, a DWI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.

 
Low-cost car insurance after a DUI in New Jersey

If you're convicted of a DUI or DWI violation in New Jersey, take time to consider each of your insurance choices carefully. Auto insurance premiums following a DWI can vary substantially from one company to another. For example, the least expensive car insurance company with a DWI in New Jersey, NJM, averages annual rates 58% less than the statewide average insurance rate with a DUI. The second-cheapest insurer for auto insurance after a DUI in New Jersey is GEICO, while the priciest carrier is Amica Mutual, with prices 83% above average.

Company Avg. Annual Premium
New Jersey Manufacturers $1,658
GEICO $2,252
Allstate $2,557
Travelers $2,670
Progressive $2,779
State Farm $5,503
Amica Mutual $6,735

There is no car insurer in particular that offers inexpensive DUI car insurance. The recommended way to save in the wake of a DWI citation is to shop around.

New Jersey SR-22 insurance

An SR-22 is a routine legal requirement triggered by a violation such as a DUI or DWI conviction, a ticket for driving without insurance, an at-fault collision, driving with a suspended license, or accumulating too many points on your license. It is not a type of insurance policy, but a form issued by your insurance company with the state of New Jersey to ensure that you remain insured.

Finding cheap auto insurance with an SR-22 in New Jersey might require some research, but it could pay off in the end.

 

How to acquire an SR-22 in New Jersey

If you have auto insurance

If you already have car insurance, requesting an SR-22 certificate should be simple. Just call your insurance company and request that the company file a SR-22 request for you. If your current insurer isn’t willing to request a certificate, you should shop for a new policy with a new insurance company.

 

Uninsured drivers

When applying for car insurance, you might be saddled with an up-front fee for the prospective insurer to file an SR-22 request form and to cover your more risky driving profile. Needing an SR-22 may keep you from buying insurance from some companies, while others will sell you a policy.

 

For drivers without a vehicle

Needing an SR-22 might disqualify you from purchasing insurance from some companies, while others would be happy to sell you a policy.

 

For drivers without a vehicle

Not owning a vehicle makes it harder to earn an SR-22, as you will need to show proof of insurance to receive the certificate. If this is the case, get a non-owners insurance policy before asking for an SR-22. Non-owners auto insurance is often less expensive than traditional coverage since it doesn't insure against physical damage to your automobile.

Find an affordable policy in New Jersey in minutes!

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Rates by city

Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. The cheapest car insurance is found in Brielle, New Jersey, and the most expensive in Irvington, New Jersey.

Have a look at the table below to see average car insurance costs in some of New Jersey's biggest cities.

City Avg. Annual Premium
Toms River $1,963
Jersey City $2,693
Elizabeth $2,937
Paterson $2,978
Newark $3,056

Car insurance price trends in New Jersey

In New Jersey, average annual auto insurance costs increased by $86 in the past year. A typical New Jersey driver pays an average of $1,584 per year.

The recent pricing trend in New Jersey leans toward slightly cheaper car insurance costs. From 2018 to 2019, average annual rates in New Jersey dropped from $1,780 to $1,419. Since this significant drop, rates have increased moderately. At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, moving from $1,521 in 2018 to $1,529 in 2021.

NEW JERSEY CAR INSURANCE RATE TRENDS
Year Avg. Annual Premium — New Jersey Yearly Change — New Jersey Avg. Annual Premium — US Yearly Change — US
2021 $1,584 $86 $1,529 $46
2020 $1,498 $79 $1,483 $61
2019 $1,419 -$361 $1,544 $23
2018 $1,780 -$16 $1,521 $84
2017 $1,796 $234 $1,437 $69
2016 $1,562 -$323 $1,368 $88
2015 $1,885 $216 $1,280 $51
2014 $1,669 $155 $1,229 $34
2013 $1,514 -$63 $1,195 -$80
2012 $1,577 $323 $1,276 $82

If your rates are rising faster than the average in your state, compare quotes and find a better deal. The Zebra's car insurance comparison engine furnishes quotes based on your specific profile — enter your ZIP below to get started.


New Jersey car insurance FAQs

Below you'll find answers to some of the most commonly asked questions regarding New Jersey auto insurance.

For our average user profile, GEICO ($1,261) and NJM ($1,367) offer the cheapest car insurance in New Jersey.

Your monthly auto insurance premium may vary for many reasons. For a 30-year-old male driver in New Jersey, the average premium is $122 per month. Find your own monthly rate with us.

Car insurance is a bit less expensive in New Jersey than it is in the rest of the U.S. On average, drivers in New Jersey pay $70 less per year than the national average — a difference of about $6 per month.

Save money on your next car insurance policy!

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.