Average cost of car insurance in New Jersey in 2023

The average cost of car insurance in New Jersey is $1,891 per year for full coverage, which is almost 7% higher than the national average cost of car insurance. Minimum coverage in the state is significantly more than the national average at $855 per year. However, rates vary for each individual driver based on factors like location, age, credit score (in most states) and more. The rates and information listed below may help you to better understand the average cost of car insurance in New Jersey.

How much does car insurance cost in New Jersey?

Based on 2022 average car insurance rates analyzed from Quadrant Information Services, both full and minimum coverage car insurance in New Jersey costs more than the national average. Full coverage car insurance costs an average of $1,891 per year in New Jersey. Minimum coverage costs on average $855 per year in this state, but minimum coverage car insurance also offers less financial protection. Without full coverage car insurance, there is no coverage for your own vehicle if you’re involved in an at-fault accident.

However, your rate will likely differ from the state average in New Jersey, as car insurance rates in this state are determined using several personal factors. Your premium could be higher or lower depending on your city and ZIP code, age, credit score, the type of vehicle you drive, your driving history and other factors.

New Jersey car insurance rates by city

Even within a state, auto insurance premiums can vary. Different cities have different average rates, which could be higher or lower than the state average. 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. For example, car insurance in the cities of Newark, Jersey City and Paterson cost more than the state average.

The following table shows the average annual full coverage premium for the 10 most populated cities in New Jersey and how those premiums compare to the state average.

New Jersey car insurance rates by insurance company

Every auto insurance company in New Jersey 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. However, price isn’t the only factor to consider. Even if you are looking for the cheapest car insurance in New Jersey, you may still want to think about a company’s financial strength scores, customer satisfaction scores, coverage options, discounts and policy features.

New Jersey car insurance rates by age

The age of a driver, as well as the number of years of driving experience they have, can be a crucial factor when car insurance companies are determining rates. Young drivers, or those who have just started driving, are statistically more likely to get into accidents or other driving-related incidents compared to older, more experienced drivers. The rates below show a variety of ages and scenarios, but all reflect drivers with a clean driving record.

Average cost of car insurance for drivers on their parent’s policy

Staying on a parent’s policy is ideal for young drivers who have just started driving, still live at home and drive a family car. When it comes to car insurance for teen drivers, the cost may be high, but many companies offer a variety of discounts to help. This could include a good student discount, a student away from home discount and more.

Average cost of car insurance for drivers on their own policy

Drivers who no longer live at home and are the only registered owners of their cars are typically split into their own policy. This does make the cost of car insurance more expensive, as is evident by comparing the average rates for an 18-year-old on their own policy to an 18-year-old on their parent’s policy. However, the average car insurance rates for older drivers tend to decrease from age 25 to 60 as drivers gain more experience behind the wheel. That said, the actual rates for drivers of any age can vary significantly from year to year depending on a number of rate factors.

New Jersey car insurance rates by driving record

Having tickets, accidents or DUI convictions on your driving record tends to increase your auto insurance premium. If you have a history of driving incidents, you may be viewed as a high-risk driver. Because of the increased risk of having to pay out claims, insurance companies generally increase premiums accordingly. The premiums in the table below are averages; the actual cost you’ll pay after a ticket, accident or DUI will depend on the severity of the incident, your other driving record information and additional rating factors like your age.

New Jersey car insurance rates by vehicle type

The make and model of the vehicle you drive also affects average car insurance rates in New Jersey. Your vehicle type can impact the statistical likelihood of crashes, the price for parts and labor, and the coverage options you may purchase. Below is a list of vehicle types that represent a variety of lifestyles and budgets:

How to save on car insurance in New Jersey

Saving money on car insurance could be a priority for many drivers. Below are some tips that could help you if you’re shopping for car insurance in New Jersey:

• Research discount opportunities. Look into what discounts your car insurance company offers to see if any that you qualify for are missing in your policy. This is often one of the easiest ways to quickly reduce your premium.
• Monitor your credit score. New Jersey car insurance companies can use credit scores to help determine car insurance premiums. Improving your credit and monitoring it periodically could help ensure that you get the best rates.
• Look into safe driving courses. Some car insurance companies may offer extra discounts for drivers who complete an approved defensive driving or safe driving course. These courses usually come at an additional cost, but could provide savings over multiple years on your car insurance.
• Consider the type of car you’ll be driving. If you’re in the market for a new car, keep in mind that the make and model matters when it comes to car insurance. Checking with your car insurance agent to find out the various costs of insuring different makes and models could help you plan your budget when shopping for a new car.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 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 coverage that meets each state’s requirements. Our base profile drivers own a 2020 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. Depending on age, drivers may be a renter or homeowner.

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.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Toyota Camry (base), Ford F-150 and Honda Odyssey.