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Cheapest car insurance in New Jersey for 2023
According to Bankrate’s analysis, NJM may offer lower-than-average car insurance rates for many New Jersey drivers.
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The cheapest car insurance companies in New Jersey
Navigating the car insurance landscape can be a challenge, but equipped with the right knowledge, securing cheap car insurance in New Jersey without skimping on coverage is possible. Through our analysis of up-to-date average company rates from Quadrant Information Services, Bankrate has highlighted the top budget-friendly carriers in the state. Thankfully, in New Jersey, cost-effective insurance doesn’t have to equate to cutting corners. Many insurers offer comprehensive coverage at competitive rates to cater to the diverse needs of Garden State drivers.
Key takeaways
- Cheapest company for minimum coverage: NJM
- Cheapest company for full coverage: Palisades
- Cheapest company for drivers with prior incidents: NJM
- Cheapest company for young drivers: NJM and Geico
Compare auto insurance rates
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.
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.
Cheapest car insurance in New Jersey for minimum coverage
Minimum coverage, meaning the minimum level of coverage required to be in compliance with state law, is typically the cheapest auto insurance in New Jersey available. However, you may find yourself with higher out-of-pocket costs if you get into an accident if you’re paying for liability-only auto insurance. If minimum coverage is the right fit for you, here are the cheapest insurance companies we found:
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.
Minimum coverage requirements for New Jersey drivers
New Jersey is unique in that it has two minimum coverage options for its drivers. Drivers are required to purchase at least the minimum amount of state-mandated coverage to legally drive, but can buy either a basic policy or a standard policy. A basic policy comes with the following minimum coverage limits:
- Up to $10,000 in optional bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection (PIP)
If you buy a basic policy, you will not have the option to purchase comprehensive coverage or collision coverage. You also won’t be able to buy uninsured motorist or underinsured motorist coverage. Additionally, the property damage liability coverage per accident is capped at $5,000, which means you could be paying large out-of-pocket costs if you damage another person’s property in an at-fault accident. Basic policies may be the cheapest auto insurance option available, but you get very little financial protection.
You can opt for more coverage, though, and still only buy a “minimum coverage” policy by purchasing a standard policy, which has the following limits:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- $15,000 personal injury protection (PIP)
- $25,000 uninsured motorist bodily injury per person
- $50,000 uninsured motorist bodily injury per accident
- $25,000 underinsured motorist bodily injury per person
- $50,000 underinsured motorist bodily injury per accident
You should be aware that the standard policy limits increased on January 1, 2023 and will increase again on January 1, 2026. Bankrate’s rates for minimum coverage in New Jersey reflect the standard policy limits. Purchasing minimum coverage may seem like the best option for smaller budgets, but if you are involved in an at-fault accident without adequate coverage, it could lead to financial distress. Additionally, most lenders require you to purchase full coverage if you lease or finance a vehicle to ensure that your vehicle has coverage for damage.
Cheapest car insurance in New Jersey for full coverage
Full coverage provides more financial protection than minimum coverage because most full coverage policies include comprehensive and collision insurance. These insurance types provide coverage for damage to your vehicle. If you prefer a full coverage policy, here are five car insurance companies in New Jersey offering some of the cheapest rates based on average annual premiums.
| Carrier | Monthly full coverage premium | Annual full coverage premium | Savings vs state avg. for full coverage |
|---|---|---|---|
|
Palisades
|
$78
|
$931
|
- $823 |
|
Selective
|
$94
|
$1,131
|
- $623 |
|
$100
|
$1,198
|
- $556 |
|
|
$102
|
$1,229
|
- $525 |
|
|
$112
|
$1,348
|
- $406 |
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.
Cheapest car insurance in New Jersey for drivers with prior incidents
Getting a ticket or causing an accident typically raises your insurance rates, at least for a few years. However, the surcharge amount will depend on the severity of the incident and your insurance carrier. Below we outline the cheapest insurers across a few common driver scenarios.
- Cheapest car insurance for drivers with a ticket: NJM
- Cheapest car insurance for drivers with an at-fault accident: NJM
- Cheapest car insurance for high-risk drivers: NJM
Cheapest insurance companies for drivers in New Jersey with a speeding ticket: NJM
Insurance companies see speeding as an indicator of risky driving behavior. A speeding ticket will typically impact your insurance rates for three to five years, but you may be able to save money with the following carriers.
| Company | Avg annual min coverage premium | Avg annual full coverage premium |
|---|---|---|
| NJM | $389 | $1,353 |
| Selective | $455 | $1,131 |
| Palisades | $494 | $1,348 |
| Geico | $515 | $1,986 |
| Esurance | $526 | $1,086 |
Cheapest car insurance for drivers in New Jersey with an at-fault accident: NJM
Having an at-fault accident on your record will likely increase your car insurance premiums as these drivers are seen as more likely to cause future accidents. The following carriers offer some of the lowest average rates for drivers with at-fault accidents on their record.
| Company | Avg annual min coverage premium | Avg annual full coverage premium |
|---|---|---|
| NJM | $357 | $1,229 |
| Amica | $449 | $1,642 |
| Palisades | $487 | $992 |
| Selective | $492 | $1,217 |
| Geico | $643 | $1,800 |
Cheapest rates in New Jersey for high-risk drivers: NJM
Drivers with multiple speeding tickets, accidents or a DUI on their record are typically seen as high-risk. These drivers see high average rates and may have difficulty securing coverage. The following companies offer some of the lowest average rates for drivers with DUIs, but you should note that not all companies will extend coverage to drivers with DUIs, so you may need to request a personalized quote to inquire about eligibility.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| NJM | $389 | $1,353 |
| Selective | $674 | $1,762 |
| Palisades | $742 | $1,534 |
| Geico | $827 | $2,360 |
| Esurance | $987 | $2,236 |
Bankrate’s take: Not all insurance companies will insure a driver with a DUI. Insurance eligibility with specific carriers may depend on the circumstances of your DUI as well as your other personal rating factors. Being honest about your driving record during the quoting process may help you quickly identify whether a carrier will insure you based on your driving history.
Cheapest car insurance for young drivers in New Jersey
In most states, including New Jersey, age plays a role in determining your auto insurance premium. Younger drivers are typically seen as more risky to insure based on their high accident rates. Whether you're insuring a teen driver or seeking coverage yourself, shopping around is likely the best way to find affordable rates for your auto coverage needs.
- Cheapest car insurance for insuring a teen driver: NJM
- Cheapest car insurance for teens with a ticket: Geico
- Cheapest car insurance for teens with an at-fault accident: NJM
- Cheapest car insurance for young drivers with a DUI: NJM
Cheapest New Jersey car insurance for insuring a teen driver: NJM
Teens see some of the highest average insurance rates due to their lack of experience behind the wheel. Teens under the age of 18 cannot purchase their own insurance policy, so they must be added to a guardian's policy until they are legal adults. Shopping around for carriers that offer low average rates and teen discounts may help you and your teen find affordable insurance. Below are five companies that offer the lowest average rates for teen drivers based on our rate analysis.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| NJM | $721 | $2,351 |
| Amica | $785 | $3,386 |
| Palisades | $1,034 | $2,541 |
| Geico | $1,037 | $2,978 |
| Allstate | $1,050 | $3,546 |
Bankrate’s take: To calculate average premiums for teens, Bankrate's insurance editorial team assessed rates for a 16-year-old added to their married parents' insurance policy. The premiums for teens reflect the total cost to insure a teen and their parents.
Cheapest car insurance for teens with a ticket: Geico
Car insurance rates can be significantly higher for teens, especially when the teen driver has a driving incident like a speeding ticket on their record. However, we found that certain carriers offer more affordable options for teens with imperfect driving records. It's worth noting that these incident rates pertain to an 18-year-old driver holding their own policy. Among these cheap auto insurers, Geico stands out as one of the most economical choices.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| Geico | $971 | $2,941 |
| NJM | $1,075 | $3,362 |
| Amica | $1,204 | $5,558 |
| Selective | $1,574 | $3,802 |
| Progressive | $1,774 | $4,041 |
Cheapest car insurance for teens with an at-fault accident: NJM
New Jersey teen drivers who have been in at-fault accidents may see a surcharge to their insurance premiums for three to five years afterward depending on the carrier.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| NJM | $952 | $2,968 |
| Amica | $1,083 | $4,934 |
| Geico | $1,125 | $3,429 |
| Selective | $1,772 | $4,301 |
| Progressive | $1,994 | $4,412 |
Bankrate’s take: Personal injury protection, or PIP coverage, is legally required for all New Jersey drivers with standard minimum coverage policies. In the Garden State, the minimum PIP coverage for these policies is $15,000 per person. Regardless of fault, PIP is designed to cover medical expenses, lost wages and household responsibilities for you and your passengers following a covered accident.
Cheapest car insurance for young drivers with a DUI: NJM
Young drivers with DUIs see some of the highest average insurance premiums of any age or incident profile. To assess average rates for young drivers with DUIs, we analyzed premiums for a 21-year-old driver with a single DUI conviction.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| NJM | $742 | $2,379 |
| Geico | $1,072 | $3,378 |
| Selective | $1,184 | $3,293 |
| Progressive | $1,357 | $1,913 |
| Palisades | $1,458 | $3,685 |
Cheapest car insurance rates by city in New Jersey
The table below illustrates how minimum coverage premium rates could be impacted by the ZIP code you live in. Although rate variations may be slight, it’s important to update your address even when moving within the same city, county or state, as rates may be different in your new ZIP code. These variations are due to changes in crime rates, local weather patterns, repair costs and more.
| City | City average annual minimum coverage premium | Cheapest car insurance company | Company average annual minimum coverage premium |
|---|---|---|---|
| Franklin | $687 | NJM | $301 |
| Toms River | $770 | NJM | $339 |
| Brick | $772 | NJM | $339 |
| Cherry Hill | $772 | NJM | $340 |
| Trenton | $793 | NJM | $334 |
| City | City average annual minimum coverage premium | Cheapest car insurance company | Company average annual minimum coverage premium |
|---|---|---|---|
| Branchville | $666 | NJM | $301 |
| Pequannock | $679 | NJM | $323 |
| Newfoundland | $682 | NJM | $301 |
| Montague | $683 | NJM | $301 |
| Mountainside | $685 | NJM | $359 |
Car insurance discounts in New Jersey
Although specific auto insurance discounts will vary based on the carrier you choose, there are some options that are commonly found with many companies. Here are some of the best car insurance discounts that drivers may qualify for:
- Safe driver discounts: Drivers who demonstrate safe driving through telematics programs, clean driving records or enrolling in safe driver courses may be eligible for this type of discount.
- Bundling discounts: These discounts are typically some of the most substantial. Savings may be available for bundling auto coverage with home, renters, motorcycle or even boat insurance.
- Student discounts: Depending on the carrier, high school and college students may qualify for a discount for getting good grades or leaving a car at home while away at school.
- Billing discounts: Many carriers offer discounts to drivers who choose paperless billing or enroll in auto-pay.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for all 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.
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.
Teens: Rates were determined by adding a 16-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.
Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.