Best Auto Insurance Rates in New Jersey

On average, your neighbors pay $104 a month.

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Compare Auto Insurance in New Jersey

The Garden State has the most expensive car insurance rates of any state. New Jersey also has a complex insurance system with many complex policy choices. If drivers in any state could use help lowering their rates, it’s New Jersey.

This page will cover the amounts and types of coverage legally required in New Jersey. It also touches on recommended coverage levels, average rates, and New Jersey car laws.

Average New Jersey Car Insurance Rates

How much is car insurance in New Jersey? Unfortunately, it's more expensive than any other state. The average cost of car insurance in New Jersey is $1,265.69 per year. The national average price is $889.01. That's a sizeable increase.

New Jersey (NJ) Average Annual Car Insurance Rates
Coverage Rates
Liability $869.57
Collision $381.86
Comprehensive $131.35
Total Cost Per Year $1,265.69
Price Per Month $104.72
Source: Facts + Statistics: Auto insurance

The graph below shows the change in average New Jersey insurance rates from 2011 to 2015. According to the III, New Jersey car insurance rates increased from $1,186 in 2011 to $1,263 in 2015, a jump of $79, or 6.70 percent.

New Jersey average car insurance rates

If you want reasonably priced car insurance in New Jersey, you have to shop around. To do this, you have to compare quotes from multiple insurance companies. But that can be a hassle if you do it on your own.

QuoteWizard connects you to top insurance companies. We help you compare rates and find your ideal coverage levels. That means less legwork and, better yet, lower costs.

Last year, 61,377 people used QuoteWizard to get an auto insurance quotes comparison in New Jersey to find the cheapest rates.

Best Car Insurance Companies New Jersey

These are the most common car insurance companies according to our New Jersey users. Out of the 61,377 New Jersey drivers that used QuoteWizard last year, 5,303 had no car insurance.

Top 10 Vehicles in New Jersey

This is our list of the most common vehicles owned by New Jersey drivers requesting car insurance quotes through QuoteWizard in the past year.

  1. Honda Accord EX/LX
  2. Honda Civic DX/EX/LX
  3. Ford F150
  4. Toyota Camry LE/XLE/SE
  5. Nissan Altima 2.5 S
  6. Hyundai Sonata GLS
  7. Honda CR-V EX
  8. Jeep Grand Cherokee Laredo
  9. Acura MDX
  10. Ford Explorer
Get a quote for your vehicle. Request Quote Get a Quote For Your Vehicle

Best High-Risk Auto Insurance Companies

Drivers with traffic citations or accidents on their driving record sometimes have trouble finding reasonably priced insurance. Companies charge considerably higher rates to cover these drivers. These drivers are high-risk, meaning they're more likely to need to file a claim. This, in turn costs the insurer money.

Fortunately, the state government helps high-risk New Jersey drivers find coverage. If a New Jersey driver has their insurance cancelled or denied, they can qualify for minimum coverage through the New Jersey Personal Automobile Insurance Plan. NJPAIP assigns drivers to insurance companies, mandating coverage. If you're struggling to find insurance, use NJPAIP.

These companies also offer insurance policies for New Jersey high-risk drivers:

  1. State Farm
  2. GEICO
  3. Plymouth Rock
  4. Mercury
  5. New Jersey Skylands Insurance
  6. Allstate
  7. Liberty Mutual
  8. Esurance

Best Teen Driver Car Insurance Companies

Car insurance for teens costs considerably more than any other age group. Why? Teen drivers pose an enormous risk to insurers, as they have higher chances of causing accidents or traffic citations than other age groups.

Our research shows that teen drivers pay an average of $438 a month for an individual policy. That number drops to $278 to add a teen to their parent's policy. Even then, that's a substantial amount. Fortunately, most companies have discounts for students with good grades.

These companies offer great car insurance for New Jersey teenage drivers.

  1. AAA
  2. NJM
  3. Penn National
  4. Travelers
  5. GEICO
  6. State Farm

New Jersey Drivers

Your car insurance premiums are based in part by the likelihood of you getting into an accident. Insurers account for the number of claims filed by other drivers in your city to gauge your risk-level. It costs more to insure a car in an area filled with bad drivers.

Using user data, QuoteWizard conducted a study of the best and worst drivers by state.  Our findings show that New Jersey has the 16th worst drivers in America. That fact will play a role in the cost of your car insurance.

New Jersey Auto Insurance Laws

Minimum Car Insurance Requirements in New Jersey

New Jersey is one of 12 US states with a no-fault insurance system. In no-fault states, accident victims can collect benefits from their own insurance companies, regardless of who causes the accident.

Unlike most other no-fault states, New Jersey offers drivers two different types of policies: basic and standard.

A basic policy is, unsurprisingly, very basic. It's barebones, and offers this minimal coverage:

  • $5,000 for property damage liability per accident
  • $15,000 for personal injury protection per accident

 A standard policy, on the other hand, includes a minimum of:

  • $15,000 for bodily injury liability per person
  • $30,000 for bodily injury liability per accident
  • $5,000 for property damage liability per accident
  • $15,000 for personal injury protection per person or accident

In addition, drivers can tailor their Personal Injury Protection (PIP). They can choose between full PIP or medical PIP, as well as PIP primary or health primary. Here's the difference:

  • Full or Medical Only: With medical PIP, drivers only have coverage for their injury expenses. But with full PIP, drivers have coverage for expenses indirectly related to their injuries. That can include lost income, physical therapy, mental healthcare, and more. Full PIP is more expensive.
  • PIP Primary or Health Primary: Policyholders have the option to cover any medical bills from a car accident through either their car insurance or their health insurance. The latter is a good option for people with comprehensive health insurance plans, as their health coverage is likely better than PIP primary coverage. People on Medicare or Medicaid

Recommended Coverage Levels

There's plenty of coverage options to consider for New Jersey drivers. We'll help you break it down.

Basic or Standard

First, if you can afford more, don't buy a basic policy. It's barebones at best, and if you're involved in an accident, you have minimal coverage.

Even if you're buying a standard policy, you should purchase higher coverage levels if it's in your budget. The minimum standard policy doesn't cover your car, your injuries, or your property. It only covers damages that you cause to other drivers.

Ideal Coverage Levels

We recommend that New Jersey drivers buy the following coverage amounts:

  • Individual Body Injury Liability: $100,000
  • Total Bodily Injury Liability: $300,000
  • Property Damage Liability: $100,000

If you can afford it, add comprehensive and collision coverage with a reasonable deductible. Also consider uninsured/underinsured coverage. This covers damages caused by drivers who have little or no insurance.

Personal Injury Protection

Opt for full coverage instead of medical only, if it's in your budget. Health bills can skyrocket after an accident, and full coverage isn't overly expensive compared to medical only.

Whether you should choose PIP or health insurance as your primary coverage depends a few factors. First, what kind of health insurance plan do you have? Some plans offer little or no coverage for car accidents. If your health insurance isn't great, PIP coverage is probably a better choice.

Second, compare your PIP and health insurance deductibles. If you opt for health insurance instead of PIP, you would pay a double deductible after an accident – one for your health insurance, and one for your auto insurance. It could be a costly affair.

Right to Sue

But wait! New Jersey drivers have another coverage decision to make...

If you buy a standard policy, you need to select the extent of your legal rights if you're injured in an accident. You have two options: unlimited right to sue or limited right to sue.

With an unlimited right, you can sue the person who caused the accident for any injury. With a limited right, you can only sue for a few specific injuries.

Choosing an unlimited right to sue keeps your options if you're injured in an accident, but it raises the price of your premium. If you have health insurance and strong PIP limits, you might not need to pay the extra amount needed for an unlimited right to sue.

Required Proof of Car Insurance

Any time you drive in New Jersey, you must have your car insurance card. This card is provided by your insurance company. Driving without proof of insurance in New Jersey carries a fine of $150.

SR-22 Requirements

New Jersey drivers that have had their licenses suspended due to DUI convictions or other violations must provide proof of financial responsibility by filing an SR-22 form. State law requires that an SR-22 be carried for 36 consecutive months.

State of New Jersey Traffic Safety Laws

Distracted Driving Laws

New Jersey prohibits drivers from using hand-held cell phones while driving. It also prohibits new drivers from using cell phones in any way while driving. All drivers are also banned from sending or receiving text messages while driving.

DUI Law and Penalties

If you're driving with a BAC of 0.08% or higher, you're under the influence according to New Jersey law. Drivers must submit to blood, breath, or urine testing when suspected of DUI. Refuse the test and your license is automatically suspended for seven months.

A first DUI offense comes with these penalties:

  • Up to 30 days jail
  • Up to $1000 in fines
  • License suspension between three months and one year
  • Potential requirement of ignition interlock device

 In New Jersey, a DUI puts 9 points on your license, and it stays on your driving record for 10 years. Also, your insurance rates rise after a DWI. Our research shows that drivers can expect to pay $830 more per year for car insurance after a DUI. Additional DUIs bring harsher penalties, including bigger fines and more jail time.

Senior Drivers in New Jersey

All New Jersey drivers are required to renew their driver’s licenses every 4 years. There are no special provisions for senior drivers. Car insurance rates begin to rise when drivers turn 65.

Vehicles Registered in Another State

When you drive a vehicle in New Jersey that is registered in another state, you need the minimum insurance required by that state. You must be able to provide proof of this insurance to law enforcement if requested.

New Jersey Department of Banking and Insurance - Division of Insurance

Website:
Homepage
Insurance Commissioner:
Marlene Caride
Insurance Hotline:
(800) 446– 7467
Office Hours:
Monday - Friday
8:30 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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