Cheap New Jersey Car Insurance

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

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%.

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.

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.

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.

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.

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.

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)