Car Insurance in New Jersey

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

The cheapest car insurance companies in New Jersey

These companies offer the cheapest rates in the following scenarios.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.