Bankrate’s 2021 study of quoted annual premiums reveals that the average cost of full coverage car insurance in New Jersey is $1,757 per year, or about $146 per month. To better help you understand how various factors impact your car insurance rates, we broke the data down into several categories. We analyzed 550 ZIP codes in the Garden State to ensure that these average rates are as accurate as possible.
The national average cost of car insurance is $1,674 per year for full coverage, so New Jersey drivers pay slightly more, on average. Our research may help you better understand how your individual circumstances — like the city you live in, the insurance company you choose, your age, gender, credit score, driving history and the type of vehicle you own — affect your car insurance premiums.
How much is car insurance in New Jersey?
Full coverage car insurance costs an average of $1,757 annually in New Jersey. However, car insurance rates in New Jersey 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
| Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|
| $847 | $1,757 |
New Jersey car insurance rates by city
Even within a state, auto insurance premiums can vary. Different cities have different average rates, and average prices can even vary by ZIP code. 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 10 most populated cities in New Jersey and 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% |
New Jersey car insurance rates by 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.
| Car insurance company | Average annual premium for full coverage |
|---|---|
| Allstate | $1,686 |
| American Independent | $3,414 |
| Amica | $1,504 |
| Farmers | $2,803 |
| Geico | $1,316 |
| Mercury | $1,845 |
| NJM | $1,271 |
| Palisades | $1,135 |
| Penn National | $1,820 |
| Progressive | $1,469 |
| Selective | $1,085 |
| State Farm | $1,244 |
| The Hanover | $4,638 |
| Tower Grp | $2,010 |
| Travelers | $1,320 |
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. 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.
| 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 | $1,757 |
| Age 50 | $1,689 |
| Age 60 | $1,683 |
| Age 70 | $1,785 |
*16-year-old calculated on parent’s policy; 18- and 20-year-old are renters
New Jersey car insurance rates by gender
Your New Jersey auto insurance rates will also be affected by your gender. Men statistically engage in riskier driving behaviors than women and thus typically pay higher premiums. In New Jersey, though, women pay just slightly more on average than men. This could be due to specific crash statistics on a state level.
| Average annual full coverage premium | |
|---|---|
| Male | $1,722 |
| Female | $1,793 |
New Jersey car insurance rates by credit score
In most states, including New Jersey, your credit score impacts your car insurance rates. Drivers with poor credit are statistically more likely to file claims than drivers with higher credit scores, so car insurance companies charge them more to compensate for the greater risk. In New Jersey, drivers with poor credit pay nearly 140% more for full coverage, on average, than drivers with excellent credit.
Average annual full coverage rate by credit score
| Poor | Average | Good | Excellent | |
|---|---|---|---|---|
| National average | $3,873 | $1,865 | $1,674 | $1,487 |
| New Jersey | $3,307 | $1,979 | $1,757 | $1,384 |
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.
| Driving incident | Average annual full coverage premium in New Jersey | % increase in average annual premium |
|---|---|---|
| Clean driving record | $1,757 | 0% |
| Speeding ticket | $2,378 | 35% |
| Accident | $2,617 | 49% |
| DUI | $3,285 | 87% |
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.
| Vehicle | Average annual full coverage premium |
|---|---|
| Toyota Camry | $1,757 |
| Ford F-150 | $1,539 |
| Honda Odyssey | $1,534 |
Frequently asked questions
What is the average cost of minimum coverage in New Jersey?
New Jersey’s state-minimum required coverage costs $847 per year. However, while state minimum coverage is all you need to drive legally, most insurance experts advise that you purchase higher liability levels if you can afford to so that you have greater financial protection. If you have a loan or lease, you will likely be required to carry full coverage, which includes comprehensive coverage and collision coverage.
How much is car insurance in New Jersey per month?
Full coverage costs an average of $146 per month, and minimum coverage costs an average of $71 per month in New Jersey.
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 of car you drive and where you live in the state. You’ll have to purchase at least the state minimum required level of coverage to drive legally, but you can opt for higher limits and additional coverage types for greater financial protection. If you aren’t sure how much coverage to buy, talking with an agent may be helpful.
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.
What is the best auto insurance in NJ?
Determining the best auto insurance company 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 coverage that meets 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. Depending on age, drivers may be a renter or homeowner. For teens, rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married couple’s policy. The rates displayed reflect the added cost to the parents’ policy. Based on quoted annual premiums, it does not appear Hawaii uses age as a contributing factor.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.
Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
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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