So far in New Jersey, there have been more than 300 accidents and fatalities each in 2021, according to the New Jersey State Police. These figures are higher than the year-to-date for 2020 and 2019, with the most driver fatalities per year. Although the state’s increasing accident fatality rate contributes to the higher-than-average cost of car insurance, drivers in New Jersey can protect themselves by having adequate car insurance coverage. When shopping for car insurance, it helps to know the average as a benchmark to compare rates from competitors. The average cost of car insurance in New Jersey is $1,757 per year for full coverage and $847 for state minimum.
Bankrate’s editorial team reviewed current premium information, obtained from Quadrant Information Services, and organized the cost of auto insurance by insurance company, city, age and driving record. Understanding what factors affect the average cost of car insurance in New Jersey could help you to make more informed choices about your own coverage.
How much does car insurance cost in New Jersey?
The average car insurance rates in New Jersey are $847 annually for minimum coverage and $1,757 annually for full coverage. Compared to the national average annual premiums of $565 per year for minimum coverage and $1,674 per year for full coverage, drivers in New Jersey tend to pay more for car insurance.
However, New Jersey auto insurance rates are determined using a number of personal factors. Your premium could be higher or lower depending on your age, credit score, the type of vehicle you drive, your driving history and other factors.
New Jersey car insurance rates by company
Every auto insurance company has its own rating system, meaning that the premiums offered for the same coverage will typically be different. If you are shopping for auto insurance coverage, it may be a good idea to get quotes from several different providers. Getting several quotes allows you to review coverages, discounts and premiums.
| Car insurance company | Average annual premium for minimum coverage | Average annual premium for full coverage |
|---|---|---|
| Allstate | $909 | $1,686 |
| American Independent | $1,463 | $3,414 |
| Amica | $430 | $1,504 |
| Farmers | $1,359 | $2,803 |
| Geico | $559 | $1,316 |
| Mercury | $1,022 | $1,845 |
| MetLife | $795 | $1,307 |
| NJM | $370 | $1,271 |
| Palisades | $528 | $1,135 |
| Penn National | $970 | $1,820 |
| Progressive | $735 | $1,469 |
| Selective | $474 | $1,085 |
| State Farm | $724 | $1,244 |
| The Hanover | $2,123 | $4,638 |
| Tower Grp | $1,087 | $2,010 |
| Travelers | $703 | $1,320 |
New Jersey car insurance rates by city
Even within a state, auto insurance premiums can vary. Different cities and even different ZIP codes have different average annual premiums. This can be due to several factors, including the likelihood of accidents, the cost of vehicle repairs and the price of healthcare services in your area. The following table shows the average annual full coverage premium for the 20 most populated cities in New Jersey, as well as how those premiums compare to the state average.
| City | Average annual premium for full coverage | % difference from state average annual premium |
|---|---|---|
| Newark | $2,624 | 49% |
| Jersey City | $2,304 | 31% |
| Trenton | $1,910 | 9% |
| Paterson | $2,565 | 46% |
| Edison | $1,773 | 1% |
| Elizabeth | $2,515 | 43% |
| Toms River | $1,635 | -7% |
| Lakewood | $1,896 | 8% |
| Clifton | $2,203 | 25% |
| Camden | $2,404 | 37% |
| Brick | $1,637 | -7% |
| Passaic | $2,565 | 46% |
| Union City | $2,461 | 40% |
| Vineland | $1,786 | 2% |
| East Orange | $2,573 | 46% |
| Bayonne | $2,141 | 22% |
| North Bergen | $2,516 | 43% |
| New Brunswick | $1,815 | 3% |
| Wayne | $1,805 | 3% |
| Irvington | $2,628 | 50% |
New Jersey car insurance rates by age
Age is one of the biggest drivers of auto insurance premiums. This is because younger drivers have less experience and tend to get into more accidents than more experienced drivers. Because of the increased risk, insurance companies usually charge younger drivers a higher premium.
| Age | Average annual full coverage premium in New Jersey |
|---|---|
| Age 16* | $2,353 |
| Age 18 | $6,816 |
| Age 20 | $4,221 |
| Age 25 | $2,294 |
| Age 30 | $2,023 |
| Age 40 | $1,952 |
| Age 50 | $1,689 |
| Age 60 | $1,683 |
| Age 70 | $1,785 |
*16-year-old added to their parents’ policy
Premiums tend to decrease as you get older but can start to rise again around age 70. This is because older drivers may once again be at a higher-than-average risk for auto accidents.
New Jersey car insurance rates by driving record
Having tickets, accidents or DUIs on your driving record tends to increase your auto insurance premium. Insurance companies tend to view drivers with a history of violations are more likely to get into accidents in the future.
| Driving incident | Average annual full coverage premium in New Jersey | % increase in average annual premium |
|---|---|---|
| Speeding ticket | $2,001 | 14% |
| Accident | $2,617 | 49% |
| DUI | $3,264 | 86% |
How to save on car insurance in New Jersey
Although drivers in New Jersey pay more than the national average for car insurance, there are still ways to lower your premium. To find a cheaper policy, you may want to:
- Shop around: Every insurance company has its own business model, which means that each company will weigh rating factors differently. The cheapest company for one person may not be the cheapest company for another person. Getting quotes from several providers might help you find the coverage you are looking for for a lower amount.
- Utilize discounts: Most insurance companies offer discounts. The more discounts that you can take advantage of, the less you might pay for car insurance. Finding a company with numerous discounts that you qualify for might help you save money.
- Increase your deductible(s): Your comprehensive and collision coverage deductibles are the amount you will pay out of pocket if you file a claim for damage to your car. Increasing one or both of them could lower your premium. Just keep in mind that if you get into an accident, you will have to pay your deductible, so choosing a level that makes sense for your finances could be a good idea.
- Maintain a clean driving record: Your driving record greatly impacts your premium. Avoiding tickets, accidents and offenses like DUIs could help you to avoid premium surcharges and keep your rates lower.
There may be other ways to save that are specific to your particular insurance company. Talking to an agent may help you to identify savings opportunities.
Frequently asked questions
How much is car insurance in New Jersey per month?
The average monthly cost of car insurance in New Jersey is just over $146 per month for full coverage and about $71 per month for minimum coverage. Your actual premium will vary based on your individual rating factors.
Is New Jersey a no-fault state for car insurance?
Yes, New Jersey is a no-fault state, which means that you must purchase personal injury protection coverage (PIP). This coverage pays for medical bills and other qualifying expenses for you and your passengers regardless of who was at fault for an accident.
How much car insurance do I need in NJ?
How much car insurance you need in New Jersey depends on a few factors, like the age of the drivers in your household, the type and value of the car you drive and where you live in New Jersey. The standard state minimum includes limits of $15,000 for bodily injury liability per person and up to $30,000 per accident, as well as $5,000 for property damage liability per accident.
Uninsured/underinsured motorist coverage is available up to the same selected liability amounts. The state’s PIP requirement calls for at least $15,000 in coverage. Some drivers may only find minimum coverage necessary on an older car while others could benefit from full coverage. If you cannot afford to fix or replace your car if it is damaged or totaled in an accident, consider full coverage car insurance.
What is the best auto insurance in NJ?
Determining the best auto insurance in New Jersey comes down to individual preferences and needs. When choosing the best auto insurance, consider what is most important to you, such as price, coverage offerings, available discounts or customer satisfaction. The best car insurance company may not have the cheapest rates, but may excel in another important area for you.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.
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