Car Insurance in New Jersey vs. New York: Costs, Laws and Resources

New Jersey and New York have different car insurance laws and companies, so premiums and requirements vary. For instance, GEICO is the most affordable insurer in both states, but the cost of a state minimum policy ranges from $499 per year in New Jersey to $1,092 per year in New York.

Last Updated: 6/17/2022
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If you’re planning to move from New Jersey to New York or vice versa, you need to consider the state’s minimum car insurance coverage requirements. Both New Jersey and New York additionally require liability and personal injury protection (PIP), but only New York mandates the addition of uninsured motorist coverage for bodily injury.

MoneyGeek created this guide to show you the differences between car insurance laws and requirements in New Jersey vs. New York. We also analyzed insurance costs to find the cheapest insurers for your needs.

Car Insurance Laws in New Jersey vs. New York

New Jersey and New York require different coverages and limits. New Jersey’s car insurance laws mandate 15/30/5 in liability limits and PIP, whereas car insurance laws in New York dictate 25/50/10 in liability limits along with PIP and uninsured motorist coverage. Thus, the cost of insurance in the two states varies greatly.

Drivers in New Jersey pay around $1,018 per year for state minimum coverage, while those in New York spend roughly $2,278 per year for the same coverage. New York’s requirements for additional coverage and higher limits could be a reason for the state’s more expensive rates.

MINIMUM CAR INSURANCE REQUIREMENTS IN NEW JERSEY AND NEW YORK

New Jersey Requirements

  • $15,000 per person for injury or death
  • $30,000 per accident for all injuries
  • $5,000 for property damage
  • $15,000 per person for personal injury protection

New York Requirements

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident
  • $50,000 personal injury protection per person
  • $50,000 liability for death per person
  • $100,000 liability for death per accident
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How Are Car Insurance Laws Enforced in New Jersey and New York?

Both New Jersey and New York are no-fault states, which means drivers are required to file a claim with their own insurance company, regardless of who was at fault. They are also required to have PIP coverage as part of their auto insurance policies.

However, New Jersey is a “choice no-fault” state. Drivers in this state can choose whether they will be held to a no-fault system.

Cheapest Car Insurance Companies in New Jersey and New York

On average, the most affordable company for minimum coverage insurance in New Jersey and New York is GEICO.

  • Cheapest in New Jersey: GEICO ($499 per year)
  • Cheapest in New York: GEICO ($1,092 per year)

For military members and their families in New York, the cheapest insurer for minimum coverage is USAA, with an average annual rate of $902.

While GEICO offers the lowest rates in both states, its policies in New York are significantly more expensive. This shows that rates can differ even with the same insurance provider across state lines.

Cheapest Car Insurance Companies in New Jersey

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Cheapest Car Insurance Companies in New York

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THE CHEAPEST COMPANY FOR YOU MAY DIFFER

GEICO is the cheapest car insurance company in New Jersey and New York, offering its policies at an average cost of $499 per year and $1,092 per year, respectively. However, these quotes are for minimum coverage only. Your actual rate will vary depending on various factors, including your location, coverage level, age, driving history and more. To help you find the most affordable options in each state, MoneyGeek provides the following resources:

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Average Cost of Car Insurance in New Jersey vs. New York

Coverage level plays a role in the cost of your auto insurance premiums. For example, drivers carrying a minimum coverage policy pay approximately $1,018 per year in New Jersey and $2,278 in New York. Meanwhile, those with a full coverage policy pay roughly $1,674 yearly in New Jersey and $3,433 in New York.

Average Cost of Car Insurance in New Jersey vs. New York

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  • Driver
    New Jersey Annual Premium
    New York Annual Premium
  • Minimum Coverage
    $1,018
    $2,278
  • Full Coverage
    $1,674
    $3,433
  • Adding a Young Driver
    $4,172
    $9,285
  • Drivers With a Violation
    $2,259
    $4,287
  • Drivers With Poor Credit
    $3,413
    $10,640

Why Are Car Insurance Rates More Expensive in New Jersey vs. New York?

It’s impossible to pinpoint why one state has more expensive car insurance rates than another. While New Jersey has a higher highway density than New York, the two states have similar uninsured driver rates, population density and theft rates. That said, New York has more expensive rates for minimum and full coverage car insurance according to state averages.

Car Insurance Costs by City in New Jersey vs. New York

How much you’ll pay for car insurance also depends on where you live within a state. MoneyGeek found that the cheapest and most expensive cities for state minimum insurance in New Jersey and New York are:

New Jersey

  • Most affordable city: Jersey City ($960 per year)
  • Most expensive city: Paterson ($1,089 per year)

New York

  • Most affordable city: Rochester ($715 per year)
  • Most expensive city: New York City ($2,732 per year)

Keep in mind that car insurance requirements are the same across a state, so your insurance rates are most likely influenced by other factors like population density.

Car Insurance Costs by City in New Jersey

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Car Insurance Costs by City in New York

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Moving Between New Jersey and New York? What to Know

After moving from New Jersey to New York or vice versa, you’ll need to update your driver’s license and registration. You may stay with your current insurer if it’s available in the state you moved to, but expect your rates to change to reflect any risks and coverage requirements in your new state.

On the other hand, if you need to shop for a new provider, you can use the following resources to find the best option for your driving profile.

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    Use MoneyGeek’s car insurance calculators for New Jersey and New York

    By entering your personal details, such as your age and vehicle type, in MoneyGeek’s New Jersey car insurance calculator or New York car insurance calculator, you can get an idea of the policy costs in the state.

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    Learn about car insurance for high-risk drivers in New Jersey and New York

    If you’re considered a high-risk driver, you likely pay more for car insurance. You may also be denied coverage by certain insurance providers. For that reason, you may wish to consider getting high-risk car insurance in your state.

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    Figure out your options for temporary car insurance in New Jersey and New York

    Most policies typically last for a minimum of six months. However, there are ways to get temporary car insurance in New Jersey or temporary car insurance in New York if you’re only staying in the state for a few months.

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    If you’re a low-income driver, see if New Jersey or New York offer car insurance programs

    Low-income drivers in New Jersey may apply for the state’s car insurance assistance to save some money. It’s only one of three states in the nation that offers a low-income program. Meanwhile, those in New York may find potential savings by shopping around for low-income car insurance in the state.

FAQs About New Jersey and New York Car Insurance

Car insurance requirements and premiums vary from state to state. You can better understand the differences between auto insurance in New Jersey vs. New York by reading the answers to the following frequently asked questions.

Methodology

To calculate average car insurance rates by company and across New Jersey and New York, MoneyGeek collaborated with Quadrant Information Services to collect auto insurance quotes from both locations. We used a sample profile for a 40-year-old driver with a clean driving record and minimum coverage unless modified by criteria such as coverage level, age, driving offenses and credit score. Learn more about how costs are calculated in our MoneyGeek car insurance methodology.

Minimum car insurance requirements by state were sourced from the Department of Motor Vehicles (DMV) of the respective state.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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