The Best Cheap Car Insurance in New Jersey for 2021

Finding affordable car insurance in New Jersey depends on a wide range of factors, including age, driving record, insurance needs and location. To make the process as simple as possible, MoneyGeek ranked the best car insurance companies in New Jersey to help narrow down your search. Get quotes from top New Jersey car insurance companies to find the best rates with the coverage you need. When you compare car insurance costs from some of the best providers in New Jersey, you could save up to $1,267.

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The Cheapest and Best Car Insurance in New Jersey

Cheapest Minimum Liability Car Insurance Companies and Quotes in New Jersey

Some New Jersey drivers may wish to get a liability coverage policy to meet the state’s minimum car insurance requirements. This package covers the other party’s expenses in an at-fault accident but not your own costs.

On average, the cheapest car insurance companies in New Jersey for minimum coverage are:

  • GEICO: $499 per year
  • New Jersey Manufacturers: $769 per year

The most expensive car insurance company for minimum coverage in New Jersey is Mercury, costing an average of $1,407 per year.

Average Cost for Minimun Liability Coverage
  • Company
    Annually
    Monthly
  • 1.
    $499
    $42
  • 2.
    New Jersey Manufacturers
    $769
    $64
  • 3.
    $828
    $69
  • 4.
    $877
    $73
  • 5.
    $879
    $73
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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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A minimum coverage plan in New Jersey only covers property damage liability and personal injury protection. You should buy a full coverage package if you wish to protect against the cost of damages to your own car or want to increase the amount of liability coverage.

Cheapest Full Coverage Car Insurance in New Jersey

A full coverage policy with higher liability limits and comprehensive and collision insurance can safeguard you against most 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. It’s recommended to compare car insurance quotes so you can find the least expensive prices.

The most affordable car insurance providers in New Jersey for full coverage are:

  • GEICO: $1,035 per year
  • New Jersey Manufacturers: $1,362 per year

Esurance is the most expensive company for full coverage, with average annual costs of $2,302.

Average Comprehensive and Collision Rates 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.

The Best Car Insurance Companies in New Jersey for 2021

Based on MoneyGeek’s data, the best car insurance companies in New Jersey for most drivers are:

  • Best Overall: New Jersey Manufacturers
  • Runner-up: GEICO

USAA received the highest score in New Jersey by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.

MoneyGeek’s scoring system uses data from reputable sources like AM Best’s financial strength rating and J.D. Power’s Auto Insurance Study for customer service. MoneyGeek analyzed these rankings along with pricing information to create a unique score out of 100 for each company. By considering different factors, including affordability, client experience and customer service, you can more easily find the best car insurance in New Jersey.


1
USAA
Score:100

5/5

Affordability

5/5

Claims Ratings

5/5

User Satisfaction

A++

Financial Stability

Geek Quick Take
Geek Quick Take

USAA only serves veterans, current military personnel and their families in New Jersey. It is almost always the top scorer in MoneyGeek’s study across the country, balancing affordability, financial stability and customer service.

More About USAA

USAA consistently rates as one of the best and least expensive insurers in the U.S., and this holds true in New Jersey too. USAA offers discounts for safe drivers who complete a driver training course, good students, new vehicles, company loyalty, bundling policies, multiple policies, a vehicle in storage and low annual mileage.

Read MoneyGeek's USAA auto Insurance Review
2
New Jersey Manufacturers
Score:98

5/5

Affordability

5/5

Claims Ratings

5/5

User Satisfaction

A+

Financial Stability

Geek Quick Take
Geek Quick Take

NJM is the runner-up in MoneyGeek’s New Jersey ranking of best companies. This provider gets impressive scores in all three parameters of user satisfaction, affordability and claims service.

More About New Jersey Manufacturers

NJM offers many good features for car insurance customers. These include reimbursement for transportation expenses — such as car rental, taxis or ride-sharing, up to $30 per day — after you're in an accident. NJM also provides limited coverage for the costs of injuries to a pet in an accident. If your car has less than 15,000 miles on it and is less than a year old, the company will pay to fully replace your car if it’s totaled, ignoring depreciation.

3
GEICO
Score:93

5/5

Affordability

3/5

Claims Ratings

4/5

User Satisfaction

A++

Financial Stability

4
The Hartford
Score:88

4/5

Affordability

3/5

Claims Ratings

4/5

User Satisfaction

A+

Financial Stability

5
State Farm
Score:85

3/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A++

Financial Stability

6
Travelers
Score:85

2/5

Affordability

5/5

Claims Ratings

2/5

User Satisfaction

A++

Financial Stability

7
Progressive
Score:80

3/5

Affordability

3/5

Claims Ratings

2/5

User Satisfaction

A+

Financial Stability

8
Nationwide
Score:78

2/5

Affordability

3/5

Claims Ratings

2/5

User Satisfaction

A+

Financial Stability

9
Farmers
Score:75

3/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A

Financial Stability

10
CSAA
Score:75

3/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A

Financial Stability

11
Plymouth Rock Assurance
Score:73

2/5

Affordability

3/5

Claims Ratings

2/5

User Satisfaction

A-

Financial Stability

12
Liberty Mutual
Score:73

2/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A

Financial Stability

13
Allstate
Score:73

2/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A

Financial Stability

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

List of the Largest Insurance Companies in New Jersey

The three largest insurance providers in New Jersey by market share are GEICO (21.8%), New Jersey Manufacturers (13.1%) and Progressive (11.6%). Market share is calculated by dividing the number of premiums written by an insurance company by the total number of premiums written in the state.

Bigger companies tend to have higher financial stability levels, which means you’ll almost certainly get reimbursement for your legitimate claim. They may not be the best insurance carrier for every driver, but they provide security to consumers who value this attribute.

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.

Utilize MoneyGeek’s pricing data to select suitable companies to shop with, or enter your ZIP code below to compare costs. 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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What Is the Average Cost of Car Insurance in New Jersey?

Many varying factors determine auto insurance premiums. MoneyGeek calculated the average rates for comprehensive and collision insurance for a 40-year-old male driving a Toyota Camry. New Jersey rates are not entirely the same across the board. The car insurance premium you pay depends on many factors like your age, driving history, location and coverage level.

  • Average Driver: $1,674
  • DUI: $3,320
  • Speeding Ticket: $2,259
  • Poor Credit Score: $3,409
  • Seniors: $1,465
  • Students: $3,906

Cheapest Car Insurance for Drivers With a DUI in New Jersey

Drivers with a severe driving violation like a DUI on their record pay higher car insurance rates. In New Jersey, a driver with a DUI needs to pay an average of $3,320 per year for their auto insurance, compared to $1,674 for those with a clean record.

The cheapest car insurance companies in New Jersey for a driver with a DUI and full coverage are:

  • New Jersey Manufacturers: $1,631 per year
  • Progressive: $1,732 per year

Although GEICO is the cheapest insurer for Florida drivers with a clean record, New Jersey Manufacturers and Progressive has lower rates for those with a DUI.

Average Car Insurance Rates With a DUI

Getting a DUI will impact the cost of your auto insurance. The percentage of adults who reported driving after drinking too much (in the 30 days prior to being surveyed) was 1.0% in New Jersey, according to a study done by the Centers for Disease Control and Prevention. Additionally, 1,459 people were killed in alcohol-related car crashes in New York from 2009-2018.

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. The above auto insurance rates show what drivers who receive a DUI in New Jersey can expect to pay for insurance.

While each insurance company calculates premiums differently, getting a DUI could cost you up to $40,000 over the course of 13 years. Your rate increase will depend on your insurance company, location and driving record. To avoid increased premiums, don't drink and drive.

Cheapest Car Insurance for Drivers With Tickets in New Jersey

Drivers need to avoid even minor offenses, as a speeding ticket can increase their car insurance prices. New Jersey drivers with a speeding ticket on their record pay an average of $2,259 per year, $585 more than a driver with a clean record typically pays.

The least expensive car insurance carriers in New Jersey for a driver with a speeding ticket and full coverage are:

  • GEICO: $1,035 per year
  • New Jersey Manufacturers: $1,631 per year

State Farm is the least affordable insurer in New Jersey for drivers with speeding tickets, as they charge an average rate of $3,476.

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 Companies in New Jersey for Drivers With Bad Credit

Car insurance providers also use a driver’s credit score to determine their premiums. Therefore, it’s recommended to maintain a healthy credit score as it can reduce your rates. In New Jersey, drivers with poor credit need to pay an average annual cost of $3,409 for their car insurance coverage, compared to $1,674 for the average driver with good credit.

The most affordable auto insurance firms in New Jersey for a driver with poor credit and full coverage are:

  • New Jersey Manufacturers: $2,166 per year
  • GEICO: $2,310 per year

These two carriers also offer the cheapest full coverage for drivers with good credit.

Average Car Insurance Rates for Drivers With Bad Credit

Data from Experian shows that the average FICO score in New Jersey is 714. It's not uncommon for insurance agencies to look at credit scores when determining premiums. This is because research has shown that credit scores can be indicators of your likelihood of filing an insurance claim.

The above breakdown shows estimates of auto insurance prices for people with bad credit scores.

Want lower car insurance rates? Take the time to raise your credit score. Doing this could help you save money in the long run.

Cheapest Car Insurance in New Jersey for Seniors

In New Jersey, senior drivers need to pay less for car insurance than the average 40-year-old driver. The cost for senior drivers is $1,465 per year on average, $209 less than a typical driver.

The cheapest car insurance providers in New Jersey for senior drivers with full coverage are:

  • GEICO: $937 per year
  • New Jersey Manufacturers: $1,140 per year

GEICO and New Jersey Manufacturers also present the cheapest full coverage options for the average driver who is 40 years old.

Average Car Insurance Rates for Seniors

In a study done by National Highway Traffic Safety Administration, 16% of fatal car crashes in New Jersey in 2017 were caused by drivers older than 65.

Senior drivers in New Jersey who want to get the best rates should ask for discounts if they complete driver safety courses, drive infrequently or have a vehicle with safety features. Taking the time to compare car insurance rates can also ensure they get the most affordable policy for their needs.

The following chart shows estimates of how much seniors in New Jersey can expect to pay for car insurance.

According to NOLO, New Jersey does not have special provisions for senior drivers. Like other drivers, senior drivers in New Jersey must renew their licenses every four years.

Cheapest Car Insurance for Students in New Jersey

Students pay much higher rates because of their inexperience, which makes them riskier to cover. Student drivers in New Jersey need to shell out an average annual price of $3,906, compared to $1,674 for the average driver.

The least expensive car insurance companies in New Jersey for student drivers with full coverage are:

  • GEICO: $2,199 per year
  • Progressive: $3,478 per year

New Jersey Manufacturers presents lower full coverage rates for the average 40-year-old driver, while Progressive’s rates are cheaper for student drivers.

Average Car Insurance Rates for Students

Helping your teen comparison shop for insurance or lowering your premium by raising your deductible if you add your teen to your policy can help keep costs affordable. Just keep in mind that you pay more out of pocket if you raise your deductible and your teen gets into an accident.

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 doesn't have enough coverage.

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

Insurance Rate Information for Military Drivers and Veterans

New Jersey has more than than 7,000 active-duty military personnel living in the state along with over 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.

Average Rates for New Jersey service members

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

Car Insurance in New Jersey: What You Need to Know

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 liability insurance requirements in the country, but it also requires personal injury protection. Drivers can select a basic policy that offers very little liability protection and a standard policy that offers more. The state says this option 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 the state:

  • No bodily injury liability coverage included
  • $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 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. As for the basic policy, only the “limited right to sue” option is available.

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 pool for drivers unable to obtain coverage in the New Jersey auto insurance voluntary market.

How Much Coverage Do You Need in New Jersey?

Experts advise that you get much higher liability coverage than the state requires if you can afford it. 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 a driver hits you without insurance.

Average Insurance Rate by City in New Jersey

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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 trustworthy and accurate information on car insurance in New Jersey, MoneyGeek received expert advice from proven professionals. The perspectives and opinions expressed are those of the individual contributor.

  1. What are the key factors drivers in New Jersey should look for when searching for the best auto insurance coverage?
  2. What steps can drivers in New Jersey take to find affordable car insurance?
Gerard Pinto
Gerard Pinto

Assistant Professor of Finance at Drew University

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About the Author


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Laura Longero is an award-winning writer, content strategist, and communications leader with 15 years of experience in journalism, public relations and marketing for start-ups to global companies. A gifted storyteller, she leads creative teams to produce targeted, high-quality content.

Highly organized and detail-oriented with a bias for action, she has a strong sense of urgency in driving projects to completion and enjoys creating order from chaos. Laura possesses exceptional experience in building and leading teams – with a keen eye for strong talent, especially in cultivating future leaders.


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