Car insurance for high-risk drivers in New Jersey

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According to the latest report from the New Jersey Department of Transportation, drivers in the state reported 276,861 accidents in one year. Distracted driving was the main cause of a crash. You could be charged with reckless driving if you cause an accident because you are texting or not paying attention behind the wheel. Drivers with one or more accidents, traffic tickets or a DUI are considered high-risk drivers. Unless you buy a high-risk auto insurance New Jersey policy, be prepared to pay more than average for car insurance.

High-risk car insurance New Jersey rates

Buying auto insurance in New Jersey takes a few minutes of your time. Getting several quotes to compare is generally the first step so you can get an idea of what your rates may be. In our analysis of New Jersey high-risk auto insurance companies, premiums increased according to the type of driving infraction.

Rates after a speeding ticket

Speeding in New Jersey will add at least three points or more to your driving record. Based on the rates returned from the top car insurance carriers in the state, expect premiums to increase at least 10% after a speeding ticket. The increase will affect your rates for at least one year. The points may drop off after a year if you are not cited for any other moving violations.

Car insurance company New Jersey average annual premium for full coverage before a speeding ticket New Jersey average annual premium for full coverage after a speeding ticket % difference
Amica $1,504 $1,712 13%
Geico $1,316 $1,681 27%
NJM Insurance Group $1,271 $1,430 12%

NJM Insurance Group’s premiums are the most affordable for safe drivers and those with a speeding ticket on their record.

Rates after an accident

Some insurers penalize drivers responsible for an accident more than others. It is difficult to tell if your rates will go up in New Jersey until you have an accident. While rates from NJM and State Farm go up, policyholders with Palisades Insurance may see a decrease in the cost of car insurance after an accident.

Car insurance company New Jersey average annual premium for full coverage before an accident New Jersey average annual premium for full coverage after an accident % difference
NJM $1,271 $1,287 1%
Palisades $1,820 $1,262 30%
State Farm $1,244 $1,834 47%

It is unclear why car insurance rates decreased with Palisades Insurance after an accident other than because their coverage may be geared towards high-risk drivers instead of safe drivers.

Rates after a DUI

The findings so far of how premiums increase for New Jersey drivers after high-risk driving events show that car insurance does not necessarily increase in cost much after an accident or speeding ticket. A DUI is a different matter. Driving under the influence in New Jersey and being convicted for it will cost you significantly more on your car insurance.

Car insurance company New Jersey average annual premium for full coverage before a DUI New Jersey average annual premium for full coverage after a DUI % difference
Progressive $1,469 $2,067 40%
State Farm $1,244 $2,481 99%
Travelers $1,320 $2,906 120%

Your premiums will likely remain high for years — points from a DUI conviction in New Jersey typically remain on your record for 10 years or longer.

Rate for teen drivers

Distracted drivers cause a large number of New Jersey accidents. Most of the distractions are due to texting and smartphone usage. Teen drivers are more likely to be distracted by phone texts while driving, raising the odds of causing a crash. Therefore, insuring a young, inexperienced driver who may be more likely to be distracted by texting and phone usage is usually more expensive.

Car insurance company Average annual premium for full coverage
NJM $1,362
State Farm $1,991
Tower Group $1,625

*16-year-old on their parent’s policy

Who is a high-risk driver?

A high-risk driver is someone that a car insurance company may designate as more likely to cause a costly car accident. Some behaviors that may flag you as high risk include speeding, drinking and driving or being distracted while behind the wheel.

Bankrate’s high-risk driver profile also includes other types of drivers who face higher car insurance premiums than normal. It adds teen drivers and policyholders who had a lapse in coverage in the past, potentially driving without vehicle insurance.

How to lower your rate if you are a high-risk driver

As mentioned, insurance rates may remain high as long as the points still show on your driving record. In the case of a DUI, expect to pay higher rates for at least 10 years. To offset some of the costs associated with high-risk driving:

  • Go to traffic school after a ticket to wipe out points before they are added to your record.
  • Shop around and switch car insurance providers.
  • Sign up with a carrier that offers accident forgiveness, such as State Farm, Progressive, USAA, Nationwide or Geico.
  • Ask for discounts based on your profile, such as student, military or newer car.
  • Change your level of coverage to a cheaper one.

Compare car insurance quotes each year before your coverage ends to ensure you are still getting the best price.

Frequently asked questions

How much car insurance do I need if I am a high-risk driver?

All New Jersey drivers must have liability insurance of at least $15,000 per person and $30,000 per accident in bodily injury, $5,000 in property damage and $5,000 in personal injury (PIP). However, you may want to add more coverage if you are more likely to get in an accident or you will have to pay anything above the insurance limits out of pocket.

How long does a DUI stay on my driving record in New Jersey?

A DUI conviction may remain on your record for 10 years or more in New Jersey. If your car insurance rates increase sharply, you may want to shop around to find a cheaper carrier for coverage over the next few years.

Methodology

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. 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.

High-risk drivers
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.