New Jersey drivers pay about $2,160 per year for full coverage car insurance and $1,285 for minimum coverage, based on a 40-year-old driver with good credit and no driving violations. Your rates will vary depending on your unique profile.
Average Cost of Car Insurance in New Jersey
Updated: August 19, 2025
Advertising & Editorial Disclosure
Key Takeaways
Car insurance costs can range anywhere from $1,285 to $5,085 per year on average in New Jersey depending on your chosen coverage, driving profile and location.
New Jersey ranks as one of the most expensive in the country, ranking 51st and 49th overall for minimum and full coverage car insurance affordability respectively among all states and Washington, D.C.
To secure the cheapest car insurance in New Jersey, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In New Jersey
| Full Coverage | $180 | $2,160 |
| Minimum Coverage | $107 | $1,285 |
*Rates are based on a 40-year-old driver with good credit and a clean record driving a 2012 Toyota Camry LE. Minimum coverage means basic liability required by state law. Full coverage includes 100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles.
Average New Jersey Car Insurance Cost by Category
Car insurance varies widely depending on your unique characteristics, location and car. Here are average rates for common categories of drivers so you can see how pricing can vary.
| Young Drivers | $241 | $415 |
| Adult Drivers | $101 | $172 |
| Senior Drivers | $125 | $205 |
| Drivers With An Accident | $172 | $281 |
| Drivers With A DUI | $209 | $343 |
| Drivers With A Speeding Ticket | $124 | $208 |
| Drivers With Bad Credit | $142 | $286 |
| Drivers With Low Income | $85 | $177 |
| Drivers With Newer Cars | $110 | $187 |
| Drivers With Old Cars | $89 | $151 |
*We modified rates based on the same 40-year-old driver profile with these changes: young drivers (16 to 25), adults (26 to 64), seniors (65+), low income (fair credit), bad credit (poor credit), newer cars (2025 Toyota Camry LE), older cars (2007 Toyota Camry LE). Driving violation profiles include only that specific violation.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Personalized Average New Jersey Car Insurance Costs
These categories show general insurance costs, but your rates will be different. Our table below lets you filter costs based on your personal details for a more accurate estimate.
Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Select
Age Group:Adult Drivers
Select
Gender:Female
Select
Credit Alignment:Below Fair
Select
Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| 100/300/100 Full Cov. w/$1,000 Ded. | 317 | 3809 |
*Rates for the age groups are based on the following assumptions: young drivers (16 to 25), adults (26 to 64), seniors (65+).
Average New Jersey Car Insurance Cost by City
Where you live in New Jersey has a big impact on your car insurance costs. Annual rates for full coverage insurance range from $978 in Chester to $3,161 in Elizabethport. Use the comparison tool below to see both full and minimum coverage rates for your city and other areas across the state.
Data filtered by:Results filtered by:
Select
City:Absecon
| Full Coverage | $185 | $2,218 |
| Minimum Coverage | $108 | $1,296 |
*Rates are for a 40-year-old driver with good credit and no driving violations who is insuring a 2012 Toyota Camry LE. Minimum coverage represents the minimum required liability coverage in the state while full coverage is representative of a 100/300/100 liability policy with a $1,000 deductible for comprehensive and collision coverage.
Is New Jersey Car Insurance Expensive?
New Jersey ranks 49th for full coverage and 51st for minimum coverage affordability among the 50 states and Washington, D.C., making it one of the most expensive places for car insurance in 2025. This reflects statewide averages, and affordability rankings for your city differ from the rest of the United States.
Why Is Car Insurance More Expensive In New Jersey?
Below we'll explore the reasons for New Jersey's high car insurance rates:
No-fault insurance system
New Jersey is a no-fault state, meaning each driver's insurance covers their own medical expenses regardless of who's at fault. This system requires all drivers to carry personal injury protection coverage with a minimum of $15,000 per person, though coverage can go up to $250,000. The state operates under a "choice no-fault" system, allowing drivers to select between "limited right to sue" and "unlimited right to sue" options, with the limited option offering lower premiums but restricting lawsuits to cases involving significant injuries.
Highest population density in the U.S.
New Jersey has the highest population density of any state in the country, particularly in urban areas like Newark and Jersey City. This dense population leads to increased traffic congestion and a higher likelihood of accidents, resulting in elevated insurance premiums. The state's urbanization and heavy traffic patterns contribute to higher insurance costs statewide.
Low rate of uninsured drivers
New Jersey maintains one of the lowest uninsured driver rates in the country at approximately 3%, compared to the national average of around 13%. However, rising insurance costs have led to some increases in uninsured rates in recent years, though the state still performs better than most. The state's mandatory uninsured motorist coverage requirements help protect drivers despite these changes.
Severe weather and natural disasters
New Jersey faces significant weather-related risks including hurricanes, winter storms, nor'easters and flooding. The state has experienced major storms like Hurricane Sandy in 2012 and Tropical Storm Irene in 2011, which caused extensive damage and increased insurance claims. From 1980 to 2024, New Jersey experienced 75 billion-dollar weather disasters, with an average of 5.2 events per year from 2020 to 2024.
Rising repair and health care costs
New Jersey faces escalating costs for auto repairs and medical care, driven by supply chain issues, high labor costs and increasingly sophisticated car technology. Modern cars cost more to repair despite safety improvements. Insurance premiums in New Jersey increased by an average of 17.2% in 2025, following double-digit increases in 2024, pushing the average annual cost to nearly $2,400.
Increasing minimum insurance requirements
New Jersey has been gradually raising its minimum liability insurance requirements. In 2023, the state increased minimum coverage from $15,000 to $25,000 per person, affecting over one million drivers. Another increase is scheduled for 2026, when minimum coverage will rise to $35,000 per person and $70,000 per accident. These legislative changes have contributed to rising insurance costs across the state.
Post-pandemic accident trends
New Jersey has seen increased accident frequency and severity since the pandemic, with more fatalities and injuries leading to higher insurance claims. The involvement of attorneys in claims has also increased, adding to overall costs. Despite having some of the safest drivers nationally, the state still experiences challenges with traffic congestion and accident rates in urban areas.
Proximity to major metropolitan areas
New Jersey's location near major cities like New York City creates additional traffic challenges and contributes to higher insurance rates. The state's proximity to these metropolitan areas increases both commuter traffic and the associated risks. This geographic factor, combined with the state's role as a major transit corridor, contributes to the higher-than-average insurance costs.
How To Lower Car Insurance Costs In New Jersey
Below is our guide to lowering your car insurance costs with proven steps.
- 1
Decide on coverage needs beforehand
Deciding on your coverage needs is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2
Research costs and discounts
To save money for your profile, know the average costs for your preferred coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3
Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies to find the best deal possible. Use different means of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in New Jersey: Bottom Line
New Jersey car insurance costs are among the most expensive in the United States, making it important to take advantage of savings strategies. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in New Jersey: FAQ
Below are answers to frequently asked questions about New Jersey car insurance costs:
How much is New Jersey car insurance per month?
New Jersey car insurance costs $107 for minimum coverage and $180 for full coverage policies. Rates range from $85 to $415 monthly, depending on your unique driver profile and coverage choice.
What factors affect New Jersey car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is New Jersey car insurance so expensive?
New Jersey operates a no-fault system requiring $15,000 personal injury protection coverage and has the highest population density nationally, contributing to elevated accident rates. The state has extremely low uninsured driver rates at 3.1% but faces severe weather risks and rising repair costs. Recent rate increases averaged 17.2% in 2025, with minimum coverage requirements increasing from $15,000 to $25,000 per person in 2023.
How expensive is New Jersey car insurance?
New Jersey ranks 51st for minimum coverage and 49th for full coverage affordability among the 50 states and Washington, D.C., making it one of the most expensive places for auto insurance in the U.S.
How We Determined New Jersey Car Insurance Costs
We used the following profile and modifications of this profile to determine New Jersey auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- National Centers for Environmental Information . "U.S. Billion-Dollar Weather and Climate Disasters: State Summary for New Jersey ." Accessed August 27, 2025.
- NJ 101.5 . "How High Car Insurance Rates Increase Sharply in New Jersey ." Accessed August 27, 2025.
- WHYY . "New Jersey Car Insurance Rate Hike 2023 ." Accessed August 27, 2025.