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Best car insurance in New Jersey in 2022

Updated Oct 04, 2022
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With so many companies and coverage packages to choose from, New Jersey car insurance can be challenging to navigate. The average cost of a full coverage policy in New Jersey stands at $1,891 per year, slightly higher than the national average of $1,771. Focusing not only on price but also customer satisfaction, discounts and coverage options, the experts at Bankrate analyzed major car insurance companies that provide coverage in the Garden State to bring you our picks for the best car insurance in New Jersey.

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How Bankrate chose the best car insurance companies in New Jersey

The Bankrate insurance editorial team issued Bankrate Scores to the most prominent companies that offer New Jersey auto insurance. These Scores run from 0.0 to 5.0, with 5.0 being the best score available. We formulated these scores by first reviewing proprietary 2022 premium data provided by Quadrant Information Services. Then, we compiled third-party ratings from J.D. Power and AM Best, and considered other factors like discount offerings, coverage packages and online services. Our goal is that our holistic scoring system will help you choose the best car insurance company in New Jersey tailored to fit your specific needs.

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Best car insurance companies in New Jersey

The average annual premium for car insurance in NJ is $1,891 for full coverage and $855 for a minimum coverage policy. Bankrate’s insurance editorial team conducted research on the largest car insurance companies by market share in the Garden State. Geico, NJM, Selective, State Farm and Travelers are among the best auto insurance companies in New Jersey, based on our research.

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 (Mid-Atlantic region)
Geico 4.8 $1,372 834/1,000
NJM 4.7 $1,242 844/1,000
Selective 4.7 $1,159 N/A
State Farm 4.6 $1,531 851/1,000
Travelers 4.4 $1,403 860/1,000

Geico

Based on our Bankrate Score, Geico tops our list of the best insurance companies in New Jersey. The company 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. However, Geico does not offer as many optional coverage types as its competitors, making policy personalization difficult.

Pros Cons
Plentiful discount options Few coverage add-ons available
Top-rated online self-service options Rated below regional average for J.D. Power 2022 Auto Insurance Study

NJM Insurance

NJM, which stands for New Jersey Manufacturers, is a regional insurer based in West Trenton, New Jersey that sells auto insurance coverage in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania. NJM does not offer a large selection of coverage packages, but they do offer physical damage coverage for trailers. They also have lower-than-average rates for drivers that have a speeding ticket on their record. As a smaller company, though, NJM’s digital tools are not quite as robust as the tools provided by other companies, so it may not be the best choice for you if you prefer to handle your insurance online or via a mobile app.

Pros Cons
Overall competitive average rates Coverage packages limited
May be a good option for drivers with speeding tickets Online options limited

Selective Insurance

According to our research, Selective is the cheapest car insurance company in New Jersey among companies we studied, with an average full coverage premium more than $700 below average. Selective is based in Branchville, New Jersey. Along with better-known perks like accident forgiveness and vanishing deductible, they also offer unique add-ons like pet injury coverage. While it may not be rated by J.D. Power for customer satisfaction, the company carries an A (excellent) financial strength rating by AM Best. If you are looking for 24/7 customer service, however, Selective may not be the company for you, as they operate primarily by independent agents who work regular business hours.

Pros Cons
Cheapest average car insurance rate for full coverage in New Jersey on our list Not rated by J.D. Power for customer satisfaction
Unique policy add-ons No 24/7 service

State Farm

With their Steer Clear and good student discounts, State Farm may be a good choice for younger drivers in New Jersey. State Farm sells its coverage through a network of local exclusive agents, and there are plenty of agencies in the state. In fact, State Farm is the largest insurance company in the country by market share. Although State Farm’s J.D. Power ranking for customer satisfaction is above average, the company does have a higher-than-average overall complaint index score from the National Association of Insurance Commissioners (NAIC). This means that the NAIC receives more complaints than average regarding State Farm.

Pros Cons
Might be a good option for students and young drivers Higher-than-average NAIC complaint index
Largest insurance company in the U.S. by market share Most expensive average premium on our list

Travelers Insurance

Travelers could be a good choice if you are looking to insure your home and auto under the same roof. Not only does Travelers offer lower-than-average rates for auto insurance in New Jersey, but they have some of the cheapest homeowners insurance premiums in New Jersey, on average, too. Travelers also offers options that other companies may not, like gap coverage and umbrella policies. You may even earn a discount for driving an electric or hybrid vehicle. While it is true that Travelers 2021 J.D. Powers' customer satisfaction score was a bit under par, they ranked second overall in the Mid-Atlantic region in 2022.

Pros Cons
Cheap average rates for home and auto Historically has low J.D. Power customer satisfaction scores
Many policy types available Rideshare coverage not available in NJ

Average car insurance cost in New Jersey

In New Jersey, drivers pay an average of $1,891 each year for full coverage car insurance, according to 2022 data obtained from Quadrant Information Services. Minimum coverage costs an average of $855 each year. This is a bit higher than the national average cost of car insurance, which is $1,771 per year for full coverage and $545 per year for minimum coverage. Because New Jersey is mostly urban, 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. You should also keep in mind that your rates will likely differ from the averages based on your individual rating factors.

Also, compared to the rates of other states, New Jersey’s premiums aren’t as high as they seem. Take Pennsylvania, for instance. Although Pennsylvania and New Jersey are neighbors, the average cost for a full coverage policy in Pennsylvania is $2,002, more than $100 higher than New Jersey. New York is even higher, averaging a whopping $2,996.

It’s important to note that if you are a current New Jersey auto policyholder, depending on your coverage, you may experience rate increase next year due to recent changes in insurance legislation. In August 2022, Governor Phil Murphy signed a law that increases the minimum bodily injury liability limit for New Jersey drivers to a $25,000 minimum starting in 2023, with another bump to a $35,000 minimum in 2026. The current minimum limit for a standard New Jersey auto policy is $15,000/$30,000, which means the average cost for the minimum amount of insurance required by the state is likely to increase as well.

Average annual premium for minimum coverage in New Jersey Average annual premium for full coverage in New Jersey
$855 $1,891

How to find the best car insurance in New Jersey

Car insurance is mandatory in New Jersey, so it’s crucial to maintain continuous coverage to avoid costly fines and license suspensions. A well-rounded insurance policy is also vital to protect yourself financially from the unexpected. Auto insurance is a highly individualized product, and no one company will be best for all. For this reason, it’s a good idea to shop around and request quotes from multiple companies. We’ve compiled some things to keep in mind while you’re shopping so that you can find auto insurance in New Jersey that fits your needs.

Consider minimum insurance requirements in New Jersey

New Jersey car insurance laws are unique, and it is a no-fault state. There are two options for minimum required coverage: the basic policy and the standard policy.

Basic policies include just a level of property damage liability per accident and personal injury protection (PIP) coverage and come with the option to purchase bodily injury liability coverage. If you choose a basic policy, your ability to add other coverage types could be limited.

Standard policies include bodily injury liability, property damage liability and PIP, and also come with a broader range of optional endorsements to choose from. Understanding New Jersey’s car insurance laws could help you decide if you need to purchase more coverage than just the minimum required.

Consider lender requirements

Drivers with loans or leases may have additional car insurance requirements to consider. Financing and leasing companies want financial protection for their asset (your vehicle) until it is paid off and in your name. They do this by imposing insurance requirements that you must meet to comply with your financing or leasing agreement.

If you carry minimum coverage, you are probably not in compliance with your lender’s insurance requirements. Minimum coverage does not provide any coverage for damage to your vehicle. Coverage that includes vehicle damage is called full coverage insurance and it adds comprehensive coverage and collision coverage. If you are leasing or financing, lenders could also have stipulations on how much liability coverage you must purchase. Additionally, many lenders will dictate how high your comprehensive and collision deductibles can be.

Although not a lender requirement, gap insurance could also be a useful coverage if you have a loan or lease on your vehicle. This option helps pay the difference between your loan balance and your vehicle’s cash value if your car is totaled.

If you are financing or leasing, it may be a good idea to contact your lender to review their insurance requirements before purchasing a new auto policy.

Consider your individual 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 are working on cleaning up your driving record but are, for now, considered a high-risk driver. Perhaps you have a teen driver to insure. Or maybe you don’t drive your vehicle often and want to switch to a company that offers pay-per-mile insurance. Knowing your needs can help you determine what companies might work for you.

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 premiums. Aside from shopping the cheapest car insurance companies, some discounts in New Jersey to look for include:

  • Young driver discounts: If you are a young driver 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.
  • Safe driver discounts: Telematics programs involve letting your insurance company track your driving habits with a mobile app or plug-in device that might help you develop safer driving skills and earn a personalized discount. You could also save if you maintain a clean driving record for a certain number of years, which varies by company.
  • Defensive driving course discounts: You might qualify for a discount if you complete a voluntary defensive driving course. These courses are usually available online, but some companies only offer this discount for drivers 50 years of age or older. You may want to ask your agent for specifics.
  • Other discounts: Multi-policy discounts often offer some of the highest savings opportunities. If you bundle your auto and home policies with the same company, you could save on both premiums. Additionally, 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

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by Insurance Editor
Reviewed by Assistant Vice President & Claims Field Manager