Between 2001 and 2018, there were 278,413 car accidents across New Jersey. The rate of accidents has been steadily increasing since 2004. Car insurance protects you if you ever get in a similar accident.
Car insurance in New Jersey isn’t the cheapest in the country, but it’s possible to find affordable coverage if you’re on a budget. The average annual cost of car insurance for drivers in New Jersey is $847 a year for minimum coverage and $1,757 annually for full coverage. Your car insurance will vary depending on your ZIP code, age, gender, marital status, credit history and driving record. Looking at the average cheapest car insurance companies in New Jersey to help you get started.
The cheapest car insurance in New Jersey
With so many coverage options and insurance companies to choose from, finding the right car insurance is not an easy task. Furthermore, finding affordable car insurance can be difficult. That’s why we did some research to find the cheapest companies in the Garden State based on average premiums.
|Insurance company||Average minimum annual coverage||Average full annual aoverage|
As one of the oldest insurance companies in the United States, Amica is known for excellent customer service and cheaper auto insurance premiums across New Jersey. In addition to car insurance coverage to meet New Jersey’s state requirements, Amica offers additional coverage options to protect yourself, your vehicle and other passengers.
Amica offers the common coverage options such as medical payments, personal injury protection and rental reimbursement, as well as the less common options such as free lock replacement, free air bag repair, $1,000 for bail bonds and no depreciation for a complete loss of a new vehicle. You can also view Amica’s list of discounts to see if there is one that you can apply to help reduce your insurance premium, such as multi-policy, paid in full, loyalty, claim-free and homeownership discounts.
If price is your main concern when shopping for car insurance, Geico is a great option to consider. However, with Geico’s affordable rates, you will get what you pay for. The company offers basic coverage, and the customer service is often poorly rated. However, in addition to low rates, Geico customers can save money by taking advantage of discounts. Drivers can get a lower rate if they have vehicle safety equipment, like daytime running lights, an anti-theft system and airbags. Discounts are available for good drivers, policy bundling, taking a defensive driving course, military members and federal employees.
If you are only looking for minimum coverage, New Jersey Manufacturers Insurance Company may be your best option. Based on average New Jersey rates, NJM offers the cheapest minimum coverage per year for drivers in the Garden State. Your final auto insurance quote will ultimately depend on your coverage choice and your personal details, but most drivers will find it an affordable option.
In addition to the common car insurance options, NJM offers great customer service and a wide variety of discounts and add-ons. Some of the popular add-ons include roadside assistance, no-fault insurance, personal injury protection and collision coverage. You will also be able to find a discount that applies to you to lower your premium. Discounts offered include multi-policy, homeowners, new car and driver training.
Plymouth Rock Insurance is known for great policies, affordable rates and personalized service. If you’re looking for an auto insurance company with a wide range of coverage options, Plymouth Rock may be a great New Jersey provider for you. The benefits are extensive and include door-to-door valet claim service and on-site mobile claim service.
The Get Home Safe program is another great perk, which reimburses you for the cost of a taxi or Uber home if you have consumed several drinks at dinner and are not sober enough to drive home. Plymouth Rock also understands the importance of saving, offering a wide range of discounts to help with your budget. Some of the discounts include bundling, annual payment, anti-theft, new driver, driver training and eDocuments discounts.
If you’re looking for multiple types of insurance and some optional add-ons, Selective Insurance may be a right fit for you. Selective Insurance makes receiving an auto insurance quote a quick and easy process through its website. If you’re looking for convenience and digital ease, Selective Insurance also offers an online bill pay system and an online claims management system where policyholders can submit payments and any information regarding their claims.
Selective Insurance takes into consideration each driver’s needs and creates a more personalized plan. Drivers can then select from additional coverage options for maximum protection such as accident forgiveness and new car replacement. In addition to more-than-average affordable prices, Selective Insurance provides discounts for drivers to save money. These discounts are especially helpful towards teen drivers, safe drivers, and those who have never missed a payment.
Affordable coverage for New Jersey drivers
Drivers in New Jersey are required to carry the following minimum amount of car insurance:
- $15,000 bodily injury liability coverage per person
- $30,000 bodily injury liability coverage per accident
- $5,000 personal property liability coverage per accident
- $15,000 uninsured/underinsured motorist coverage per accident
Additionally, New Jersey is considered a no-fault state, which means your insurance company pays for your losses after an accident regardless of who caused the crash. Drivers in no-fault states are required to carry personal injury protection (PIP) coverage, in addition to the minimum liability requirements.
If you purchase the minimum amount of coverage, you’ll pay the lowest rate. However, that’s not an effective way to save money. The minimum amount of insurance might not be enough to cover the full cost of 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’re underinsured.
How to get cheap car insurance in New Jersey
There are many ways to get cheap car insurance in New Jersey. Here are some suggestions:
- Increase your deductible: Choosing a higher deductible means you’ll pay a lower monthly rate.
- Take a defensive driving course: Most 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’ll save money.
- Bundle your policies: You’ll save money on your insurance if you bundle multiple insurance policies with the same provider.
- Raise your credit score: Drivers with a higher credit score pay less money for their car insurance.
- Shop around: If you want a lower premium, get a quote from a different provider to determine which company can offer the best rate.
Frequently asked questions
What is the best car insurance in New Jersey?
It’s hard to determine which car insurance company in New Jersey is the best one. 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. Before you choose a car insurance provider, it’s important to shop around to find one that has everything you are looking for.
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. In addition to bodily injury, property damage, and uninsured/underinsured motorist coverage, New Jersey drivers also have to carry PIP insurance.
Is car insurance in New Jersey expensive?
Compared to many other states, car insurance in New Jersey is pricey. New Jersey has a high rate of accidents and a relatively high number of uninsured drivers, which translates into more expensive rates. New Jersey drivers also have to purchase PIP insurance, which is an added cost.
Bankrate utilizes Quadrant Information Services to analyze 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 cleaning 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. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.