The average cost of car insurance in New Jersey is $1,674 per year, somewhat higher than the national average of $1,424. The state ranks as 43 in terms of cheapest auto insurance, with Maine being number one. The averages are arrived at by researching a number of companies with a sample driver profile and adding variables such as coverage level, age, driving history, credit score and location.
How Much Is Car Insurance in New Jersey? Rates by Coverage Level, Age, Driving History and Location
In New Jersey, car insurance rates average $1,674 per year for a 40-year-old male driver with a good driving record and a full coverage policy. For the same driver, a minimum coverage policy would cost an average of $1,018 per year.
Auto insurance premiums can change depending on personal factors, such as your age. For instance, a 16-year-old would pay approximately $4,172 yearly for a full coverage policy, some $2,498 more than the 40-year-old male driver.
To help you see how rates can change, MoneyGeek examined the average cost of auto insurance in New Jersey, based on a variety of factors.
Average Cost of Car Insurance in New Jersey: Summary
Several factors can affect the average cost of auto insurance in New Jersey. MoneyGeek examined those that have the most influence: age, driving record, credit score and coverage level. Your age is the biggest factor that can affect the cost, followed by a poor credit score.
Click below to see how rates can change based on your unique driver’s profile.
Average Costs of Car Insurance in New Jersey
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Why Are Car Insurance Rates Moderately-Priced in New Jersey?
Compared to auto insurance rates in other states, the average rate for auto insurance in New Jersey is neither cheap nor expensive.
This is because the state ranks second in terms of both highway traffic density and urban share of the population nationwide, which conditions contribute to a slightly higher cost in auto insurance. It makes sense: Densely populated urban areas with many people on the road can lead to more congestion and accidents.
What prevents auto insurance costs from skyrocketing is New Jersey’s rate of uninsured drivers and vehicle theft. The state has the lowest rate of uninsured drivers across the nation at 3%, and it also ranks in the bottom ten for vehicle theft.
Average Cost of Car Insurance in New Jersey: Full Coverage vs. Minimum Coverage
The average cost of full coverage car insurance in New Jersey is $1,674 per year, with 100/300/100 in liability limits. That means $100,000 for bodily injury per person, $300,000 for bodily injury per accident, and $100,000 for property damage. The cost of that type of coverage is approximately $656 more per year than a policy that provides state-mandated minimum coverage only.
Keep in mind that New Jersey car insurance rates vary based on your level of coverage. If you want to increase your limits or get additional coverage, expect to pay more.
Average Cost of Car Insurance in New Jersey by Coverage Level
Minimum vs. Full Coverage Car Insurance Costs in New Jersey - By Company
The insurance provider you chose contributes to the cost of your auto insurance policy, as some insurers charge more than others. Case in point: The cheapest liability-only auto insurance policy that follows state minimums is $499 per year from GEICO, while Mercury offers a much higher rate at $1,407 per year.
If you’re looking for affordable full coverage insurance in New Jersey, GEICO has the lowest offer in the state at about $1,035 per year. On the other hand, Esurance offers the most expensive full coverage policy at $2,302 per year on average.
Average Annual Costs of Car Insurance in New Jersey - By Company
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How Much Is Car Insurance in New Jersey by Age
A driver’s age is one of the major factors that determine the cost of auto insurance. Younger drivers are viewed as inexperienced and have a higher risk of getting into accidents, which can increase their premiums significantly.
Getting added to a parent’s policy can make teen auto insurance more affordable. The average annual cost of a policy for a 16-year-old is $4,172, in contrast to $1,674 for a 40-year-old driver holding the same policy.
In New Jersey, auto insurance rates for first-time drivers are similar to those of teen drivers as both groups are viewed as risky.
Average Costs of Full Coverage Car Insurance in New Jersey - By Age
How Does Driving History Affect Car Insurance Costs in New Jersey?
Having an accident or traffic violation on your record increases your level of risk in the eyes of New Jersey insurance providers, which can raise your premiums. How much your premiums will go up depends on the severity of the violation, but it’s still possible to find cheap auto insurance with a bad driving record.
With a clean driving record, drivers in New Jersey can expect to pay an average of $1,674 per year for auto insurance. Just one speeding ticket can increase this by as much as $585 per year, while getting into an accident and being at-fault can raise your yearly premium by approximately $1,092.
Average Costs of Full Coverage Car Insurance in New Jersey - By Driving History
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- Driving ViolationAnnual Premium
- Safe Driver$1,674
- Speeding Ticket$2,259
- At-Fault Accident$2,766
Credit Scores and the Cost of Car Insurance in New Jersey
One factor that some insurers use to determine auto insurance premiums is your credit score — the higher it is, the less you pay, because you’re seen as financially responsible. For example, drivers in New Jersey with excellent credit pay about $349 per annum less than those with good credit.
On the other hand, a poor credit rating can lead to a jump in premiums. Auto insurance for poor credit holders costs an average of $1,752 more per year than drivers with good credit. It would help to shop around, though, because some insurers do not weigh your credit heavily when determining premiums.
Average Costs of Full Coverage Car Insurance in New Jersey - By Credit Score
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- Credit ScoreAnnual Premium
- Below Fair$2,742
How Much Is Car Insurance in Your City?
The cost of car insurance not only depends on which state you live in but also which city. Different areas within New Jersey have varying degrees of risk. For instance, densely populated cities have a higher chance of accidents, which affects premiums.
In New Jersey, the cheapest city to insure a car in is Jersey City, where the average cost stands at $1,573 per year. In contrast, Newark has the most expensive auto insurance costs at $1,775, approximately 6% higher than the state average of $1,674.
Average Costs of Full Coverage Car Insurance in New Jersey - By City
Frequently Asked Questions About New Jersey Car Insurance Rates
To understand New Jersey auto insurance rates better, MoneyGeek answered a few frequently asked questions.
MoneyGeek worked in collaboration with Quadrant Information Services to collect car insurance quotes across New Jersey insurance providers. A profile of a 40-year-old male driver with a safe driving record was used to get quotes for full coverage and other policies. We considered varying coverage levels in addition to age, driving violations and credit scores. Note that a full coverage policy as defined by MoneyGeek has 100/300/100 in liability limits and comprehensive and collision insurance.
Data was also collected from the following sources:
- The Federal Highway Administration, for highway traffic density data from 2019.
- Insurance Research Council, for 2019 data on uninsured motorists.
- U.S. Census Bureau, for the latest data on the urban share of the population.
- FBI Crime in the United States Report for 2019, for data on motor vehicle theft rates.
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