The best car insurance in New Jersey

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Ed ZuccarelliEd ZuccarelliFreelance contributorEd Zuccarelli is a freelance writer and former police officer whose law enforcement experience made him an expert in motor vehicle law and the car insurance industry.&Andrew HurstAndrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Updated|3 min read

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New Jersey drivers pay an average of $2,225 a year for full coverage car insurance, making it one of the most expensive states in the U.S. for car insurance coverage.

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But even though car insurance rates are high in New Jersey, drivers can still save by shopping around and comparing quotes before they buy. Policygenius can help you see affordable options from top companies, so you can choose the coverage that’s right for you.

Key Takeaways

  • GEICO has the lowest average rates in New Jersey at $1,007 per year for a full coverage policy.

  • Drivers in New Jersey must have at least $15,000 per person and $30,000 per accident in in bodily injury liability coverage and at least $5,000 in property damage liability coverage.

  • Personal Injury Protection (PIP) and uninsured/underinsurance motorist coverage are also required in the Garden State.

Cheapest car insurance companies in New Jersey

Each car insurance company uses different methods when calculating rates. So even though they’re all looking at your age, address, and driving history, one company may charge you much less for coverage than another. Comparing quotes from a few different companies will help you find the best deal.

Company

Average cost

JD Power Rating

GEICO

$1,007

874

NJ Manufacturers

$1,262

--

State Farm

$1,479

882

Amica

$1,568

--

Plymouth Rock

$1,581

--

Cheapest car insurance companies by age in New Jersey

Teens and young drivers pay more for car insurance, because their inexperience behind the wheel means they’re more likely to get in an accident and file a claim. 

Typically, rates for young drivers fall as they approach the age of 25 and age-out of the highest-risk age group, but if you’ve just gotten your license or you’ve got accidents and violations on your record, turning 25 might not mean lower rates.

Age

Cheapest company

Average cost

16

GEICO

$2,221

18

GEICO

$2,217

21

GEICO

$1,671

25

GEICO

$1,223

30

GEICO

$1,030

35

GEICO

$1,005

45

GEICO

$987

55

GEICO

$888

60

GEICO

$904

65

GEICO

$907

70

GEICO

$939

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Choosing the right car insurance company in New Jersey

There’s no one right car insurance company that works for every driver. Since car insurance costs are based on so many individual factors — your age, driving history, credit score, and address — the right car insurance company for you may be different from the best option for your neighbor.

That’s why the key to finding your best rates is shopping around. Policygenius can help you see options from top car insurance companies, so you can choose the policy that’s best for your needs (and your wallet).

Car insurance rates for drivers with driving violations in New Jersey

The more accidents and violations in your driving history, the more you’ll pay for car insurance. If you do have a less than perfect record, it’s even more important to shop around and compare options before you buy.

Violation

GEICO

NJ Manufacturers

State Farm

Amica

Plymouth Rock

At-fault accident

$1,401

$1,337

$2,422

$2,252

$2,436

DUI

$2,024

$1,620

$5,680

$5,454

$2,083

Suspended license

$997

$1,706

$5,680

$5,454

$2,334

Open container

$2,024

$1,620

$2,208

$5,454

$2,083

Expired registration

$997

$1,620

$2,208

$1,795

$2,168

Driving without lights

$997

$1,620

$2,208

$1,795

$2,168

Running a red light

$997

$1,620

$2,208

$1,795

$2,168

Following too closely

$997

$1,620

$3,326

$1,795

$2,168

Hit and run

$2,024

$1,620

$2,208

$5,454

$2,334

Not-at-fault accident

$997

$1,337

$1,495

$1,599

$1,627

Passing a school bus

$997

$1,620

$3,326

$1,990

$2,168

Reckless driving

$1,713

$1,620

$3,326

$4,147

$2,334

Speeding

$997

$1,620

$2,565

$2,905

$2,168

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Cheapest car insurance for drivers with bad credit in New Jersey

Having a good credit rating will help keep your car insurance costs down, while a low credit score likely means you’ll pay more for car insurance.

Company

Rates for drivers with bad credit

Selective Insurance

$2,023

NJ Manufacturers

$2,117

GEICO

$2,257

Amica

$2,791

State Farm

$3,113

Car insurance costs in New Jersey cities

Where in New Jersey you live will also affect how much you’ll pay for car insurance. Crime rates, the number of accidents and claims and even the average cost of car repairs in your area will affect the cost of car insurance. Here’s what drivers pay in the 10 biggest cities in New Jersey:

  • Jersey City: $2,897

  • Newark: $3,264

  • Paterson: $3,199

  • Elizabeth: $3,160

  • Edison: $2,259

  • Woodbridge: $2,345

  • Trenton: $2,546

  • Clifton: $2,775

  • Camden: $1,045

  • Brick Township: $2,130

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Buying car insurance in New Jersey

New Jersey requires all drivers to have at least a minimum amount of car insurance in order to be legally allowed to drive. All drivers in New Jersey must have at least the following amounts of coverage:

  • Bodily injury liability coverage per person: $15,000 (Standard)

  • Bodily injury liability coverage per accident: $30,000 (Standard)

  • Property damage liability coverage: $5,000 (Basic/Standard)

  • Personal injury protection: $15,000 per accident, plus up to $250,000 for severe injuries for a standard policy (Basic/Standard)

  • Uninsured/underinsured motorist coverage: Must match liability limits if purchasing a standard policy

Standard vs. basic car insurance policies: Under New Jersey law, drivers can select a “basic” car insurance policy. These policies offer very limited coverage at a reduced rate, so drivers who can afford to buy well-over the amounts required by law should do so.

New Jersey is a no-fault state: This means that each driver's own car insurance pays for their medical bills after a car accident, regardless of who was at fault. New Jersey drivers are required to have at least a minimum amount of PIP coverage, which is the coverage that pays for injuries after an accident.

How to get cheap car insurance in New Jersey

There are several ways to get cheap car insurance in New Jersey, including:

  • Always compare costs: Shop around to make sure you’re getting the best deal

  • Get discounts: Insurance companies offer discounts for things like safe driving and paying your premium up front as opposed to monthly billing. Make sure you know what you qualify for

  • Bundle policies: Bundling insurance means getting more than one type of insurance policy from the same company, like auto and home together — this can usually earn you savings on both

  • Reshop yearly: Before renewing your policy, check to see if you could be getting the same coverage at a better rate from another company

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Frequently asked questions

Which company in New Jersey has the cheapest car insurance?

Drivers in New Jersey could get the cheapest car insurance from GEICO. NJM, Plymouth Rock, and State Farm also typically offer affordable coverage in New Jersey.

How much is car insurance monthly in New Jersey?

In New Jersey, drivers pay an average of $185 per month for car insurance. This means that coverage in the state is more expensive than the national average cost of auto insurance.

Is New Jersey a no-fault insurance state?

New Jersey is a no-fault state. This means that drivers have to get a minimum amount of personal injury protection and are limited in the damages they can claim from another driver's insurance company after an accident. Drivers in New Jersey can get either $5,000 or $15,000 of personal injury protection and still meet the state's minimum requirements. This is because New Jersey has "basic" and "standard" auto insurance requirement tiers to ensure that drivers can find affordable coverage while still remaining in compliance with the state's coverage laws.

What are the penalties for driving without insurance in New Jersey?

According to the New Jersey Motor Vehicle Commission, driving without car insurance carries penalties of monetary fines, driving privilege suspension, and possible jail time.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Authors

Ed Zuccarelli is a freelance writer and former police officer whose law enforcement experience made him an expert in motor vehicle law and the car insurance industry.

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

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