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


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Drivers in New Jersey typically spend an average of $1,908 yearly for full coverage car insurance. Choosing minimum coverage brings the annual cost down to about $1,096.

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.

Why Trust MoneyGeek? We analyzed data and quotes from Quadrant Information Services and the New Jersey Department of Banking and Insurance to get the most precise average costs for a variety of New Jersey drivers.

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These rates reflect the average cost of car insurance in New Jersey as of October 2024.

25,584Quotes Analyzed
 
12Companies Compared
 
53ZIP Codes

Average Car Insurance Costs in New Jersey

New Jersey's average full coverage car insurance cost is $1,908 annually or $159 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.

100/300/100 Full Cov. w/$1,000 Ded.$1,908$159
100/300/100 Liability Only$1,375$115
State Minimum Liability Only$1,096$91

Why Are Car Insurance Rates Moderate in New Jersey?

The average annual premium for state minimum coverage in New Jersey has been updated to $1,096, a slight increase from the previously listed $1,052. Compared to the national average of approximately $619 annually, New Jersey's rates are indeed higher. For full coverage car insurance policies in New Jersey, premiums are now at an average of $1,908 per year. This represents an increase from the earlier figure of $1,827. Additionally, the national average for the same full coverage is $1,337 per year, indicating that New Jersey's insurance costs are notably more expensive.

Factors such as New Jersey's high population density, urbanization, high living costs and stringent legal requirements continue to contribute to the state's higher insurance premiums. These elements combined can increase the likelihood of traffic accidents, thefts and vandalism, as well as the overall costs associated with insurance in New Jersey. The state's required personal injury protection also significantly affects the cost of car insurance.

Average Car Insurance Costs in New Jersey by Company

Car insurance premiums can significantly vary per company, even within the same state. In New Jersey, GEICO offers the lowest average annual full coverage premium at $1,049, 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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age Group:
Age Group:30-59
GEICO$1,049$87
Plymouth Rock Assurance$1,110$92
NJM$1,115$93
Travelers$1,568$131
Allstate$1,739$145
Progressive$1,756$146
New Jersey Skylands Insurance$1,882$157
Amica Mutual$1,983$165
Mercury$2,223$185
State Farm$2,282$190
Foremost$2,624$219
Hanover$3,565$297
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Average Car Insurance Costs in New Jersey by Coverage Level

The cost of car insurance in New Jersey is also influenced by the level of coverage you choose. Minimum coverage is more affordable at around $91 per month, whereas full coverage with a $1,000 deductible typically costs about $159 per month. Despite being pricier, it is recommended to opt for full coverage, as it provides more comprehensive protection for a variety of incidents. Learn more about full coverage insurance benefits and costs to make an informed decision.

Adding comprehensive and collision coverage will indeed increase your premium, but selecting higher deductibles can offset some of that expense. The deductible is the amount you pay out of pocket for each comprehensive and collision claim, thus balancing your coverage needs with what you can afford is key.

State Minimum Liability Only$1,096$91
100/300/100 Liability Only$1,375$115
300/500/300 Liability Only$1,485$124
State Minimum Liability w/ Full Cov. w/$1,500 Ded.$1,516$126
State Minimum Liability w/ Full Cov. w/$1,000 Ded.$1,621$135
State Minimum Liability w/ Full Cov. w/$500 Ded.$1,753$146
100/300/100 Full Cov. w/$1,500 Ded.$1,803$150
100/300/100 Full Cov. w/$1,000 Ded.$1,908$159
300/500/300 Full Cov. w/$1,500 Ded.$1,958$163
100/300/1000,000 - 500 comp_coll$2,041$170
300/500/300 Full Cov. w/$1,000 Ded$2,063$172
300/500/300 Full Cov. w/$500 Ded.$2,196$183

Minimum Car Insurance Requirements in New Jersey

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.

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    $25,000 for bodily injury liability per person

    This amount covers costs related to injuries to one person in an accident you're found liable for in New Jersey.

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    $50,000 for bodily injury liability per accident

    This coverage applies to all persons injured in a single accident, with a cap for the entire accident in New Jersey.

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    $25,000 for property damage liability per accident

    This amount covers the expenses for damage to another person's property for which you are responsible in an accident.

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    $15,000 personal injury protection (PIP) per person

    PIP coverage covers medical expenses, lost wages and other costs, regardless of who is at fault in an accident.

Average Car Insurance Costs in New Jersey by City

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.

Elizabeth$2,073$1,133
Jersey City$1,873$1,012
Newark$2,145$1,154
Paterson$2,125$1,164

Average Car Insurance Costs in New Jersey by Age

Age significantly impacts car insurance costs in New Jersey. Younger drivers, specifically in the 22 to 29 age bracket, pay the most — on average, $2,149 annually or $179 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 $1,908 per year or $159 monthly. Seniors aged 60 and over benefit from the lowest rates, averaging $1,858 annually or $155 monthly, reflecting the trend of reduced premiums as drivers gain experience and pose a lower risk.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
22-29$2,149$179
30-59$1,908$159
60 +$1,858$155

Average Car Insurance Costs in New Jersey for Teens

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. Due to legal restrictions, a parent or guardian is typically required to co-sign.

Data filtered by:Results filtered by:
Gender:
Gender:Male
16$4,683$8,072
17$4,579$6,933
18$4,067$5,846
19$3,612$3,919
20$3,727$3,534
21$2,988$2,844
22$2,841$2,669
23$2,934$2,441
24$2,786$2,317
25$2,436$2,024

Average Car Insurance Costs in New Jersey for New Cars

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age Group:
Age Group:30-59
2012 Vehicle$1,391$116
2022 Vehicle$1,571$131
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ACTUAL CASH VALUE

The actual cash value (ACV) of your vehicle is the amount your insurance company determines it was worth just before the damage occurred. In the event of a comprehensive or collision claim, the insurer uses the ACV to calculate the maximum payout for your vehicle's repair or replacement minus any deductible. This ensures that the claim reflects the fair market value of the car.

Average Car Insurance Costs in New Jersey by Driving Record

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: $2,101 per year; $175 per month
  • With an at-fault accident: $2,924 per year; $244 per month
  • With a DWI: $3,449 per year; $287 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 DWI 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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Age Group:
Age Group:30-59
Clean$1,908$159
Ticket$2,101$175
At-fault Accident$2,924$244
DUI$3,449$287

Average Car Insurance Costs in New Jersey by Credit Score

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
Age Group:
Age Group:30-59
Excellent$1,083$90
Good$1,382$115
Fair$1,759$147
Below Fair$2,118$176
Poor$2,551$213
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Factors Affecting Car Insurance Rates in New Jersey

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.

How to Save Money on Car Insurance in New Jersey

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

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    Compare Multiple Quotes

    Researching multiple insurance providers can help you find the cheapest car insurance in New Jersey, potentially saving you hundreds of dollars annually.

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    Maintain a Clean Driving Record

    A clean driving record without violations or accidents can significantly lower insurance premiums because insurers view you as a lower risk.

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    Choose a Higher Deductible

    Opting for a higher deductible can reduce your monthly premiums, but ensure you can afford the deductible if you need to make a claim.

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    Bundle Insurance Policies

    Bundling car insurance with other policies like homeowners or renters insurance can lead to discounts and more affordable rates.

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    Ask for Discounts

    Inquire about discounts for things like safe driving, being a good student or having anti-theft devices because these can make your policy more affordable.

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    Consider the Car You Drive

    Driving a car that's less expensive to insure, such as one with good safety ratings, can lead to lower insurance costs in New Jersey.

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    Review Your Coverage Annually

    Regularly reviewing your policy and coverage needs can ensure you're not overpaying for insurance you don't need.

FAQ: Car Insurance Costs in New Jersey

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

What are the minimum car insurance requirements in New Jersey?
What is the average cost of full coverage and minimum coverage auto insurance in New Jersey?
What is the average cost of car insurance for a 22-year-old in New Jersey?
What are the cheapest car insurance companies in New Jersey?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.