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Cheap Car Insurance in New Jersey (Sep 2024)
Cheap Car Insurance in New Jersey (Sep 2024)
Compare 50+ top insurance companies including Progressive, Travelers, AAA, Nationwide (and more!) to find the best and cheapest car insurance in New Jersey.
Find Insurance Savings
No long forms
No spam or unwanted calls
Quotes from top insurance companies
R.E. Fulton
Licensed Insurance Agent —Senior Content Writer
Reviewed by Josh Damico, Vice President Insurance Operations
Edited by Lina Zhang, Licensed Insurance Agent, VP of Operations
What's on this page?
- How to find cheap car insurance quotes in New Jersey
- Cheapest car insurance companies in New Jersey
- New Jersey Car Insurance Coverage Requirements
- New Jersey Car Insurance Rating Factors
- How Do Different Factors Impact Your Car Insurance Costs in New Jersey?
- Car Insurance for High-Risk New Jersey Drivers
- Car Insurance for New Jersey Drivers With DUI
- Car Insurance for New Jersey Drivers With a Coverage Lapse
- Car Insurance for New Jersey Drivers With a Low Credit Score
- New Jersey Car Insurance Cost by Age
- New Jersey Car Insurance by Car
- Is it cheaper to insure a new car or a used car?
- New Jersey Insurance Cost by Zip Code
- How to lower the cost of car insurance in New Jersey
- FAQs
- Methodology
- Meet our Experts
Load full table of contents
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 Company | Premium (monthly) | Customer | Car | Insurance Coverage |
|---|---|---|---|---|
| Travelers | $93 | Teresa, 43 | Honda Civic Sport | • State Minimum Liability |
| Nationwide | $162 | Victor, 60 | Nissan Rogue SV | • 50,000/100,000 Liability • Comp / Collision |
| Safeco | $110 | Howard, 54 | Hyundai Sonata Hybrid | • 50,000/100,000 Liability • Comp / Collision |
| AAA | $155 | Rosie, 78 | Toyota 4runner SR5 | • 100,000/300,000 Liability • Comp / Collision |
| Allstate | $308 | Fanny, 30 | KIA Sorento LX | • 50,000/100,000 Liability • Comp / Collision |
Last Updated Sep 9, 2024Cheapest 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 company | Date | Cost rating (out of 5) | What our customer said: |
|---|---|---|---|
| Safeco | September 11, 2024 | 3 | "Ya it's ok little pricey " -Aiden |
| Elephant Auto Insurance | September 10, 2024 | 5 | "Affordable and easy to contact" -Raymond |
| USAA | September 9, 2024 | 4 | "Car insurance is pretty expensive though even for older cars had an 05 Crown Victoria and it cost me 283 a month" -Joshua |
| Progressive | September 8, 2024 | 4 | "They're good" -Julian |
| Encompass | September 7, 2024 | 5 | "Very cheap and affordable " -Earl |
Last Updated Sep 11, 2024
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.
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: - $50,000 in bodily injury liability per accident
You’ll commonly see this referred to as the 25/50/25 rule.
Katharine (37 years old)
$181
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.
"Jerry is the new benchmark in app usefulness. Period. It is SO EASY and the results are SO GOOD, and they specifically point out that no one is going to start calling and emailing me all the time. I gave very little info, it pulled up all my existing insurance info, and showed me how to get the same insurance for less, lesser coverage for huge savings, or better coverage for about the same I currently pay. I am personally saving around $1,400/year with my new insurance, and the entire process (including follow ups to sign the docs from the insurance companies) took less than an hour. If you make over $1,400/hour, this may not be worth your time. Otherwise, get the app and use it now!"
Sean S.
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). | Insurance Coverage | Insurance Company | Premium (monthly) | Customer | Car |
|---|---|---|---|---|
• State Minimum Liability • Comp / Collision | Progressive | $359 | Annie, 26 | Honda Accord Sport |
• 50,000/100,000 Liability • Comp / Collision | Allstate | $266 | Josie, 28 Guttenberg, NJ | Mazda 3 Select |
• 100,000/300,000 Liability • Comp / Collision | AAA | $155 | Rosie, 78 | Toyota 4runner SR5 |
• 50,000/100,000 Liability • Comp / Collision | Mercury | $129 | Teresa, 53 | Hyundai Elantra GLS |
• 15,000/30,000 Liability • Comp / Collision | Gainsco | $167 | Bruce, 32 | Lexus UX 200 |
Last Updated Sep 14, 2024Average rates for minimum liability coverage and full coverage car insurance in New Jersey
New Jersey car owners can expect to spend an average of $243 per month and $2,922 per year on full-coverage car insurance, or $190 per month and $2,517 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. How Do Different Factors Impact Your Car Insurance Costs in New Jersey?
How Do Different Factors Impact Your Car Insurance Costs in New Jersey?
Allowed (with applicable limitations): Gender, age, driving experience, credit history, education, occupation, employment status, marital status, zip code, insurance history
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 Type | Insurance Company | Premium (monthly) | Customer | Insurance Coverage |
|---|---|---|---|---|
Speeding 6-10 | Progressive | $315 | Jon, 28 Woodland Park, NJ | • 100,000/300,000 Liability • Comp / Collision |
Speeding 11-15 | AAA | $349 | Lee, 34 Wenonah, NJ | • 50,000/100,000 Liability • Comp / Collision |
Speeding 16-20 | Travelers | $177 | Bernard, 30 Absecon, NJ | • 50,000/100,000 Liability • Comp / Collision |
Speeding 21+ | Bristol West | $247 | Francis, 23 | • 25,000/50,000 Liability |
Last Updated Sep 9, 2024How 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.Noah (59 years old)
DUI
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$150
per month
Dennis (29 years old)
DUI
Coverage100,000 per person
300,000 per accident bodily injury
Comp / Collision
$193
per month
Scott (34 years old)
DUI
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$133
per month
Francisco (38 years old)
$231
per month
Manuel (32 years old)
DUI
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
Mullica Hill, NJ
GMC Yukon$130
per month
Ralph (37 years old)
DUI
Coverage15,000 per person
30,000 per accident bodily injury
Comp / Collision
$184
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 Type | Insurance Company | Premium (monthly) | Customer | Insurance Coverage |
|---|---|---|---|---|
At Fault With Injury | Progressive | $649 | Hulda, 44 | • 50,000/100,000 Liability • Comp / Collision |
At Fault With No Injury | Travelers | $86 | Lillian, 46 Ewing, NJ | • 100,000/300,000 Liability • Comp / Collision |
Not At Fault | Travelers | $137 | Effie, 37 | • 50,000/100,000 Liability • Comp / Collision |
At Fault With No Injury | AAA | $260 | Celia, 60 Lumberton, NJ | • 100,000/300,000 Liability • Comp / Collision |
At Fault With Injury | Plymouth Rock | $313 | Lucile, 27 | • State Minimum Liability • Comp / Collision |
Last Updated Sep 14, 2024FAQ
Is New York an at-fault state?
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.
| Violation | Insurance Company | Premium (monthly) | Customer | Car | Insurance Coverage |
|---|---|---|---|---|---|
Careless Driving | Progressive | $151 | Fanny, 47 | Chrysler Pacifica Touring L | • 25,000/50,000 Liability • Comp / Collision |
Cell Phone | Safeco | $155 | Paul, 56 | Mitsubishi Outlander Sport ES | • 15,000/30,000 Liability |
Defective Equipment | AAA | $114 | Leon, 25 Brick Township, NJ | Acura RSX | • 15,000/30,000 Liability |
Driving on Sus. License | Travelers | $175 | Sophie, 72 Whippany, NJ | BMW 320 i xDrive | • 100,000/300,000 Liability |
DUI | Plymouth Rock | $163 | Alma, 28 | Honda Civic SI | • 15,000/30,000 Liability |
Failure to Obey Signal | Mercury | $124 | Sophia, 27 | Toyota Corolla | • 15,000/30,000 Liability |
Illegal Turn | AAA | $163 | Barry, 27 Bridgewater Township, NJ | Chrysler 300 Touring | • 15,000/30,000 Liability |
Improper Passing | Progressive | $334 | Adeline, 33 Clementon, NJ | Dodge Challenger R/T | • 25,000/50,000 Liability |
Leaving scene of an Accident/Hit and Run | Bristol West | $269 | Clara, 41 | Ford F150 Supercrew | • 15,000/30,000 Liability • Comp / Collision |
Open Container | Bristol West | $210 | Eddie, 45 | Dodge Challenger R/T | • 25,000/50,000 Liability |
Passing School Bus | Mercury | $317 | Eric, 23 | Honda CR-V EX | • 15,000/30,000 Liability • Comp / Collision |
Seat Belt | Travelers | $115 | Adele, 29 Belmar, NJ | Subaru Forester 2.5I Premium | • 100,000/300,000 Liability • Comp / Collision |
Speeding 16-20 | State Auto | $158 | Lucy, 49 Milltown, NJ | Toyota Scion XB | • 25,000/50,000 Liability • Comp / Collision |
Speeding 6-10 | Plymouth Rock | $163 | Myrtie, 28 | Honda Civic SI | • 15,000/30,000 Liability |
Suspension | Safeco | $71 | Lola, 39 | Acura MDX Technology | • 15,000/30,000 Liability |
Wrong Way/Wrong Lane | Plymouth Rock | $157 | Katie, 27 | Honda Accord Sport Special Edition | • 15,000/30,000 Liability |
Other Minor | Nationwide | $136 | Hettie, 37 Lumberton, NJ | Nissan Rogue S | • 50,000/100,000 Liability • Comp / Collision |
Last Updated Sep 14, 2024Over 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:
No problems with process or app. Easy access and painless payments.
Joshua
They work hard for you so you don't have to and I promise there fast and efficient
Daisy
Have been so amazing! The prices are great glad jerry for this for me.
Savannah
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 paymentsWe have successfully helped countless customers who are currently uninsured or have experienced coverage lapses in finding affordable coverage.
Keith (43 years old)
Currently Insured
Coverage25,000 per person
50,000 per accident bodily injury
$185
per month
Frances (36 years old)
Not Currently Insured
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$150
per month
Winnie (78 years old)
Currently Insured
Coverage100,000 per person
300,000 per accident bodily injury
Comp / Collision
$155
per month
Lizzie (33 years old)
Not Currently Insured
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$108
per month
Evelyn (57 years old)
Currently Insured
Coverage25,000 per person
50,000 per accident bodily injury
$222
per month
Kevin (23 years old)
$252
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:
They were able to drop what I was paying for insurance in half
Megan
Was easy to switch and was very affordable
Hugo
Wonderful experience! Saving $77 a month!
Kaytlin
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 Range | Insurance Company | Premium (monthly) | Customer | Car | Insurance Coverage |
|---|---|---|---|---|---|
> 750 | Progressive | $83 | Jackson, 39 | Volkswagen Tiguan S | • 50,000/100,000 Liability • Comp / Collision |
660 - 750 | Bristol West | $401 | Katie, 21 | Chrysler 200 S | • State Minimum Liability |
550 - 659 | Allstate | $160 | Luke, 31 Plainsboro Township, NJ | Jeep Cherokee Latitude | • 100,000/300,000 Liability • Comp / Collision |
< 550 | Safeco | $73 | Melvin, 67 North Haledon, NJ | Dodge Dart SE | • 50,000/100,000 Liability |
Last Updated Sep 14, 2024How 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.Marion (24 years old)
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$445
per month
Ollie (23 years old)
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$367
per month
Maud (24 years old)
$157
per month
Vincent (24 years old)
$400
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. Herman (69 years old)
CoverageState Minimum
Barnegat, NJMercury Grand Marquis GS$114
per month
Celia (70 years old)
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$168
per month
Larry (67 years old)
Coverage100,000 per person
300,000 per accident bodily injury
Comp / Collision
$95
per month
Sue (78 years old)
Coverage100,000 per person
300,000 per accident bodily injury
Comp / Collision
$155
per month
Derrick (65 years old)
Coverage50,000 per person
100,000 per accident bodily injury
Comp / Collision
$213
per month
Lewis (85 years old)
Coverage100,000 per person
300,000 per accident bodily injury
Manchester Township, NJ$90
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 Car | Insurance Company | Premium (monthly) | Customer | Insurance Coverage |
|---|---|---|---|---|
| Honda Civic LX | Progressive | $206 | Donald, 25 | • 50,000/100,000 Liability • Comp / Collision |
| Toyota Corolla | Nationwide | $150 | Mildred, 46 | • State Minimum Liability |
Last Updated Sep 8, 2024Is 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.
Harriet (30 years old)
Coverage25,000 per person
50,000 per accident bodily injury
Comp / Collision
$113
per month
Evan (65 years old)
$188
per month
Rosie (78 years old)
2004 Toyota 4runner SR5
Coverage100,000 per person
300,000 per accident bodily injury
Comp / Collision
$155
per month
Willie (42 years old)
$172
per month
Marguerite (24 years old)
$252
per month
Susan (54 years old)
$86
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.
| City | Customer | Insurance Company | Premium (monthly) | Car | Insurance coverage |
|---|---|---|---|---|---|
| Somerset, NJ | Ophelia, 24 | Progressive | $445 | Honda Accord Hybrid EXL | • 50,000/100,000 Liability • Comp / Collision |
| Jersey City, NJ | Evan, 30 | Allstate | $308 | KIA Sorento LX | • 50,000/100,000 Liability • Comp / Collision |
| Jersey City, NJ | Stephen, 31 | Travelers | $149 | Fiat 500L Lounge | • 100,000/300,000 Liability • Comp / Collision |
| Union, NJ | Calvin, 38 | Safeco | $136 | Toyota Highlander XLE | • 25,000/50,000 Liability • Comp / Collision |
| Englewood, NJ | Vernon, 32 | Gainsco | $167 | Lexus UX 200 | • 15,000/30,000 Liability • Comp / Collision |
| Jersey City, NJ | Alta, 47 | National General | $71 | Land Rover Range Rover Sport HSE | • 15,000/30,000 Liability |
| Woodbridge Township, NJ | Della, 26 | Bristol West | $247 | KIA RIO LX | • 25,000/50,000 Liability |
| Hopatcong, NJ | Adele, 30 | Trexis | $165 | Mercedes-Benz A 220 | • 25,000/50,000 Liability • Comp / Collision |
Last Updated Sep 8, 2024How to lower the cost of car insurance in New Jersey
Here are some strategies to help lower your car insurance costs:
- Shop around and compare quotes: Obtain quotes from multiple insurance providers to find the best rates and coverage options that suit your needs.
- 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.
- Bundle your policies: Considerbundling your car insurancewith other insurance policies, such as homeowners or renters insurance, with the same provider. Many insurance companies offer discounts for multiple policies.
- Take advantage of car insurance discounts: Inquire aboutavailable discountsand 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.
- 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.
- 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.
- 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.
- 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
Who has the cheapest car insurance in New Jersey?
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!)
How much is car insurance in New Jersey?
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.
Is New Jersey car insurance cheaper than New York?
Yes. Typically, New Jersey drivers see rates at least a few hundred dollars cheaper than their Empire State counterparts.
What increases car insurance rates in New Jersey?
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
Do you need personal injury protection (PIP) in New Jersey?
Yes—all New Jersey drivers must carry at least $15,000 in Personal Injury Protection (PIP) in New Jersey.
Does insurance follow the car or the driver 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.
What is full coverage car insurance in New Jersey?
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.
How to get discounts on car insurance in New Jersey.
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.
How can I lower my car insurance in NJ?
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
What is the minimum auto insurance coverage required in New Jersey?
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.
Is car insurance mandatory in New Jersey?
Yes. All drivers are required to carry at least liability coverage and personal injury protection (PIP) to drive legally in New Jersey.
What is the penalty for not having car insurance 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
What is the penalty for not having car insurance 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
Do you need car insurance to buy a car in New Jersey?
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.
What is the recommended car insurance coverage in New Jersey?
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.
What is the average cost of car insurance In New Jersey?
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.
Do you need insurance to register a car in New Jersey?
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.
Can your car get towed for no insurance in New Jersey?
Yes, in New Jersey, if a motor vehicle is found to be uninsured, it can be subject to towing and impoundment.
Can you have out of state car insurance in New Jersey?
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.
Can you have both PIP and MedPay 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
R.E. Fulton
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.
Lina Zhang
Licensed Insurance Agent
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.
Josh Damico
Head Of Insurance Operations
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.
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about our editorial standards, and our expert review board *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.