In 2019, the most recent year with available data, there were over 276,000 car accidents in New Jersey, causing nearly 60,000 injuries and 524 deaths. Having a car insurance policy can help protect your finances from accidents. The average cost of full coverage car insurance in New Jersey is $1,757 per year, according to Bankrate’s 2021 study of average quoted premiums.
When shopping for car insurance, New Jersey drivers may want to consider more than just price. Finding the best car insurance in New Jersey requires understanding your needs, knowing how to analyze a car insurance company and knowing what coverages your state requires you to purchase. Bankrate’s research might make this process easier for you.
Best cheap car insurance companies in New Jersey
Bankrate’s insurance editorial team conducted research on the largest car insurance companies by market share in the Garden State. We first obtained current quoted premium information from Quadrant Information Services. After analyzing the average premium of each company, we reviewed available coverages, discounts, financial strength and customer satisfaction scores.
You might want to get a quote from the following companies if you are searching for the best auto insurance in New Jersey:
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score|
|Geico||4.6||$1,316||871 / 1,000|
|NJM||4.5||$1,271||909 / 1,000|
|State Farm||4.4||$1,244||881 / 1,000|
|Progressive||4.1||$1,469||856 / 1,000|
|Allstate||3.6||$1,686||876 / 1,000|
Geico’s average full coverage rate is well below New Jersey’s average. The company also offers one of the longest lists of discounts in the industry, with savings for federal employees, military members, safe drivers and good students. Geico also takes the top spot in the 2021 J.D. Power U.S. Insurance Digital Experience Study in the service category. The company’s digital app is robust, allowing you to request roadside service, view ID cards, make payments, file claims and request policy changes.
Learn more: Geico Insurance review
NJM, which stands for New Jersey Manufacturers, sells auto insurance coverage in New Jersey, Connecticut, Pennsylvania and Ohio. In addition to having the second-lowest average full coverage premium on our list, the company also earned the top spot in the 2020 J.D. Power U.S. Auto Claims Satisfaction Study, meaning many of NJM’s customers are satisfied with the company’s claims service. The company offers numerous coverage options and discounts to help you tailor your policy to your needs.
Learn more: NJM Insurance review
If budget is your primary concern, State Farm might be a good choice. The company has the lowest full coverage premium on our list, offering full coverage at over $500 cheaper than New Jersey’s average. State Farm sells its coverage through a network of local agents, and there are plenty of agencies in New Jersey. If you like to handle your insurance needs in person, you are likely to find State Farm agents available in your area to help.
Learn more: State Farm Insurance review
If you are looking for highly personalizable coverage, Progressive may be a good place to start. The company offers a variety of optional coverages, including loan or lease payoff, custom parts and equipment, ridesharing coverage and roadside assistance. The company also has several discounts to help you lower your premium, including savings for good students, safe drivers, teen drivers and homeowners.
Learn more: Progressive Insurance review
Although its average full coverage premium is the highest on our list, Allstate’s rate still comes in lower than New Jersey’s average. The company offers several endorsements, like sound system equipment coverage and roadside assistance, to help you build a policy that works for you. And you might be able to lower your premium with the company’s discounts, including the Drivewise telematics program, which might save you money and help you learn safer driving habits.
Learn more: Allstate Insurance review
Average car insurance cost in New Jersey
In New Jersey, drivers pay an average of $1,757 each year for full coverage car insurance and $847 each year for minimum coverage car insurance. This is a bit higher than the national average cost of car insurance, which is $1,674 per year for full coverage and $565 per year for minimum coverage.
New Jersey is a small state, but its roads are relatively congested. The high number of cars on the road could make it more likely to get into an accident, which could increase average insurance costs.
|Average annual premium for minimum coverage in New Jersey||Average annual premium for full coverage in New Jersey|
State minimum insurance requirements in New Jersey
New Jersey, like most states, requires its drivers to purchase at least minimum levels of car insurance coverage to drive legally. However, New Jersey is unique in its approach to insurance, offering drivers two options for purchasing the required minimum coverage: the basic policy and the standard policy.
The basic policy includes:
- Up to $10,000 in optional bodily injury liability per accident
- $5,000 in property damage liability per accident
- $15,000 personal injury protection (PIP)
With a basic policy, you do not have the option to purchase uninsured or underinsured motorist coverage. You may also not be able to add comprehensive or collision coverage to a basic policy, depending on the insurance company you choose.
A standard policy offers higher coverage limits than the basic policy:
- $15,000 in bodily injury liability per person
- $30,000 in bodily injury liability per accident
- $5,000 property damage liability coverage per accident
- $15,000 personal injury protection (PIP)
Uninsured and underinsured motorist coverage, as well as comprehensive and collision coverages, are all available as options on a standard policy. The average New Jersey minimum coverage premium referenced above is for a standard policy, including uninsured and underinsured motorist coverage.
New Jersey is a no-fault state, which means that your PIP coverage is designed to pay for medical expenses for you and your passengers after an accident, even if you are not at fault. If you are not at fault for an accident, your right to sue the at-fault party for injuries will depend on the type of policy you choose.
Minimum coverage is often one of the cheapest types of auto insurance to buy. However, the coverage limits are very low and could expose you to high out-of-pocket expenses if you cause an accident. Minimum coverage also does not provide any coverage for damage to your vehicle. Insurance agents generally recommend that you purchase higher liability limits if you have the budget for them. If you have a loan or lease, your lender will likely require you to have full coverage insurance — potentially with stipulations on how much liability coverage you must purchase and how high your comprehensive and collision deductibles can be.
How to get the best car insurance
Because New Jersey is a mostly urban state, the state has a high population density and more cars on the road. That means car accidents are more likely, which is reflected in the higher-than-average auto insurance premiums. To find coverage that works for your needs and budget, take time to:
- Evaluate your needs: Everyone has different needs for car insurance. Maybe you have a low credit score and need to find a company that does not rate credit as heavily as others. Maybe you have accidents or tickets on your record or a teen driver to insure. Or maybe you want a company that offers a user-friendly digital app or online customer portal. Knowing your needs can help you determine what companies might work for you.
- Consider state factors: While you have to purchase the minimum coverage to be legal in New Jersey, there are other state- and location-specific factors that you may want to consider. If vehicle theft or vandalism is common in your area, you may want to add comprehensive coverage. A higher risk of accidents might mean you also want to consider higher liability limits and collision coverage.
If you are not sure what coverages are appropriate for your situation, working with a local agent might be helpful.
Car insurance discounts in New Jersey
Many auto insurance providers in New Jersey offer car insurance discounts that can help customers save money on their annual premium. Some common discounts in New Jersey include:
- Multi-policy discounts: These discounts offer some of the highest savings opportunities. If you insure your auto with the same company as your home, condo or renters insurance policy, you could save on both policies.
- Telematics discounts: Letting your insurance company track your driving habits with a mobile app or plug-in device might help you develop safer driving skills and earn a personalized discount.
- Student discounts: If you are under 25 and a full-time student, or if you insure a full-time student on your policy, you may be able to take advantage of good student discounts, driver training discounts or distant student discounts.
- Billing discounts: Companies often offer discounts for selecting paperless bills, paying your premium in full or signing up for automatic payments.
Every provider typically offers a different set of discounts, which is why it can be helpful to shop around and see which savings you are eligible for. Even if a certain provider gives you an expensive quote, you may be able to save a significant amount of money by taking advantage of discounts.
Frequently asked questions
What is the cheapest car insurance in New Jersey?
Determining the cheapest car insurance for you will involve comparing rates from different companies. Every insurance company offers different rates and has a different rating algorithm. Additionally, every driver brings a unique set of circumstances to their car insurance search. This is why getting quotes from several companies can be helpful. Every company will weigh your rating factors differently.
Is New Jersey a no-fault state?
Yes, New Jersey is a no-fault state. If you are in an accident, your PIP coverage is designed to help pay for your injuries and any injuries that your passengers sustain, regardless of who is at fault for an accident. This also means that, depending on what type of policy you choose, your ability to sue a driver for your injuries might be affected.
How can I pay less for car insurance?
Taking advantage of discounts is one of the easiest ways to lower your car insurance premium. Maintaining a clean driving record by avoiding tickets, accidents and DUI convictions is also helpful in preventing premium increases. If you are a safe driver or drive infrequently, a telematics program might help lower your premiums. One of the best ways to find a more competitively priced policy is to get quotes from several insurance providers.
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.
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.