The best car insurance in New Jersey

Ed Zuccarelli

By

Ed Zuccarelli

Ed Zuccarelli

Freelance contributor

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.

Published November 15, 2021

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New Jersey drivers pay an average of $2,259 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 $1,078 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

$1,078

871

NJ Manufacturers

$1,481

909

Plymouth Rock

$1,510

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State Farm

$1,603

881

Progressive

$1,647

856

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

$2,360

18

GEICO

$2,357

21

GEICO

$1,757

25

GEICO

$1,299

30

GEICO

$1,100

35

GEICO

$1,075

45

GEICO

$1,059

55

GEICO

$949

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

Plymouth Rock

State Farm

Progressive

At-fault Accident

$1,484

$1,540

$1,686

$2,636

$2,429

DUI

$2,152

$1,879

$2,790

$6,210

$1,794

Driving with a suspended license

$1,050

$1,879

$3,245

$6,210

$2,199

Driving with an open container

$2,152

$1,879

$2,790

$2,401

$1,794

Driving with expired registration

$1,050

$1,879

$3,153

$2,401

$2,041

Driving without Lights

$1,050

$1,879

$3,153

$2,401

$1,630

Failure to show documents

$1,050

$1,879

$3,153

$2,401

$2,041

Failure to stop at a red light

$1,050

$1,879

$3,153

$2,401

$2,041

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

$2,114

GEICO

$2,392

NJ Manufacturers

$2,507

Progressive

$2,545

State Farm

$3,394

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:

  • Newark : $3,425

  • Jersey City: $3,012

  • Patterson: $3,358

  • Elizabeth: $3,306

  • Edison: $2,313

  • Woodbridge: $2,397

  • Trenton: $2,623

  • Clifton: $2,881

  • Camden: $3,300

  • Brick Township: $2,150

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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

Frequently asked questions

Do I have to have car insurance?

Yes, it is required in New Jersey. Driving without car insurance carries penalties of monetary fines, driving privilege suspension, and possible jail time.

What are collision and comprehensive coverages?

Collision coverage pays for damage to your vehicle even if you’re at fault in an accident. Comprehensive coverage covers damage caused by non-accident incidents, like fire, flood, theft, and vandalism.

Can I list a car I own on someone else’s insurance?

Under certain circumstances, yes. For example, as long as the policyholder is listed on your registration along with you, it’s permitted. This is one of those situations that can be addressed when you shop for car insurance, just make sure to be upfront about your situation.

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.