What is the Average Car Insurance in New Jersey (2024)?
Full coverage car insurance costs an average of $3,007 per year in New Jersey—far above the national average.
Written by Claire Beaney
Edited by Sarah Gray
On average, drivers in New Jersey pay $3,007 a year for
full coverage car insurance
, or $250 a month. Drivers who choose the state minimum policy pay $2,112 a year. Car insurance generally costs more in New Jersey than in the rest of the country. - New Jersey auto insurance premiums range between $176 and $250 per month.
- The average cost of car insurance in New Jersey is higher than the national average.
- Individuals who live in big cities, are under 25, or have violations on their record pay the most for auto insurance.
- The best way to save money on insurance in New Jersey is to compare insurance quotes from multiple insurers.
- New Jersey auto insurancepremiums range between $176 and $250 per month.
- The average cost of car insurance in New Jersey is higher than the national average.
- Individuals who live in big cities, are under 25, or have violations on their record pay the most for auto insurance.
- The best way to save money on insurance in New Jersey is tocompare insurance quotesfrom multiple insurers.
The average cost of car insurance in New Jersey
Car insurance in New Jersey is relatively expensive, with a state average rate of $3,007 per year for full coverage and $2,112 for minimum coverage. Auto insurance in New Jersey is so expensive, in part, because it is the most densely populated state in the country, but also because it is a no-fault state—which means drivers must purchase
personal injury protection coverage (PIP)
.Compare average rates for New Jersey drivers
Here's how your New Jersey car insurance premiums vary depending on your age,
driving record
, and vehicle type. We used four popular driver profiles to demonstrate the wide range of average auto insurance rates across the state.
The average New Jersey driver
The average New Jersey driver
An average driver over age 25 with a clean driving record in New Jersey pays about:
- $3,007 per year for full coverage
- $2,112 per year for state minimum coverage
The New Jersey teen driver
The New Jersey teen driver
The average new driver in New Jersey pays about:
- $5,876 per year for full coverage
- $1,948 per year for minimum coverage
Why did my insurance go up in New Jersey?
As insurance companies in New Jersey try to recoup from pandemic losses and cope with the rising costs of inflation, they have raised auto insurance rates for their customers. Plus, the cost of auto repairs has gone up by about 50% in the last few years because of inflation, problems with the supply chain, and a lack of workers.
New Jersey also recently experienced an increase in the minimum amount of liability coverage required, with limits increasing from 15/30/5 to 25/50/25 for policies renewed or purchased after January 1st, 2023.
The result: significant increases in the overall average cost of insurance in the Garden State.
Why your rate went up: Your annual premium may have increased as a result of the above factors, or it may have increased because of individualized factors, like recent traffic infractions. Talk to your insurance agent or independent broker to determine the cause of your rate increases.
How you can navigate the crisis: Compare rates from multiple providers to ensure you have the best rate on your coverage.
When you shop with Jerry, you'll have access to competitive rates from the most reputable insurance providers in New Jersey.
Jerry
helps you compare New Jersey car insurance rates to locate the cheapest car insurance
for your profile, whether you're looking for cheap minimum liability coverage or a reasonable full coverage policy.Who pays the most for car insurance in New Jersey?
Congratulations if you are over the age of 25, have a clean driving record, and reside in a small town or rural area—you are likely paying among the lowest rates for New Jersey auto insurance.
However, young drivers under the age of 25, those with traffic violations and speeding tickets, and those living in densely populated areas typically pay more for the same level of auto insurance coverage. To get an idea of how much more you might have to pay if you fall into one of those categories, look at the tables below.
Teen drivers pay the highest rates of any group
| Age | Average annual premium |
|---|---|
| 22 | $3,840 |
| 24 | $2,874 |
| 23 | $2,869 |
| 21 | $2,775 |
High-risk drivers with DUIs and license suspensions pay higher rates
| Violation | Average annual coverage |
|---|---|
| Leaving scene of an Accident/Hit and Run | $3,922 |
| Open Container | $2,928 |
| Wrong Way/Wrong Lane | $2,702 |
| Failure to Obey Traffic Sign | $2,627 |
| Seat Belt | $2,544 |
| Other | $2,535 |
| Illegal Turn | $2,485 |
| Careless Driving | $2,484 |
| Suspension | $2,478 |
| Speeding over 15 | $2,428 |
| Driving on Sus. License | $2,403 |
| Cell Phone | $2,379 |
| Speeding under 15 | $2,343 |
| DUI | $2,306 |
| Improper Passing | $2,174 |
| Defective Equipment | $1,937 |
Urban drivers pay more than in small towns and rural areas
| City | Average annual coverage |
|---|---|
| Newark | $2,803 |
| Jersey City | $2,651 |
| Paterson | $2,786 |
| Lakewood | $1,910 |
| Elizabeth | $2,036 |
| Edison | $2,036 |
| Town | Average annual coverage |
|---|---|
| Burlington | $1,796 |
| Forked River | $1,700 |
| Atlantic Highlands | $1,528 |
| Hopatcong | $1,648 |
| Mountainside | $2,036 |
| Pitman | $2,036 |
How to keep car insurance rates low in New Jersey
Finding affordable New Jersey auto insurance is possible even if your risk profile is higher. For the most affordable yearly premiums on New Jersey auto insurance, consider the following advice from the experts:
1. Look for discounts
Depending on your payment history, safe driving record, and other factors, you may be eligible for discounts on your auto insurance premium. Some of the best New Jersey
auto insurance discounts
are detailed below. - Active duty military members can save 15% withGEICO’smilitary discount and 25% with their emergency deployment discount.
- Drivers under the age of 25 who are former dependents ofUSAApolicyholders are eligible for a 10% legacy discount.
- Those who maintain a clean driving record for three years or more may qualify for a 25% discount fromState Farm.
- Good drivers can save an average of 22% on auto insurance throughNationwide’s SmartRidetelematics program.
- WithAllstate’s Milewisepay-as-you-go program, drivers can reduce their daily coverage costs to $2.22.
2. Don’t buy a new car
If you’re ready to replace your current ride, look at used models instead of brand-new vehicles. New Jersey drivers who opt for a car at least four model years old pay as much as 38% less for full coverage.
3. Follow all New Jersey traffic laws—and consider a defensive driving course
Keeping a spotless driving record is the best way to keep insurance premiums low in the Garden State, so familiarizing yourself with
New Jersey's traffic laws
can save you money in the long run. You can prevent accidents and traffic violations by monitoring your driving habits in real-time with a telematics service.
4. Opt for full coverage with moderate liability limits and a high deductible
Car insurance laws in New Jersey
only require drivers to have $25,000 per person and $50,000 in coverage for bodily injury liability
, and $50,000 in coverage for property damage liability
per accident. The bare minimum coverage provided by a New Jersey car insurance policy isn't enough for most drivers, but you don't have to break the bank to cover every possible contingency.
Our top pick for cheap car insurance coverage options in New Jersey that still covers everything you need is a policy that includes:
- Bodily injury liability coverage of at least $50,000 per person and $100,000 per accident
- Property damage liability coverage of at least $100,000
- Comprehensive coverageandcollision insurancethat can pay for your car's replacement if it is totaled.
Pick the highest deductibles for full coverage that you would be able to afford in the event of a covered loss.
Medical payments (MedPay) coverage
, uninsured motorist coverage
, and/or roadside assistance coverage are optional additions you may want to consider, depending on your needs and budget. 5. Compare quotes (more than once!)
The best way to find cheap auto insurance in New Jersey is to obtain quotes from multiple companies and compare them.
With the Jerry app, you’ll be able to see real insurance quotes from some of the
best auto insurance companies in New Jersey
and select the coverage and rate you prefer in under a minute. In less than a minute, you can use the Jerry app to compare insurance quotes from
top New Jersey car insurance providers
and choose the plan that best suits your needs. And don’t just compare quotes once—more than 70% of drivers never reshop their policy, which means that over 70% of drivers are leaving potential savings on the table. Jerry will proactively seek out competitive quotes whenever your policy is due for renewal, ensuring that you never pay more than necessary.
FAQs
Jerry's data analysts spent over 200 hours analyzing millions of actual car insurance quotes from New Jersey insurance companies in the previous year to determine the state's average car insurance premium.
Jerry's data analysts spent over 200 hours analyzing millions of actual car insurance quotes from New Jersey insurance companies in the previous year to determine the state's average car insurance premium.
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