Cheap New Jersey Car Insurance

Compare the best rates from 7 car insurance companies in New Jersey.

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

Across the Garden State, there are 84,281 miles of road just waiting to be driven. We’ll get you prepped, then you take the wheel.


 

Cheap Car Insurance

What's the cheapest car insurance in New Jersey?
RankCompany NameAvg. Annual Premium
121st Century$1,089
2Travelers$1,168
3New Jersey Manufacturers$1,284
4Penn National$1,352
5Palisades$1,368
6Cal Casualty$1,466
7The Hartford$1,506
8Allstate$1,508
9USAA$1,569
10Mercury$1,619
11Amica$1,850
12Esurance$1,875
13Progressive$1,900
14MetLife$1,971
15State Farm$2,204
16GEICO$2,218
17Encompass$2,350
18Liberty Mutual$2,949
19Hanover$3,948

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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 24% on their car insurance premiums — far exceeding the 17% 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%.

Rating Factor$ Savings% Savings
No Traffic Tickets$53624.66%
No Accidents$82133.41%
Good Credit$1,36045.38%

Cheap Insurance for Young Drivers 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 $4,704 per year — just a bit less than the nationwide teen driver average, but more than twice as much as a typical driver in New Jersey.

AgeAnnual Rate with ParentsAnnual Rate Alone
16$3,129$7,870
17$3,129$7,197
18$3,159$6,298
19$3,100$3,752

Cheap Car Insurance for Bad Drivers in New Jersey

The best way to minimize your auto insurance expenditure is to avoid at-fault accidents, speeding tickets, and DUIs. As insurance companies use your driving record as a way to predict the level of risk you present, keeping your driving record clean will lead to lower premiums. It's especially important to avoid at-fault accidents, speeding tickets and DUI citations in New Jersey, one of the states in which insurance companies penalize poor driving most severely. In fact, a single speeding ticket could raise your car insurance rates by 24% in New Jersey.

Rating FactorAnnual Rate% Increase
At-Fault Accident$2,45933.41%
DUI$2,46533.57%
Speeding Violation$2,17324.66%
Bad Credit$2,99745.38%

What are the 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
Amica4Superior
Cal CasualtyNot RatedExcellent
EsuranceNot RatedSuperior
GEICO3Superior
Hanover3Excellent
Liberty Mutual3Excellent
MetLife3Superior
Penn NationalNot RatedExcellent
Progressive3Superior
State Farm3Superior
The Hartford4Excellent
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 the legal minimum coverage level in New Jersey, you'll owe an average of $1,044 annually. This is more expensive than the nationwide average by 59%. 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 $1,531, 47% more than liability-only coverage. For comprehensive insurance coverage with a $500 deductible, you can expect to pay 58% 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$1,044.34$1,531.30$1,655.22
National Average$657.66$1,241.26$1,397.94

Car 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

Liability coverage is legally required in New Jersey and pays for injury and lost wages that you cause to another driver or their passengers as well as damage to the other driver’s vehicle in the event that you are considered “at fault” in an accident. The coverage limits are determined by each individual state and normally split into three categories. In New Jersey, the minimum is listed as 15/30/5 and explained below:

  • $15,000 bodily injury coverage per person. This is the maximum dollar amount that pays for a single person that you injure in an auto accident.
  • $30,000 bodily injury coverage per accident. This is the maximum dollar amount that pays for all injuries that you cause in an accident if more than one person is hurt.
  • $5,000 property damage per accident. This is the maximum dollar amount that pays for damage that you cause in an accident.

Uninsured/Underinsured Motorist coverage is legally required in New Jersey and pays for injury and lost wages that you or your passengers may suffer in the event that you are hit by an uninsured/underinsured driver who is at fault. The coverage limits are determined by each individual state and normally split into two categories. In New Jersey, the minimum is listed as 15/30/5 and explained below:

  • $15,000 bodily injury coverage per person. This is the maximum dollar amount that pays for a single person injured in your vehicle by an uninsured/underinsured driver.
  • $30,000 bodily injury coverage per accident. This is the maximum dollar amount that pays for all injuries in your vehicle by an uninsured/underinsured driver if more than one person is hurt.
  • $5,000 property damage coverage per accident. This is the maximum dollar amount that pays for damage caused to your vehicle by an uninsured/underinsured driver.

Personal Injury Protection (PIP) in New Jersey can be coordinated with your health insurance or is offered as a stand-alone coverage for drivers that do not carry health insurance. It is important to check with your health insurance provider as to how or if they provide coverage for injuries resulting from auto accidents. Work loss, death benefit, and funeral expenses are not required but can be added to PIP to broaden coverage for you and your passengers. Minimum PIP coverage in New Jersey is listed below:

  • $15,000 per person. This is the total that pays out for injuries suffered by anyone in your vehicle, including the driver, regardless of fault. Limits can be increased to better suit your needs.

The lawsuit options in New Jersey determine a driver’s ability to sue for pain and suffering resulting from an accident. Choosing the “limited” option restricts the policyholder and their household members’ right to sue for pain and suffering in an accident to extreme circumstances like death, permanent disfigurement, or loss of a body part in return for a lower premium. Selecting the “unlimited” option allows the policyholder to sue for pain and suffering regardless of the severity of the injuries. This is generally a much more expensive option.

New Jersey is a no fault state!

What does this mean for you?

Put simply, a no-fault insurance laws system requires that drivers carry their own protection. When an accident happens, no matter who is at fault, your own insurance foots the bill. Each driver takes care of his or herself, and theoretically, the chances of someone suing or raising a hissy fit over culpability are lessened. And bonus? It guarantees every driver immediate medical treatment in the event of an accident.

New Jersey Car Insurance FAQs

What type of car insurance is mandatory in New Jersey?

Because New Jersey is a no-fault state, you're required to carry additional coverage beyond what is normally required in most states. You're required to carry the minimum liability coverage, uninsured motorist coverage, personal injury protection, and right to sue coverage.

Is New Jersey a no-fault car insurance state?

Yes. Regardless of fault, you're required to cover your own bodily injury damage.

Which New Jersey car insurance companies offer usage-based discounts?

Metromile is a leading pay-per-mile car insurance company that sells policies in New Jersey.

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$2,487
2West New York$2,481
3East Orange$2,443
4Passaic$2,424
5Paterson$2,400
6Elizabeth$2,375
7Union City$2,316
8Camden$2,271
9Atlantic City$2,270
10Linden$2,230
11Fort Lee$2,166
12Perth Amboy$2,150
13Clifton$2,141
14Jersey City$2,127
15Kearny$2,125
16Hoboken$2,114
17Hackensack$2,033
18Bayonne$1,985
19Trenton$1,961
20Plainfield$1,937
21New Brunswick$1,795
22Lakewood$1,754
23Vineland$1,702
24Sayreville$1,689
25Toms River$1,566

Recent New Jersey Car Insurance Questions and Answers

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.

Can my insurance company replace part of my roof with shingles that don't match?

Insurance companies (depending on your policy and whether you have replacement cost value coverage) are obligated to bring your property back to its previous state, but no better. This, in theory, means that it should be no worse as well.

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.


Driving Laws

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)

How Do Tickets Impact 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 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$2,35241%$681
Refused Breathalyzer/Chemical Test$2,91174%$1,239
DUI$2,91174%$1,239
Racing$2,42145%$749
Reckless Driving$2,50250%$831
Driving with a Suspended License$2,86972%$1,198
At-Fault Accident$2,38243%$711
Driving with an Open Container$2,08425%$413
Operating a Vehicle Without Permission$2,11827%$447
Passing a School Bus$2,33039%$659
Improper Passing$2,24835%$577
Following Too Closely$2,35441%$682
Speeding$2,07424%$403
Failure to Stop at a Red Light$2,07724%$406
Illegal Turn$2,07724%$406
Driving Wrong Way/Wrong Lane$2,07724%$406
Failure to Yield$2,07724%$406
Speeding in a School Zone$2,04823%$377
Driving Too Slowly$2,04823%$377
Distracted Driving$2,07724%$406
Driving with Expired Registration$1,90214%$231
Failure to Show Documents$1,84711%$176
Not-at-Fault Accident$1,7857%$114
Failure to Use Child Safety Restraint$1,7253%$54
Failure to Wear a Seat Belt$1,7253%$54
Driving Without Lights$1,7253%$54

New Jersey Tour Guide Scholarship

At The Zebra, we know better than most just what a pain buying car insurance can be. We also know that students suffer from higher-than-average policy rates. Talk about a double-whammy. That’s why, this year, we’ve decided to continue The Zebra’s annual scholarship with the goal of helping to alleviate the financial pressures of college-bound students in the New Jersey area, while also getting an insider view of the Garden State.

Prompt

So, students, we want to see your favorite road trip destination(s) in your state— from your unique perspective. If it makes sense to hit the open road and be our virtual tour guide, that's great! But there are no limits to what we're looking for: a narrated animation, a slideshow of memorabilia, an illustrated map of the best roadside attractions on the way. This is a chance for you to showcase any place you love in as an original way as possible.

How do I choose a location?

The length of the road trip to your feature destination is inconsequential. So if you have an awesome spot in mind that's just two miles from home, we want to see it.

Qualifications

Applicants must be currently enrolled at or planning to attend a four-year university, graduate program, community college, or trade school located in the continental United States. Upon notification, winner(s) must supply a current proof of enrollment or letter of acceptance.

How to Apply
1. Create a video

Your original video should not exceed 2 minutes

2. Post online

The video must be hosted on YouTube or Vimeo

3. Submit by email

Email your submission to scholarships@thezebra.com

4. Please include...

your name, address, and phone number when you submit

Details
Award

Selected winner(s) will be awarded a check for $1,000

Deadline

Applications must be received by 11:59 p.m. CST on December 31st, 2019

Notification

Winner(s) will be selected and notified by email by January 31st, 2020

Judges: The Zebra

The winner will be selected based on creativity in the content and presentation

*Upon notification, winner(s) must also supply a current proof of enrollment at a four-year university, graduate program, community college, or trade school located in the continental United States.


Fine Print

By participating, entrants represent that the video submitted is their sole and original work and does not infringe the intellectual property rights of any other party. In other words, no copyrighted music or images may be used.

Employees of The Zebra and their immediate family members are not eligible to participate in the contest.

Written credits for any technical or talent positions (e.g., editor, director, actors) should be included with your submission, along with any sources used to create the video.

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