With an average annual full coverage premium of $1,706, New Jersey residents pay a hefty fee for car insurance. If you’re in the market for car insurance, you’re probably looking for an affordable rate and the best car insurance in New Jersey. To find the best value for your money, it’s important to shop around and get quotes from multiple providers.
The best car insurance companies in New Jersey
As of 2018, New Jersey had over 6.3 million licensed drivers on the roads. According to the Insurance Institute for Highway Safety (IIHS), New Jersey residents are among the safest drivers in the U.S. In 2018, there were 6.3 motor vehicle-related deaths for every 100,000 people.
Because New Jersey has a large number of licensed drivers, there are many insurance companies that provide car insurance policies to residents. If you’re unhappy with your current rate, there are other companies that might give you a better offer.
Based on J.D. Power score ratings and affordability, these insurance companies made the list of top car insurance companies in New Jersey:
|Average full coverage premium||J.D. Power score for Mid Atlantic|
Geico is known for its low car insurance rates across the nation and in New Jersey. It also has a mobile app that allows customers to manage their policy and file a claim from their phone.
NJM serves over 850,000 policy holders in New Jersey and Pennsylvania. Because it’s a local insurance company, you can expect to get great customer service and quick claims handling.
Progressive is known for their great customer service, and is typically another cheap New Jersey car insurance option. It offers 24/7 customer support, unique coverage options and multiple ways to save on your premium.
State Farm is known for offering affordable rates in New Jersey. The company also provides customizable coverage options and discounts. State Farm is especially affordable for teen drivers and good student drivers.
Average car insurance cost in New Jersey
In New Jersey, drivers pay an average of $1,706 each year for full coverage car insurance and $727 each year for minimum coverage car insurance. This is close to the national average of $1,738 per year for full coverage. However, the actual amount you’ll pay for car insurance in New Jersey depends on a number of factors, like your age, zip code, type of car and the safety features in the car. Some of the cheapest car insurance companies in New Jersey, according to Bankrate, are NJM, Amica and Geico.
Because New Jersey is a mostly urban area, 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.
State minimum insurance requirements in New Jersey
Living in the Garden State has its perks. When it comes to auto insurance, the minimum coverage is on par with other states. It includes liability consisting of $15,000 per person for bodily injury damage, and $30,000 for all injuries in an accident.
Drivers must also carry uninsured and underinsured motorist coverage, with a minimum of $15,000 for one person’s injuries, and $30,000 for all injuries in an accident. Drivers also have to have $5,000 for property damage coverage.
Is New Jersey a no-fault state?
Yes, New Jersey is a no-fault state. If you’re in an accident, your insurance company is required to pay for damages and medical bills, regardless of who caused the accident.
There are benefits to living in a no-fault state. However, all drivers in New Jersey are required to carry personal injury protection, also called no-fault coverage, which helps pay for your medical bills if you get injured in an accident.
When you’re shopping for car insurance, remember that personal injury protection will likely be an added fee on top of your basic auto insurance policy.
Auto insurance discounts in New Jersey
Many auto insurance providers in New Jersey offer discounts that can help customers save money on their annual premium. Popular discounts include being a good driver, having a clean driving record, bundling policies, having an anti-theft system installed, insuring a new car and being a good student.
Every provider offers a different set of discounts, which is why it’s important to shop around and see which savings you’re 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 take comparing rates from different companies. Geico is often the cheapest option in New Jersey, but your rates could depend on your ZIP code, vehicle and driver history.
Is New Jersey a no-fault state?
Yes, New Jersey is a no-fault state. If you’re in an accident, your insurance company will pay for the damages and any medical expenses, regardless of who was at-fault. When you’re shopping for insurance, purchase no-fault insurance, which is required for all New Jersey drivers.
How can I pay less for car insurance?
Asking for the discounts you qualify for is easy when considering New Jersey car insurance rates but requires speaking to a representative. Online quotes are limited on the amount of information they can gather, which is why it’s important to work with an agent who knows the best discounts applicable.
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 2018 Honda Accord, 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.