Car Insurance in New Jersey

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Looking for cheap car insurance in New Jersey?

New Jersey is a no-fault insurance state that requires drivers to purchase extra protection to cover costs associated with an accident—regardless of the cause. The Garden State’s no-fault status and high population density generally translate to higher-than-average car insurance costs.
Your location is only one of the factors that influence your annual insurance premium. So whether you’re in Jersey City, Bayonne, or along the Jersey Shore, comparing rates between providers can help you find the best deal—and Jerry can help you with that.
Just answer a few short questions and Jerry gathers quotes from 50+ top providers in your area. All you have to do is pick your policy and Jerry will handle the switchover so that you don’t have to.
Jerry makes it easy to tailor the policy options you want to have—and a friendly team of licensed agents is always standing by ready to lend their expertise.
Sounds too good to be true? Here are some quotes from real Jerry customers in New Jersey:
Quote DateCarCityAgeCarrier
Before Jerry
After Jerry
September 14, 2021Audi A4 Premium PlusFranklin Township46Progressive$138/mo.$85/mo.
April 6, 2021Hyundai Elantra SELParsippany-Troy Hills25Mercury$190/mo.$111/mo.
January 14, 2021Hyundai Elantra SEElizabeth25Progressive$290/mo.$149/mo.
May 15, 2021Honda Accord LXUnion City41Progressive$200/mo.$165/mo.
April 14, 2021Ford Fiesta SEEast Orange23Progressive$320/mo.$186/mo.
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How much does car insurance cost in New Jersey?

The average cost of basic liability car insurance in New Jersey is $2,502 per year. Opting for full-coverage car insurance in New Jersey will leave you with an average cost of $3,077 per year.

How does the annual cost in New Jersey compare to the rest of the country?

In comparison, the national average is $1,764 per year to buy basic liability car insurance and $2,486 per year to buy full-coverage car insurance.
Why is car insurance so expensive in New Jersey? There are a couple of key factors that contribute to this:
  • Highest population density of any state in the country
  • No-fault status and fairly high insurance minimums
Here’s how the insurance savings with Jerry in New Jersey compare to nationwide averages:
All Coverage Before Jerry
All Coverage After Jerry
Minimum Coverage Before Jerry
Minimum Coverage After Jerry
Full Coverage Before Jerry
Full Coverage After Jerry
NJ$2,769$1,888$2,443$1,539$3,114$2,487
National Average$2,491$1,672$2,359$1,390$2,763$1,962
NJNational Average
All Coverage Before Jerry
$2,769$2,491
All Coverage After Jerry
$1,888$1,672
Minimum Coverage Before Jerry
$2,443$2,359
Minimum Coverage After Jerry
$1,539$1,390
Full Coverage Before Jerry
$3,114$2,763
Full Coverage After Jerry
$2,487$1,962
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Top auto insurance providers in New Jersey

Drivers in New Jersey have lots of choices when it comes to insurance companies. Some of the country’s biggest insurers do business in the state, including State Farm, Allstate, and AAA.
Finding the right insurance company for you might take a little work, though. Each insurer has its own unique formula for setting premiums. This means that if you request quotes from three different companies, you’ll probably end up with three very different rates—even for the exact same coverage.
Your age, driving record, and zip code all impact your final rate. Your car plays a role, too. If you drive an Acura RL, for example, you’ll pay more for full-coverage insurance than you would for a Mazda 6 because more expensive cars cost more to insure.
Check out some of the great prices that Jerry customers have found with various insurance companies in New Jersey:
Insurance Company
Average Cost
Annual Savings with Jerry
Allstate$6,795$1,839Compare Prices
Kemper$3,354$1,589Compare Prices
Safeco$3,367$909Compare Prices
Nationwide$2,724$816Compare Prices
Travelers$2,771$785Compare Prices
National General$1,081$260Compare Prices
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What car insurance do you need in New Jersey

All but two states have minimum insurance requirements that drivers must meet to legally get behind the wheel—and New Jersey is no exception. You’ll need at least the following:
CoverageAmountDescription
Bodily injury liability$15,000 per person / $30,000 per accidentCovers the costs associated with injuries you cause to others
Property damage liability$5,000 per accidentCovers the costs associated with damage you cause to other people’s vehicles or property
Driving without securing insurance coverage that meets these limits could have some serious repercussions, including:
  • Fine of up to $5,000
  • Driver’s license suspension for up to 2 years
  • Up to 9 points on your license
  • Possibility of community service or 14 days in jail
  • Financial liability in the event of an accident
To fully protect yourself, it’s always recommended to purchase as much coverage as you can afford. Here are some good options:
CoverageDescription
Collision insuranceCovers damages that are the result of a collision with a vehicle or stationary object
Comprehensive insuranceCovers damages that aren’t the result of a collision, such as vandalism, theft, or a natural disaster
Uninsured motorist coverageReimburses you for your expenses from an accident caused by an uninsured driver
Personal injury protectionCovers medical expenses, lost wages, and rehabilitation costs after an accident
Rental reimbursementReimburses you for your rental car expenses while your car is being repaired after a claimable accident
When you’re ready to find the right policy for you, Jerry can help.
Jerry is the super app that helps you save time and money on your car expenses, including insurance. Jerry will compile quotes from more than 50 providers—including reputable names like Progressive and Travelers. And once you make your pick, Jerry will handle the paperwork, phone calls, and even monitor your rates before your renewal.
Now that you know what type of insurance you need, let’s break down the factors that impact the cost.

How is your cost of car insurance determined in New Jersey?

While there are numerous factors that go into your insurance rates, some of the most important include your age, driving record, location, and vehicle.

Cost to insure your car in New Jersey by age

Insurance companies value experience—something that young drivers lack. Motor vehicle causes are the leading cause of death for young people ages 16 to 20 across New Jersey. Though the age group represents just 6% of the state population, they’re involved in 13% of car crashes.
This added risk is a major part of what makes rates for young drivers so expensive.
What young drivers in New Jersey need to know
  • New Jersey has a graduated licensing program that helps give new drivers step-by-step instruction and driving experience—all while saving lives
  • Taking a defensive driving course can reinforce safe driving behaviors and help reduce premiums for teen drivers
  • Maintaining a good average can qualify student drivers for a good student discount
Shopping around and maintaining a clean driving record are excellent ways for young drivers to secure the lowest rates they qualify for.
No matter your age, comparison shopping with Jerry is the best place to start. Here are the average rates for drivers by age:
Age Group
Average Cost
Annual Savings with Jerry
18-20$3,119$923
21-24$2,973$796
25-34$2,853$994
35-44$2,734$904
45-54$2,604$941
55-64$2,978$1,599
65+$2,379$627
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Cost to insure your car in New Jersey with a poor driving record

Before providing you with a quote, insurance companies review your driving record to understand your risk level on the road.
Accidents, speeding tickets, and serious offenses like DUIs tell insurers that you’re a high-risk driver who is more likely to submit a claim—and for that, you can expect to pay high rates for your New Jersey car insurance.
So, can you save money on car insurance if you have driving violations? Definitely. Comparing rates from multiple providers can help you find the best prices—and that’s Jerry’s specialty.
Here’s just a sample of the savings that Jerry customers with poor driving records have found:
Driving Violation
Average Cost
Annual Savings with Jerry
Clean Record$3,484$1,105
Careless Driving$5,909$2,493
Failure to Obey Traffic Sign$4,653$2,055
Speeding over 15$4,252$1,995
Improper Passing$3,573$1,894
Wrong Way/Wrong Lane$4,560$1,874
Speeding under 15$4,230$1,792
Illegal Turn$3,698$1,615
DUI$4,633$1,565
Defective Equipment$3,620$1,490
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Cost to insure your car in New Jersey based on where you live

New Jersey is the most densely populated state in the country, with 1,211 people per square mile. Of course, some areas are denser and some are less. So where you live in New Jersey impacts your rates.
Generally speaking, drivers in cities tend to pay more than those in rural areas since urban centers have higher rates of accidents, thefts, and claims.
While New Jersey tends to have high rates across the board thanks to its no-fault system, these are the top 10 cheapest cities for car insurance in the state:
City
Average Cost
Annual Savings with Jerry
Bayonne$3,380$1,004
East Orange$3,276$986
Elizabeth$3,406$1,142
Hackensack$2,761$975
Hoboken$2,109$563
Irvington$2,130$650
Jersey City$3,107$1,078
Newark$2,959$662
Paterson$3,312$1,006
Trenton$2,713$699
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Cost to insure your car in New Jersey based on the type of car you drive

As you might imagine, the type of vehicle you drive will also impact your insurance premium. If you drive something standard, like a Chrysler 300 or Honda Pilot, you’ll probably find reasonable rates no matter where you look.
Relatively inexpensive cars come with lower insurance premiums because they cost less to repair or replace if you’re in an accident. And driving less can also save you money since you’re less likely to get into an accident.
But if you need to insure a more expensive ride, such as a Tesla Model 3, you’ll find higher rates than the average since the cost of the car is high.
Here’s what it costs to insure some popular makes and models with and without Jerry:
Car
Average Cost
Annual Savings with Jerry
Mercedes-Benz C 300 4Matic$3,657$1,745
Honda Accord EXL$3,186$1,482
Nissan Altima S$3,380$1,021
Volkswagen Jetta S$2,403$1,019
Kia Optima LX$2,604$676
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How to save money on car insurance in New Jersey

When car insurance is already expensive in your state, savings are nice to come by. Here are some easy ways to reduce your car insurance premium.

Shop around for quotes

Comparing rates between providers is the best way to ensure you’re getting the best price for the coverage you need. And Jerry makes it effortless.
Jerry is the super app that helps you save time and money on your car expenses, including insurance. All you need to do is sign up and answer a few questions (which takes less than a minute!). Then, Jerry gets to work compiling competitive quotes from 50+ insurance companies.
When you’re ready to purchase, Jerry handles the paperwork, phone calls, and even helps you cancel your old policy so that literally all you have to do is sit back and enjoy the savings.

Look for discounts

Most insurers offer discounts based on your, your driving habits, and your car—and they can reduce your premium fairly significantly. Here are some of the most popular ones for drivers in New Jersey:
Discount typeWho is eligible?
Defensive driving discountState law requires insurers to provide a discount to drivers 50 or older who complete an approved defensive driving course.
Bundling discountGetting more than one insurance policy from the same company (often home and auto) can qualify you for a bundling discount, which can reduce premiums by up to 12% each.
Safe driving discountMany insurance companies offer safe driving discounts, whereby you agree to share certain information with them in exchange for a small discount (often 5%). From there, your driving habits determine how much you can save—in some cases, up to 30%.
Good student discountStudents who are in school full time and maintain an average of at least a B may be eligible for a policy discount.
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Increase your deductible

Increasing your deductible will decrease your insurance rate (and the reverse is true, too).
But before you do this, it’s important to be prudent. You must ensure that you can afford to pay the deductible in full each time you have to make a claim. Otherwise, you could find yourself in hot water if you get into an accident and require repairs.

Registering your car in New Jersey

To register a car in New Jersey, bring the following to the DMV:
  • Valid driver’s license or ID card
  • Proof of insurance
  • Proof of sales tax payment
  • Car title or signed lease agreement
  • Application for vehicle registration
  • Smog check certificate (every two years)
  • Safety inspection certificate (every two years)
In New Jersey, you must renew your vehicle registration annually. You can do it online, in person, or by mail.

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