With its high population density, New Jersey has some formidable traffic, both on parkways and on local streets. So, where can you get the best cheap car insurance in New Jersey? According to our rate estimates, Progressive, Geico, and NJM Insurance offer some of the cheapest rates in the state.
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. Many factors affect your premium, so what’s best for your neighbor might not be best for you.
Use our tool below to start comparing personalized car insurance quotes:
In this article:
- Cheapest Car Insurance In New Jersey
- 5 Best Car Insurance Companies In New Jersey
- What Are New Jersey's Car Insurance Requirements?
- What To Know About Driving In New Jersey
- Final Thoughts
- FAQ: Car Insurance In New Jersey
Cheapest Car Insurance In New Jersey
According to our rate estimates, Progressive offers the cheapest full coverage insurance in New Jersey at an average of $1,326 per year. Geico, NJM Insurance, and State Farm also offer rates under $2,000 annually for good drivers.
| Car Insurance Provider | Average Annual Cost Estimate |
|---|---|
| Progressive | $1,326 |
| Geico | $1,407 |
| NJM Insurance | $1,642 |
| State Farm | $1,988 |
| Selective Insurance | $2,220 |
| Allstate | $2,280 |
What Is The Average Cost Of Auto Insurance In New Jersey?
Compared to the national average, car insurance in New Jersey is expensive. In fact, it is the sixth most expensive state for car insurance in the nation. According to the National Association of Insurance Commissioners (NAIC), the cost of New Jersey car insurance was $1,386 in 2018, while the national average was $1,057.
One reason for expensive rates is the fact that New Jersey has the highest population density out of the 50 states. That means more cars, accidents, and insurance claims.
Here’s a breakdown of the coverage costs that year based on data from the Insurance Information Institute (III):
| Type of Coverage | Average Annual Expenditure in 2018 |
|---|---|
| Liability coverage | $956 |
| Collision coverage | $414 |
| Comprehensive coverage | $130 |
| Total cost | $1,386 |
*Most drivers carry liability coverage but not necessarily other types of auto insurance. Total average annual expenditure measures what New Jersey drivers actually spent on auto insurance in 2018.
Annual New Jersey Car Insurance Estimates By Age
Age is one of the factors that affect your car insurance quotes the most. In New Jersey, a 24-year-old driver can pay 37 percent more than a 35-year-old.
| Age | New Jersey Annual Car Insurance |
|---|---|
| 24 | $2,922 |
| 35 | $2,132 |
Annual New Jersey Car Insurance Estimates By Gender
Your gender doesn't affect your car insurance rates very much in New Jersey. According to our estimates, men pay less than one percent more than women.
| Gender | New Jersey Annual Car Insurance |
|---|---|
| Female | $2,124 |
| Male | $2,139 |
Annual New Jersey Car Insurance Estimates For Drivers With Bad Credit
If your credit score is in the fair category, you may pay 30 percent more for car insurance in New Jersey. But, if you have a poor score, you could end up paying about double.
| Credit Rating | New Jersey Annual Car Insurance |
|---|---|
| Good | $2,132 |
| Fair | $2,775 |
| Poor | $4,232 |
Annual New Jersey Car Insurance Estimates For Bad Drivers
If you have a speeding ticket on your record, you could pay 39 percent more for car insurance in New Jersey. Having an accident could increase the cost by 75 percent, and having a DUI could increase it by 88 percent.
| Driving Record | New Jersey Annual Car Insurance |
|---|---|
| Clean | $2,132 |
| Speeding Ticket | $2,960 |
| At-Fault Accident | $3,728 |
| DUI | $4,014 |
5 Best Car Insurance Companies In New Jersey
Finding the best car insurance in New Jersey requires looking at several factors. Sure, we all want to save money, but the cost can’t be the only factor. After all, you can go with the cheapest car insurance in New Jersey, but will your claims be paid promptly?
That’s why we evaluate car insurance coverage by various factors. After in-depth research, we found the five best options, based on coverage, average cost, reputation from industry experts, and additional benefits.
Here is our breakdown of the top car insurance providers in New Jersey.
| Best New Jersey Car Insurance | Motor1 Rating | Average Cost Estimate |
|---|---|---|
| 4.5 | $1,407 | |
| 5.0 | N/A | |
| 4.5 | $1,326 | |
| 4.0 | $1,641 | |
| 4.5 | $1,988 |
*You may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking for this article looks specifically at what insurance providers are best for car insurance in New Jersey.
#1 Geico
Geico offers the cheapest rates in New Jersey, a wide selection of coverage options, and some good extra perks. The discount opportunities are vast and include:
- Good student discount
- Good driver discount
- Defensive driver discount
- Discounts for airbags, anti-lock brakes, and anti-theft devices
- Multiple policy discount
- Multiple vehicle discount
- Military discount
- Federal employee discount
Geico writes tens of billions of dollars in premiums every year and has an A++ AM Best financial strength rating (the highest rating possible). In addition to its high industry standing, Geico receives top marks from satisfied customers.
| Pros | Cons |
|---|---|
| Superior financial strength rating and A+ rating from the Better Business Bureau (BBB) | Average quotes experience |
| Many choices for coverage | |
| High level of customer satisfaction | |
| Available in 50 states |
If you want to read more about the provider, see our full Geico review.
#2 USAA
In our research of the top car insurance companies, USAA stood out for its price, customer service, and claims process. While New Jersey rates from USAA weren't included in our analysis, the company is known for providing very affordable coverage. Here are a few more things we like about USAA:
- USAA has a superior financial rating of A++ from AM Best.
- The company performed very well on the J.D. Power 2020 U.S. Auto Claims Satisfaction Study℠ and 2021 U.S. Insurance Shopping Study℠.
- USAA offers other perks like roadside assistance, rental car reimbursement, and accident forgiveness.
USAA is available to military members and candidates in commissioning programs. It’s also available to spouses and children of USAA members who have or have had auto or homeowners insurance. Once a military member signs up for a USAA insurance policy, they can pass on eligibility to their children, grandchildren, and so on.
| Pros | Cons |
|---|---|
| Affordable rates and numerous discounts | Only available for military and their families |
| Good option for military members | Usage-based insurance not available in New Jersey |
| Superior financial strength rating and A rating from the BBB |
To learn more about the car insurance provider, check out our USAA auto insurance review.
#3 Progressive
We also think Progressive is a great option for New Jersey car insurance. Progressive car insurance came in third place on our ranking of auto insurance companies overall, earning 4.5 out of 5.0 stars.
Progressive wrote over $33 billion in premiums in 2020, according to the NAIC, and is the third-largest company for private car insurance. It has an A+ rating from AM Best, though it performed average on both of the J.D. Power studies mentioned above.
In addition to standard coverages, Progressive offers coverage options like roadside assistance, loan payoff, custom parts coverage, and insurance for rideshare drivers. The company has some decent car insurance discounts, too. You can lower your rate with the Snapshot app, and you can save $50 toward your deductible for each policy term you have without a claim.
| Pros | Cons |
|---|---|
| One of the top auto insurers in the United States | Average claims process |
| Superior financial strength rating and A+ rating from the BBB | Mixed customer service reviews |
| Great choice for high-risk drivers | Higher rates than some competitors |
| Several money-saving features and easy quotes process |
To learn more about the car insurance provider, check out our complete Progressive insurance review. For a full comparison of two of our top New Jersey car insurance providers, read more in our review of USAA vs Progressive.
#4 NJM Insurance Company
New Jersey Manufacturers Insurance is a local provider offered only in Connecticut, New Jersey, and Pennsylvania. Because of this, the company is able to specialize in the New Jersey market, providing local agents familiar with the needs of New Jersey drivers.
NJM customers may find some of the lowest New Jersey car insurance rates paired with excellent service. The company scored 867 out of 1,000 on the J.D. Power 2021 U.S. Auto Insurance StudySM, placing first for the Mid-Atlantic region.
Discounts opportunities for NJM customers include:
- Multiple policy discount
- Multiple vehicle discount
- Paying your premium in full
- Having safety features installed in your car
- Good student discount
- Completing a defensive driving course
| Pros | Cons |
|---|---|
| Strong financial standing |
Limited scope of policies and coverage |
| Local agents |
|
| Competitive rates |
|
| Good customer service |
|
To learn more about the car insurance provider, read our in-depth NJM auto insurance review.
#5 State Farm
State Farm is one of our top-recommended providers overall and an excellent choice for drivers in New Jersey. The company scored 851 out of 1,000 on the J.D. Power 2021 U.S. Auto Insurance Study, ranking third in the Mid-Atlantic region.
In addition to providing superior coverage, State Farm offers useful benefits such as rideshare coverage, roadside assistance, rental coverage, and travel expense coverage. There are several ways customers can reduce their premiums with State Farm, including:
- Safe driving discount
- Safe vehicle discount
- Multiple vehicle discount
- Multiple policy discount
High industry ratings, a reputation for fast claims servicing, and the implementation of modern tools like the Drive Safe & SaveTM app make State Farm easy to recommend.
| Pros | Cons |
|---|---|
| Largest auto insurer in the country, available in 48 states | Reported errors with autopay |
| Many discounts for teens and students | Higher rates than some competitors |
| Positive customer reviews | |
| Easy online quotes process | |
| Superior financial strength rating |
To learn more about State Farm, check out our State Farm insurance review.
Enter your zip code in the tool below to collect and compare car insurance quotes from providers available in New Jersey.
What Are New Jersey's Car Insurance Requirements?
You actually have two options to satisfy minimum coverage amounts for New Jersey auto insurance. The bare minimum is called the Basic Policy, and it is best for people with few assets and minimal family responsibilities.
While you technically satisfy minimum requirements with a Basic Policy, New Jersey recommends that you purchase at least a Standard Policy if you are able to. Here’s what the Basic and Standard Policies look like:
| Coverage Type | Standard Policy Minimum | Basic Policy Minimum |
|---|---|---|
| Bodily injury liability | $15,000 per person, $30,000 per accident | No minimum, but $10,000 per person and accident is available as an option |
| Property damage liability | $5,000 per accident | $5,000 per accident |
| Personal injury protection | $15,000 per person and accident | $15,000 per person and accident |
| Uninsured/Underinsured Motorist | No minimum | Not available as an option |
| Collision coverage | No minimum | No minimum |
| Comprehensive car insurance | No minimum | No minimum |
Personal Injury Protection in New Jersey also covers up to $250,000 for certain injuries, regardless of the chosen policy limit.
New Jersey Is A No-Fault State
Since New Jersey is a no-fault state, drivers seek compensation for medical bills from their own insurance companies, regardless of who is at fault in an car accident. It also means that a driver can file a first-party claim with their own insurance company to cover property damages or file a third-party claim with the at-fault driver.
New Jersey Right To Sue
There’s another difference worth mentioning between the Standard Policy and the Basic Policy. Under the Standard Policy, drivers have the Unlimited Right to Sue for both economic loss and pain and suffering. Drivers with a Basic Policy can still sue for economic loss (lost wages and medical bills), but they can only sue for pain and suffering if they experienced a permanent injury.
What To Know About Driving In New Jersey
The state of New Jersey has almost 39,000 miles of public roads, and its drivers traveled over 77.5 billion miles total in 2018. The state also has about 6.3 million licensed drivers, and there were 278,413 reported crashes in 2018.
If we assume that an auto accident involves two drivers, New Jersey drivers had a 10 percent chance of getting into an accident during the year. Looked at another way, the average driver would experience an accident at least once every 10 years. That might not sound very often, but you never know if an accident will happen today or five years from now.
Factors That Affect New Jersey Car Insurance Quotes
The cost of car insurance depends on your personal information, vehicle information, and more. Auto insurance quotes in New Jersey are calculated based on the following:
- Demographic factors including your age, gender, and marital status
- Motor vehicle make, model, and year
- Vehicle mileage
- Your driving record
- Number of claims you’ve filed in the past
- Your ZIP code
- Credit-based insurance score
- And more
What If I Can’t Afford The Minimum Insurance In NJ?
Insurance is required for all motorists in the state of New Jersey. If a motorist is caught driving without insurance, they could face serious repercussions. NJ takes has some of the toughest penalties for motorists driving without insurance, including:
| First Offense | Second and Subsequent Offenses |
|---|---|
|
$300–$1,000 in fines with $250 surcharge assessment over three years |
$500–$5,000 in fines with $250 surcharge assessment over three years |
|
Driver’s license suspension for one year |
Driver’s license suspension for two years with reinstatement up to the DMV director |
|
Community service for an amount of time determined by the court |
Up to 180 hours of community service |
|
Possible vehicle impoundment if proof of insurance is not present within 24 hours of citation |
Possible vehicle impoundment if proof of insurance is not presented within 24 hours of citation |
| Up to 14 days in jail |
Final Thoughts
After comparing many New Jersey car insurance providers, we found Geico to be the best option overall. Additionally, USAA, Progressive, NJM Insurance, and State Farm are all great options. To start comparing rates from reputable providers in New Jersey, enter your zip code below.
Methodology
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
More On Insurance:
Read our other insurance articles:
About this article