Average cost of car insurance in New Jersey for 2023

How much is car insurance in New Jersey?

Based on 2023 average car insurance rates provided by Quadrant Information Services, full coverage car insurance in New Jersey costs less than the national average. Full coverage car insurance costs an average of $1,754 per year in New Jersey compared to the national average of $2,014. Minimum coverage costs, on average, $782 per year in the Garden State but averages $622 nationally. 

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

New Jersey's full coverage rates are also below that of neighboring states. New York's average annual rates are on the high end, at $1,372 for minimum and $3,139 for full coverage; while Pennsylvania residents pay an annual average of $428 for minimum insurance and $2,040 for full coverage.

New Jersey car insurance rates by city

Even within a state, auto insurance premiums can vary. Different cities and even different ZIP codes may have different average rates, which could be higher or lower than the state average. This may be due to several factors, including the likelihood of accidents, crime rates, local weather patterns, 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 five of New Jersey's largest cities and how those premiums compare to the state average.

Average car insurance costs by age and gender in New Jersey

The age of a driver, as well as the number of years of driving experience they have, can both be used by car insurance companies in New Jersey to determine 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. Although not allowed as a rating factor in all states, gender can also affect insurance rates in New Jersey since men are more likely to engage in risky driving behaviors.

Cost considerations for young drivers in New Jersey

Young drivers may be able to save on their car insurance by remaining insured on their parents' policy, but they may need to still live in their parents' home or drive their parents' car. As you can see below, 18-year-old drivers who remain insured on their parents' policy save an average of 89 percent on their full coverage premium.

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in New Jersey?

Having tickets, accidents or DUI/DWI 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.

Car insurance rates in New Jersey by credit score 

Another factor that impacts New Jersey car insurance rates is credit history. Many car insurance companies see drivers with poor credit as more likely to file claims and increase rates accordingly. For this reason, improving your credit score by paying bills on time and keeping your credit utilization ratio low may bring down your auto insurance rates. 

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

Although New Jersey full coverage car insurance rates are below the national average, many drivers may still be looking for ways to save on their premiums. These strategies might help bring down your rates. 

• Ask for multiple quotes. You may not want to assume that the first quote you receive is going to be the lowest. Most insurance professionals recommend requesting quotes from several insurers to see which offers you the lowest premium. 
• Research discount opportunities. Most car insurance companies offer at least a few discounts that might help you save on your premium. Common ones include paperless billing, bundling and good student discounts. 
• Maintain safe driving habits. Drivers with clean driving records usually get lower rates on their auto insurance. Safe driving may also make you eligible for safe driving discounts and incentives like accident forgiveness.
• 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 might help you plan your budget when shopping for a new car.

Estimate your car insurance cost in New Jersey

Frequently asked questions