How to Find the Best Full Coverage Car Insurance in New Jersey

Most New Jersey drivers need full coverage. Safeco, Nationwide, and Plymouth Rock tend to offer good rates for full coverage insurance.
Written by Claire Beaney
Edited by Jessica Barrett
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The average annual premium for full coverage
auto insurance in New Jersey
is $3,007, or $251 per month. You should always
compare insurance quotes
to find the most full coverage plan at a price that works for you. 
  • The average monthly premium for New Jersey drivers who carry
    full coverage auto insurance
    is $251.
  • For most New Jersey motorists, the best rates for full coverage insurance can be found with GEICO, Progressive, and Plymouth Rock.
  • Due to the state's high traffic density and expensive car repairs, most New Jersey motorists consider full coverage mandatory. 
  • Dropping collision and comprehensive coverage could save you about $75 monthly if your car is worth less than $4,000. 

How to get the best full coverage car insurance in New Jersey

Insurance companyAverage full coverage premium
Safeco$2,074
Nationwide$2,620
Plymouth Rock$2,644
Travelers$2,725
Progressive$2,732
Liability vs. full coverage: By law, New Jersey requires that everyone have at least liability insurance. In contrast, full coverage refers to any policy that provides collision and comprehensive coverage in addition to liability coverage. 
When combined, collision and comprehensive insurance protect your vehicle from loss due to things like accidents, theft, vandalism, natural disasters, animal attacks, fire, and more.
How much coverage do you need? You should have at least $50,000/$100,000 in liability insurance for bodily injury liability coverage, $50,000 in liability insurance for property damage liability coverage, and collision and comprehensive insurance to pay for the cost of replacing your car. 
The secret to finding the best full-coverage auto insurance company in New Jersey
There’s no single car insurance company that offers the lowest rates on full coverage for every driver in New Jersey. Car insurance companies look at your entire profile, from your age and ZIP code to your driving record and insurance history, when setting auto insurance rates. 
And every insurance provider uses a different set of calculations to set your premium—meaning that the best car insurance company is different for every driver.
Some drivers will find the cheapest car insurance coverage with New Jerseys’s biggest insurers—GEICO, NJM, Allstate, Progressive, or State Farm—but others will find the best car insurance rates with smaller providers like AAA, Direct Auto, or Plymouth Rock. 
Find your full coverage quotes today

Why most New Jersey drivers need full coverage car insurance

The average New Jersey driver will not be adequately protected financially by meeting the bare minimum in
New Jersey auto insurance requirements
. Here's why most drivers in the Garden State can't do without extra coverage: 
  • High traffic density: As the most densely populated state in the U.S., New Jersey also has a high traffic density, which naturally leads to more accidents and increased premiums.
  • Cost of auto repairs: A recent study found that New Jersey has the third-highest repair costs in the country—car insurance companies will factor this information into their premiums.
  • High rate of auto thefts: The Attorney General's office in New Jersey reports a car theft epidemic, partly due to a pandemic-related vehicle shortage, with a significant increase in thefts from 2019 to 2022.
  • Status as a no-fault state: In a no-fault state, your insurer must pay your medical bills regardless of who caused the accident. The no-fault system streamlines the claim process and prevents denied or delayed payouts, but it can raise auto insurance premiums.

Do you need no-fault insurance in New Jersey?

Yes, New Jersey is a no-fault auto insurance state, which means that drivers must carry personal injury protection (PIP) insurance as part of their auto insurance policy. 
If you are injured in a car accident in a no-fault system, your PIP coverage normally pays for your medical expenses and certain other financial losses, regardless of who was at fault in the accident. 
However, New Jersey permits drivers to select between a standard no-fault insurance policy and a more traditional fault-based insurance policy, providing some choice in the type of coverage available.

Do you need uninsured motorist coverage in New Jersey?

Yes,
uninsured motorist coverage (UM) in New Jersey
is required by law. All drivers must have car insurance that covers at least $25,000 in UM coverage per person and $50,000 in UM coverage per accident. 
While UM coverage is required, underinsured motorist (UIM) coverage is fully optional—but due to New Jersey's incredibly low rate of uninsured drivers, it's quite inexpensive to add to your insurance. According to the Insurance Information Institute (III), only about 3.1% of all New Jersey drivers are uninsured. 

Do you need gap coverage in New Jersey?

Even though New Jersey law does not mandate it, drivers who have recently acquired an
auto loan
should consider purchasing
gap insurance
. Gap insurance is designed to cover the difference between the amount you still owe on your new car and the amount your collision or comprehensive policy would pay out in the event of a total loss. 

Should you drop full coverage in New Jersey?

In New Jersey, dropping full coverage is only advisable if:
  • Your car is worth less than the cost of maintaining coverage—typically, only vehicles valued at less than $4,000 are eligible
  • If your car is a total loss, you can afford to buy a new one out of pocket
  • You've paid off your car loan and now own it outright
New Jersey drivers pay an average of $2,112 per year for state minimum coverage, which is approximately 35% less than full coverage. That said, it is not the best option for the vast majority of New Jersey drivers.

FAQs

In New Jersey, the annual cost of full coverage auto insurance is $3,007. Drivers with good
driving records
, those who are middle-aged or older, and those who live in rural areas typically pay less for full coverage. Full coverage car insurance is most expensive for young drivers and high-risk drivers. 
In New Jersey, bodily injury liability must be $25,000 per person and $50,000 per accident; property damage liability must be $25,000 per person and $50,000 per accident; and personal injury protection (PIP) must be $15,000 per person.
The best auto insurance coverage option in New Jersey is a policy that includes at least $50,000/$100,000 in bodily injury liability insurance, $50,000 in property damage liability insurance, and comprehensive and collision coverage for the replacement of the vehicle. 
Drivers can supplement their full coverage policy with roadside assistance, rental car reimbursement coverage, and other types of coverage.
New Jersey car insurance costs range between $2,112 and $3,007, on average. In New Jersey, the highest car insurance rates are for teen drivers and those who have
DUIs
or
speeding tickets
on their record.
The cheapest full-coverage car insurance policy in New Jersey has moderate liability coverage limits (such as $50,000/$100,000) and collision and comprehensive insurance to cover the expense of replacing a totaled car. 
You can get the cheapest auto insurance rates by obtaining quotes from more than one company, getting
discounts for your insurance
,
bundling your home or renters insurance
with your car insurance, or raising the deductibles on your collision and comprehensive insurance. 
When comparing the cost of state-required minimum coverage and comprehensive coverage, GEICO consistently comes out on top for the cheapest car insurance companies in New Jersey. The low premiums are complemented by a wide selection of discounts. There are 16 different discounts listed on the GEICO website, including safe driver, multi-policy, and
good student discounts
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