Cheapest Car Insurance in New Jersey (October 2024)

GEICO is the cheapest insurance provider for New Jersey residents. NJM and Plymouth Rock Assurance also offer low rates, depending on the driver profile and type.

MoneyGeek ranked the best auto insurance providers in New Jersey for drivers seeking a balance of cost and service quality.

The following companies offer the cheapest average auto insurance premiums for state minimum coverage:

• GEICO: $478 per year
• Plymouth Rock Assurance: $549 per year

Hanover is the most expensive, with its minimum coverage costing about $1,780 annually.

Minimum coverage protects you against damage or injuries you inflict on others. However, damage to your vehicle isn’t included. Full coverage, which includes comprehensive and collision insurance, can cover your car repair cost.

Auto insurance companies with the cheapest full coverage rates in New Jersey are the following:

• GEICO: $1,049 per year
• Plymouth Rock Assurance: $1,110 per year

Hanover provides the most expensive full coverage in New Jersey at $3,565 annually.

Purchasing comprehensive and collision insurance is typically more expensive. In New Jersey, a full coverage policy from GEICO costs $571 more per year than its minimum coverage policy.

Although full coverage is usually the more expensive option, it provides much more financial protection than a minimum coverage policy. A full coverage policy covers damage to your vehicle from collisions or flooding.

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

New Jersey drivers who want to reduce their overall cost can 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're in an accident.

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.

GEICO, Plymouth Rock Assurance and NJM offer the cheapest options for New Jersey teens, young adults and seniors, respectively.

These auto insurance companies provide the most affordable policies for teens on their family policy:

• GEICO: $1,919 per year for female teens and $2,059 per year for male teens
• Travelers: $2,469 per year for female teens and $2,743 per year for male 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. Travelers is New Jersey's cheapest provider for men aged 19 ($1,877 per year).

Adding a teen to your family’s policy is significantly less expensive than purchasing an individual policy. Without parental or a guardian's consent to co-sign, most teens under 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.

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.

Auto insurance companies that provide the cheapest full coverage rates for New Jerseyans in their 20s are:

• Plymouth Rock Assurance: $1,211 per year
• GEICO: $1,258 per year

With policies that cost $4,197 annually, Hanover offers the most expensive full coverage policies in the Garden State.

Drivers in their 20s typically pay higher premiums than middle-aged drivers due to higher accident frequency and a greater risk of traffic violations. Young drivers pay roughly $241 more than middle-aged drivers.

Senior drivers in New Jersey may get the cheapest full coverage policies from the following insurers:

• NJM: $977 per year
• GEICO: $1,043 per year

Hanover offers the most expensive premium to senior drivers aged 60 and over, costing an average of $3,349 annually.

Senior drivers pay $50 less for a full coverage policy than middle-aged drivers. Auto insurance premiums are more expensive for drivers in their 70s and 80s.

Senior drivers in New Jersey can take advantage of discounts from providers like Allstate, GEICO, NJM and Mercury. One way to choose the cheapest provider is to weigh different insurer preferences.

In New Jersey, drivers with speeding tickets can get the cheapest insurance from GEICO. NJM offers the lowest rates for those with an at-fault accident, while Plymouth Rock Assurance is the most affordable for those with DUIs. Traffic violations will raise your insurance rate, but you can reduce it over time by taking state-approved courses and driving safely.

Also, GEICO is the most cost-effective option for sports car owners. NJM is the least expensive for drivers with poor credit.

For drivers in New Jersey with a speeding ticket, the following companies offer the most affordable policies:

• GEICO: $1,059 per year
• Plymouth Rock Assurance: $1,257 per year

Hanover offers the highest annual premium at $3,565 per year.

New Jersey drivers with a speeding ticket pay an average of $193 more for car insurance than those with a clean driving history.

The following auto insurance companies offer the cheapest rates to drivers after an at-fault accident:

• NJM: $1,149 per year
• Plymouth Rock Assurance: $1,444 per year

The most expensive provider is Foremost, with policies starting at $5,781 per year.

New Jersey auto insurance quotes can be $1,016 more expensive for drivers with an at-fault accident on their record.

Drivers with a DUI on their record may get the cheapest policies from the following providers:

• Plymouth Rock Assurance: $1,257 per year
• NJM: $1,311 per year

State Farm offers the most expensive estimates for drivers with DUI, costing roughly $8,988 per year.

Drivers in New Jersey with a DUI pay around $1,541 more yearly than those with a clean driving record.

The cheapest car insurance companies in New Jersey for drivers with poor credit are:

• NJM: $1,893 per year
• Amica Mutual: $2,289 per year

With Hanover, policyholders with poor credit pay the highest premium, roughly $9,553 per year, for a full coverage policy.

In New Jersey, drivers with good credit pay approximately $1,606 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 score is a solid way to secure a cheaper premium. You can also compare insurer’s rates or maximize standard discounts to find the most affordable policy.

The cheapest auto insurance companies in New Jersey for sports car drivers are:

• GEICO: $1,131 per year
• Travelers: $1,450 per year

Foremost charges the most expensive premiums at around $2,634 per year.

Insurance for sports vehicles can be more expensive because repairs and replacement parts cost more. But in New Jersey, it’s $36 less costly to insure a sports car than a Toyota Camry LE.

MoneyGeek used a Ford Mustang as its sample sports car in this study, but costs may differ depending on your vehicle type. Sports, electric and luxury cars typically cost more to insure. However, this may not apply to all states.

GEICO is the cheapest insurance company that offers full coverage for military members and veterans in New Jersey, with an average annual premium of $1,049.

USAA is also available to military personnel, veterans, and their qualifying family members across the country.

Where you live in New Jersey, down to your ZIP code, affects your auto insurance costs. High-risk areas with more crime typically have higher premiums.

In Jersey City, GEICO offers the cheapest rate at $1,219 annually. Elizabeth is the second most affordable, with Plymouth Rock Assurance averaging $1,457 annually.

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 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 2024, 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.

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 both comprehensive and collision insurance, offering more financial protection. Collision insurance covers damage from crashes with objects like trees, walls or fences. Comprehensive insurance covers non-collision events like natural disasters, fire, theft, vandalism and windshield damage.

If you own a valuable car, we encourage purchasing full coverage, even if it isn’t required.

In New Jersey, there's no alternative to car insurance, but drivers can opt for a basic policy with limited coverage. A basic policy typically includes the following:

• $5,000 property damage liability per accident
• $15,000 personal injury protection per person or 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 recommends purchasing the maximum coverage amount within your budget to avoid paying high out-of-pocket costs if you get into an accident.

We answered common questions to help you better understand auto insurance in New Jersey.