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 cheapest car insurance companies in New Jersey
Finding affordable car insurance can be difficult. That’s why we did some research to find the cheapest companies in the Garden State.
If price is your main concern when shopping for car insurance, Geico is a great option. However, Geico is a classic example of getting what you pay for. The company offers basic coverage, and the customer service is often poorly rated.
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. There are also discounts for good drivers, policy bundling, taking a defensive driving course, military members and federal employees.
Not only does Progressive offer affordable car insurance, but it also has great add-on coverages and amazing online tools. Unlike Geico, Progressive offers the best of both worlds—customizable coverage, good customer service and low rates.
Progressive offers tons of great discounts, including savings for having continuous coverage, being a teen driver, being a good student, being a homeowner, getting a quote online and paying your policy in full. In addition, safe drivers can save an average of $145 on their premium by signing up for the Snapshot program. The Name Your Price Tool is another great way to find coverage that fits your budget.
Travelers isn’t the most popular insurance company, but it’s a good option for New Jersey drivers who are looking for cheap coverage.
When it comes to discounts, Travelers offers some of the best savings, including a few unique options that most companies don’t have, like a hybrid/electric vehicle discount. Customers can also get a discount for being a good student, having continuous coverage, being a loyal customer and paying their policy in full. Like Progressive, Travelers also has a safe driver program, called IntelliDrive®, where customers can save up to 20 percent on their premium for practicing safe on-road skills.
Affordable coverage for New Jersey drivers
Drivers in New Jersey are required to carry a minimum amount of car insurance, which includes:
- $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.
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.