Services
Insurance
Loans
Repairs
Advice
About

Cheap Car Insurance in New Jersey (Feb 2024)

Compare 50+ top insurance companies including Progressive, Travelers, AAA, Nationwide (and more!) to find the best and cheapest car insurance in New Jersey.
compare
Find Insurance Savings
√
No long forms
√
No spam or unwanted calls
√
Quotes from top insurance companies
compare
avatar
R.E. Fulton
Licensed Insurance Agent —Senior Content Writer
icon
Reviewed by Josh Damico, Vice President Insurance Operations
icon
Edited by Lina Zhang, Licensed Insurance Agent, VP of Operations

How to find cheap car insurance quotes in New Jersey

Saving money on car insurance is a great way to keep your auto-related expenses as low as possible. Unfortunately, there’s no single “cheapest” auto insurance provider out there—instead, you have to shop around for the best priced personalized motorist coverage.
Fortunately,
Jerry Insurance Agency
is here to help. We assist New Jersey drivers with a valuable insurance comparison app, which efficiently reviews and analyzes multiple quotes, allowing you to quickly select the customized policy that meets both your needs and your budget.
Insurance CompanyPremium (monthly)CustomerCarInsurance Coverage
Nationwide
$91
Honda Odyssey EXL
• State Minimum Liability
• Comp / Collision
AAA
$129
Toyota 4runner SR5
• 50,000/100,000 Liability
Allstate
$394
Nissan Rogue S
• 100,000/300,000 Liability
• Comp / Collision
Travelers
$127
Ford Explorer XLT
• 100,000/300,000 Liability
• Comp / Collision
Plymouth Rock
$276
Honda Civic SI
• 50,000/100,000 Liability
• Comp / Collision
coverageLast Updated Feb 29, 2024

Cheapest car insurance companies in New Jersey

To determine who offers the cheapest car insurance rates in New Jersey, Jerry conducted the most extensive insurance shopping survey in the industry.
What did we find? Unfortunately, no single car insurance company has the best or cheapest rates for every driver. Instead, your coverage rates are highly personalized based on your individual needs and circumstances, and will vary greatly from your friends’ and neighbors’. 
For example, some research finds that
GEICO
offers the cheapest car insurance rates in NJ, but many users report that these low introductory rates increase significantly after a claim is filed, making the premiums much less affordable. 
Generally, GEICO,
Progressive
,
Allstate
,
Travelers
, and
Nationwide
rank among the most popular auto insurance providers in the state. The chart below shows what New Jersey residents had to say about these and other auto insurance companies.
Insurance companyDateCost rating (out of 5)What our customer said:
National General
February 26, 2024
5
"I've used Jerry to switch my insurance from progressive to National General saving me about $300/month. "
-Marvin
The General
February 26, 2024
5
"I’ve just started with this company no complaints. "
-Jackson
Encompass
February 20, 2024
5
"Awesome low prices and excellent customer care service "
-Kate
Esurance
February 17, 2024
5
"It is a good and low price with good coverages "
-Adele
Aspire Advantage
February 16, 2024
5
"Good 👍 5stars"
-Amelia
coverageLast Updated Feb 26, 2024
Highlighticon

How'd we get these scores?

Jerry's experts conducted one of the largest car insurance surveys in the United States. We surveyed 15,000 policyholders, in all 50 states, over the span of 18 months. These policyholders hold insurance policies with 87 different insurance companies. We surveyed policyholders to gauge their satisfaction with their insurance carriers in: policy cost, customer service, buying and renewal experience, as well as claim experience. These scores were all reported by real customers of the insurance companies.
If you want to compare multiple providers quickly and painlessly, use a
car insurance
comparison app or website. 
Jerry is
a trusted insurance agency
with a user-friendly app for motorists, which can be used to obtain fast and free quotes and explore various options for car insurance coverage.

Minimum car insurance requirements for liability and full coverage in New Jersey

Almost all U.S. states require drivers to carry some sort of car insurance coverage—but the amount and type varies. Each state will articulate what basic policy you need to legally hit the road. Additionally, we recommend adding on optional forms of coverage for customized protection, especially if your state’s requirements are relatively low.

Cheapest minimum liability coverage in New Jersey

Thanks to a new law that took effect in January 2023, the current minimum coverage requirements for standard
liability insurance
in New Jersey are: 
You’ll commonly see this referred to as the 25/50/25 rule.
card cover
Elva (28 years old)
coverageCoverage
State Minimum
carToyota Corolla
$170
per month
card cover
Adelaide (40 years old)
coverageCoverage
State Minimum
$91
per month
card cover
Estelle (57 years old)
coverageCoverage
State Minimum
carNissan Murano SL
$132
per month
card cover
Amy (36 years old)
coverageCoverage
State Minimum
locationVauxhall, NJ
$181
per month
card cover
Jessie (34 years old)
coverageCoverage
State Minimum
$96
per month
card cover
Cody (38 years old)
coverageCoverage
State Minimum
$267
per month

Do you need more than the minimum liability insurance coverage in New Jersey? 

Liability coverage is the part of car insurance that pays for the injuries or damage you cause in an at-fault accident, but there’s a good chance that the damage will exceed the 25/50/25 limits established by
New Jersey insurance laws
.
For this reason, it’s a good idea to purchase a more robust liability insurance policy.
The bottom line: Jerry experts recommend 100/300/100 liability coverage for optimal protection—even if you forego full coverage.
Lower my car insurance too!

Cheapest full coverage New Jersey auto insurance quotes

New Jersey doesn’t legally require drivers to carry full coverage car insurance (although auto loan providers typically require it
before completing a vehicle sale
), but that doesn’t mean the coverage isn’t valuable. 
Full coverage includes
comprehensive
and
collision coverage
to pay for damages to your vehicle in the event of an at-fault accident, or in a non-collision related event (like vandalism, natural disasters, and even theft). 
Below you’ll find a list of samples of
affordable full coverage policies
that Jerry users secured.
Insurance CoverageInsurance CompanyPremium (monthly)CustomerCar
• State Minimum Liability
• Comp / Collision
Progressive
$247
Honda CR-V EX
• 50,000/100,000 Liability
• Comp / Collision
AAA
$183
Tesla Model 3
• 100,000/300,000 Liability
• Comp / Collision
Travelers
$81
Tesla Model 3
• 25,000/50,000 Liability
• Comp / Collision
Safeco
$136
Toyota Highlander XLE
• 50,000/100,000 Liability
• Comp / Collision
Plymouth Rock
$276
Honda Civic SI
coverageLast Updated Feb 26, 2024

Average rates for minimum liability coverage and full coverage car insurance in New Jersey

New Jersey car owners can expect to spend an average of $249 per month and $2,984 per year on full-coverage car insurance, or $190 per month and $2,319 per year on liability-only coverage. This is slightly above the national average.
However, it’s important to keep in mind that these numbers are just estimated averages. The actual rates you’ll pay depend on a wide variety of factors, including your vehicle type, driving record, claims history, exact location, credit score, and more. Thus, your insurance costs could be significantly more or less than the averages articulated above.

Other types of New Jersey auto insurance

We highly recommend full coverage car insurance to most drivers, but there are several other types of optional coverage that could be beneficial to consider, too. Most reputable insurance carriers will offer:
Gap insurance
is also a common offering, and a great idea for individuals who recently took out a loan to purchase a vehicle. Gap insurance works to provide coverage in situations where the remaining loan amount exceeds the current value of the vehicle, ensuring financial protection if your car is declared a total loss or is stolen. 
Non-owner car insurance
is also an affordable option for those who do not own their own vehicle, but frequently rent or borrow someone else’s. This type of insurance provides liability coverage for bodily injury and property damage in the event of an at-fault accident, but remains low-cost because it does not cover damages to the vehicle you are driving or any expenses related to your personal injuries. 

Car insurance premium by rating factors

There are lots of factors that will affect your New Jersey car insurance rates. For example, your driving record and claims history play a significant role in determining your insurance rates. Insurance providers may charge higher premiums if you have a history of accidents or traffic violations.
The location where you reside also affects your insurance rates. Drivers in cities generally face higher premiums compared to those in rural areas. Additionally, insurance rates can vary among different ZIP codes within the same city.
The type of vehicle you drive is another factor that influences insurance costs. Luxury cars, high-performance vehicles, and sports cars typically come with higher insurance premiums for collision and comprehensive coverage.
Your vehicle usage is taken into consideration as well. If you use your car for commuting to work or have a higher annual mileage, insurance companies may charge higher premiums compared to leisure usage.
Furthermore, your credit score can impact your insurance premiums. Drivers with higher credit scores usually enjoy lower rates, as it is seen as an indicator of financial responsibility.

How Do Different Factors Impact Your Car Insurance Costs in New Jersey?

icon
Allowed (with applicable limitations): Gender, age, driving experience, credit history, education, occupation, employment status, marital status, zip code, insurance history
icon
Prohibited (or effectively prohibited): New Jersey currently does not disallow any common insurance rating factors when calculating insurance premiums.
Learn more abut the car insurance rating factors in New Jersey:

How to find cheap New Jersey car insurance if you’re a high-risk driver

Your
driving history
plays a significant role in determining the quotes for your auto insurance. If insurance companies observe a track record of violations, they consider you to be a
high-risk driver
, resulting in higher insurance premiums being charged.

Cheapest car insurance for Colorado drivers with a speeding ticket

Speeding violations are typically categorized into different levels based on the extent to which the speed limit was exceeded. These levels often include 1-5 MPH over the limit, 6-10 MPH over the limit, 11-15 MPH over the limit, 16-20 MPH over the limit, and exceeding the speed limit by more than 21 MPH.
While receiving a
speeding ticket
is likely to result in increased insurance premiums, Jerry is an excellent resource for helping you find ways to minimize your costs.
Speeding TypeInsurance CompanyPremium (monthly)CustomerInsurance Coverage
Speeding 1-5
Progressive
$300
• 50,000/100,000 Liability
• Comp / Collision
Speeding 6-10
Travelers
$95
• 100,000/300,000 Liability
• Comp / Collision
Speeding 11-15
Mercury
$549
• 100,000/300,000 Liability
• Comp / Collision
Speeding 16-20
Travelers
$177
• 50,000/100,000 Liability
• Comp / Collision
Speeding 21+
Plymouth Rock
$209
• 15,000/30,000 Liability
• Comp / Collision
coverageLast Updated Feb 24, 2024

How to find cheap New Jersey auto insurance after a DUI

In the state of New Jersey,
DUI violations
are taken very seriously and thus generally result in a significant increase in car insurance rates compared to other violations. 
Finding the cheapest options after a DUI often requires comparing
car insurance quotes
from multiple insurers, and Jerry can simplify the process of finding the lowest rates.
card cover
Earl (44 years old)
DUI
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
$649
per month
card cover
Dean (28 years old)
DUI
coverageCoverage
100,000 per person
300,000 per accident bodily injury
Comp / Collision
locationAbsecon, NJ
$193
per month
card cover
Rosetta (33 years old)
DUI
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
$133
per month
card cover
Harry (38 years old)
DUI
coverageCoverage
State Minimum
$231
per month
card cover
Bertie (31 years old)
DUI
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
locationMullica Hill, NJ
carGMC Yukon
$130
per month
card cover
Ricky (35 years old)
DUI
coverageCoverage
25,000 per person
50,000 per accident bodily injury
Comp / Collision
$102
per month

New Jersey SR-22 insurance

After a major driving violation in New Jersey, reinstating your driver's license requires your insurance company to file an
SR-22 form
on your behalf. An SR-22 form, also known as a Certificate of Financial Responsibility, is a document that is required to prove that you have the minimum liability insurance coverage required by law.
It's important to note that being classified as a high-risk driver will result in increased car insurance premiums. However, it doesn't mean that your insurance costs have to become excessively expensive.

How to find cheap car insurance in New Jersey after an at-fault accident

Your car insurance rates are heavily impacted by your history of car accidents or claims. Insurance companies thoroughly examine your previous at-fault accidents to determine the level of risk you pose as an insured individual. If you have recently been involved in an at-fault accident, it is likely that your car insurance rates will see a significant increase.
Accident TypeInsurance CompanyPremium (monthly)CustomerInsurance Coverage
At Fault With Injury
Progressive
$649
• 50,000/100,000 Liability
• Comp / Collision
At Fault With No Injury
Travelers
$86
• 100,000/300,000 Liability
• Comp / Collision
Not At Fault
Allstate
$394
• 100,000/300,000 Liability
• Comp / Collision
At Fault With No Injury
Plymouth Rock
$116
• State Minimum Liability
At Fault With Injury
Plymouth Rock
$183
• 50,000/100,000 Liability
• Comp / Collision
coverageLast Updated Feb 28, 2024

FAQ

No, New York is a
no-fault state
. In New York, policyholders typically receive reimbursement from their insurance provider for damages regardless of who was at fault. This is why New York drivers are legally required to hold high minimum car insurance requirements, including liability insurance, personal injury protection (PIP), and uninsured motorist liability insurance.

Cheapest auto insurance after other violations in New Jersey

Apart from speeding tickets and DUIs, other violations such as
reckless driving
and driving with a suspended license can also result in increased car insurance costs in the Garden State.
We have curated a list of different driving violations and how we have assisted drivers in finding cheap auto insurance, despite these infractions.
ViolationInsurance CompanyPremium (monthly)CustomerCarInsurance Coverage
Careless Driving
Progressive
$151
Chrysler Pacifica Touring L
• 25,000/50,000 Liability
• Comp / Collision
Cell Phone
Safeco
$155
Mitsubishi Outlander Sport ES
• 15,000/30,000 Liability
Defective Equipment
AAA
$114
Acura RSX
• 15,000/30,000 Liability
Driving on Sus. License
Travelers
$175
BMW 320 i xDrive
• 100,000/300,000 Liability
DUI
Mercury
$102
Toyota Corolla L
• 25,000/50,000 Liability
• Comp / Collision
Failure to Obey Signal
Plymouth Rock
$150
Jeep Cherokee Latitude Plus
• 15,000/30,000 Liability
• Comp / Collision
Illegal Turn
Travelers
$175
BMW 320 i xDrive
• 100,000/300,000 Liability
Improper Passing
Progressive
$334
Dodge Challenger R/T
• 25,000/50,000 Liability
Leaving scene of an Accident/Hit and Run
AAA
$152
Ford F150 Supercrew
• 100,000/300,000 Liability
• Comp / Collision
Open Container
Bristol West
$213
Dodge Challenger R/T
• 25,000/50,000 Liability
Passing School Bus
Mercury
$317
Honda CR-V EX
• 15,000/30,000 Liability
• Comp / Collision
Seat Belt
Plymouth Rock
$119
Honda Accord Sport
• 100,000/300,000 Liability
• Comp / Collision
Speeding 16-20
Nationwide
$221
Tesla Model 3
• 50,000/100,000 Liability
• Comp / Collision
Speeding 6-10
State Auto
$158
Toyota Scion XB
• 25,000/50,000 Liability
• Comp / Collision
Suspension
Safeco
$71
Acura MDX Technology
• 15,000/30,000 Liability
Wrong Way/Wrong Lane
Mercury
$433
Buick Encore Preferred
• 15,000/30,000 Liability
• Comp / Collision
Other Minor
National General
$258
BMW 528 XI
• 30,000/60,000 Liability
• Comp / Collision
coverageLast Updated Feb 28, 2024

Over 3,500,000 customers and counting

We love saving our customers money. Turns out, they love it too! Here's what they have to say about their switch with Jerry:
Libertymutual
No problems with process or app. Easy access and painless payments.
Joshua
Safeco
They work hard for you so you don't have to and I promise there fast and efficient
Daisy
Progressive
Have been so amazing! The prices are great glad jerry for this for me.
Savannah
Kemper
Great rates and awesome coverage and never would have switched if it weren't for Jerry!
Shilo

How to find cheap New Jersey car insurance based on your insurance history

Your insurance history plays a crucial role in determining your car insurance rates, particularly whether you currently have coverage or not.
Having a
gap in your insurance coverage
usually results in higher insurance rates. To assist our customers in making timely insurance payments and avoiding coverage lapses, Jerry sends payment reminders to eligible customers. These reminders are sent when a payment is approaching or if they have fallen behind on their payments
We have successfully helped countless customers who are currently uninsured or have experienced coverage lapses in finding affordable coverage.
card cover
Jean (54 years old)
Currently Insured
coverageCoverage
25,000 per person
50,000 per accident bodily injury
$131
per month
card cover
Larry (39 years old)
Not Currently Insured
coverageCoverage
State Minimum
$61
per month
card cover
Virgie (53 years old)
Currently Insured
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
$110
per month
card cover
Joe (33 years old)
Not Currently Insured
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
carHonda HR-V Sport
$108
per month
card cover
Lee (54 years old)
Currently Insured
coverageCoverage
25,000 per person
50,000 per accident bodily injury
$234
per month
card cover
Delia (33 years old)
Not Currently Insured
coverageCoverage
100,000 per person
300,000 per accident bodily injury
Comp / Collision
carBMW 330Xi
$185
per month

Over 3,500,000 customers and counting

We love saving our customers money. Turns out, they love it too! Here's what they have to say about their switch with Jerry:
Progressive
They were able to drop what I was paying for insurance in half
Megan
Dairyland
Was easy to switch and was very affordable
Hugo
State Auto
Wonderful experience! Saving $77 a month!
Kaytlin
Allstate
Fair prices, and helpful staff!
Tera

How to find cheap New Jersey car insurance with a low credit score

New Jersey drivers with poor credit scores often face higher insurance costs compared to those with healthier credit ratings. Even though
credit scores
don’t directly affect how well you drive, insurance companies have observed a relationship between low credit and an increased frequency to file claims.
Generally, drivers with great credit scores (over 750) will pay approximately 20% less on car insurance compared to individuals with poorer scores (below 550).
Credit RangeInsurance CompanyPremium (monthly)CustomerCarInsurance Coverage
> 750
Progressive
$181
Toyota Highlander L
• 50,000/100,000 Liability
• Comp / Collision
660 - 750
Safeco
$179
Tesla Model 3
• 100,000/300,000 Liability
• Comp / Collision
550 - 659
Allstate
$160
Jeep Cherokee Latitude
• 100,000/300,000 Liability
• Comp / Collision
< 550
Safeco
$73
Dodge Dart SE
• 50,000/100,000 Liability
coverageLast Updated Feb 29, 2024

How to find cheap auto insurance in New Jersey for your age

Teen drivers are generally the least experienced motorists on the road, which means they’re a higher risk to insurance companies. Thus, young people tend to pay the highest rates, with their premiums decreasing after they reach the age of 25. (Conversely, rates will start to go up again once drivers reach the age of 75).

The best car insurance companies in New Jersey for young drivers

16 to 19 year olds pay the highest
car insurance premiums
in all of New Jersey, when compared to other age groups.
If you’re a teen driver with a newer vehicle (or an older driver with a
provisional license
) it’s important to invest in full coverage insurance, especially due to the higher likelihood of young drivers to be involved in a collision. Full coverage insurance may cost more, but it provides essential financial protection after an accident.
card cover
Zachary (24 years old)
coverageCoverage
25,000 per person
50,000 per accident bodily injury
Comp / Collision
$183
per month
card cover
Zachary (24 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
carNissan Altima S
$341
per month
card cover
Dennis (23 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
locationWest Creek, NJ
$135
per month
card cover
Jean (23 years old)
coverageCoverage
100,000 per person
300,000 per accident bodily injury
Comp / Collision
locationStirling, NJ
carHyundai Genesis Coupe 3.8L
$240
per month
card cover
Jerome (23 years old)
coverageCoverage
State Minimum
locationAtco, NJ
$252
per month
card cover
Teresa (23 years old)
coverageCoverage
100,000 per person
300,000 per accident bodily injury
Comp / Collision
$228
per month

The best car insurance companies for senior drivers in New Jersey

While experienced adults tend to pay lower rates for car insurance, seniors aged 75 and over do tend to see their
premiums start to increase
again. This is because older people are proven to be more susceptible to accents, as well as more likely to sustain more serious injuries during a collision. Thus, insurance providers face substantial medical expenses at higher costs, and pass said costs onto the consumer.
card cover
Josie (66 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
locationKeansburg, NJ
$232
per month
card cover
Esther (68 years old)
coverageCoverage
State Minimum
locationBarnegat, NJ
carMercury Grand Marquis GS
$114
per month
card cover
Derek (67 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
locationNorth Haledon, NJ
$73
per month
card cover
Nora (71 years old)
coverageCoverage
100,000 per person
300,000 per accident bodily injury
Comp / Collision
$288
per month
card cover
Estelle (66 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
carLexus ES 350
$250
per month
card cover
Ora (87 years old)
coverageCoverage
15,000 per person
30,000 per accident bodily injury
Comp / Collision
$188
per month

How to find car insurance discounts in New Jersey for your motor vehicle

If you’re shopping for a vehicle that will keep your car insurance rates as low as possible, don’t opt for a luxury SUV or sports car. Instead, look at popular makes and models like:
Popular CarInsurance CompanyPremium (monthly)CustomerInsurance Coverage
Honda Civic LXProgressive
$206
• 50,000/100,000 Liability
• Comp / Collision
Nissan Rogue SAllstate
$394
• 100,000/300,000 Liability
• Comp / Collision
Chevrolet Silverado K1500 LTTravelers
$139
• 100,000/300,000 Liability
• Comp / Collision
Toyota CorollaSafeco
$84
• 50,000/100,000 Liability
• Comp / Collision
coverageLast Updated Feb 28, 2024

Is it cheaper to insure a new car or a used car?

Because new cars tend to be more expensive to repair and replace, the cost of insuring them is usually higher. We found that the average annual cost of full coverage car insurance on a vehicle that is four years old or newer will cost an average of 22% more than a full coverage car insurance plan for a vehicle that is more than a decade old.
card cover
Lola (59 years old)
2004 Honda CR-V EX
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
$386
per month
card cover
Helen (78 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
$129
per month
card cover
Marcus (64 years old)
coverageCoverage
50,000 per person
100,000 per accident bodily injury
Comp / Collision
$117
per month
card cover
Annie (32 years old)
coverageCoverage
100,000 per person
300,000 per accident bodily injury
Comp / Collision
$259
per month
card cover
Lelia (23 years old)
coverageCoverage
State Minimum
locationAtco, NJ
$272
per month
card cover
Lucille (65 years old)
2005 Ford F150 Supercrew
coverageCoverage
25,000 per person
50,000 per accident bodily injury
$188
per month

How to find cheap car insurance in New Jersey in your city

Your location is another major factor that auto insurers consider when pricing out your auto insurance policy. Different geographic locations experience different weather patterns, have varying population densities, and suffer from different crime rates.
Keep in mind that this variable is highly specific. That is, people in different zip codes within the very same metropolitan area might pay different rates.
Discover how Jerry Insurance Agency has supported drivers in different cities across New Jersey in fulfilling their insurance needs.
CityCustomerInsurance CompanyPremium (monthly)CarInsurance coverage
Englewood, NJ
Mason, 54
Progressive
$131
RAM Promaster City
• 25,000/50,000 Liability
Union, NJ
Jayden, 38
Safeco
$136
Toyota Highlander XLE
• 25,000/50,000 Liability
• Comp / Collision
Pleasantville, NJ
Claudia, 50
AAA
$375
Dodge RAM 1500
• 25,000/50,000 Liability
Haledon, NJ
Winnie, 41
Travelers
$127
Ford Explorer XLT
• 100,000/300,000 Liability
• Comp / Collision
Newark, NJ
Bertha, 54
Bristol West
$234
Dodge Journey SXT
• 25,000/50,000 Liability
coverageLast Updated Feb 28, 2024

How to lower the cost of car insurance in New Jersey

Here are some strategies to help lower your car insurance costs:
  1. Shop around and compare quotes: Obtain quotes from multiple insurance providers to find the best rates and coverage options that suit your needs.
  2. Increase your deductibles: Opting for higher deductibles for comprehensive and collision coverage can lower your premiums. Just make sure you can afford the deductible amount in case of an accident or claim.
  3. Bundle your policies: Consider
    bundling your car insurance
    with other insurance policies, such as homeowners or renters insurance, with the same provider. Many insurance companies offer discounts for multiple policies.
  4. Take advantage of car insurance discounts: Inquire about
    available discounts
    and see if you qualify. These may include safe driver discounts, good student discounts, multi-car discounts, or discounts for anti-theft devices or safety features installed in your vehicle.
  5. Maintain a good driving record: Avoid accidents and traffic violations as they can increase your insurance rates. Safe driving over time can lead to lower premiums.
  6. Consider usage-based or pay-as-you-go insurance: Some insurers offer usage-based insurance programs that track your driving habits and adjust premiums accordingly. If you drive less frequently or have safe driving habits, you may be eligible for lower rates.
  7. Improve your credit score: In some states, insurance companies consider credit scores when determining premiums. Maintain good credit by paying bills on time and reducing debt, as this can positively impact your insurance rates.
  8. Review your coverage regularly: Assess your current coverage to ensure it aligns with your needs. You may find that certain coverages are no longer necessary, allowing you to adjust your policy and potentially reduce costs.
Remember, it's essential to strike a balance between affordable premiums and adequate coverage to protect yourself financially in case of an accident or claim.

Why is car insurance so expensive in New Jersey?

Car insurance in New Jersey tends to be relatively expensive due to several factors:
  • High population density: New Jersey is one of the most densely populated states in the United States. More people on the roads lead to increased traffic congestion and a higher likelihood of accidents, which can drive up insurance costs.
  • Urban areas and high accident rates: Cities like Newark, Jersey City, and Paterson have higher accident rates compared to rural areas. Insurance providers consider the accident frequency and severity in specific areas when setting premiums.
  • Costly healthcare and medical expenses: New Jersey has relatively high healthcare costs, including medical treatments and auto-related injuries. Insurance companies factor in these expenses when determining premiums.
  • PIP (Personal Injury Protection) coverage requirement: New Jersey is a no-fault insurance state, which means that drivers are required to have Personal Injury Protection (PIP) coverage. PIP coverage provides medical benefits for injuries sustained in auto accidents, and the cost of this coverage can contribute to higher insurance premiums.
  • Auto theft rates: Some areas in New Jersey have higher rates of auto theft, which increases the risk of vehicle loss or damage. Insurers may charge higher premiums to compensate for the elevated risk.
  • Lawsuits and litigation: New Jersey has a higher prevalence of lawsuits and litigation related to auto accidents compared to other states. This can increase insurance costs as insurers need to allocate funds for potential legal expenses and settlements.
It's important to note that insurance premiums can vary based on individual factors such as driving history, age, credit score, and the type of vehicle being insured. While the overall cost of car insurance in New Jersey may be higher, comparing quotes from different insurance providers and exploring available discounts can help you find the most competitive rates for your specific circumstances.

FAQs

Jerry’s recent insurance shopping study, which cites over 15,000 car insurance policy holders, concluded that no single auto insurance provider offers the “best” or “cheapest” rates for every driver.
Instead, you’ll have to shop around to find the best customized policy that meets your needs and budget. (But don’t worry—with a little help from Jerry, this process is fast and easy!)
The cost of car insurance in New Jersey can vary depending on various factors, including your age, driving record, credit score, the type of vehicle you drive, coverage limits, and the insurance company you choose. Additionally, different regions within New Jersey may have varying insurance rates. It's best to get personalized quotes from multiple insurance providers to get an accurate estimate of the cost.
Yes. Typically, New Jersey drivers see rates at least a few hundred dollars cheaper than their Empire State counterparts.
Car insurance in New Jersey tends to be relatively expensive due to several factors:
  • High population density
  • Urban areas and high accident rates
  • Costly healthcare and medical expenses
  • PIP (Personal Injury Protection) coverage requirement
  • Auto theft rates
  • Lawsuits and litigation
Yes—all New Jersey drivers must carry at least $15,000 in Personal Injury Protection (PIP) in New Jersey.
In New Jersey, car insurance typically follows the car rather than the driver. This means that when you lend your car to someone, your insurance coverage will generally apply to that person as well. 
However, it's important to note that there may be certain exceptions and limitations to this rule. It's always advisable to review your insurance policy and consult with your insurance provider to fully understand the extent of coverage when someone else is driving your car. 
Additionally, if the driver has their own insurance policy, their coverage may also come into play depending on the circumstances of the accident or incident.
In New Jersey, full coverage car insurance will include the following types of coverage:
  • Liability coverage: This coverage helps pay for damages and injuries you cause to others in an accident where you are at fault. It includes bodily injury liability (BI) coverage, which pays for medical expenses and other costs associated with injuries, and property damage liability (PD) coverage, which pays for damage to someone else's property.
  • Collision coverage: This coverage helps pay for repairs or replacement of your own vehicle if it's damaged in a collision, regardless of who is at fault.
  • Comprehensive coverage: This coverage helps pay for repairs or replacement of your vehicle if it's damaged by something other than a collision, such as theft, vandalism, fire, or natural disasters.
To find out what discounts are available on car insurance in New Jersey, you can speak with your provider or a registered insurance agent, or you can let the Jerry app find all the discounts for you.
Here are some strategies to help lower your car insurance costs:
  • Shop around and compare quotes
  • Increase your deductibles
  • Bundle your policies
  • Take advantage of car insurance discounts
  • Maintain a good driving record
  • Consider usage-based or pay-as-you-go insurance
  • Improve your credit score
  • Review your coverage regularly
In New Jersey, the minimum car insurance requirements include the following coverage:
Liability Coverage:
  • $25,000 bodily injury liability coverage per person
  • $50,000 bodily injury liability coverage per accident
  • $25,000 property damage liability coverage per accident
Personal Injury Protection (PIP) Coverage:
  • $15,000 per person, per accident for medical expenses
  • $5,000 for funeral expenses (if applicable)
Additional coverage for income continuation, essential services, and death benefits may also be required.
A standard policy will include all of the coverage above, but additional add-ons are available at your discretion.
Yes. All drivers are required to carry at least liability coverage and personal injury protection (PIP) to drive legally in New Jersey.
Penalties for driving without insurance in New Jersey include:
First Offense:
  • $300 to $1,000 fine
  • Period of community service determined by court
  • Forfeiture of right to operate a motor vehicle for one year
Subsequent Offense:
  • Up to $5,000 fine
  • Imprisonment for 14 days
  • Community service for 30-day period
  • Forfeiture of right to operate a motor vehicle for two years
Penalties for driving without insurance in New Jersey include:
First Offense:
  • $300 to $1,000 fine
  • Period of community service determined by court
  • Forfeiture of right to operate a motor vehicle for one year
Subsequent Offense:
  • Up to $5,000 fine
  • Imprisonment for 14 days
  • Community service for 30-day period
  • Forfeiture of right to operate a motor vehicle for two years
Probably. You may be able to purchase a vehicle without insurance—especially if you’re not taking out a loan—but you won’t be able to drive it off the lot until you produce proof or adequate coverage.
Each driver’s needs are unique. That said, most drivers in New Jersey will benefit most from at least a full coverage policy that includes both comprehensive and collision protections in addition to increased liability minimums above the state’s mandatory limits. 
In addition, drivers are encouraged to consider insurance add-ons, like gap insurance, uninsured/underinsured motorist coverage, MedPay, and other income protections to increase their financial security.
On average, car owners in New Jersey can anticipate spending approximately $314 per month or $3,768 per year for full-coverage car insurance. If opting for liability-only coverage, the average cost is around $257 per month or $3,084 per year.
Yes, in order to register a car in New Jersey, you are required to have auto insurance coverage. Proof of insurance is one of the documents that you will need to provide when registering your vehicle. The insurance policy should meet the minimum coverage requirements set by the state.
Yes, in New Jersey, if a motor vehicle is found to be uninsured, it can be subject to towing and impoundment.
Yes, it is possible to have out-of-state car insurance in New Jersey. However, if you reside in New Jersey for more than 90 days, you are generally required to have car insurance coverage that complies with the state's minimum requirements.
If you have car insurance from another state and become a resident of New Jersey, you will likely need to switch your insurance to a New Jersey-based policy to meet the state's requirements. New Jersey has specific insurance laws and regulations that may differ from those of other states, so it's important to ensure your coverage meets the necessary criteria.
It's advisable to contact your insurance provider or an insurance agent in New Jersey to discuss your specific situation and determine the appropriate steps to take to comply with the state's insurance requirements. They can guide you through the process and help you obtain the necessary coverage for your vehicle in New Jersey.
Yes, you add on Medical Payments coverage (MedPay) in New Jersey, on top of your mandatory PIP coverage. MedPay provides additional coverage for medical expenses resulting from a car accident, regardless of who is at fault.

Methodology

The Insurance Research Team analyzes insurance products and services to drive insights and help consumers make informed purchase decisions. 
Insurance research: We analyzed over 25 million car insurance quotes; conducted the largest insurance shopping survey (over 15,000 customers surveyed and 85 carriers reviewed in the past 18 months). 
We surveyed insurance policyholders for their experience with their insurers in the following areas: (1) insurance cost (2) customer service (3) insurance buying experience (4) insurance renewal experience (5) claim experience. In addition, we asked people what they like about their insurers and what areas in which their insurers could improve. The driver characteristics used in calculating average rates for auto insurance include: single driver, single car, currently insured, clean driving record.  
For the quotes and sold policies included in this article, please note that personal information has been hidden. Not all customers find savings. 
Team: The team consists of licensed insurance agents, insurance industry veterans, and data scientists.

Meet our Experts

avatar
R.E. Fulton
badge icon
Licensed Insurance Agent —Senior Content Writer
R.E. Fulton is an expert insurance writer specializing in car ownership topics from car shopping and loan advice to insurance and repair guides. R.E.’s mission is to create unique and accessible content that helps readers to become more successful and independent car owners. R.E. has written and edited over 900 high-performing articles for Jerry, with an average of 1 million+ views.
As a senior writer on Jerry’s editorial team, R.E. draws on over 10 years of experience as a professional writer and digital publishing specialist. Prior to joining Jerry’s editorial team in 2021, R.E. worked as a writing coach at Columbia University, the Rochester Institute of Technology (RIT), and the University of Rochester. They serve as a managing editor for peer-reviewed history publication Nursing Clio, where their work has appeared regularly since 2015.
avatar
Lina Zhang
badge icon
Licensed Insurance Agent
badge icon
Licensed in 50 states and Washington DC
Lina Zhang is Vice President of Operations at Jerry. She helped to found Jerry in order to take the confusion and mystery expenses out of car ownership and help drivers achieve financial success. Leading a global team responsible for operations, talent acquisition, legal, and content, Lina has been a key contributor to the AllCar™ app’s 10x growth in its first year of operation. Prior to Jerry, Lina and her Jerry co-founders, Art Agrawal and Musawir Shah, created YourMechanic, the largest on-demand car repair services provider. In one year, Lina built and scaled YourMechanic operations from just five markets to more than 50. The trio left YourMechanic to incubate Jerry at Y Combinator in 2017. Lina’s previous roles include intellectual property attorney at Morrison & Foerster LLP and a biomedical researcher at Stanford University.
avatar
Josh Damico
badge icon
Head Of Insurance Operations
badge icon
18+ Years Experience in Insurance
Josh Damico is Jerry’s vice president of insurance operations and a licensed insurance professional with nearly two decades of experience in the industry. Previously, Josh held executive roles at Geico, where he had vast regional oversight and leadership opportunities.  He holds a bachelor’s degree in business administration and management from Medaille College, and has appeared on news channels including FOX and CBS to offer insurance expertise and tips to drivers across the country. His work has appeared in Business Insider, Kelley Blue Book, and Digital Insurance and been quoted in The Balance, GOBankingRates, and Inspiring Workplaces.
*Illustration only. For all the pricing information presented in this article (including various tables), please note that not all customers find savings and the information is for illustrative purposes only. Savings depend on type of car, location, policy features, driving history and other factors. Drivers who switch through Jerry save over $70/month on average.