Finding Cheap Car Insurance in New Jersey (2020)
Car insurance rates in New Jersey are relatively expensive. As a driver in New Jersey, you should be diligent when choosing an auto insurance provider and coverage. To best understand your potential coverage and find the cheapest insurance rates in the state, you should compare multiple car insurance quotes.
Our research finds that GEICO and NJM are the cheapest car insurance providers in New Jersey. However, there is no one-size-fits-all auto insurance — no single company will be the best or cheapest for every driver. We researched rates for good drivers, drivers with good and bad credit, young drivers and high-risk drivers to see which companies offered the lowest rates on average. And the cheapest companies might not be the top rated in customer service, so you should shop around and see what you can afford. Your rates are based on many different factors and may vary by insurance company, which weighs those factors differently.
There are discounts and decisions you can make to keep your rates as low as possible. Being part of affiliate groups, being a good student and taking defensive driving courses are just a few ways to maintain affordable car insurance in New Jersey.
In this article we will touch on:
- Cheap car insurance companies in New Jersey
- New Jersey state automobile insurance requirements
- Average car insurance costs in New Jersey
Cheapest car insurance in New Jersey
Luckily, finding the best auto insurance for you might require nothing more than collecting a few different quotes. We researched rates from top providers in New Jersey and found what car insurance rates might look like for a sample driver. As you can see, these average rates may vary dramatically! Since rates can differ a lot, you should make sure to shop around and get as many quotes from auto insurance companies as you can.
The best car insurance company for you will depend on your driving record, vehicle and a lot of other factors. Rates vary per person, so make sure to find as many car insurance quotes as possible.
Cheapest car insurance for good drivers
We found the best car insurance companies based on price for our base-profile driver. We found the top three most affordable car insurance companies for good drivers in New Jersey to be:
| Cheapest insurance companies | Yearly rate |
|---|---|
| GEICO | $1,527.22 |
| NJM | $1,577.16 |
| State Farm | $1,915.96 |
We researched the average annual car insurance rates for a 30-year-old male in New Jersey with a 2014 Honda Accord. The average rate per month for this driver with good driving history is about $220.
Good drivers, especially those with good credit, typically have relatively lower average premiums than higher-risk drivers. This is because they’re less likely to file claims and cost their insurance companies money. As a result, they tend to have lower premiums. Avoiding accidents, traffic violations and filing any claims might lead to less expensive premiums.
Cheapest car insurance for new and young drivers
We found the top three best auto insurance companies for new and young drivers in New Jersey:
| Cheapest insurance companies | Yearly rate |
|---|---|
| NJM | $3,063.17 |
| GEICO | $3,378.35 |
| State Farm | $5,841.48 |
New drivers and young drivers tend to experience higher premiums than more experienced and older drivers. They’re more likely to be involved in car accidents and pose a higher risk to insurance companies. But these drivers, including teenagers living at home, need auto insurance coverage, regardless of the high costs. Rates might be lower if a young driver is added to their parents’ existing insurance policy. This is because auto insurance providers can provide multiple-car discounts. Make sure to check with your agent and shop around for more quotes to ensure you’re getting the lowest rates.
These rates are for an 18 year-old male (or someone with two years of driving experience) with a 2014 Honda Accord. The average rate per month for this driver with good driving history and good credit is about $589 a month. That’s 2.7 times more expensive than the average insurance premium for a 30-year-old with a good driving record!
Young drivers can opt for higher deductibles, or the amount you pay out of pocket per claim, apply for good student discounts and enroll in defensive driver training to get cheaper car insurance rates in New Jersey.
Cheapest car insurance for high-risk drivers
If you’re a high-risk driver—someone with vehicle violations, at-fault accidents and/or license suspensions — your insurance rates may be significantly higher than those with a good driving record. We found the top insurance companies for high-risk drivers in New Jersey:
| Cheapest insurance companies | Yearly rate |
|---|---|
| GEICO | $1,527.22 |
| NJM | $1,577.16 |
| Progressive | $3,005.82 |
The average rate per month for this driver—one with an SR-22 because of aggravated driving — is about $228 a month. For this specific driver profile, there isn’t a significant increase in premiums compared with our base driver. This difference may vary per person, so make sure to keep your driving record clean for the cheapest car insurance in New Jersey.
What if you can’t find auto insurance in the voluntary marketplace due to your driving history? You can still obtain coverage through New Jersey’s Personal Automobile Insurance Plan (PAIP). The state requires insurance providers to offer standardized rates to high-risk drivers, but these rates can be much higher than those in the regular auto insurance market. Make sure to shop around for multiple quotes.
Finding PAIP: Call 1-800-652-2471
Website: www.dobi.nj.gov
Cheapest car insurance for drivers with one at-fault accident
We found the top three most affordable car insurance companies for bad drivers, or drivers with one crash where they were found to be at-fault in New Jersey:
| Cheapest insurance companies | Yearly rates |
|---|---|
| NJM | $1,577.16 |
| GEICO | $2,044.94 |
| State Farm | $3,048.62 |
Drivers with even one at-fault accident might find that their rates go up at the time of contract renewal. This can be the case even if you were not found to be at-fault! We found a significant increase in premium costs after one at-fault accident with $3,000 in property damage. You should shop around for car insurance quotes after you’ve been in an accident. You might just find another company that will offer you lower rates than your current company.
Cheapest car insurance for low-mileage drivers
If you drive sparingly, you might find lower premiums than your high-mileage counterparts. We didn’t find a significant discount — only about $50 annually — for our sample driver who drove 5,000 miles per year. We found the top three most affordable car insurance companies for low-mileage drivers in New Jersey:
| Cheapest insurance companies | Yearly rates |
|---|---|
| NJM | $1,355.93 |
| GEICO | $1,500.87 |
| State Farm | $1,716.32 |
New Jersey state mandated car insurance coverage
What exactly does the state of New Jersey require in terms of auto insurance minimums? It’s one of 12 no-fault insurance states. That means that in an accident, victims may collect benefits from their own insurance companies, regardless of who caused the accident. New Jersey has two options for the required insurance minimum: a basic policy option or a standard policy option. A basic policy has lower limits required and some optional coverage not available. A standard policy has higher requirements and all optional coverage is available. We suggest you get at least the standard policy requirements.
Here are the required auto insurance policies for drivers in New Jersey:
| Type of coverage | Standard policy requirements | Basic policy requirements |
|---|---|---|
| Bodily Injury Liability | $15,000 per person
$30,000 per accident |
Not required
$10,000 per person/accident is available |
| Property Damage Liability | $5,000 per accident | $5,000 per accident |
| Personal Injury Protection | $15,000 per person or accident | $15,000 per person or accident |
| Un/Underinsured Motorist Coverage | $15,000 per person (BIL)
$30,000 per accident (BIL) $5,000 per accident (PDL) |
None available |
| Collision | Optional | Optional (only available from some insurers) |
| Comprehensive | Optional | Optional (only available from some insurers) |
| Source: NJ Department of Banking and Insurance | ||
Average New Jersey car insurance costs by city
If you live in one of the more populous cities in New Jersey, you’re probably going to have higher auto insurance premiums. Where you live affects how your insurance premiums are calculated. If your neighborhood has more accidents, your rates may be more expensive. Our research shows that the 10 most populous cities’ average auto insurance premiums are more expensive than New Jersey’s average overall.
Average Premiums for the 10 Most Populous Cities in New Jersey
| City | Average premium |
|---|---|
| Newark | $4,164.00 |
| Passaic | $4,078.00 |
| Paterson | $4,048.75 |
| Elizabeth | $4,002.20 |
| Union City | $3,909.00 |
| Clifton | $3,584.30 |
| Jersey City | $3,528.20 |
| Bayonne | $3,227.50 |
| Trenton | $2,957.88 |
| Camden | $2,766.03 |
| New Jersey average | $2,649.38 |
Recommended car insurance coverage levels
Although New Jersey allows for a basic insurance policy, we suggest you opt for higher coverage if you can afford more. Also elect for un/underinsured motorist coverage, collision coverage and comprehensive coverage if you can afford it. Even though these are not required protections, they may be helpful in covering damage costs you incur.
- Un/underinsured motorist coverage helps cover your bodily injury and property damage if the at-fault party doesn’t have insurance or doesn’t have enough insurance coverage to pay you for the costs you incurred. Out of the 61,377 New Jersey drivers that used QuoteWizard last year, 5,303 had no car insurance, so UIM is an important coverage.
- Collision insurance covers repairing or replacing your car after an auto accident, even if you’re at fault. In 2017, there were 270,231 car crashes in New Jersey according the the New Jersey Department of Transportation. If you happened to cause one of those accidents and needed to repair your car, collision insurance could pay for repairs, minus your deductible.
- Comprehensive insurance covers “acts of God”, or incidents such as riots, natural disasters or a fallen tree. New Jersey is a coastal state that is susceptible to blizzards and inclement weather. In these cases, comprehensive insurance can offer you financial protection in case of car damage. Higher coverage may protect you from devastating economic losses in case of a bad car accident as well.
Getting affordable car insurance in New Jersey
Finding the best and cheapest car insurance in New Jersey depends on a lot of factors. There are no unique policies for low-income households, except for those who are eligible and enrolled in Federal Medicaid with hospitalization. These drivers are eligible for Special Automobile Insurance Policy (SAIP) which is $365 a year. This dollar-a-day coverage covers emergency medical bills and a $10,000 death benefit, but does not cover any damages you cause others or any property damage you incur. The best way to manage costs is to shop around for multiple quotes and tap into as many discounts as possible.
Methodology
We conducted our research across 10 major insurers with a base driver profile of a 30-year-old man located in New Jersey with a clear driving history, no accidents and no violations. The driver fully owns a 2014 Honda Accord and opts for the minimum required, full-coverage auto policy. On average, the driver uses his vehicle for 15,000 miles annually. We modified our search in the following ways: a “young driver” is 18 years old, a high-risk driver has an SR-22 filed for aggravated driving, a bad driver has one at-fault accident with $3,000 in property damage and a low-mileage driver drives 5,000 miles annually. Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
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 a.m. to 5 p.m. Eastern Time
File a consumer insurance complaint: Complaint page
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.