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The Best Cheap Car Insurance Companies for New Jersey Drivers in 2020 

Most New Jersey drivers will be able to get car insurance quotes from top companies like Liberty Mutual and Hartford Auto Insurance, according to the National Association of Insurance Commissioners.

See how various insurance companies’ approximate monthly premium cost for an average driver in the estimates below. These numbers vary greatly from any individual quote that would pertain to your driving history and situation.

Company
Amount
1. New Jersey Manufacturers
In 2020 New Jersey Manufacturers ranked #1 in New Jersey for the cheapest car insurance on average.
$647
per year
2. GEICO
In 2020 GEICO ranked #2 in New Jersey for the cheapest car insurance on average.
$1,019
per year
3. Progressive
In 2020 Progressive ranked #3 in New Jersey for the cheapest car insurance on average.
$1,396
per year
4. Allstate
In 2020 Allstate ranked #4 in New Jersey for the cheapest car insurance on average.
$1,630
per year
5. GEICO
In 2020 GEICO ranked #5 in New Jersey for the cheapest car insurance on average.
$1,658
per year
6. State Farm
In 2020 State Farm ranked #6 in New Jersey for the cheapest car insurance on average.
$1,704
per year

While estimates give you an idea of which companies to contact for car insurance quotes, make sure to shop around when you’re looking for New Jersey car insurance companies and ask about multi-policy discounts and other discounts for safe driving, long company tenure with the company and more.

The Best Car Insurance Companies in New Jersey for 2020

MoneyGeek developed a unique rating system to help insurance seekers determine which insurance company best serves their needs. Ratings from reputable outlets such as J.D. Power and AM Best were ranked regarding customer satisfaction, affordability, the number of claims and financial stability. Take a look at the top companies listed below.

Expand all Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

New Jersey ManufacturersScore: 97.5
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A+

Financial Stability

3

GEICOScore: 92.5
+

4/5

User Satisfaction

3/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

4

HartfordScore: 87.5
+

4/5

User Satisfaction

3/5

Claims Ratings

4/5

Affordability

A+

Financial Stability

5

State FarmScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

6

TravelersScore: 85
+

2/5

User Satisfaction

5/5

Claims Ratings

2/5

Affordability

A++

Financial Stability

7

ProgressiveScore: 80
+

2/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

8

NationwideScore: 77.5
+

2/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A+

Financial Stability

9

FarmersScore: 75
+

2/5

User Satisfaction

2/5

Claims Ratings

3/5

Affordability

A

Financial Stability

10

CSAAScore: 75
+

2/5

User Satisfaction

2/5

Claims Ratings

3/5

Affordability

A

Financial Stability


According to 2018 data from the National Association of Insurance Commissioners, the top-rated auto insurance companies in New Jersey are Selective Insurance, Chubb Car & Auto Insurance, Samsung Fire & Marine Insurance, Allianz Insurance, Liberty Mutual, Zurich Insurance, Argonaut Insurance Co., The Hartford Auto Insurance, Tokio Marine Group and CNA Insurance Group.

Market Share by Company

Gieco has the greatest market share in New Jersey with 13.10%, followed by Progressive Auto Insurance at 11.60%, Allstate at 10.49% and Palisades at 7.77%. Check out the top insurers in New Jersey listed below.

Company
Market Share
1. GEICO
21.79%
2. New Jersey Manufacturers
13.10%
3. Progressive
11.60%
4. Allstate
10.48%
5. Palisades Group
7.77%
6. State Farm
7.66%
7. Liberty Mutual
6.98%
8. USAA
3.89%
9. Travelers
3.63%
10. Farmers
2.78%

Cheapest Car Insurance for Drivers With a DUI in New Jersey

Getting a DUI will affect the cost of auto insurance. The percentage of adults who reported driving after drinking too much (in the 30 days prior to being surveyed) was 1.5% in New Jersey, according to 2012 CDC data. The financial repercussions of getting a DUI are costly and can range from court and legal fees to alcohol education treatment programs. Your insurance rate will also see a spike in cost in addition to the legal fees. Consider the following auto insurance rates for drivers who receive a DUI in New Jersey. 

Company
Amount
1. New Jersey Manufacturers
In 2020 New Jersey Manufacturers ranked #1 in New Jersey for the cheapest car insurance for dui.
$737
per year
2. Progressive
In 2020 Progressive ranked #2 in New Jersey for the cheapest car insurance for dui.
$1,857
per year
3. GEICO
In 2020 GEICO ranked #3 in New Jersey for the cheapest car insurance for dui.
$2,073
per year
4. Allstate
In 2020 Allstate ranked #4 in New Jersey for the cheapest car insurance for dui.
$2,107
per year
5. GEICO
In 2020 GEICO ranked #5 in New Jersey for the cheapest car insurance for dui.
$2,258
per year
6. State Farm
In 2020 State Farm ranked #6 in New Jersey for the cheapest car insurance for dui.
$4,335
per year

While each insurance company calculates premiums differently, you can expect to pay an additional $40,000 over the course of 13 years in increased auto insurance premiums. Exactly how much your rate increases depends on your insurance company, your location and your driving record. With a DUI you’ll likely pay higher rates for up to a decade.

Cheapest Car Insurance for NJ Speeding or Distracted Driving Tickets

According to the National Highway Traffic Safety Administration’s (NHTSA) 2018 Fatality Analysis Reporting System (FARS), 525 crashes in New Jersey were caused by distracted driving. New Jersey state laws prohibit all handheld device use for drivers, according to the Governors Highway Safety Association.

The following table showcases what drivers in New Jersey can expect to pay for auto insurance after receiving a ticket for speeding or distracted driving.

Company
Amount
1. New Jersey Manufacturers
In 2020 New Jersey Manufacturers ranked #1 in New Jersey for the cheapest car insurance for distracted drivers.
$914
per year
2. GEICO
In 2020 GEICO ranked #2 in New Jersey for the cheapest car insurance for distracted drivers.
$1,112
per year
3. Allstate
In 2020 Allstate ranked #3 in New Jersey for the cheapest car insurance for distracted drivers.
$1,407
per year
4. GEICO
In 2020 GEICO ranked #4 in New Jersey for the cheapest car insurance for distracted drivers.
$1,771
per year
5. Progressive
In 2020 Progressive ranked #5 in New Jersey for the cheapest car insurance for distracted drivers.
$2,038
per year
6. State Farm
In 2020 State Farm ranked #6 in New Jersey for the cheapest car insurance for distracted drivers.
$2,087
per year

Your auto insurance rate is likely to go up if you get a ticket for speeding or for distracted driving. According to the Insurance Information Association, your driving record is taken into account when you secure your auto policy, so being riskier to insure means paying higher premiums. Your insurer can also re-evaluate your rate if you get a moving violation (i.e., a speeding ticket). 

Cheapest Car Insurance Companies in NJ for Drivers With Bad Credit

According to Experian, the average FICO Score in the United States hit a record high of 703 in 2019, which is lower than the New Jersey average FICO Score of 714. Nationwide Insurance uses credit scores to determine premiums as studies show that using a credit score helps companies better predict insurance losses. If you have subprime credit (credit scores below 670), you’ll likely have to shop around to secure affordable car insurance in New Jersey.

Consider the following table for an estimate of New Jersey auto insurance for people with low credit scores.

Company
Amount
1. New Jersey Manufacturers
In 2020 New Jersey Manufacturers ranked #1 in New Jersey for the cheapest car insurance for poor credit history drivers.
$589
per year
2. GEICO
In 2020 GEICO ranked #2 in New Jersey for the cheapest car insurance for poor credit history drivers.
$920
per year
3. Progressive
In 2020 Progressive ranked #3 in New Jersey for the cheapest car insurance for poor credit history drivers.
$1,367
per year
4. State Farm
In 2020 State Farm ranked #4 in New Jersey for the cheapest car insurance for poor credit history drivers.
$1,469
per year
5. Allstate
In 2020 Allstate ranked #5 in New Jersey for the cheapest car insurance for poor credit history drivers.
$1,523
per year
6. GEICO
In 2020 GEICO ranked #6 in New Jersey for the cheapest car insurance for poor credit history drivers.
$1,625
per year

To improve your credit score, check out our guide on how to improve your credit score.

Cheapest Car Insurance Companies in New Jersey for Seniors

When shopping for car insurance, seniors in New Jersey should ask for discounts for completing driver safety courses, discounts for driving infrequently and discounts for choosing a vehicle that has good safety features. There are other options that seniors can consider when it comes to choosing auto insurance.

The following is a general guideline of what seniors in New Jersey can expect to pay when they go looking for the most affordable car insurance.

Company
Amount
1. New Jersey Manufacturers
In 2020 New Jersey Manufacturers ranked #1 in New Jersey for the cheapest car insurance for seniors.
$524
per year
2. GEICO
In 2020 GEICO ranked #2 in New Jersey for the cheapest car insurance for seniors.
$820
per year
3. State Farm
In 2020 State Farm ranked #3 in New Jersey for the cheapest car insurance for seniors.
$1,124
per year
4. Allstate
In 2020 Allstate ranked #4 in New Jersey for the cheapest car insurance for seniors.
$1,433
per year
5. Progressive
In 2020 Progressive ranked #5 in New Jersey for the cheapest car insurance for seniors.
$1,559
per year
6. GEICO
In 2020 GEICO ranked #6 in New Jersey for the cheapest car insurance for seniors.
$1,646
per year

New Jersey does not have special provisions for senior drivers. However, New Jersey’s Motor Vehicle Commission has a Medical Review unit that takes referrals from doctors, police, courts, social workers and family members regarding senior drivers. Doctors must notify the MVC if a patient has a medical condition that causes seizures.

Cheapest Car Insurance for Students

New Jersey Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$2,332 INCREASE

This is a difference of 108%.

The New Jersey Department of Insurance suggests helping your teen comparison shop for insurance, and - if you're adding them to your policy - lower your premium by raising your deductible.

If you're an out-of-state student attending a New Jersey school and you are younger than 21, you must complete New Jersey's mandatory Graduated Driver License (GDL) program requirements. If you're a New Jersey resident attending college in a different state, let your insurance company know if you'll be using the car in another state for more than 30 days a year. Think twice before loaning a car to friends because New Jersey holds the vehicle owner liable for damages if the driver isn't insured or doesnt have enough coverage.

The following table outlines estimates of what parents can expect to pay when adding a young driver to their policy.

Company
Amount
1. New Jersey Manufacturers
In 2020 New Jersey Manufacturers ranked #1 in New Jersey for the cheapest car insurance for students.
$1,164
per year
2. GEICO
In 2020 GEICO ranked #2 in New Jersey for the cheapest car insurance for students.
$2,372
per year
3. GEICO
In 2020 GEICO ranked #3 in New Jersey for the cheapest car insurance for students.
$2,441
per year
4. Progressive
In 2020 Progressive ranked #4 in New Jersey for the cheapest car insurance for students.
$3,303
per year
5. Allstate
In 2020 Allstate ranked #5 in New Jersey for the cheapest car insurance for students.
$3,507
per year
6. State Farm
In 2020 State Farm ranked #6 in New Jersey for the cheapest car insurance for students.
$3,600
per year

Premium Comparison by Student Type

PREMIUM COMPARISON FOR TWO ADULTS + 16-YEAR-OLD

car
Average premium for two 2014

Mustang GTs

$6,901
car
Average premium for two 2008

Town and Country Limiteds

$4,385
Annual benefits of minivans:$2,516 saved

This is 36% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$1,239 DECREASE

This is a savings of 25%.

Potential discounts for teens in New Jersey

Impact on annual premium with good student and defensive driving discounts:

coins
$547 SAVED

New Jersey students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

male
Average premium for a 19-year-old male
car

$4,712 at home

graduation

$3,753 at school

$959 IN SAVINGS

female
Average premium for a 19-year-old female
car

$4,161 at home

graduation

$3,529 at school

$632 IN SAVINGS

Insurance Rate Information for Military Drivers and Veterans

New Jersey has more than 7,000 active-duty military personnel living in the state along with more than 400,000 veterans. Most insurance companies voluntarily offer military discounts both to show appreciation for those who serve and to stay competitive with other insurance companies. Because your vehicle's worth and your driving record are factors in setting your insurance rate, it pays to shop around before buying coverage.

Once you have insurance on the vehicle, you also enjoy special benefits with the New Jersey DMV. If you join the U.S. Armed Forces and already have a valid New Jersey registration, you can get a refund for the remainder of the registration period by writing a letter and submitting a form. Service-disabled or blind veterans can qualify for free registration under certain conditions.

Age savings for New Jersey service members

male
25 years$2,032
50 years$1,502
female
25 years$1,831
50 years$1,498

$530 Saved
$333 Saved

Median auto insurance for service members: $1,684

Who Needs Car Insurance in New Jersey?

All motor vehicle owners in New Jersey must have insurance to legally operate a vehicle on state roads.

Proof of Insurance in New Jersey

All drivers must show proof of insurance when registering a car or truck with the New Jersey Motor Vehicle Commission or when stopped by a police officer. Failure to show proof of insurance can lead to driver's license suspension and revoked registration. Proof of insurance can consist of a paper or electronic New Jersey Insurance Identification Card for each vehicle under your policy.

Minimum Liability Insurance Requirements in New Jersey

New Jersey law has some of the lowest requirements for liability insurance in the country, but it also requires personal injury protection. Drivers can select between a basic policy that offers very little liability protection and a standard policy that offers more.

Drivers accepting the basic policy must carry at least this minimum auto insurance coverage:

  • No required liability insurance to cover injuries to people in another car (although $10,000 for all injured parties is available as an option)
  • $5,000 property damage liability per accident
  • $15,000 of personal injury protection per person or accident (up to $250,000 of personal injury protection for severe or permanent injuries)

With a standard policy, you have to get a minimum of:

  • $15,000 of bodily injury liability insurance per person; $30,000 per accident
  • $5,000 of property damage liability per accident
  • $15,000 of personal injury protection per person or accident (up to $250,000 of personal injury protection for severe or permanent injuries)

If you choose the standard policy, you also have to check a box choosing between an unlimited or limited right to sue. If you do not make a choice, the state insurance department warns that you may have only a limited right to sue following a car accident.

Alternatives to Insurance in New Jersey

Auto insurance is mandatory in New Jersey, but the type and cost of that coverage can vary significantly. The Automobile Insurance Cost Reduction Act mandated that a Basic Policy be available to all drivers.

High-Risk Auto Insurance Program in New Jersey

NJPAIP Insurance is the assigned risk mechanism for drivers unable to obtain coverage in the New Jersey auto insurance voluntary market.

Car Insurance Requirements in NJ: How Much Coverage Do You Need?

What percentage of drivers in New Jersey lack vehicle insurance?

14.9%

National average: 13%

Source:

Insurance Information Institute.

If you can afford, experts advise that you get much higher liability coverage than what the state requires. Consumer and insurance experts recommend liability coverage of $100,000 per injury and $300,000 per accident. You may also want to consider comprehensive and collision insurance to protect your car, as well as uninsured motorist coverage in case you're hit by a driver without insurance.

For more on the common types of car coverage and what's best for you, check out the MoneyGeek guide to car insurance.

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Sources