In 2019, there were 276,861 car accidents in New Jersey. 59,850 of these crashes caused injuries and 524 were fatal. New Jersey is a small state but has over 6.3 million licensed drivers. If you live in New Jersey, having car insurance is more than a state-mandated requirement. It is an important part of your financial safety net.
The average cost of car insurance in New Jersey is $847 annually for minimum coverage and $1,757 annually for full coverage, which is higher than the national average annual rates of $565 for minimum coverage and $1,674 for full coverage. Because it is a required expense, you may be looking for the cheapest car insurance in New Jersey. Bankrate’s insurance editorial team has researched the major insurance providers in the Garden State to help you find a policy that fits your budget.
The cheapest car insurance in New Jersey
In our search for cheap car insurance in New Jersey, we first obtained current premium information from Quadrant Information Services for the largest New Jersey insurance companies by market share. We then analyzed the premiums, taking coverage offerings and available discounts into consideration.
If you are searching for the cheapest auto insurance in New Jersey, you may want to consider these companies:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
If you are only looking for minimum coverage, New Jersey Manufacturers Insurance Company, also known as NJM, could be a good option. Based on our research, NJM offers the cheapest minimum coverage per year for drivers in the Garden State, although your premium will vary based on your individual rating factors.
Although its average rates are already lower than the state average, NJM offers several discounts that could lower your premium even more. You might save by taking a defensive driving course, signing up for electronic payments, being a mature driver or bundling your auto insurance with your home policy.
Although not the cheapest provider on our list, Geico is known for its low average premium and long list of discounts. If you like handling your policy online or via a mobile app, Geico could be a good choice for you. The company’s mobile app allows you to file claims, pay bills and request roadside assistance.
Geico received an above-industry-average ranking in the 2020 J.D. Power U.S. Auto Insurance Study in the Mid-Atlantic region, which may indicate that most New Jersey customers are satisfied with the company’s customer service.
If you are looking for specific optional coverages, you may want to consider Travelers. The company’s average full coverage premium is well below New Jersey’s average and there are several optional coverages to choose from. You might choose to add accident forgiveness, new car replacement coverage or ridesharing coverage to bolster your protection.
Travelers does not disappoint when it comes to savings opportunities, either. Discounts include safe driver, continuous insurance, hybrid or electric car and homeownership. However, Travelers did score just below industry average in the Mid-Atlantic region in the 2020 J.D. Power U.S. Auto Insurance Study.
State Farm, the largest private auto insurer in the United States, offers the lowest average full coverage premium in New Jersey of the companies on our list. The company offers plenty of coverage options, like emergency road service, ridesharing coverage and car rental coverage.
State Farm also offers several discounts, including Drive Safe & Save and Steer Clear, its safe driving programs geared toward adults and teens, respectively. The company also boasts the highest official J.D. Power score in the Mid-Atlantic region.
Progressive is a well-known insurance company, offering products like auto, home and business insurance. The company’s unique Name Your Price tool allows you to enter the amount you want to pay each month for insurance and returns coverage options to fit your budget.
Progressive offers several optional coverages, like lease payoff and a deductible savings bank. You might also save with discounts like continuous insurance, online quote and paperless policy management. However, Progressive did receive a below-industry-average score from J.D. Power in the Mid-Atlantic region.
Minimum coverage requirements for New Jersey drivers
Drivers in New Jersey have two options when it comes to purchasing the state’s required minimum coverage: the basic policy and the standard policy.
The basic policy includes:
- Up to $10,000 in optional bodily injury coverage per accident
- $5,000 property damage per accident
- $15,000 personal injury protection (PIP)
Neither uninsured or underinsured motorist coverage is available on the basic policy. Additionally, some insurers may not offer comprehensive or collision coverage if you choose a basic policy.
A standard policy includes:
- $15,000 bodily injury liability coverage per person
- $30,000 bodily injury liability coverage per accident
- $5,000 property damage liability coverage per accident
- $15,000 personal injury protection (PIP)
On a standard policy, uninsured motorist coverage, underinsured motorist coverage, comprehensive coverage and collision coverage are all available as options. The minimum coverage premiums discussed in this article are for a standard policy, including uninsured and underinsured motorist coverage.
New Jersey is considered a no-fault state, which means your insurance company pays for your medical expenses and any medical expenses for your passengers after an accident, regardless of who caused the crash. Your right to sue the at-fault party for your injuries depends on the type of policy you choose.
If you purchase the minimum amount of coverage, you may pay the lowest rate. However, minimum coverage may not be enough to cover the cost of injuries and property damage if you cause an accident. You could end up paying money out of pocket to make up the difference between your coverage limit and the amount you owe if you are underinsured.
Additionally, there is no coverage for damage to your own vehicle included in minimum coverage. If you need or want coverage for your own car, you will need to purchase full coverage. If you have a loan or lease, your lender will likely require you to have full coverage insurance.
How to get cheap car insurance in New Jersey
If you are looking for cheap car insurance in New Jersey, there are several ways you might be able to lower your premium. Keep in mind that your price is determined by your individual rating factors, like the type of car you drive, your age and your driving history.
- Increase your deductible: If you have full coverage, choosing a higher comprehensive or collision deductible generally means you will pay a lower rate. However, it also means you will have to pay more if you file a claim for damage to your own vehicle.
- Take a defensive driving course: Many insurance companies give drivers a discount if they complete an approved defensive driving course.
- Pay your policy in advance: If you can afford to pay your annual premium in full, rather than monthly, you might save money.
- Bundle your policies: You could see significant savings if you bundle multiple insurance policies with the same provider.
- Raise your credit score: Drivers with a higher credit score tend to pay less money for their car insurance.
- Shop around: If you want a lower premium, getting quotes from different providers might help you to determine which company can offer the lowest rate for the coverage you need.
Although not always the most practical method, reconsidering the car you drive could also help you save on your insurance. Some vehicles are generally cheaper to insure than others. Maintaining a clean driving record, meaning that you have avoided tickets and accidents, can also help you avoid premium increases.
Frequently asked questions
What is the best car insurance in New Jersey?
The best insurance company in New Jersey is the one that best fits your needs. There are many providers, and they all have strengths and weaknesses. Some companies are the best for customer service, and others are the best for discounts and coverage options. Additionally, each driver has a unique set of wants and needs for their car insurance search. Before you choose a car insurance provider, it could be helpful to shop around to find one that best meets your needs.
What is the average cost of car insurance in the U.S.?
The average cost of car insurance is $1,674 per year for full coverage and $565 annually for minimum coverage. New Jersey drivers, in comparison, pay an average annual cost of car insurance of $847 for minimum coverage and $1,757 for full coverage.
Is car insurance required in New Jersey?
Yes, car insurance is legally required in New Jersey. Every driver with a registered vehicle must carry the minimum amount of car insurance in the state. There are two levels of minimum coverage in New Jersey, a basic policy or a standard policy. The coverages offered, the limits of coverage and your right to sue after an accident are all impacted by which policy you choose.
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. For New Jersey, this included its standard policy at minimum limits, plus uninsured/underinsured motorist coverage up to the same minimum amounts. 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.