Auto Insurance with Bad Credit in New Jersey

The Zebra
March 12, 2019

It can be tough to find cheap car insurance if you have bad credit. Car insurance companies use credit history as a primary rating factor, assigning their premiums based in part on drivers’ credit scores. Because auto insurance companies rely on data showing drivers with poor credit have a greater likelihood of filing car insurance claims, the companies compensate for this risk by assigning expensive rates.

How much you pay for car insurance with bad credit depends on where you live, which car insurance company you use, and an array of other rating factors. We've gathered below typical insurance premiums for drivers with bad credit in major New Jersey cities and rates from top auto insurance companies, , along with tips to save on car insurance with bad credit in New Jersey.


Car insurance with bad credit in New Jersey:

  1. Average rates
  2. Rates by city
  3. Rates by company

Auto insurance rates with bad credit in New Jersey

Drivers in New Jersey pay a penalty of $1,591 per year for having a credit score at the low end of the scale. A driver in either the “poor” or “below fair to poor” credit tier will also pay higher-than-average rates.


NEW JERSEY AUTO INSURANCE PRICES WITH BAD CREDIT

Credit TierAverage Annual Rate in New Jersey
Worst$3,270
Poor$2,895
Below Fair to Poor$2,641
Average — All Credit Tiers$1,679

Find an affordable policy!

Compare rates from top car insurance companies.


Car insurance rates with bad credit in New Jersey cities

Car insurance rates will also vary depending on the geographic area in which you drive. Car insurance companies rely on your address to estimate how likely you are to file a claim: the denser and claim-prone your immediate area is, the more expensive your rates will be.

Listed below are major New Jersey cities and their average car insurance rates for drivers with poor credit ratings.


BAD CREDIT CAR INSURANCE RATES IN NEW JERSEY CITIES

CityAverage Annual Rate — Worst CreditAverage Annual Rate — Poor CreditAverage Annual Rate — Below Fair to Poor Credit
Newark$5,074$4,471$4,062
Jersey City$4,252$3,757$3,422
Paterson$4,886$4,302$3,915
Elizabeth$4,819$4,247$3,863
Toms River$3,079$2,727$2,490

Compare car insurance rates today!

Compare rates from top car insurance companies.


Best car insurance companies for bad credit in New Jersey

Another contributing factor to how much you pay for auto insurance is the insurance company you buy from. Each and every car insurance company rates policies in a unique manner, giving rating factors varying weights in their calculations. Credit history can be a primary pricing differentiator between otherwise-similar car insurance companies. In New Jersey, the most affordable insurance company with bad credit is New Jersey Manufacturers Insurance, which offers a discount of $1,167 annually compared to the second-most affordable company, Progressive.

See below prices from leading auto insurance companies in New Jersey for drivers with bad credit.


NEW JERSEY CAR INSURANCE PREMIUMS WITH BAD CREDIT — BY COMPANY

CompanyAverage Annual Rate — Worst Credit Tier
New Jersey Manufacturers Insurance$1,870
Progressive$3,037
GEICO$3,384
Allstate$3,551
Drive New Jersey Insurance Company$3,675

If you're having a hard time buying auto insurance with a low credit score, consider these tips:

  1. See car insurance quotes
  2. Be smart with your claims
  3. Know what determines auto insurance rates

Compare rates from top car insurance companies.