GEICO is the cheapest insurance provider for residents of New Jersey. NJM and Plymouth Rock Assurance also offer low rates, depending on the profile and type of driver.
The best auto insurance providers in New Jersey balance cost and customer service quality.
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Cheapest Minimum Liability Car Insurance in New Jersey (November 2023)
The following carriers offer the cheapest average auto insurance premiums, according to the state minimum requirements:
- GEICO: $478 per year
- Plymouth Rock: $502 per year
MoneyGeek’s research revealed that Hanover is the priciest provider in New Jersey, with its minimum coverage policy costing roughly $1,780 per year.
With minimum coverage, you are protected against damages or injuries you inflict on others. Damage to your own vehicle, however, isn’t included. Full coverage, which includes comprehensive and collision coverage, can cover the cost to repair your car.
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Cheapest Full Coverage Car Insurance in New Jersey (November 2023)
On average, auto insurance companies with the cheapest full coverage rates in the Garden State are the following:
- NJM: $940 per year
- Plymouth Rock: $977 per year
Hanover provides the most expensive full coverage quotes in the Garden State at $3,565 each year.
Purchasing comprehensive and collision insurance is typically more expensive. Plymouth Rock's full coverage policy costs $475 more per year than its minimum coverage policy.
Although full coverage is usually the more expensive option, it provides a much more robust level of financial protection compared to a minimum coverage policy. Damages to your vehicle from collisions or flooding are covered with a full coverage policy.
The amount of car insurance you need significantly affects the cost of your annual premium. MoneyGeek obtained quotes from insurers using a sample full coverage policy with the following liability limits:
- $100,000 bodily injury per person
- $300,000 bodily injury per accident
- $100,000 property damage per accident
Drivers in New Jersey who want to reduce their overall cost and select a lower liability limit, drop comprehensive and collision coverage or increase their deductible. Note that these cost-saving practices may be riskier if you find yourself in an accident.
How to Compare Cheap New Jersey Car Insurance Quotes Online
Although many insurance providers have online quote tools, it may take up to 15 minutes to input all the required personal information. When you’re comparing rates for multiple insurers, this process can take time.
MoneyGeek’s auto insurance calculator only requires a few personal details to quickly generate your estimated auto insurance quote. Simply input your driving record, gender and age to receive a personalized quote. Our tool serves as a starting point for New Jersey drivers looking for the cheapest auto insurance rates.
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Cheapest Car Insurance in New Jersey by Age (November 2023)
Age is one of the biggest factors affecting car insurance rates in New Hampshire. MoneyGeek found that GEICO, Plymouth Rock or NJM offer the cheapest options, depending on what age group you and your family belong to.
Cheapest Car Insurance in New Jersey for Teens and Their Families (November 2023)
These auto insurance companies provide the most affordable policies for teens on their family policy:
- GEICO: $2,059 per year for male teens and $1,919 per year for female teens
- Travelers: $2,743 per year for male teens and $2,469 per year for female teens
Foremost has the priciest quotes for teens, costing $4,635 per year for a female teen and $5,186 per year for a male teen. Both rates are for a 16-year-old on their parent’s policy.
With teens' car insurance rates decreasing with age, 19-year-old drivers can expect to get the lowest rates. New Jersey's cheapest provider for 19-year-old males is Travelers ($1,877).
Adding a teen to your family’s policy is significantly less expensive than purchasing an individual policy for them, and without parental or a guardian's consent to co-sign, most teens under the age of 18 cannot legally get their own auto policy. Cost-wise, for example, adding your son to your family policy instead of purchasing an individual policy could save an average of $2,854 per year.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens because teen boys have a higher incidence of at-fault accidents and moving violations than teen girls. This rate difference is not as notable when drivers reach their 20s and beyond. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
To reduce your car insurance rate as a young driver, you can opt for an insurer that offers discounts. Companies like Allstate, Progressive, State Farm and Travelers provide discounts for students who live away from home. These insurers, in addition to GEICO, also offer good student discounts.
Cheapest Car Insurance in New Jersey for Young Adults (November 2023)
Auto insurance companies that provide the cheapest full coverage rates for New Jerseyans in their 20s are:
- Plymouth Rock: $1,062 per year
- NJM: $1,202 per year
With policies that cost $4,197 annually, Hanover offers the most expensive policies for full coverage in the Garden State.
Drivers in their 20s typically pay higher premiums compared with middle-aged drivers due to higher accident frequency and a greater incidence of moving violations. MoneyGeek’s research found that young drivers might pay roughly $122 more for the cheapest coverage.
Cheapest Car Insurance in New Jersey for Seniors (November 2023)
Senior drivers in New Jersey may obtain the cheapest full coverage policies from the following insurers:
- NJM: $824 per year
- Plymouth Rock: $972 per year
Hanover offers the most expensive premium to senior drivers aged 60+, costing an average of $3,349 per year.
Auto insurance premiums tend to be more expensive for drivers in their 70s and 80s. Compared with senior drivers, middle-aged drivers in the state pay $116 more per year.
Senior drivers in New Jersey might be able to obtain a discount with providers like Allstate, GEICO, NJM and Mercury. Weighing different insurer preferences is one way to choose the cheapest provider.
Cheapest Car Insurance for Higher Risk Drivers (November 2023)
Drivers with a violation on their record usually pay more for auto insurance. In New Jersey, drivers with a speeding ticket or DUI on their driving record will get the cheapest insurance from Plymouth Rock. Drivers with an at-fault accident, as well as people with poor credit, will find the most affordable insurance from NJM.
Sports car owners will find GEICO cheapest.
Cheapest Car Insurance in New Jersey After a Ticket
For drivers in New Jersey with a speeding ticket, the following companies offer the most affordable policies:
- GEICO: $1,059 per year
- Plymouth Rock: $1,104 per year
Hanover offers the highest annual premium at $3,565 per year.
Our research shows that drivers in New Jersey with a speeding ticket will pay an average of $148 more for car insurance than those with a clean driving history.
Cheapest Car Insurance in New Jersey After an Accident
The following auto insurance companies offer the cheapest rates to drivers after an at-fault accident:
- NJM: $968 per year
- Plymouth Rock: $1,269 per year
The most expensive provider is Hanover with policies that start at $5,072 per year.
New Jersey auto insurance quotes can be $825 more expensive for drivers who are found at fault following an accident.
Cheapest Car Insurance in New Jersey After a DUI
Those with a DUI on their record may get the cheapest policies from the following providers:
- Plymouth Rock: $1,104 per year
- NJM: $1,105 per year
State Farm offers the most expensive estimates for drivers with DUI — a policy can cost roughly $6,833 annually.
Drivers in New Jersey with a DUI will pay approximately $1,294 more per year than those with a clean driving record.
Cheapest Car Insurance in New Jersey for Drivers With Poor Credit (November 2023)
The cheapest car insurance companies in New Jersey for drivers with poor credit are:
- NJM: $1,603 per year
- Amica Mutual: $2,052 per year
With Hanover, policyholders with poor credit will pay the most, at approximately $9,553 per year for a full coverage policy.
In New Jersey, drivers with good credit will pay approximately $1,406 less per year for car insurance than those with poor credit.
Drivers with poor credit tend to pay more expensive rates since they’re more likely to file a claim. Although some states don’t permit insurers to consider a driver’s credit history when assessing rates, New Jersey allows this.
Improving your credit standing is a solid way to secure a cheaper premium. You can also compare insurer’s rates or maximize common discounts to obtain the cheapest policy.
Cheapest Car Insurance in New Jersey for Sports Cars (November 2023)
The cheapest auto insurance companies in New Jersey for sports car drivers are:
- GEICO: $1,131 per year
- Travelers: $1,147 per year
Foremost charges the most expensive premiums at around $2,199 per year. Car insurance for drivers of sports vehicles can be more expensive since repairs and replacement parts tend to cost more.
In New Jersey, it’s $141 more expensive to insure a Toyota Camry LE than a sports car.
Although MoneyGeek used a Ford Mustang as a sample car, the annual premium cost generally varies per car model. Sports, electric and luxury vehicles tend to cost more to insure than other types of cars, but otherwise, your car’s model shouldn’t significantly impact your rates.
Cheapest Car Insurance in New Jersey for Military Drivers (November 2023)
NJM is the cheapest insurance company that offers full coverage for military members and veterans. Its average annual premium costs $940.
USAA is also available to military personnel in New Jersey and across the U.S. And you may consider getting a policy with GEICO to take advantage of its military discounts.
NJM Insurance Co
- $940 per year
NJM offers rental car and/or travel reimbursement, roadside assistance, accident forgiveness, Original Equipment Manufacturer (OEM) coverage, new car replacement and glass deductible modification as endorsements to its policyholders.
Cheapest Car Insurance in New Jersey by City
The city in which you live in New Jersey, and even your ZIP code, can have a significant impact on the cost of your auto insurance. Those who live in high-risk neighborhoods, such as ones with increased crime rates, tend to pay more for auto insurance.
Jersey City residents with an NJM policy pay an average of $1,158 per year, making it the cheapest city in New Jersey for car insurance. Elizabeth is the second-cheapest city, with an average cost of $1,295 per year for a Plymouth Rock Assurance policy.
Car Insurance in New Jersey: What You Need to Know
All New Jersey drivers must have the minimum coverage which includes bodily injury liability, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage. Understanding how much coverage you need ensures you’re sufficiently protected.
New Jersey Car Insurance Requirements
New Jersey law requires that all drivers have car insurance, either a basic policy or a standard policy. MoneyGeek’s rates were based on the standard policy requirement for 2023, which included bodily injury liability, property damage liability, personal injury protection and uninsured/underinsured motorist coverage. Although purchasing basic coverage is less expensive, you’ll pay more out of pocket if you get in an accident and be financially at risk from an at-fault accident.
To avoid paying high costs if you get in an accident, you can purchase more liability coverage for added protection.
Bodily Injury Liability
If you’re found at fault in an accident, this will cover any medical expenses for those injured, up to $25,000 per person or $50,000 per accident. The minimum coverage limit increased to $25,000 per person and $50,000 per accident for policies issued or renewed on or after January 1, 2023.
Property Damage Liability
This covers the cost of repairs to another car or property if you’re at fault in an accident with minimum coverage. Since the state's limit is $25,000, drivers who exceed this amount must pay out of pocket. The state’s limit increased to $25,000 in January 2023.
Personal Injury Protection
New Jersey mandates drivers to purchase personal injury protection (PIP), which covers medical, loss of income or funeral costs after a car accident. Regardless of who caused the accident, policyholders are covered up to $15,000. This coverage limit remains the same in 2023.
Uninsured/Underinsured Motorist Coverage
This mandatory coverage in New Jersey will pay for your medical expenses if you get into an accident with an uninsured or underinsured driver or experience a hit and run. The coverage limit increased to $25,000 for policies issued or renewed on or after January 1, 2023.
MoneyGeek recommends drivers increase their limits to $100,000 in bodily injury liability insurance per person, $300,000 in bodily injury liability insurance and $100,000 in property damage insurance per accident. Doing so offers extensive financial protection in the event of an at-fault accident.
Full coverage includes comprehensive and collision insurance, which provides a much greater level of financial protection. With collision insurance, damages to your car that involve collisions with trees, walls, fences or other objects are covered. Comprehensive insurance pays for non-collision incidents like natural disasters, fire, theft, vandalism and a cracked windshield on your car.
If you own a valuable car, we encourage purchasing full coverage, even if it isn’t required.
Car Insurance Alternatives in New Jersey
Though no alternative to car insurance in New Jersey is available, drivers may be able to purchase a basic car insurance policy that includes less coverage. A basic policy includes the following coverages and limits:
- $5,000 property damage liability per accident
- $15,000 personal injury protection per person or per accident
Bodily injury liability, collision and comprehensive coverage are available as optional add-ons with some insurers. Though a basic plan may cost less, you won’t be covered for costs if you’re found at fault in an accident.
MoneyGeek always recommends purchasing the maximum amount of coverage that fits within your budget, to avoid paying high out-of-pocket costs if you get into an accident.
FAQs About Car Insurance in New Jersey
Those comparison shopping for car insurance may have questions about affordability and quality between providers. MoneyGeek answered the most commonly asked questions to help you gain a better grasp of auto insurance in New Jersey.
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?
Principal at WJL Financial Advisors, LLC
Assistant Professor of Finance at Drew University
About Mark Fitzpatrick
- State of New Jersey Department of Banking & Insurance. "Get Legal with New Jersey’s Basic Auto Insurance Policy." Accessed December 16, 2022.