Cheapest car insurance in New Jersey in 2023

The cheapest car insurance companies in New Jersey

Finding the cheapest car insurance in New Jersey may require comparing several insurance providers. Not only does this allow you to see quotes based on your personal circumstances, but it allows you to compare coverage options, too. Bankrate utilized Quadrant Information Services to identify the cheapest carriers. Fortunately, cheap rates do not necessarily mean a lack of coverage, since there are plenty of insurance providers offering competitive rates for both full and minimum coverage to drivers in the Garden State.

The cheapest companies for minimum coverage in New Jersey

Often, the cheapest auto insurance comes in the form of minimum coverage. This is because minimum coverage provides the lowest possible limits for a driver to stay legal, and less coverage usually means lower prices. However, you may find yourself with higher out-of-pocket costs if you get into an accident. If minimum coverage is the right fit for you, here are the cheapest companies that we found:

The cheapest companies for full coverage in New Jersey

Full coverage provides more financial protection than minimum coverage because it adds comprehensive and collision. These coverage 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 the cheapest rates, based on average annual premiums.

Events that can impact your cheap rates in New Jersey

During your policy term, there may be life circumstances that alter the rate you were initially able to secure. Common events that can impact how much you pay in premiums might include:

• Adding a teen driver: Adding a teen driver to the parent’s insurance policy will generally result in significantly higher rates. This is simply due to the lack of driving experience and higher accident risk associated with teen drivers. However, adding them to a policy could make you eligible for a greater number of discounts and coverage options.
• Receiving a speeding ticket: A speeding ticket can cause an increase in premiums, although the impact could be more or less severe depending on the scope of the moving violation. Typically, a speeding ticket results in a surcharge being added to your policy for three to five years.
• Getting in an at-fault accident: Not only is an at-fault accident stressful, it could cause your auto insurance rates to increase. Accidents may negatively impact your premiums for up to five years with a surcharge added to your policy, depending on the carrier. Some insurers offer a first-accident forgiveness program to counteract the premium hike for safe drivers so that no surcharge is added, but you must have this endorsement on your policy before getting into an accident in order to reap the benefits.
• Being deemed a high-risk driver: High-risk drivers, such as someone convicted of a DUI, numerous moving violations or a series of at-fault accidents, will often pay higher premiums. Finding coverage as a high-risk driver might be difficult too, which makes shopping around for good rates and coverage options even more of a critical step.

Cheapest cities in New Jersey for minimum coverage

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.

Cheapest cities in New Jersey for full coverage

Full coverage rates can also vary from one ZIP code to another. ZIP codes influence insurance premiums because of cost of living factors, as well as auto repair expenses, theft and vandalism rates and other factors and might increase or decrease your risk assessment, according to the Insurance Information Institute (Triple-I).

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.

Here is how to find (and keep) cheap car insurance in New Jersey

Not only is finding cheap car insurance in New Jersey important for your budget and coverage needs, but so is keeping your cheap rates intact. The good news is that there are numerous actions you can take to both find and keep cheap insurance rates, including:

• Shopping multiple carriers and comparing coverage options. To find the cheapest rates and best coverage, shop around to see which insurance provider meets your criteria. Rates can vary by hundreds of dollars between carriers, so comparing multiple insurers should help you identify coverage with a better price.
• Maintain clean driving records and safe driving habits. Staying safe on the road, including adopting safe driving habits like obeying the posted speed limit and soft braking, will help you maintain a clean driving record and keep lower rates by avoiding moving violations. Safe driving habits may result in discounts and lower rates if you opt for a usage-based telematics program.

Additionally, as you experience life events, such as moving or getting married, be sure to review your policy to see if you qualify for additional discounts or lower premiums based on your new life circumstances.

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.

Bankrate Scores 

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company's discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody's and factored a company's corporate sustainability efforts.