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The average cost of basic liability car insurance in New Jersey is $2,828 per year. Opting for full-coverage car insurance in New Jersey will leave you with an average cost of $3,569 per year. In comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
Compare Best Car Insurance Quotes in New Jersey
The rates you see in the Jerry app could look a lot like the averages shown above—or they might be drastically different! That’s because so many factors go into setting your rates, from your ZIP code, age, and driving history to your marital status, gender, and engine size.
Here are some real quotes and savings from customers in New Jersey who switched with Jerry:
State Farm, GEICO, and Progressive are some of the best auto insurance companies in New Jersey—but they aren’t the only ones offering competitive rates to New Jersey drivers.
Every insurance company uses a slightly different method to set car insurance premiums. For some companies, your credit score makes a big difference; for others, poor credit doesn’t matter as much as the car you drive. Some companies have great discounts for young drivers, while others favor middle-aged customers. And if you’re looking for specific coverage options beyond minimum liability, not all companies offer the same add-ons.
Somewhat. On average, drivers in New Jersey pay $1,785 per year for full coverage car insurance.
What’s the cheapest car to insure at 18?
When it comes to insurance premiums for young drivers, your goal isn’t necessarily to find a specific make or model. Instead, aim for the sweet spot that balances safety with a low sticker price. The cheapest vehicles for an 18-year-old to insure will be those with the highest safety ratings and lower price tags.
At what age is car insurance cheapest?
Drivers between the ages of 40 and 60 tend to pay the lowest average premiums for insurance coverage.
How much does car insurance cost in New Jersey?
The average cost of car insurance in New Jersey is just above the national average. Why?
First of all, New Jersey has the highest population density of any state. Pinned like a beautiful suburban butterfly between New York City and Philadelphia, the Garden State was home to approximately 6,230,912 licensed drivers as of 2020—and at just 8,723 square miles, that works out to about 715 drivers per square mile.
Why does density matter? More drivers in less space mean more car accidents. That’s doubly true when you recall that New Jersey is a state of long commutes. Add in driver fatigue and frustration, and those early-morning snarls on the Turnpike generate a ton of fender benders and insurance claims—not to mention more serious crashes.
Finally, New Jersey is a no-fault state with fairly high minimum coverage requirements, which raises the cost of insurance across the board.
Here’s a rundown of what you need to know about car insurance in New Jersey:
Like most states, New Jersey car insurance requirements set state minimum coverage requirements to ensure that all drivers are insured before they hit the road. But you’ve got two options to choose between if you want to stick to state minimums:
Standard Policy: Includes at least $15,000 per person / $30,000 per accident in bodily injury liability, $5,000 per accident in property damage liability, and $15,000 per person / per accident in personal injury protection (PIP)
How much insurance do I need in New Jersey?
New Jersey has a 15/30/5 rule for minimum liability coverage. You must have the state-required minimum of $15,000 per person for bodily injury liability, $30,000 of bodily injury liability per accident, and $5,000 of property damage liability per accident. You also need to carry personal injury protection (PIP) coverage and property protection.
What do you need if you’re pulled over?
If you get pulled over in New Jersey, you are required to show your driver’s license, proof of insurance, and registration. Thankfully, digital insurance ID cards are accepted by police and the DMV so you will always have your stored proof of insurance available 24/7 in the Jerry app.
Is New Jersey a no-fault state?
Yes, New Jersey is a no-fault state. This means you must carry personal injury protection (PIP) coverage which pays for injuries to you and your passengers regardless of who is at fault for the accident. However, fault, or liability, is still a factor for property damage and bodily injury claims.
New Jersey is one of three no-fault states where drivers can opt out of the standard no-fault policy by choosing full tort liability, meaning they can sue at-fault drivers for additional damages.
Either option will provide some coverage for your medical expenses stemming from an accident and protect you from having to cover the cost of auto repairs for other drivers, but the Standard Policy has the added benefit of bodily injury liability coverage. This ensures you won’t be on the hook for other drivers’ medical bills.
But neither of these coverage limits will pay for damage to your vehicle—which is why most experts recommend going with a third option: a full-coverage car insurance policy including both collision and comprehensive insurance. A policy like that will pay for your repairs due to a range of incidents, from car theft and vandalism to a crash on I-95.
Take a look at the graph below to understand how much you’re paying for each.
Cheapest car insurance with a DUI or speeding ticket in New Jersey
If you or a household member have a serious violation (think DUI or reckless driving) or a pattern of minor tickets, you’re likely to pay a higher annual premium. Insurance companies label drivers with violations as “high-risk” and tend to charge higher rates to these drivers.
Sticking to basic liability limits will help you get the best rates as a high-risk driver—but you may not need to sacrifice coverage to get a fair rate. Check out the table below and download the Jerry app to see how much you could save with points on your driver’s license.
Here’s just a sample of the savings that Jerry customers with spotty driving records have found:
If you get a DUI in New Jersey, you can expect your car insurance to increase by an average of $98.41 per month.
Insurance Cost With a Reckless Driving Citation in New Jersey
If you have a reckless driving citation in New Jersey, you should expect your insurance to increase to an average of $76.16 per month.
Cost to insure your car in New Jersey by age
Age plays a huge role in determining how much you pay for car insurance.
Picture it: you’ve been paying the same low rate for your auto insurance policy for years, and then your son’s 16th birthday rolls around. Suddenly, your annual premium shoots up and you’re left struggling to keep up with bills (and your kid!).
If this sounds familiar, you’re not alone. In fact, 16-year-old drivers pay some of the highest rates in New Jersey, and other drivers under 25 also see higher-than-average premiums due to the higher perceived risk associated with inexperienced drivers.
While our rates will likely go up when you add a teen driver to your policy, you can still find a great deal on car insurance by shopping around and maintaining a clean driving record.
How can young drivers save money on car insurance in New Jersey?
Study hard: Many insurance companies offer a good student discount to full-time students with a B average or better, so there’s more than one advantage to studying!
Build your credit: Did you know that a good credit score could improve your chances of finding affordable car insurance?
Drive safe: A clean driving record won’t just lower your chances of a rate hike; it also qualifies you for discounts with lots of insurers!
New Jersey car insurance rates by city
Insurance rates aren’t constant across New Jersey. In fact, your ZIP code could make a huge difference in how much you pay.
For instance, Newark car insurance costs are among the highest in the state thanks to the traffic generated by airports and interstates—but less than an hour down the Garden State Parkway, Red Bank car insurance costs are roughly $1,000 lower on average! Population density, crime rates, and the likelihood of vehicle damage due to severe weather or natural disasters can all impact premiums.
Here’s a more specific breakdown of insurance prices for Jerry across New Jersey:
Drivers in Princeton have the cheapest insurance rates in New Jersey at $1,422 a year.
City with Highest Rates of Accidents in New Jersey
Toms River has the highest accident rate in NJ, with 11.08% of drivers having an at-fault accident on their record already. This is a factor that drives up prices in the area.
Cities with the Longest Commute Times in New Jersey
Morganville has the longest commute time in New Jersey with an average commute of 48.2 minutes.
Cost to insure your car in New Jersey
You probably know that more expensive vehicles cost more to insure—but insurance companies also look for safety ratings, accident statistics, engine size, horsepower rating, anti-theft technology, and more. So how does all of this play out in your rates?
Even though they cost more to buy, SUVs tend to cost less to insure than sedans because their superior size means less risk of damage in accidents. But size isn’t the only factor. Upgrade to one of the Grand Cherokee’s higher trims and throw the tempting 5.7-liter Hemi V8 engine in place of the standard V6, and you’ll see average insurance costs shoot up due to the speeding risk associated with bigger engines.
If you stick to New Jersey’s basic or standard car insurance policy options, you’ll be protected from financial liability in the case of at-fault accidents. But you won’t have coverage for your own car unless you go beyond the legal minimum and spring for full-coverage car insurance.
New Jersey ranks 48th for traffic and infrastructure, putting New Jersey in the bottom half of states for their driving conditions. Collision coverage is a great asset due to higher rates of traffic, which means higher rates of collisions.
New Jersey drivers rate their roads 4.83/10, making New Jersey’ roads below average at best. Watch out for bad road conditions that can damage your car, and even leave you stranded in a worst-case scenario. It's important to have roadside assistance to help you out.
How to save money on car insurance in New Jersey
It’s the little things in life that matter: like that perfect Taylor Ham, egg, and cheese sandwich (or is it pork roll?) and saving on your car insurance. We can’t help you with that first one, but we’ve got some tips to help you free up your car-related finances.
Shop around for quotes
Comparison shopping is the best way to find lower rates on car insurance. Sure, it takes some effort—but you should aim to get quotes from at least three insurance companies before deciding on a plan. If you want to avoid lots of phone calls and paperwork, consider working with a broker or using a car insurance comparison app to do the hard work for you.
Look for discounts
Discounts can save you a tidy bundle on your insurance premiums—especially if you qualify for more than one. Most companies offer them but they aren’t always clearly advertised.
If you’re not sure where to start with car insurance discounts, here are a few to look out for in New Jersey:
Clean Driving Record Discounts
Insurers favor customers who have clean driving records, so safe drivers are often offered discounts. The reasoning is that safe drivers are less likely to file a claim, so insurers will not have to pay out as often.
Drivers who bundle their auto and home insurance or multiple vehicles with the same carrier can qualify for a bundling discount.
If you’re at least 50 years old and complete a defensive driving course in New Jersey, you can qualify for a discount on your insurance.
Increase your deductible
When you file a claim through your comprehensive or collision insurance, you’ll need to pay a certain amount out of pocket before your coverage kicks in. This amount—usually $500 or $1,000—is called a deductible, and the higher it is, the less you’ll pay to maintain the policy.
If you’ve got enough padding in your bank account to afford a higher deductible, this is a great (and easy!) way to lower your month-to-month costs. Just be careful not to select a deductible that you wouldn’t be able to pay in the event of a claim; that’s a recipe for disaster.