The Cheapest Car Insurance in New Jersey for 2022
MoneyGeek analyzed quotes from car insurance companies in New Jersey to find the best rates for various driver profiles. We found that GEICO offers the cheapest minimum coverage policy for the average driver in the state, at an average annual cost of $578, and that you could save roughly $1,469 by shopping around.
The most affordable option can change depending on the driver’s profile and needs. For example, New Jersey Manufacturers is the best option for New Jersey drivers with a bad credit score or a DUI on their record.
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The Cheapest Car Insurance in New Jersey
If you’re looking for more local recommendations and rates, we also broke down the cheapest car insurance companies in New Jersey by city. We also selected the best car insurance providers in New Jersey if you’re looking to strike a balance between service quality and cost.
Why Trust MoneyGeek? New Jersey car insurance rates in this study are based on our analysis of data and information from the New Jersey Department of Insurance and Quadrant Information Services.
These rates were updated in August 2022 to reflect how car insurance rates in New Jersey have changed up to this month.
Cheapest Minimum Liability Car Insurance in New Jersey
Some New Jersey drivers may choose a minimum liability coverage policy to meet New Jersey’s car insurance requirements. It covers the other party’s expenses/damages to policy limits in an at-fault accident but not your costs.
On average, the cheapest car insurance companies in New Jersey for minimum coverage are:
- GEICO: $578 per year
- New Jersey Manufacturers: $891 per year
The most expensive car insurance company for minimum coverage in New Jersey is Mercury, costing around $1,630 per year.
CHEAPEST MINIMUM CAR INSURANCE IN NEW JERSEY
These prices are only estimates based on rates for an average New Jersey driver and should not be used to compare insurance prices.
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Cheapest Full Coverage Car Insurance in New Jersey
A full coverage policy includes comprehensive and collision insurance, often with higher liability limits than minimum coverage, and can safeguard you against road accidents and other damage-causing incidents in New Jersey. Its rate is higher than the cost of minimum coverage, but it protects against the expenses of repairing damages to your car, not just the other driver’s vehicle.
On average, the most affordable full coverage car insurance providers in New Jersey are:
- GEICO: $1,199 per year
- New Jersey Manufacturers: $1,578 per year
Esurance is the most expensive company for full coverage in New Jersey, with an average annual cost of $2,668.
CHEAPEST FULL COVERAGE CAR INSURANCE IN NEW JERSEY
Please remember that your prices will be different than these examples. The rates are for a policy with comprehensive and collision insurance, along with $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.
How to Compare Cheap New Jersey Car Insurance Quotes Online
Most insurance providers offer an easy-to-use online quote tool that gives reasonably accurate prices. You should ideally identify the coverage amount you need so you can compare insurers with consistent limits. For example, if you get a quote for $50,000 in bodily liability insurance per accident from one carrier, you should ensure to use the same figure to get rates from another company.
MoneyGeek’s car insurance calculator can give you a quote for an average driver without entering any personal information. To get a personalized quote, you do need to include more information. The three cheapest companies on average in New Jersey are GEICO, New Jersey Manufacturers and Allstate, and you can start by getting quotes from these providers.
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Cheapest Car Insurance in New Jersey for Young Drivers
Young drivers are much less experienced, so they pay more for car insurance. MoneyGeek’s data shows that a full coverage policy in New Jersey for a 16-year-old costs an average of $4,834 annually; a 25-year-old pays $2,010 per year, on average, for the same policy.
MoneyGeek’s analysis shows that GEICO is the most affordable insurance company in New Jersey for young drivers from 16 to 25 years old.
ANNUAL CAR INSURANCE IN NEW JERSEY FOR YOUNG DRIVERS
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- AgeAverage CostCheapest CompanyCompany Cost
Young drivers tend to pay a high rate for car insurance due to their inexperience behind the wheel. And rates vary significantly by age. For example, GEICO, which has the average cheapest car insurance for young adults, charges $2,590 yearly for a 16-year-old driver — around $1,168 more than what a 25-year-old pays.
Teens and young adults in New Jersey should comparison shop for auto insurance to keep costs affordable. Raising the deductible is another way to lower the premium for a young driver. Keep in mind, that means paying more out of pocket in an at-fault accident.
Cheapest Car Insurance in New Jersey for Seniors
In New Jersey, senior drivers often pay less for car insurance than the average 40-year-old driver — a rarity. The average cost for senior drivers is $1,698 per year for full coverage, around $242 less than a middle-aged driver.
On average, the cheapest car insurance providers in New Jersey for senior drivers with full coverage are:
- GEICO: $1,086 per year
- New Jersey Manufacturers: $1,320 per year
GEICO and New Jersey Manufacturers also have the cheapest full coverage policy for an average driver who is 40 years old.
CHEAPEST CAR INSURANCE RATES FOR SENIORS
Senior drivers in New Jersey who want to get the best rate on car insurance should look for companies that offer them discounts, such as for taking a driver safety course, driving infrequently or having a vehicle with safety features.
Taking the time to compare car insurance quotes in New Jersey can also ensure you get the most affordable policy for your needs. For example, if you get a policy with GEICO instead of Mercury, you could save roughly $1,457 annually.
Cheapest Car Insurance for Drivers With Tickets in New Jersey
Drivers need to avoid even minor offenses, such as a speeding ticket, because it can increase their car insurance premium. New Jersey drivers with a speeding ticket on their record pay roughly $2,618 per year, which is around $678 more than a driver with a clean record pays for a full coverage policy.
The car insurance companies that offer the, on average, least expensive full coverage auto insurance with a speeding ticket in New Jersey are:
- GEICO: $1,199 per year
- New Jersey Manufacturers: $1,889 per year
State Farm is the least affordable insurer in New Jersey for drivers with a speeding ticket, charging an average annual rate of $4,027.
AVERAGE CAR INSURANCE RATES WITH A TICKET
The National Highway Traffic Safety Administration reports that 525 crashes in New Jersey were caused by distracted driving. Getting a ticket because of distracted driving or speeding can cause your car insurance rates to increase since distracted drivers are more likely to get into an accident.
Here's what drivers in New Jersey might pay for auto insurance if they get a ticket for speeding or distracted driving.
Getting a ticket for speeding or for distracted driving could cause your auto insurance rates to go up. If you want to avoid rate increases, stay focused on the road and don't speed.
Cheapest Car Insurance for Drivers With a DUI in New Jersey
Car insurance for high-risk drivers, such as those with a severe driving violation like a DUI on their record, is significantly more expensive. In New Jersey, a driver with a DUI pays roughly $3,847 per year for full coverage auto insurance, compared to around $1,940 with a clean record.
The average cheapest car insurance companies in New Jersey for a driver with a DUI and full coverage are:
- New Jersey Manufacturers: $1,889 per year
- Progressive: $2,007 per year
Although GEICO is the cheapest for full coverage in New Jersey for drivers with a clean record, New Jersey Manufacturers and Progressive have lower rates with a DUI.
AVERAGE CAR INSURANCE RATES WITH A DUI
The repercussions of getting a DUI are costly and can range from having to pay for court and legal fees and an alcohol education treatment program. You also face a spike in your auto insurance premium.
One way to save is by comparing quotes, which could be around $7,095 per year in New Jersey if you choose New Jersey Manufacturers for auto insurance instead of State Farm.
Cheapest in New Jersey for Drivers With an At-Fault Accident
An at-fault accident can significantly increase your car insurance rate in New Jersey. MoneyGeek’s data shows that drivers with an at-fault accident on their record pay an average of $3,205 annually for a full coverage auto insurance policy.
On average, the cheapest car insurance companies for people with an at-fault accident and full coverage in New Jersey are:
- New Jersey Manufacturers: $1,578 per year
- GEICO: $1,665 per year
With New Jersey Manufacturers, you may save over $3,000 per year, even with an accident on your record, compared to choosing Esurance, the most expensive in New Jersey, at around $4,639 a year.
CHEAPEST CAR INSURANCE WITH AN AT-FAULT ACCIDENT
Cheapest Car Insurance in New Jersey for Drivers With Bad Credit
Car insurance providers use a driver’s credit score to determine their premium. Therefore, it’s recommended to maintain a good credit score as it can keep your rate lower. In New Jersey, drivers with poor credit pay an average annual cost of $3,955 for full coverage car insurance, compared to $1,940 for the average driver with good credit.
On average, the most affordable auto insurance companies in New Jersey for a driver with bad credit and full coverage are:
- New Jersey Manufacturers: $2,509 per year
- GEICO: $2,677 per year
These two companies also offer the cheapest full coverage for drivers with good credit in New Jersey.
CHEAPEST CAR INSURANCE RATES FOR DRIVERS WITH BAD CREDIT
Experian determined that the average FICO score in New Jersey is 714. It's not uncommon for insurance companies to look at a driver’s credit score when calculating their premium — with bad credit, a driver pays a higher rate. That is because your credit score is a good indicator of your likelihood of filing an insurance claim.
If you want a lower car insurance rate, work on improving your credit score. For now, compare quotes from multiple providers. According to MoneyGeek’s research, using a sample driver with bad credit, you could save around $2,690 per year on your New Jersey car insurance by choosing New Jersey Manufacturers instead of Esurance.
Cheapest Car Insurance in New Jersey for Military Drivers
Although USAA did not offer quotes for MoneyGeek’s sample driver in New Jersey, it is consistently one of the cheapest insurance companies in the country (in 35 of 50 states and Washington, D.C.). USAA exclusively serves active military members, veterans and their families, offering discounts and unique benefits for their needs.
Cheapest Car Insurance in New Jersey by City
In New Jersey, car insurance rates differ between cities. For example, people who live in Newark pay an average of $1,775 every year for a full coverage policy. For the residents of Jersey City, a full coverage auto policy costs an average of $1,573 annually.
Click on your city to discover more information about car insurance rates in the area.
AVERAGE INSURANCE RATE BY CITY IN NEW JERSEY
Car Insurance in New Jersey: What You Need to Know
Below, MoneyGeek details the car insurance requirements in New Jersey.
New Jersey Insurance Requirements
Proof of Insurance in New Jersey
All drivers must show proof of insurance when registering a vehicle in New Jersey or when stopped by a police officer. Proof of insurance can be a paper or electronic New Jersey Insurance Identification Card.
Minimum Liability Insurance Requirements in New Jersey
New Jersey has one of the lowest auto insurance requirements in the country. Drivers can select either a cheap basic policy with very little liability protection or a standard policy that offers more. The state says the basic policy should only be considered “by those with few family responsibilities and few real assets,” but it is available to all drivers.
A basic policy provides the bare minimum auto insurance coverage mandated by New Jersey:
- No bodily injury liability coverage
- $5,000 property damage liability per accident
- $15,000 of PIP per person or accident (up to $250,000 for severe or permanent injuries)
With a standard policy, the coverage includes:
- $15,000 bodily injury liability per person; $30,000 per accident
- $5,000 of property damage liability per accident
- $15,000 of PIP per person or accident (up to $250,000 of PIP for severe or permanent injuries)
Alternatives to Insurance in New Jersey
New Jersey drivers may choose Financial Responsibility Insurance as an alternative to cheap auto insurance.
How Much Coverage Do You Need in New Jersey?
Consumer and insurance experts recommend bodily injury liability coverage of $100,000 per person and $300,000 per accident. You may also consider comprehensive and collision insurance (full coverage policy) and uninsured motorist coverage.
High-Risk Insurance Program in New Jersey
NJPAIP Insurance is the assigned risk pool for drivers unable to obtain coverage in the New Jersey auto insurance voluntary market.
FAQs About Car Insurance in New Jersey
Here are the answers to some commonly asked queries about auto insurance coverage and prices in New Jersey to help consumers make the right choice.
Expert Advice on Finding Cheap Car Insurance in New Jersey
To help you find credible and accurate insight on car insurance in New Jersey, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What are the key factors drivers in New Jersey should look for when searching for the best auto insurance coverage?
- What steps can drivers in New Jersey take to find affordable car insurance?
Assistant Professor of Finance at Drew University
About the Author
- Centers for Disease Control and Prevention. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed December 28, 2020.
- Experian. "2019 Consumer Credit Review." Accessed March 16, 2020.
- Governing: The Future of States and Localities. "Military Active-Duty Personnel, Civilians by State." Accessed March 16, 2020.
- National Association of Insurance Commissioners. "2018 Market Share Reports." Accessed March 16, 2020.
- National Highway Traffic Safety Administration. "2018 Fatality Analysis Reporting System (FARS)." Accessed March 16, 2020.
- National Highway Traffic Safety Administration. "Traffic Safety Facts." Accessed March 16, 2020.
- U.S. Census Bureau. "Veteran Statistics: New Jersey." Accessed March 16, 2020.