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Average cost of car insurance in New Jersey for 2024
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How much is car insurance in New Jersey?
The average car insurance cost in New Jersey is $1,754 annually for full coverage and $782 for minimum coverage, according to data from Quadrant Information Services. While these figures place New Jersey's full coverage rates below the 2023 national average of $2,014 and minimum coverage slightly above the national average of $622, individual premiums can vary significantly based on personal factors such as location, age and driving history.
New Jersey residents might find their rates differ from these averages, with variations seen across different cities and ZIP codes within the state. Additionally, compared to its neighboring states, New Jersey's insurance costs are more favorable. For instance, New York's rates are significantly higher, indicating a stark contrast in regional insurance markets.
Bankrate utilizes in-depth data analysis to ensure accurate rate information, providing a valuable benchmark for New Jersey drivers seeking to understand car insurance rates in their state.
Key takeaways
- The average monthly car insurance cost in New Jersey is approximately $146 for full coverage and $65 for minimum coverage.
- New Jersey drivers with a DUI conviction pay average rates that are 88 percent higher compared to drivers with a clean driving record.
- Having poor credit increases average New Jersey car insurance rates by 83 percent, while drivers with excellent credit save an average of 22 percent.
- In New Jersey, 18-year-old males on their own policy face steep insurance costs, with full coverage averaging $6,592 annually.
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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 10 of New Jersey's largest cities and how those premiums compare to the state average.
| New Jersey city | Avg. monthly full coverage premium | Avg. annual full coverage premium | Percentage change from New Jersey avg. annual full coverage premium |
|---|---|---|---|
| Cherry Hill | $138 | $1,661 | -5% |
| Edison | $150 | $1,796 | 2% |
| Howell | $141 | $1,694 | -3% |
| Jackson | $146 | $1,751 | 0% |
| Lakewood | $160 | $1,916 | 9% |
| Old Bridge | $153 | $1,836 | 5% |
| Toms River | $160 | $1,916 | 9% |
| Trenton | $148 | $1,770 | 1% |
| Vineland | $153 | $1,830 | 4% |
| Woodbridge | $157 | $1,885 | 7% |
Average car insurance costs by age and gender in New Jersey
In New Jersey, the intersection of driving age and driving experience plays a pivotal role in car insurance rates. Younger drivers typically face high premiums, reflecting statistical data that correlates young drivers with a greater likelihood of accidents and claims.
It's important to note that while age is a significant factor in New Jersey, it does not influence rates in all states, such as Hawaii and Massachusetts. Similarly, gender may impact insurance costs in New Jersey, although it is not a determining factor in states like California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania. These nuances underscore the complexity of factors that go into determining how much car insurance costs in New Jersey.
| Age | Avg. full coverage premium in New Jersey | Avg. minimum coverage premium in New Jersey |
|---|---|---|
| Age 16* | $3,878 | $1,543 |
| Age 18 | $6,592 | $2,396 |
| Age 20 | $4,365 | $1,610 |
| Age 25 | $2,351 | $923 |
| Age 30 | $1,826 | $770 |
| Age 40 | $1,749 | $757 |
| Age 50 | $1,669 | $742 |
| Age 60 | $1,668 | $745 |
| Age 70 | $1,792 | $809 |
*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied
| Age | Avg. full coverage premium in New Jersey | Avg. minimum coverage premium in New Jersey |
|---|---|---|
| Age 16* | $3,567 | $1,478 |
| Age 18 | $5,796 | $2,213 |
| Age 20 | $3,730 | $1,509 |
| Age 25 | $2,137 | $925 |
| Age 30 | $1,806 | $809 |
| Age 40 | $1,759 | $806 |
| Age 50 | $1,665 | $775 |
| Age 60 | $1,649 | $765 |
| Age 70 | $1,774 | $820 |
*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied
Bankrate’s take: Bankrate's analysis of rate trends reveals that car insurance rates in New Jersey, as in many states, often vary between genders. This variance is underpinned by historical data and risk assessments used by insurers. Statistics suggest that male drivers, especially younger ones, tend to engage in riskier driving behaviors, leading to more frequent and severe claims. As a result, insurance companies may adjust premiums accordingly. However, it's important to recognize that this is not a universal practice; several states have disallowed gender as a rating factor. Ultimately, the average car insurance cost in New Jersey reflects a complex algorithm, with gender being just one of the many factors that might influence the final rate.
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 shown below, 18-year-old drivers who remain insured on their parents' policy save an average of 89 percent on their full coverage premium.
| Age | Avg. annual premium for drivers on their parents' policy in New Jersey | Avg. annual premium for drivers on their own policy in New Jersey | Percent difference |
|---|---|---|---|
| Age 16 | $3,722 | N/A* | N/A* |
| Age 17 | $3,461 | N/A* | N/A* |
| Age 18 | $3,271 | $6,194 | 89% |
| Age 19 | $2,940 | $4,499 | 53% |
| Age 20 | $2,769 | $4,048 | 46% |
*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.
| Driving incident | Avg. annual full coverage premium in New Jersey | Percentage increase from New Jersey avg. annual full coverage premium |
|---|---|---|
| Clean driving record | $1,754 | 0% |
| Speeding ticket conviction | $1,985 | 13% |
| At-fault accident | $2,583 | 47% |
| DUI conviction | $3,306 | 88% |
*The table above compares driving records with different incidents and highlights how much, on average, these incidents tend to raise rates. *The rates reflected are for full coverage policies.
Car insurance rates in New Jersey by credit tier
Another factor that impacts New Jersey car insurance rates is credit history, with residents of the state with poor credit history paying 83 percent more for their premiums on average. Many car insurance companies see drivers with poor credit as more likely to file claims and increase rates accordingly. Improving your credit score by paying bills on time and keeping your credit utilization ratio low may bring down your auto insurance rates over time.
| Credit tier | Avg. annual full coverage premium in New Jersey | Percentage change from New Jersey avg. annual full coverage premium |
|---|---|---|
| Poor | $3,211 | 83% |
| Average | $1,932 | 10% |
| Good | $1,754 | 0% |
| Excellent | $1,376 | -22% |
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:
| Vehicle | Average annual full coverage premium in New Jersey |
|---|---|
| BMW 330i | $2,098 |
| Ford F-150 | $1,621 |
| Honda Odyssey | $1,581 |
| Toyota Camry | $1,754 |
| Toyota Prius | $1,872 |
*Rates reflect full coverage policies.
Estimate your car insurance cost in New Jersey
Navigating the landscape of car insurance rates in New Jersey can feel complex, given the multitude of personal factors at play. To demystify this process and provide a tailored estimate, Bankrate offers a specialized calculator widget. By inputting key personal details, users can receive an approximation of their monthly car insurance premium. This tool takes into account individual circumstances, distilling them into an accessible figure to aid in financial planning.
It's important to note that while the estimate offers a snapshot based on current average car insurance rates in New Jersey, actual premiums may vary. This calculator helps establish a starting point for comparison, empowering you to make an informed decision when selecting an insurance policy.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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. Don’t 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 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.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 2021 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.
Credit-based insurance scores: 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. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base).
Age: Rates were calculated by evaluating our base profile with the ages 16-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Teens: Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy unless otherwise noted.
Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.
