How Much Is Car Insurance in New Jersey? (2023)

Several factors influence car insurance costs in New Jersey, including your insurer, coverage level, age, driving history and credit score.

The average cost for a 40-year-old driver with a full coverage policy is $1,492 annually, while a 25-year-old driver will pay an average rate of $1,677. Meanwhile, Plymouth Rock Assurance offers the cheapest average full coverage plan at $895 yearly, while GEICO provides the most affordable minimum coverage plan at $428.

MoneyGeek’s research finds that the average car insurance cost in New Jersey is $1,492 annually or $124 per month. Various factors determine premium amounts, but the most significant influencers include your coverage level and driving history. On average, here is what you will pay in New Jersey depending on your driving record:

• Clean record: $1,492 per year
• Speeding ticket: $1,647 per year
• At-fault accident: $2,284 per year
• DUI: $2,619 per year

The above rates are for a full coverage policy. Minimum coverage rates tend to be lower.

New Jersey’s average auto insurance rates are relatively expensive compared to other states, with yearly full coverage policies costing $438 more than the national average of $1,054. New Jersey’s high auto insurance premiums may be due to the state’s dense population, high traffic density and increased theft rate. Costs in New Jersey may also be higher due to the state’s personal injury protection (PIP) requirement.

Your actual premium may vary depending on your driving profile. For instance, you will pay more if you are a teen driver or have a traffic infraction on your record.

Your actual car insurance costs in New Jersey will likely differ from the average rates since premiums vary considerably between providers. The most affordable auto insurance in New Jersey is from GEICO, costing $428 per year on average for a minimum coverage policy ($928 per year for a full coverage policy). Meanwhile, Hanover offers the most expensive plan for minimum coverage at $1,716 per year on average ($3,434 yearly for full coverage).

You can find cheap full coverage and affordable liability-only insurance by shopping around and comparing offers from multiple companies. Generally, full coverage policies are more costly because they include collision and comprehensive insurance in addition to liability coverage.

Average car insurance rates in New Jersey will depend on your coverage limit. You will usually pay more if you opt for a policy offering more protection. New Jersey’s average rates range between $816 for a liability-only policy and $1,710 for full coverage insurance with maximum liability limits. This difference in cost indicates how adding collision and comprehensive insurance to your policy can dramatically increase your annual expenses. However, you can save money on a full coverage insurance policy by choosing a higher deductible.

A minimum coverage policy often has the lowest premium since it only meets New Jersey’s minimum car insurance requirements and lacks collision and comprehensive coverage. However, costs for this coverage level are likely higher in New Jersey than in other states because of its personal injury protection requirement.

Insurance providers offer auto insurance coverages with higher limits, often written in a shortened format, such as 50/100/50 or 100/300/100. For instance, a policy with 100/300/100 includes the following coverage:

• $100,000 bodily injury protection per person
• $300,000 bodily injury coverage per accident
• $100,000 property damage protection per accident

If you need full coverage car insurance, the maximum liability limit you can purchase through most companies is 300/500/300. One significant advantage of full coverage auto insurance is that your insurer will cover your car’s damages in an accident.

Your age partly influences how much you pay for auto insurance from any provider. Typically, auto insurance premiums for new drivers or young drivers are higher since these drivers are riskier to insure.

Here is how much full coverage car insurance typically costs in New Jersey for each age group:

• 22–29: $1,677 per year
• 30–59: $1,492 per year
• 60+: $1,452 per year

Although rates are higher for individuals in their 20s, costs usually don’t change much between 30 and 59 but may decrease slightly after age 60. However, drivers aged 30 and above without experience on the road may pay premiums similar to drivers in their 20s.

Car insurance costs more for teen drivers than for other age groups. In New Jersey, the average yearly premium for a 16-year-old male driver on a family policy is $4,683. The same driver will pay $8,072 on an individual plan with the same coverage limits.

As teens get older, they gain more experience, resulting in a decrease in premiums. You will pay $3,612 per year for a 19-year-old and $2,841 for a 22-year-old on a family plan in New Jersey.

Rates also change drastically in most states based on the driver’s gender. A 16-year-old female in New Jersey will pay an average of $4,028 for a full coverage policy, about $655 less than a male driver. Parents can secure the cheapest auto insurance in New Jersey for teens by comparing rates from multiple providers.

If you have a new car, you will pay an average of $1,571 for insurance in New Jersey, or about 13% more than the cost of insuring an old car. New cars are more expensive to maintain and feature higher replacement and repair costs. They also have a higher actual cash value (ACV) and are more likely to get stolen, explaining why insurers charge more for newer models.

Insurance companies settle claims based on your vehicle’s ACV which is higher for new cars and lowers over time. Vehicles with a high ACV require the insurer to pay more for any filed claim. As such, those with new cars may consider purchasing a full coverage policy, which includes comprehensive collision coverage to pay for any damage to your vehicle.

Individuals with traffic violations are considered high-risk drivers by insurers and pay higher premiums for car insurance. However, shopping around will help you to find cheap auto insurance in New Jersey with a poor driving record.

MoneyGeek’s analysis shows that drivers pay the following average rates depending on their records:

• Clean record: $1,492 per year
• Speeding ticket: $1,647 per year
• At-fault accident: $2,284 per year
• DUI: $2,619 per year

Generally, your rate increase will depend on the severity of the infraction. In this example, a DUI increases auto insurance costs by an average of $1,127, while a speeding ticket increases rates by only $155. Rates after a violation will differ across insurers, so we recommend comparing quotes from several providers.

In New Jersey, your credit score plays a huge role in determining your auto insurance expenses. With a poor credit score, you will pay an average of $2,551 yearly for a full coverage policy, while drivers with excellent credit only pay $1,083. The following average rates are for drivers grouped by credit ratings:

• Excellent: $1,083 per year
• Good: $1,382 per year
• Fair: $1,759 per year
• Below fair: $2,118 per year
• Poor: $2,551 per year

You can save a lot on your premiums if you maintain a good credit score. Providers penalize those with low credit scores differently, so it’s still possible to find affordable insurance plans in New Jersey for drivers with poor credit by shopping around.

Car insurance costs vary within a state based on your location. For example, drivers in Jersey City pay about $1,873 yearly on a full coverage policy, the least among the cities included in our research. Drivers in Newark pay an average of $2,145 annually, which is more expensive than the state’s average. Higher premiums in any city may be due to higher population density, more traffic and a higher risk of car thefts.

Auto insurance rates vary based on your driving profile and state-specific requirements. We answered the following questions from New Jersey residents interested in learning more about car insurance costs.