Jersey City, NJ Car Insurance
How much does car insurance cost in Jersey City?
The cost of car insurance in Jersey City is not as the highest in the state, but it is still a significant cost at an average rate of $224 per month ($1,346 for a six-month policy). New Jersey Manufacturers (NJM) is the cheapest car insurance company in Jersey City for the year 2023, with rates as low as $157 for a six-month policy.
Jersey City drivers pay more than the New Jersey average of $1,019 every six months and almost double the national average of $880. According to our data, 30% of our customers in Jersey City are paying too much for auto insurance. To learn more about insurance requirements and typical rates in Jersey City, keep reading.
|Car Insurance in Jersey City vs. New Jersey||Avg. 6 Mo. Premium|
|Jersey City Average||$1,346|
|New Jersey Average||$1,019|
The cheapest car insurance companies in Jersey City
GEICO wins for the cheapest auto insurance company in Jersey City, with six-month policies of $722 ($120 per month).
New Jersey Manufacturers (NJM) is the second cheapest insurer in Jersey City with car insurance rates around $126 per month or $756 for a six-month policy.
In third place on our list is State Farm, which costs $970 for a six-month policy, which is $162 per month.
Are you paying too much for auto insurance?
Jersey City car insurance rates by company
Based on data collected in 2023, it has been determined that GEICO offers the most affordable full-coverage auto insurance in Jersey City at $120 per month or $722 for a six-month policy. NJM comes in second with a rate of $756 for a six-month policy, which is equivalent to $126 per month. It's worth noting that both companies provide rates that are significantly below the average for Jersey City residents.
The Zebra's Customer Satisfaction Survey is an excellent resource for learning about the best-rated car insurance companies.
Cheapest car insurance companies in Jersey City, NJ
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Shop around for the best rates
To discover economical car insurance, the simplest approach is to compare providers. Our team will tackle the tough aspects, enabling you to select the most suitable option that caters to your budget and unique necessities. Simply enter your ZIP code to browse quotes from reputable insurers such as Progressive, Allstate, State Farm, and Amica (among others) and locate the most affordable car insurance in Jersey City.
Average car insurance in Jersey City by rating factor
The car insurance rate that you receive is dependent on various rating factors related to you. Companies usually evaluate the same factors, such as credit score and age, but they might assign different levels of importance to them. For example, one insurer might consider your driving and claims history as the most significant factor, while another might focus on your credit score.
Your best insurance company can change with time, as your circumstances and requirements change. Even if you've been with the same insurance provider for a while, it's still recommended that you obtain quotes every six months to a year to confirm that you're receiving the appropriate coverage.
Q: I didn't have an accident — Why is my insurance going up?
A: The price you pay for car insurance in Jersey City is largely determined by the end-of-year earnings, which is the comparison of premiums received against the cost of paying out claims. Even if you have a clean claims history, you could still pay more with a specific insurer due to the higher cost of doing business in Jersey City.
Auto insurance premiums by age in Jersey City
What you pay for car insurance depends heavily on your age. Insurance companies are in the business of risk assessment, and their data indicates that teenage drivers are the most dangerous on the road and have a higher likelihood of being involved in accidents. Consequently, these young drivers are charged the highest premiums to offset the insurance company's costs of claims. For teenagers, the high rates may come as a surprise.
In Jersey City, teenage drivers pay over $6,000 per year more than drivers in their 20s. That can be shocking to new drivers and their parents! However, with more driving experience and a history of safe driving, car insurance premiums are likely to decrease considerably within a few years. To keep premiums low, parents or guardians can add a teen driver to their policy, and students can inquire about discounts for good grades and safe driving.
Cheapest car insurance companies for teen drivers in Jersey City, NJ
|Age Bracket||Cheapest Companies||Avg. 6 Mo. Premium|
|20s||NJM Insurance Group||$921|
|30s||NJM Insurance Group||$720|
|40s||NJM Insurance Group||$670|
|50s||NJM Insurance Group||$621|
|60s||NJM Insurance Group||$604|
Auto insurance premiums for minimum coverage in Jersey City
Many factors determine the premium you'll pay for car insurance, including your age and credit score. However, your choice of coverage is another significant variable. Some drivers in Jersey City only carry the minimum required level of car insurance, and while this may save you some money in the short term, it can prove to be a costly mistake down the line. In the event of an accident, minimal coverage can leave you underinsured and facing significant financial hardship.
If you're looking for better coverage, consider adding collision or comprehensive coverage, also known as "full coverage." Keep in mind that these options typically come with a higher price tag and a deductible that can impact your rates. If you're looking to balance full coverage with affordability, raising your deductible can be an effective strategy. As your deductible increases, your premium decreases.
If you want to feel secure and safeguarded when driving, it's important to consider your options. Features like roadside assistance and uninsured motorist coverage can prove indispensable in the event of an accident involving an uninsured driver. While they do come at a premium, these coverage options can provide additional security and protection for you and your vehicle.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
If your vehicle is leased or financed, there may be a necessary amount of insurance coverage that you must maintain. Nevertheless, if you own your vehicle outright, it means there is more freedom for you to choose your coverage. If you are considering dropping comprehensive or collision coverage, we suggest you get the actual cash value of your car from a source such as Kelley Blue Book. If your car is worth less than $4,000, it may not be worth carrying full coverage. This can help cut back on your rates, but you'll also be more susceptible to paying for damages yourself.
Cheapest car insurance companies for minimum coverage in Jersey City, NJ
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
The basic level of coverage is the most popular for drivers in Jersey City. But it's important to research your options to find the best coverage to fit your individual needs. If you're involved in a traffic situation where your liability limits are exceeded things can get very expensive, very quickly. New Jersey's 25/50/25 liability limits provide coverage for damage you cause up to $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $25,000 for property damage. This might be plenty of coverage for a minor situation, but in an accident involving multiple vehicles or people, it might not be enough.
New Jersey also requires $15,000 in PIP coverage, as well as uninsured motorist coverage of $25,000 per person and $50,000 per accident. Read more about New Jersey's car insurance laws.
Jersey City car insurance rates by credit score
Car insurance rates in most states, such as New Jersey, are heavily influenced by credit scores. The reason for this is that insurance companies see credit scores as a reliable gauge of risk. Evidence indicates that drivers with lower credit scores tend to have more gaps in insurance coverage, engage in more dangerous driving behaviors, and file more claims. Thus, the higher your credit score, the lower your risk level for insurers, resulting in better rates.
For Jersey City drivers, those with poor credit scores (300-579) pay 153% more than those with excellent credit scores (800-850), highlighting the importance of having good credit.
Cheapest car insurance companies for bad credit in Jersey City, NJ
Auto insurance rates with an at-fault accident
At-fault and collision-type accidents are the most prevalent forms of insurance claims, and they will typically result in increased rates. In Jersey City, these rate hikes vary from $44 to $121 per month depending on the nature of the violation. After an at-fault accident, New Jersey Manufacturers (NJM) offers the best rates.
The key to maintaining affordable premiums is to be a safe driver regardless of where you reside. Speeding tickets, reckless driving allegations, and DUIs or DWIs all result in rate increases, and the effect of the accident on your premium can last for three to five years. On occasion, more severe violations can continue to have an impact on your premium for a longer period. While accidents are a fact of life, adopting safe driving practices while behind the wheel will protect both your physical and financial well-being.
Cheapest car insurance companies after an at-fault accident in Jersey City, NJ
Jersey City car insurance rates by violation
Specific violations and claims can affect your rate differently. The following chart outlines the rate increases you can see from specific auto incidents or tickets.
Car insurance rate increases after violations and citations in Jersey City, NJ
|Accident/Violation||Avg. 6 Mo. Premium||% Rate Increase||$ Rate Increase|
|One Med/PIP claim||$1,356||1%||$10|
|One comp claim||$1,454||8%||$108|
|Two Med/PIP claims||$1,490||11%||$144|
|Failure to show documents||$1,503||12%||$156|
|Speeding 6 - 10 MPH over limit||$1,522||13%||$175|
|Speeding 11 - 15 MPH over limit||$1,529||14%||$183|
|Driving without lights||$1,555||15%||$208|
|Failure to wear a seat belt||$1,587||18%||$240|
|Child safety restraint||$1,587||18%||$240|
|At-fault accident - less than $1000||$1,608||19%||$262|
|Driving with expired registration||$1,615||20%||$268|
|Driving too slowly||$1,639||22%||$292|
|Two comp claims||$1,662||23%||$315|
|Wrong way/wrong lane||$1,672||24%||$326|
|Failure to yield||$1,678||25%||$332|
|Failure to stop at a red light||$1,689||25%||$343|
|Texting while driving||$1,731||29%||$385|
|Cell phone violation||$1,731||29%||$385|
|Speeding 16 - 20 MPH over limit||$1,757||30%||$410|
|Speeding in school zone||$1,780||32%||$434|
|Operating a vehicle without permission||$1,796||33%||$449|
|Following too closely||$1,821||35%||$474|
|Passing school bus||$1,894||41%||$547|
|In 65 MPH zone||$1,911||42%||$565|
|Speeding 21 - 25 MPH over limit||$1,956||45%||$609|
|At-fault accident - $1000-$2000||$2,060||53%||$713|
|At-fault accident - greater than $2000||$2,074||54%||$728|
|Refusal to submit to a chemical test||$2,685||99%||$1,338|
|Leaving scene of an accident/hit and run||$2,717||102%||$1,371|
|Driving with a suspended license||$2,797||108%||$1,450|
Why is car insurance in Jersey City so expensive?
Auto insurance can seem like a costly expense for many, but the reality is that car insurance in Jersey City is actually quite affordable when compared to other regions. This is due to the fact that the cost of living in Jersey City is relatively low, allowing businesses to operate without incurring the additional costs that are typically associated with larger cities. The following paragraphs will explain why car insurance rates can fluctuate in Jersey City and why your rate might be higher.
The location of your residence in Jersey City is a determining factor in how much you pay for car insurance. Although you can't always control this aspect, it does matter when assessing risk. Certain neighborhoods have a higher likelihood of theft, other crimes, and uninsured drivers.
If you live in a high-crime neighborhood, your car insurance premium is likely to be higher than someone who lives in a safer area. A perk of Jersey City is that the difference in car insurance rates between the most expensive and the cheapest zip codes is only about $10. In other cities, this variance can be hundreds of dollars.
As a result of its higher population density, Jersey City experiences a considerably higher number of vehicles on its roads than more rural regions in New Jersey. The larger number of cars leads to a proportional increase in the number of accidents. The costs associated with these accidents are often spread across other drivers in the area through an increase in insurance premiums, even for drivers who drive infrequently or safely.
Our data indicate that nearly 38% of Jersey City's drivers are currently uninsured. If you happen to have an accident with an uninsured driver in the area, you might be responsible for the entire cost of the repair.
It's also important to consider Jersey City's location relative to New York City. The high concentration of people in the area adds a lot of risk on the road, even if you live on the New Jersey side. The proximity to NYC greatly increases the risk of an accident, theft, or other claim-related issues in the area.
Bundling insurance policies in Jersey City
As the cost of car insurance increases in most locations, including Jersey City, finding ways to save may appear to be a difficult task. Nevertheless, there are ways to make it more affordable, and one of the simplest and fastest methods is to bundle policies.
If you have homeowners or renters coverage, in addition to car insurance, inquire with your insurance company about combining them to take advantage of a multi-policy discount. By bundling, you may be able to save 10% or more on your overall premiums. To learn more about bundling home and car insurance, check out the available resources. And don't forget to explore bundling discounts when comparing insurance providers.
Cheapest car insurance companies for bundling home and auto insurance in Jersey City, NJ
While there are external factors that affect your auto insurance rates, such as the make and model of your car or your location, there are also things you can do to control your costs. One of the best things you can do is shop around and compare rates from different insurance companies. You should aim to get quotes every six months to a year to make sure you're always getting the best deal possible.
By educating yourself and understanding what factors impact your rates, you can make informed decisions about your coverage.
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Frequently asked questions
How much is car insurance in Jersey City?
For those seeking affordable auto insurance in Jersey City, a six-month policy costs $1,346 on average, which translates to a monthly rate of $224. This is more than both the New Jersey state average as well as the national average.
What is the cheapest car insurance in Jersey City?
In Jersey City, GEICO provides the cheapest car insurance policies, with an average cost of $722 per six months. New Jersey Manufacturers is a comparable option for affordable auto insurance.
How much is car insurance in Jersey City for teenagers?
Teenagers in Jersey City pay around $4,847 for a six-month policy, equating to a monthly cost of about $808. Given the costly nature of car insurance for young drivers with individual policies, we suggest that parents include their children in their policies to keep the costs manageable.
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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.