How Much Is Car Insurance in New Jersey? (July 2024)

Drivers in New Jersey typically spend an average of $1,739 yearly for full coverage car insurance. Choosing minimum coverage brings the annual cost down to about $993.

The amount you pay for car insurance is affected by factors such as your age, the coverage you choose, your location, your driving record and your credit history.

New Jersey's average full coverage car insurance cost is $1,739 annually or $145 monthly. Knowing your state's average car insurance cost can help you decide if a rate is fair when comparing car insurance quotes.

Here's what you might pay for auto insurance in New Jersey, from minimum coverage to full coverage. Expect to budget for your monthly and annual insurance needs.

The average annual premium for state minimum coverage in New Jersey is $993, which equates to a monthly premium of about $83. When compared with the national average cost of car insurance, New Jersey's rates are higher. The national average for state minimum liability-only insurance is around $595 annually or about $50 per month. A full coverage car insurance policy in New Jersey costs around $1,739 per year or $145 per month, while the national average for the same coverage costs $1,296 per year or $108 per month.

Several factors contribute to New Jersey's higher insurance costs. Densely populated urban regions result in more traffic and higher accident risks. New Jersey also has comparatively high medical costs and car repair expenses, which insurance companies factor into their premiums. New Jersey also requires personal injury protection as part of its minimum coverage, which can drive up the cost of insurance.

Car insurance premiums can significantly vary per company, even within the same state. In New Jersey, Plymouth Rock Assurance offers the lowest average annual full coverage premium at $946, while Hanover has one of the highest at $3,565.

Understand the importance of shopping around for car insurance. By comparing rates for the cheapest car insurance in New Jersey, you could potentially save thousands of dollars.

The cost of car insurance in New Jersey is also influenced by the type of coverage selected. For instance, the average monthly cost for minimum coverage is about $83, while full coverage with a $1,000 deductible typically amounts to $145. Despite the higher price, full coverage insurance is often recommended as it provides more comprehensive protection for a variety of incidents.

Adding comprehensive and collision coverage to your policy will raise your premium, but selecting higher deductibles can offset some of this increase. It's important to understand that the deductible is the amount you'll pay out of pocket for each comprehensive and collision claim.

In New Jersey, the state minimum car insurance requirements include $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, $25,000 property damage liability per accident and $15,000 personal injury protection per person.

Your New Jersey address could make a big difference in what you pay for car insurance. The full coverage rate in Jersey City is $1,873 per year, while it jumps to $2,145 in Newark.

Various factors affect car insurance rates in New Jersey, such as your driving record, the type of car you drive and local crime rates. Traffic volume and weather conditions also play a significant role in determining premiums.

Age significantly impacts car insurance costs in New Jersey. Younger drivers, specifically in the 22 to 29 age bracket, pay the most — on average, $1,953 annually or $163 monthly.

Costs typically decrease with age, making insurance more affordable for mature drivers. Middle-aged drivers, 30 to 59 years old, see a drop to an average of $1,739 per year or $145 monthly. Seniors aged 60 and over benefit from the lowest rates, averaging $1,690 annually or $141 monthly, reflecting the trend of lowering premiums as drivers gain experience and pose a lower risk.

In New Jersey, age and gender affect car insurance rates, with 16-year-old male drivers often seeing the highest premiums. On average, adding a 16-year-old boy to a family policy costs $4,683 annually. If a teen under 18 opts for an individual policy, the premium jumps to $8,072. A parent or guardian is typically required to co-sign due to legal restrictions.

The average annual cost for full coverage on a 2012 car model is $1,391, while it jumps to $1,571 for the same coverage on a 2022 model. Newer cars often have higher actual cash value and repair costs, coupled with an increased risk of theft, naturally elevating insurance premiums.

Owners of newer models should secure both comprehensive and collision coverage. This protects against a broader range of incidents, including accidents, natural disasters, theft and vandalism — ensuring better financial coverage in the long run.

The average cost of car insurance in New Jersey varies depending on a driver's record. Here's what drivers can expect to pay on average:

• With a ticket: $1,919 per year; $160 per month
• With an at-fault accident: $2,640 per year; $220 per month
• With a DUI: $3,094 per year; $258 per month

The severity of driving violations influences insurance premiums in New Jersey. A violation can affect how much you pay for as long as it stays on your record, which differs by state. For example, in New Jersey, a DUI can remain on your driving record for 10 years.

The average cost of car insurance for each driving record in New Jersey is shown in the table, by coverage type and age group. This helps you better understand how your driving history might influence your insurance expenses.

Car insurance rates in New Jersey can significantly differ based on credit scores, with average monthly premiums ranging from $90 for drivers with excellent credit to $213 for people with poor credit. Your credit score is a key factor that insurers consider, reflecting your reliability in managing financial obligations. A good credit score falls between 670 and 739.

Discover key elements influencing your car insurance premiums in New Jersey.

• Driving Record: A pristine driving record can lead to more affordable premiums, while accidents and violations may increase rates due to higher risk.
• Age and Experience: Younger, less experienced drivers often face higher rates, reflecting the increased risk of accidents associated with new drivers.
• Credit History: Insurers consider credit scores as indicators of reliability, where a higher credit score could result in lower premiums.
• Vehicle Type: A car's model, age and safety features can affect insurance costs. High-performance or luxury vehicles typically cost more to insure.
• Location Within New Jersey: Rates can vary by ZIP code, with urban areas seeing higher rates due to increased risks of theft, vandalism and traffic accidents.
• Coverage Level: Opting for more than the state minimum coverage can increase rates, but this can offer better protection in the event of an accident.
• Collision Insurance: Adding collision insurance to your policy covers costs of damage to your car from an accident, impacting your insurance rate depending on the deductible and coverage limits chosen.
• Comprehensive Insurance: Including comprehensive insurance covers non-collision-related incidents, which can raise your premium but provides broader protection against various perils.
• Gender: Although some states prohibit gender-based pricing, it can still influence rates in New Jersey, with young men often paying more due to statistical accident rates.
• Marital Status: Married individuals may see lower premiums because insurers view them as less risky than single drivers.

Compare car insurance quotes to find a policy that matches your driving needs and fits your budget. You could miss potential savings by not exploring your options.

To secure affordable car insurance in New Jersey, compare rates, raise your deductible and take advantage of all applicable discounts to reduce premiums.

Get answers about what impacts the average cost of car insurance in New Jersey and how to find affordable rates.