Cheap New Jersey Car Insurance

Compare the best rates from 25 car insurance companies in New Jersey.

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

Auto insurance in New Jersey costs approximately $133 per month — 3% more than the national average. Learn more about average insurance rates in New Jersey for a variety of driving profiles. 


 

Affordable Insurance Premiums in New Jersey

What's the cheapest car insurance in New Jersey?
RankCompany NameAvg. Annual Premium
1Travelers$1,168
2Cal Casualty$1,466
3New Jersey Manufacturers$1,558
4State Farm$1,759
5Penn National$1,776
6MetLife$1,971
7Progressive$2,003
8Mercury$2,332
9Allstate$2,656
10Hanover$5,194

Compare quotes from over 20 insurance companies that provide coverage throughout New Jersey. Enter your ZIP code below to get started.

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Cheap insurance for good drivers in New Jersey

Drivers with good driving records typically enjoy lower car insurance costs than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. New Jersey drivers without a recent speeding ticket typically save 37% on their car insurance premiums — exceeding the 25% national average. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.

 

NEW JERSEY CAR INSURANCE AVERAGE SAVINGS FOR GOOD DRIVERS
Rating Factor$ Savings% Savings
No Traffic Tickets$59137.12%
No Accidents$77648.74%
Good Credit$1,32460%

 

Car insurance rates by age bracket in New Jersey

Young drivers (those between the ages of 16 and 25) pay extraordinarily high auto insurance rates, with those aged 16-19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teens pay more than three times the national average for car insurance. In New Jersey, the typical teen driver pays $5,686 per year — 13% more than the national teen driver average, and more than three times as much as a typical driver in New Jersey.

 

NEW JERSEY CAR INSURANCE RATES BY AGE GROUP
AgeAnnual Average Premium
16$6,873
20s$2,133
30s$1,596
40s$1,556
50s$1,468
60s$1,505
70s$1,662

Best Car Insurance Companies in New Jersey

Each auto insurance company highlights its cheap rates. But just like with any product, the cheapest choice isn't always the best idea. Considering the financial stakes, it's worth doing your homework to find the insurance policy that covers your vehicle completely after a collision. Find the best value, rather than settling for the most affordable car insurance you find.

Compare local and national insurance companies' financial stability and claims satisfaction levels to better understand the level of service you'll receive. Claims satisfaction — measured by J.D. Power — is ranked on a scale of 2 to 5, with 5 being "among the best" and 2 being "the rest." Financial strength — calculated by A.M. Best and ranging from "Superior" to "Poor" — measures an insurance company's financial stability and ability to meet its contractual and policy obligations.

Insurance CompanyClaims Satisfaction (J.D. Power)Financial Strength (A.M. Best)
Allstate3Superior
Amica5Superior
Cal CasualtyNot RatedExcellent
Esurance2Superior
GEICO3Superior
Hanover3Excellent
Liberty Mutual3Excellent
MetLife3Superior
Penn NationalNot RatedExcellent
Progressive3Superior
State Farm3Superior
The Hartford3Excellent
Travelers3Superior
USAA5Superior
21st Century3Excellent

 

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What is the Best Car Insurance Coverage in New Jersey?

The minimum insurance requirement in New Jersey is $15,000 Bodily Injury per person, $30,000 Bodily Injury per accident, and $5,000 Property Damage per accident.

If you elect for the legal minimum coverage level in New Jersey, you'll owe an average of $820 annually. This is more expensive than the nationwide average by 32%. 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 $1,481, 81% more than liability-only coverage. For comprehensive insurance coverage with a $500 deductible, you can expect to pay 94% more than you would for basic liability-only coverage.

Examine average premiums for basic and comprehensive car insurance options below.

LocationLiability-OnlyComprehensive — $1,000 DeductibleComprehensive — $500 Deductible
New Jersey$820$1,481$1,592
National Average$621$1,373$1,868

New Jersey Auto Insurance Laws

State minimum insurance requirements in New Jersey

In New Jersey, the state minimum coverage requirements are as follows:

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

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

  • A standard policy, with typical Bodily Injury limits ($15,000/$30,000/$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

Find out more about New Jersey's car insurance rules. 

Driving Laws in New Jersey

New Jersey Texting and Driving Laws

  1. Ban on hand-held cell phones
  2. Ban on all cell phones for school bus drivers and Permit or Provisional Licenses
  3. Ban on text messaging for all drivers

New Jersey DUI Laws

New Jersey has a 10-year lookback period for DUI. Multiple offenses within this time period result in harsher penalties and fines.

In addition to penalties corresponding to the number of previous DUI convictions, any DUI offense in New Jersey includes the following surcharges:

  • $100 to the Drunk Driving Enforcement Fund
  • $100 Motor Vehicle Commission restoration fee
  • $100 Intoxicated Driving Program fee
  • $50 Violent Crimes Compensation Fund fee
  • $75 Safe and Secure Community Program fee
  • $1,000 per year automobile insurance surcharge ($1,500 for a third DUI offense)

Ticket Impact on Auto Insurance Rates in New Jersey

If you receive a ticket or citation, your auto insurance rates will probably rise. By how much depends on the violation, your insurance company's pricing strategy, and differing local insurance risks and regulations. That's why tickets may have a different impact on insurance in your state compared to the national average.

Below is a look at the average car insurance rates in New Jersey after some common violations.

ViolationAvg. Annual Auto Insurance Rate% Insurance Rate Increase$ Insurance Rate Increase
Hit and Run$2,49156%$899
Refused Breathalyzer/Chemical Test$2,77274%$1,180
DUI$2,77274%$1,180
Racing$2,44854%$856
Reckless Driving$2,50657%$914
Driving with a Suspended License$2,79776%$1,205
At-Fault Accident$2,36849%$776
Driving with an Open Container$2,13534%$543
Operating a Vehicle Without Permission$2,27443%$682
Passing a School Bus$2,31145%$719
Improper Passing$2,20639%$614
Following Too Closely$2,30445%$712
Speeding$2,18337%$591
Failure to Stop at a Red Light$2,15635%$564
Illegal Turn$2,15936%$567
Driving Wrong Way/Wrong Lane$2,14235%$550
Failure to Yield$2,15635%$564
Speeding in a School Zone$1,95823%$366
Driving Too Slowly$1,95823%$366
Distracted Driving$2,14235%$550
Driving with Expired Registration$1,91720%$325
Failure to Show Documents$1,91720%$325
Not-at-Fault Accident$1,6745%$82
Failure to Use Child Safety Restraint$1,6997%$107
Failure to Wear a Seat Belt$1,6997%$107
Driving Without Lights$1,6997%$107

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New Jersey Car Insurance FAQs

Who has the cheapest car insurance in New Jersey?

For our average user profile, Travelers ($584) and Cal Casualty ($723) offer the cheapest car insurance in New Jersey.

How much is car insurance per month in NJ?

Your monthly auto insurance premium may vary for many reasons. For a 30-year-old male driver in New Jersey, the average premium is $132 per month. Find your own monthly rate with us.

Is car insurance more expensive in New Jersey?

Car insurance is a bit more expensive in New Jersey than it is in the rest of the U.S. On average, drivers in New Jersey pay $195 more per year than the national average — a difference of about $16 per month.

How much does car insurance cost in New Jersey cities?

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

RankCityAvg. Annual Premium
1Newark$2,409
2East Orange$2,356
3Paterson$2,337
4Passaic$2,337
5Elizabeth$2,283
6Union City$2,210
7Camden$2,160
8Atlantic City$2,148
9Perth Amboy$2,083
10Linden$2,074
11Fort Lee$2,051
12Kearny$2,039
13Clifton$2,017
14Jersey City$2,006
15Hoboken$1,995
16Hackensack$1,957
17Bayonne$1,860
18Trenton$1,847
19New Brunswick$1,716
20Lakewood$1,711
21Sayreville$1,630
22Vineland$1,620
23Toms River$1,476

Recent New Jersey Car Insurance Questions and Answers

Why are my parents' driving records affecting my premium?

You should be able to get your own plan. Because you are in New Jersey, all people in the same household must be on the policy unless you can show proof the other people you live with are insured elsewhere.

Can I drive a truck I'm buying across state lines, without plates, to get it home?

I would call up your local DMV or appropriate state department and ask them what to do. Most states allow you to pay a small fee and show an out of state status and they will issue you a temporary paper plate for the vehicle to be relocated.

Does moving from one insurance company to another raise your insurance premium?

Switching insurance companies won't necessarily raise your rates as long as it doesn't result in a lapse in coverage. Accidents and violations can stay on your record for up to five years, so your past infractions from six years ago should not affect your rates.

What insurance do I need for driving for doordash?

You will need to get a commercial policy since you will be a delivery driver. If you were going to drive for a ride share company you could get a personal auto policy with an endorsement to drive for ride-share.


Ross Martin LinkedIn

As a licensed insurance agent, Ross is responsible for researching and writing about all matters related to auto and home insurance. He has a background in writing and education, as well as a master's degree from Royal Holloway, University of London. He has been quoted by CNET, iDriveSafely.com, and Kin Insurance.