Cheapest Car Insurance In New Jersey

With more than 30 hours of research spent reviewing 54 quotes from the top insurance providers in New Jersey, we’ve found that GEICO offers the cheapest car insurance rates for many categories.

The insurance provider was the cheapest overall and the best for New Jersey drivers with driving violations or motorists seeking minimum and full coverage policies. GEICO also has the best rates for senior drivers, while NJM is the best option for younger drivers.

New Jersey has always been a hub for companies in the research and development sector. With abundant opportunities, many people move to the area to pursue a career in pharmaceuticals, science, and technology. While there are several things to consider when living in New Jersey, the average auto insurance should be on the top of any new citizen’s list.

Most New Jersey drivers can expect to pay around $254 for a liability-only plan and $314 for full coverage. However, there are several locations in the state where motorists can find rates as low as $208 a month.

Within the following sections, we’ll explore the landscape of car insurance throughout New Jersey — comparing companies and identifying the rates different categories of drivers can expect to pay in The Garden State.

Cheapest Overall Rates In New Jersey

When car insurance companies receive an application from a potential policyholder, they create a risk profile based on several factors. One of the most significant components of these profiles is the motorists driving history.

If your record shows a history of multiple speeding violations or other incidents, you’ll be classified as a medium to high-risk driver, resulting in higher premiums. Likewise, drivers with a clean record will receive lower rates since they don’t have a history of driving violations.

Cheapest Rates For Motorists With Driving Violations In New Jersey

When most drivers start looking for car insurance, the most important decision is whether to purchase a full coverage policy or a minimum coverage plan. Both options fulfill the New Jersey requirements for auto insurance, but they don’t offer the same protection to drivers and others involved in an accident.

Drivers without a full coverage plan are often responsible for the costs associated with their vehicle during an at-fault accident. However, with a comprehensive full coverage policy, you’ll receive the following added protections:

• Bodily injury liability
• Property damage liability
• Comprehensive and collision protection

Cheapest Full Coverage Rates In New Jersey

Even though full coverage offers the most protection for New Jersey drivers, having a minimum coverage policy will still allow you to legally operate a vehicle in the state. Since these plans tend only to have a limited number of coverages, they are often the least expensive option.

In some cases, purchasing a minimum coverage plan over comprehensive car insurance makes sense. For example, motorists who only drive their vehicle a few times a year are less likely to be involved in an accident and don’t need to pay for additional coverage. These limited plans can be a great option for college students who leave their vehicles at home.

Cheapest Minimum Coverage Rates In New Jersey

It’s common for young drivers to think only about the open road and the freedom that comes with getting their license. However, motorists under 25 often pay the most for car insurance due to their lack of experience behind the wheel. The additional costs of carrying auto coverage are something every young driver needs to think about.

The good news is that young drivers in New Jersey have affordable options like NJM Insurance and GEICO. Both companies offer student discounts and tend to have some of the most affordable rates in the state.

Cheapest Rates For Young Drivers In New Jersey

As drivers start to move into their senior years, many insurance companies view the transition as a positive sign. After many years behind the wheel, car insurance providers have a healthy amount of data to determine your driver profile. They also assume that you will be driving less since many seniors decide to retire from full-time work.

These criteria often mean that monthly premiums become less expensive as we age. For senior drivers in New Jersey, there are several affordable companies to consider, including GEICO and Progressive.

Cheapest Rates For Senior Drivers In New Jersey

Average Cost Of Car Insurance In New Jersey

Average Cost In New Jersey – By Age

Average Cost In New Jersey – By Gender

Average Cost In New Jersey – Marital Status

Average Cost In New Jersey – By Accident And Violation History

Average Cost In New Jersey – By Credit Tier

Average Cost In New Jersey – By Zip Code

Minimum Car Insurance Requirements In New Jersey

Nearly every state requires auto insurance to operate a motor vehicle — New Jersey is no different. However, the state recently introduced a new law that went into effect on January 1st, 2023, that increased the amount of coverage needed to drive in the state legally.

Below are the new state car insurance requirements for New Jersey drivers:

• $25,000 in bodily injury liability per person and $50,000 per accident
• $25,000 in property damage liability per accident
• $15,000 in personal injury protection per person
• Uninsured and underinsured coverage equal to the minimum bodily injury liability coverage

How To Buy Car Insurance In New Jersey

It’s easy to let the car insurance buying process overwhelm you, especially if it’s your first time purchasing coverage. However, a platform like Insuranceopedia can simplify the shopping experience.

Here are a few steps to take while looking for your New Jersey car insurance policy.

Step 1: Gather Information

One of the reasons many shoppers feel stressed when buying car insurance is the fear of not knowing what information is required to get a quote. Gathering the appropriate information before comparing options can help eliminate the stress and prepare you for the following steps.

Below is a list of the most common types of information you’ll need to purchase your auto insurance:

• Driving history for all drivers on the plan
• Information about your vehicle — annual mileage, safety features, current odometer reading, VIN, make, model, and year of the vehicle
• Driver’s license numbers for all policy members
• Name and birthdate of all policy members
• Information on the current insurer, if you’re switching carriers

Step 2: Understand Your Coverage Needs

As you compare different car insurance plans, you’ll notice that each has its coverage limits. While you’ll want to pick the plan that makes the most sense for you and your family, you’ll also want to ensure it meets the following New Jersey state minimum limits:

• $25,000 in bodily injury liability per person and $50,000 per accident
• $25,000 in property damage liability per accident
• $15,000 in personal injury protection per person
• Uninsured and underinsured coverage equal to the minimum bodily injury liability coverage

Step 3: Select A Purchasing Method

New Jersey has several ways to shop for a car insurance policy. The most popular way to purchase coverage is online through an insurance platform. However, several car insurance companies allow you to meet with an agent and discuss your quotes.

Both options offer their benefits. For example, working with a licensed agent allows you to ask questions and get immediate answers. While shopping online tends to be quicker, with many potential policy members finding coverage within minutes.

Step 4: Compare Auto Insurance Policies

Many consumers often select the first quote presented to them instead of comparing multiple offers. While the first option might be the best, collecting at least three quotes from different insurance providers is recommended to ensure you’re getting the best rates and discounts.

Step 5: Purchase Your New Auto Insurance Policy

When purchasing your car insurance plan, closing the loop on any outstanding insurance policies is essential. If you’re switching companies, you’ll want to call the previous insurance provider and let them know of your move so that you don’t get billed by both organizations.

Factors That Impact Cost Of Your Car Insurance Policy In New Jersey

Even though many drivers pay around $314 for a full coverage auto insurance policy in New Jersey, multiple factors ultimately play a role in determining monthly premiums. For example, your location in the state can significantly impact overall rates.

Many insurance companies utilize past data about different cities and zip codes to gain insight into how likely your vehicle is to be vandalized or involved in an accident. Living in a high-risk zone could mean paying more for coverage.

In addition to location, several other elements impact a driver’s rates, such as:

• Marital status
• Gender
• Age
• Driving record
• Credit history
• Average annual mileage
• Vehicle type
• State mandated requirements

New Jersey Car Insurance Laws To Know

According to the New Jersey Motor Vehicle Commission, all drivers must provide proof of the following three types of insurance to operate a vehicle legally:

• Liability insurance to pay for damages you cause from an at-fault accident
• Personal injury protection (PIP) to pay for medical expenses resulting from an automobile accident regardless of who was at-fault
• Uninsured motorists coverage to protect yourself against other drivers who don’t have the appropriate insurance to cover your expenses if they are considered at-fault

In The News

• Monthly premiums in New Jersey continue to rise as drivers are mandated to carry an additional $10,000 in liability insurance
• Some insurance carriers in New Jersey are utilizing education levels as a means of determining a driver’s monthly premium rate

Car Insurance Discounts In New Jersey

Since New Jersey ranks as one of the most expensive states for auto insurance coverage, it’s important to understand how you can save on monthly payments. The following discounts offer opportunities to lower your premium and find an affordable car insurance plan:

• Student away
• Good student
• Senior
• Multi-policy
• Multi-vehicle
• Military
• Paid in full
• Low mileage
• Safe driver
• Accident-free
• Defensive driving