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Best cheap car insurance in Jersey City

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The average cost of insurance in Jersey City for full coverage is $2,304 annually, or $192 monthly. A minimum coverage policy averages $1,119 per year. Both of these rates are high above the national average, which makes finding the cheapest car insurance in Jersey City a priority for many residents. The cheapest car insurance company in Jersey City is NJM, according to Bankrate’s 2021 study of quoted annual premiums.

Although the cheapest rate for car insurance may be desirable, many insurance agents recommend considering more robust coverage for better financial protection if you have an accident. Bankrate looked beyond the rates to compile our list of the best cheap car insurance in Jersey City.

Best cheap car insurance companies in Jersey City

NJM, State Farm, Amica and Allstate not only offer the cheapest car insurance rates in Jersey City, but each is highly-rated in other areas. The following criteria were considered to find the best car insurance companies in Jersey City: financial strength ratings from AM Best, customer service and claims satisfaction ratings from J.D. Power, market share, coverage options and available discounts. We examined all of this criteria to determine the Bankrate Score out of  a possible five points.

Insurance company Bankrate Score J.D. Power customer satisfaction score
(Mid-Atlantic region)
Average annual premium for full coverage Average annual premium for minimum coverage
NJM 4.6 867/1,000 $1,402 $420
State Farm 4.7 851/1,000 $1,628 $1,010
Amica 4.4 N/A $1,994 $545
Allstate 4.0 830/1,000 $2,278 $1,254

NJM Insurance

NJM, also known as New Jersey Manufacturers Insurance Company, offers coverage primarily in New Jersey and Pennsylvania. It is the second largest insurer by market share in New Jersey, covering 13.2% of the state’s drivers and the cheapest car insurance company on our list, according to its average rates.

As part of the Mid-Atlantic region on the J.D. Power 2021 Auto Insurance Study, NJM received an above-average rating totaling 867 points out of a possible 1,000. However, where NJM may fall short is for those who prefer to manage their policy through an app since NJM does not currently provide a mobile app option.

Learn more: NJM Insurance review 

State Farm

State Farm isn’t just a Good Neighbor. It also offers reasonable average car insurance rates for Jersey City drivers and a high score in the Mid-Atlantic region of 851 in the J.D. Power 2021 Auto Insurance Study. State Farm offers multiple methods for servicing your policy, including over 19,000 local agents, an online portal, a 24/7 customer service line and a highly-rated mobile app. While State Farm offers a wide range of coverage options, some might be disappointed with the more limited options of potential discounts available compared to what  other providers offer.

Learn more: State Farm Insurance review 

Amica

Amica has featured coverages not found elsewhere for auto insurance, including free airbag repair after an accident, free lock replacement for lost keys and $1,000 for bail bonds for eligible policyholders. As one of the oldest car insurance companies in the country, Amica has long carried superior financial strength ratings from agencies like AM Best and positive customer reviews in studies conducted by organizations like J.D. Power. Although its average full coverage premium is the third-highest on our list, it is still lower than the Jersey City average and the company has a lot to offer its policyholders.

Learn more: Amica Insurance review 

Allstate

As the fourth largest insurer in the Garden state, Allstate makes our list for the best cheap car insurance in Jersey City with lots of choices for coverage options and discounts. Allstate has excellent financial strength ratings from AM Best, which indicates a strong history of being able to pay its claims. However, Allstate’s complaint index with the NAIC is a bit above average in New Jersey at 1.48 compared to the national average of 1.00.

Learn more: Allstate Insurance review 

How to get and keep the cheapest car insurance in Jersey City

Knowing how to find cheap car insurance companies is one task, but keeping affordable rates is another. Keep this in mind as you are looking for the cheapest rates.

  • Compare multiple insurance providers. Rates can vary substantially from one provider to another, so it pays to compare quotes from different ones. This allows you to see exactly how much less, or more, a company’s rates are for you. Be sure to compare the same coverage options though, so you know you are getting the best price for what you need.
  • Maintain a clean driving record. Not only does maintaining a clean driving record keep you and others safer on the road, it could save you money too. Most insurance providers offer safe driving discounts and claims-free savings, which might help you qualify for lower premiums.

Frequently asked questions

What is the best car insurance company in Jersey City?

The best car insurance companies are the ones that fit your exact coverage needs. This could also include what discounts are most important to you, the financial strength of the company and the claims experience. Consider shopping around and comparing quotes and experiences from multiple companies to find the best car insurance for you.

How can I lower my car insurance rates in Jersey City?

There are several methods for lowering rates, including shopping around. You can also compare discounts from one provider to another and review the deductibles currently in place. If you are willing to raise your deductible, it could mean lower premiums. Keep in mind, though, that this is only a good option if you are comfortable with paying more out-of-pocket in the event you file a claim.

How much car insurance do I need in Jersey City?

How much car insurance to purchase is different for everyone. Most financial experts recommend drivers in New Jersey carry more than the minimum amount of auto insurance mandated by the state. Choosing higher liability limits and full coverage options, such as comprehensive and collision, could offer you a greater amount of financial protection if you have an accident. If you’re not sure what amount of auto insurance is right for you, speak with your insurance agent.

Methodology

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 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 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.

Rates are determined based on 2021 Quadrant Information Services data.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Written by
Sara Coleman
Former Insurance Contributor
Sara Coleman is a former insurance contributor at Bankrate. She has a couple of years of experience in writing for insurance domains such as The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.
Edited by
Insurance Editor