Cheapest New Jersey Car Insurance for Low Income Drivers In 2024

After a great deal of research and analysis of information and data, I have determined that State Farm car insurance is the undisputed cheapest and best for low income drivers in New Jersey.

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Bob Phillips
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Residents of New Jersey who are probably going to find it even harder to obtain affordable coverage are the ones in the state’s low income demographic. Low income, in this sense, applies to families or individuals whose income is fifty percent or less than the average income of a region.

Unlike some states across the country, New Jersey hasn’t had a problem with car insurance carriers  leaving the state. But, rates have risen a lot in the past year. A lot of New Jersey drivers are paying considerably more for coverage. Insurers lay the blame for these rate hikes on several factors such as inflation, repairs after an accident being more costly, more catastrophic weather events and more highway fatalities. Even so, most drivers in New Jersey drivers, including low-income, can save some money on auto insurance. In fact, a state mandated minimum car insurance liability coverage is required by law.

I have actually had insurance with some of these providers. Each car insurance provider in this review has superior ratings and a solid reputation for excellence in the car insurance industry. Each company has something to offer almost all drivers.

Cheapest Car Insurance Companies for Low-Income Drivers in New Jersey, 2024

Low-Income Drivers, New Jersey 2024

Comparison Of Low-Income Car Insurance Companies in New Jersey

Overall Rating (Best 5.0) Best Suited For A.M. Best Rating J.D. Power Rating (Best 1000) Average Monthly Cost* Get A Quote
State Farm
4.9

Cheapest Overall

A++

838

$30

Instant Quote
GEICO
4.7

Poor Credit

A++

801

$58

Instant Quote
Nationwide
4.6

Seniors

A+

NR

$60

Instant Quote
Scroll to see comparisons

Our methodology

While gathering information and data for this review of car insurance companies, we harvested information that took in multiple factors including: customer service ratings, product options, user experience, and pricing, along with our evaluation of internet review sites. This is an unbiased review that has been researched in depth for a view of New Jersey's provider landscape as it pertains to auto insurance. The data and information found in this review has been gleaned from our collective fact-based opinions, honed by my 15 years plus as a licensed agent in the auto insurance industry, multiple experiences with agents from various car insurance providers, along with insights from our combined experience in personally buying auto insurance in New Jersey.

52

Quotes Analyzed

23

Brands Reviewed

15+

Years Of Experience

25+

Research Hours

Reviews Of Low Income Car Insurance Companies In New Jersey


Cheapest Overall

Overall Rating
4.9

Key Statistics

9/10 Claim payouts
10/10 Coverage level
9/10 Customer reviews
10/10 Affordability

Why We Like Them

The auto insurance market in New Jersey is more than a little competitive. That being said, the insurer that stands above the rest is State Farm, for its superiority in coverage as well as cost.

The time we spent researching for this review, along with reviews of car insurance rates in New Jersey, left us with no doubt that State Farm has the most budget friendly, full coverage car insurance rates, with premiums beginning at $90 monthly.

If you drive in New Jersey with a low-income budget, and are looking far and wide for auto insurance  that won’t cost more than your budget can stand, check out State Farm’s care insurance.

State Farm doesn’t just have affordable rates, it’s ranked amongst the leading companies in the industry, up there at the top with the best car insurance carriers in the U.S. State Farm is an obvious choice for car insurance, with a solid reputation for money saving discounts and coverage tailored to meet a wide variety of needs.

State Farm has a distinct edge over its competitors in New Jersey’s car insurance market with its comprehensive coverage, flexible coverage, and affordability. It’s the top choice for drivers who need vehicle insurance without busting their budget.

Benefits & Drawbacks

Benefits
  • Cheapest rates for most drivers in New Jersey
  • Numerous coverage options and discounts available
  • Superior AM Best financial strength rating
Drawbacks
  • Must buy from a State Farm Agent

Having adequate auto insurance if you want to drive without worrying about the crippling financial burden you could incur without it in case of an accident, provides peace of mind and financial security. Besides that, it’s illegal in every state but two—New Hampshire and Virginia—to operate a vehicle on a public road without a minimum of liability insurance.

Affordable car insurance doesn’t equate to poor quality coverage. If you do a little research into vehicle insurance carriers in New Jersey, and compare rates between various providers, you can save a nice  amount on your car insurance and still have adequate coverage.

Rates for the cheapest car insurance in New Jersey

Insurance company Monthly Rate
State Farm $34
GEICO $36
Progressive $54
Nationwide   $151
Farm Bureau  $156

Best for Poor Credit

Overall Rating
4.7

Key Statistics

9/10 Claim payouts
8/10 Coverage level
8/10 Customer reviews
9/10 Affordability

Why We Like Them

Drivers in New Jersey who have poor credit and need auto insurance might want to check out GEICO. GEICO provides the best and lowest rates in New Jersey for those with less than ideal credit scores. Multiple studies have consistently shown that this car insurance provider is the most affordable for drivers with poor credit.

It would be a mistake to think that low rates equal low quality coverage, because this isn’t true at all with GEICO. It’s a well respected, reputable auto insurance carrier with a history of excellent service and good value. Even if your credit score is low, you can get vehicle insurance at a cost conscious premium that won’t break the bank. Offering low cost, high value coverage is part of the reason that  GEICO is considered the wise choice for drivers with poor credit.

GEICO knows that a poor credit rating doesn’t necessarily mean a poor driver who falls into the high risk category. Some auto insurance providers raise premiums of policyholders with poor credit. GEICO, however, takes a more balanced approach and looks at other factors such as the type of vehicle to be insured, and a person’s driving record, along with other things.

GEICO provides lower price premiums to those with poor credit, which makes it the clear choice for a lot of drivers in New Jersey.

Benefits & Drawbacks

Benefits
  • Superior AM Best financial strength rating
  • Cheapest rates for most drivers in New Jersey with poor credit
  • Numerous coverage options and discounts are available
Drawbacks
  • Digital tools are available but aren’t as robust as some competitors
  • Not as many GEICO agents in New Jersey compared to many large competitors

A lot of car insurance carriers are of the opinion that a correlation exists between a low income and a low credit rating. This is bad news for drivers with poor credit or a low income, since premiums for  low income drivers and/or poor credit can be as much as twice that of drivers with a better income and good credit.

But, if you fall into the low income or poor credit part of the population, there are things you can do to help get a lower vehicle insurance premium. For instance, shop around for a car insurance carrier with discounts available that you might be able to get, which could mean a substantial savings. Another method of lowering your vehicle insurance rates is to be very careful and avoid moving violations. These two things can help decrease your premiums.

Rates for the cheapest car insurance for bad credit in New Jersey

Insurance company Monthly Rate
GEICO $190
USAA   $194
Progressive  $227
Farm Bureau  $236
Allstate  $288

Cheapest for Seniors

Overall Rating
4.6

Key Statistics

8/10 Claim payouts
9/10 Coverage level
8/10 Customer reviews
9/10 Affordability

Why We Like Them

A senior driver shopping for low cost car insurance with adequate coverage would be wise to take a look at Nationwide. This isn’t just my personal belief, it’s based on facts gathered from extensive research of the auto insurance industry in New Jersey, as well as customer reviews.

Nationwide’s rates are the lowest in New Jersey for senior drivers. Policyholders with New Jersey Farm Bureau, for instance, have an annual rate of about $2655.00, and those with Home State Insurance pay approximately $2,725.00 annually.

Nationwide has rates that are custom designed for older drivers in New Jersey. It’s the top pick for seniors who need affordable rates and adequate protection from their car insurance.

Benefits & Drawbacks

Benefits
  • Comprehensive mobile app for digital policy management
  • Auto, homeowners, life, and other insurance products available
  • High financial strength ratings
Drawbacks
  • Not rated by J.D. Power for customer service
  • Can only buy from Nationwide agents

Older drivers are often taken aback to see that their car insurance premiums have increased. This is common because a lot of auto insurance carriers have a perception of senior drivers as high risk, same as teenage drivers.

This high risk notion of older drivers isn’t only bias in the car insurance industry, though. Statistics and multiple studies have shown a higher risk for accidents in senior drivers. The causes for these findings are such factors as: the probability that injuries resulting from auto accidents will be of a more serious nature in older drivers, slower reaction times, and age-related health issues that could affect seniors being safe drivers. These findings account for the concept that older drivers are higher risk than younger drivers.

The Insurance Institute for Highway Safety (IIHS) conducted a study and found that the rates of fatalities occurring from auto accidents begin to rise sharply at the age of 70. Deaths from car accidents in drivers aged 85 years or older are the highest in all age groups.

So, it’s hardly surprising that older drivers are faced with paying steeper premiums for car insurance as they age. Insurance companies have to try and counteract the steeper claims with higher rates.

Senior drivers can still save money on their auto insurance if they’re willing to put in some effort checking rates and discounts offered by different companies. Rate comparisons and shopping around for discounts can mean lower rates for older drivers.

Rates for the cheapest car insurance in New Jersey for seniors

Insurance company Monthly Rate
Nationwide $104
GEICO $107
State Farm  $147
USAA  $190
AAA  $212

By law, New Jersey drivers are required to have liability car insurance that will help pay the cost of an auto accident. These are the minimum liability coverage amounts mandated by New Jersey:

  • $25,000 for bodily injury for one person
  • $50,000 for bodily injury liability per each accident
  • $25,000 for property damage liability per each accident
  • $15,000 for PIP (Personal Injury Protection) no-fault for driver

New Jersey’s minimum requirements for liability auto insurance are about the same as other states, with the exception of the PIP benefit which is a good one to have if you need it.

New Jersey requires every driver to have a minimum of liability vehicle insurance. However, many drivers opt to carry a bit more coverage in case the costs of the accident exceed the minimum amounts of coverage. If that happens, the insured, if at fault, must pay the difference.

Full Coverage Options

You’ll hear the term “full coverage,” a lot when the subject is vehicle insurance. Full coverage isn’t actually a real category of coverage, but is applied to having multiple sorts of car insurance included in one policy package. It gives drivers insurance protection from basically any driving accident because they have all three types: comprehensive, liability, and collision.

Liability insurance helps to cover costs of property damage or injuries that occur from an accident where the insured driver is at fault. Collision coverage helps pay costs if your vehicle is damaged in a collision—either with another vehicle, or with an object of some kind, like a wall. Comprehensive coverage covers accidents that aren’t collisions, such as: natural disasters, vandalism, theft, and fire.  Full coverage auto insurance is inclusive of these three types of coverage, and gives peace of mind to a lot of drivers.

Does New Jersey have a government-sponsored car insurance program for low income families?

No, it doesn’t have a government-sponsored auto insurance program for low income drivers. But, New Jersey drivers are required by law to have the specific minimum of liability insurance, which costs less  than full coverage.

Does income affect car insurance rates in New Jersey?

No, your income won’t influence your auto insurance premiums in New Jersey. Car insurance providers weigh factors such as: your location, the vehicle you drive, adding teenaged or senior drivers, age, and driving history, along with the amount of  coverage you want. They will then take all of these components into consideration, and calculate your rates accordingly.

How to save on car insurance costs in New Jersey

Making your way through the landscape of New Jersey car insurance can be a frustrating task, to say the least. However, if you go about it correctly, it can mean shaving a considerable amount off your car insurance rates. Here are 3 easy steps that will help save money on vehicle insurance in New Jersey:

1. Compare Rates from Different Providers

The first thing you need to do if you really want to trim your car insurance premiums is to compare rates between companies operating in your state. There can be a wide difference in premiums between providers. Vehicle car insurance carriers determine rates based on various components, such as: your age, your driving record, and your location, along with other things. It will pay you to gather premium quotes and compare coverage amounts, as well as discounts, before you choose an insurer that suits your budget and coverage needs.

2. Leverage Discounts

A lot of auto insurance carriers have discounts available that can be money-savers by reducing your premiums. Here are some things that can influence vehicle insurance discounts: safety features of your vehicle, a good student discount, bundling more than one type of coverage with a company, safe driving discount, and more. Always ask which, if any, discounts are available from the auto insurance companies you’re looking into. You might qualify for more than one.

3. Adjust Your Coverage and Deductibles

There are two major steps to reducing your car insurance rates: (1) Raise your deductible and (2) adjust the amount of coverage.These changes can make a big difference in your premium. For example, if you’re driving an older model vehicle, paying for expensive full coverage may not be the best financial move because the premiums could exceed the value of the car. Your deductible is what you are required to pay if a claim is filed. One general rule is that the more deductible you pay, the less your premium will be. Decreasing your deductible will increase the price of your premium. It’s best to make sure you can comfortably pay a higher deductible, though, before changing it.

FAQs

How can low income families get affordable car insurance in New Jersey?

New Jersey low-income drivers should look around and compare rates of auto insurance companies, and coverage amounts, as well. Also, find out which discounts are available from providers, since discounts can reduce your premiums. These things to be mindful of can significantly lower the amount of your vehicle insurance.

What is the minimum amount of car insurance you have to carry in New Jersey?

New Jersey legally requires all drivers to carry a minimum amount of liability car insurance: $25,000 for injury or death of one person as the result of an accident, $50,000 for more than one person, $25,000 for property damage per accident, and $15,000 for PIP.

 

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