Cheapest Car Insurance in New Jersey (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: University of California-Berkeley (BA in History)
Rob Bhatt is a licensed insurance agent and joined the staff of Lending Tree in 2021. Previously, he spent more than 20 years writing for and editing regional publications in California, Nevada and Washington. Rob enjoys helping readers understand how different coverages work so they can make informed purchasing decisions, and he specializes in producing research-backed content for LendingTree about auto, home and renters insurance. His work has been cited by ABC, Business Insider, MSN and Yahoo.
Geico offers the cheapest car insurance in New Jersey, charging an average of $49 a month for minimum-coverage policies.
Plymouth Rock, Travelers and Progressive also offer rates that are lower than the state average.
Cheapest full-coverage car insurance in NJ: Geico
Geico has the cheapest full-coverage car insurance in New Jersey. Its rates average $1,163 a year, or $97 a month. This is 48% cheaper than the state average of $2,236 a year.
Plymouth Rock, Progressive and State Farm also offer full-coverage policies that are cheaper than the state average.
Cheapest companies for full-coverage insurance
| Company | Annual rate |
|---|---|
| Geico | $1,163 |
| Plymouth Rock | $1,384 |
| Progressive | $1,881 |
| State Farm | $2,020 |
| Travelers | $2,592 |
| Farmers | $2,715 |
| Allstate | $2,750 |
| NJM | $3,382 |
Rates are for a 30-year-old male with a clean driving record and good credit. Your rates may vary.
Full coverage includes liability, uninsured motorist and personal injury protection (PIP), which are mandatory, plus collision and comprehensive (comp), which are optional.
Although collision and comp are not required by law, both typically are required for a car loan or lease. The two coverages combine to cover your car for damage and theft.
To find your best rate for any amount of coverage, compare car insurance quotes from several companies before buying a policy.
Cheapest minimum-coverage auto insurance in NJ: Geico
Geico has New Jersey’s cheapest minimum-coverage auto insurance, averaging $583 a year, or $49 a month.
The next-best rate is $667 a year from Plymouth Rock. Both Geico and Plymouth Rock charge less than half the state average of $1,393 a year for minimum coverage.
Cheapest companies for minimum car insurance
| Company | Annual rate |
|---|---|
| Geico | $583 |
| Plymouth Rock | $667 |
| Travelers | $1,121 |
| State Farm | $1,282 |
| Allstate | $1,339 |
| Progressive | $1,349 |
| Farmers | $1,676 |
| NJM | $3,125 |
Rates are for a 30-year-old male with a clean driving record and good credit. Your rates may vary.
Minimum-coverage auto insurance meets state requirements for liability, uninsured motorist and PIP.
Cheapest car insurance for young drivers in NJ: Geico
Geico has the cheapest car insurance for young drivers in New Jersey. Its rates for 18-year-olds average $1,150 a year for minimum coverage and $2,474 a year for full coverage.
| Company | Minimum | Full |
|---|---|---|
| Geico | $1,150 | $2,474 |
| Travelers | $2,546 | $5,413 |
| Plymouth Rock | $3,046 | $6,352 |
| Allstate | $3,087 | $7,936 |
| State Farm | $3,956 | $6,051 |
| Farmers | $5,660 | $10,098 |
| Progressive | $5,824 | $9,071 |
| NJM | $7,952 | $8,040 |
Rates are for an 18-year-old male with a clean driving record. Your rates may vary.
Teens have higher crash rates than other age groups, and this is the main reason why companies charge them so much for car insurance.
Young drivers are usually charged a lot less when added to a parent’s car insurance than they are on their own.
Cheapest for NJ drivers with a speeding ticket: Geico
Geico has the cheapest car insurance for New Jersey drivers with a speeding ticket. Its rates average $1,163 a year, or $97 a month, for full coverage.
A speeding ticket raises the average price of car insurance in New Jersey by 40% to $3,330 a year, or $277 a month.
| Company | Annual rate |
|---|---|
| Geico | $1,618 |
| Plymouth Rock | $1,963 |
| Progressive | $3,063 |
| State Farm | $3,319 |
| NJM | $3,728 |
| Travelers | $4,376 |
| Allstate | $6,397 |
| Farmers | $7,231 |
Rates are for a 30-year-old male with good credit and one prior speeding ticket. Your rates may vary.
Cheapest rates in NJ after an accident: Geico
Geico has the cheapest auto insurance in New Jersey for drivers with a prior at-fault accident, $1,618 a year, or $135 a month.
Drivers with an at-fault accident pay an average of 77% more for auto insurance than those with a clean record.
| Company | Annual rate |
|---|---|
| Geico | $1,618 |
| Plymouth Rock | $1,963 |
| Progressive | $3,063 |
| State Farm | $3,319 |
| NJM | $3,728 |
| Travelers | $4,376 |
| Allstate | $6,397 |
| Farmers | $7,231 |
Rates are for a 30-year-old male with good credit and one prior at-fault accident. Your rates may vary.
Cheapest car insurance for NJ drivers with a DUI: Plymouth Rock
Plymouth Rock has the cheapest car insurance for New Jersey drivers with a DUI. Its rates average $1,757 a year, or $146 a month.
The average cost of car insurance for a New Jersey driver with a DUI is $4,383 a year, or $465 a month. Plymouth Rock’s rate is 60% lower than this average.
| Company | Annual rate |
|---|---|
| Plymouth Rock | $1,757 |
| Progressive | $2,299 |
| Geico | $2,318 |
| Allstate | $3,931 |
| Travelers | $4,002 |
| NJM | $4,661 |
| State Farm | $7,884 |
| Farmers | $8,211 |
Rates are for a 30-year-old male with good credit and one prior DUI. Your rates may vary.
Cheapest for NJ drivers with bad credit: Geico
Geico has the cheapest car insurance for drivers with bad credit, $2,654 a year, or $221 a month.
On average, New Jersey drivers with bad credit pay $5,310 a year for car insurance. This is more than twice as much as drivers with good credit pay.
| Company | Annual rate |
|---|---|
| Geico | $2,654 |
| Progressive | $3,004 |
| Plymouth Rock | $3,178 |
| Allstate | $5,014 |
| Travelers | $5,772 |
| NJM | $6,167 |
| State Farm | $8,186 |
| Farmers | $8,508 |
Rates are for a 30-year-old male with a clean driving record and poor credit. Your rates may vary.
Insurance companies view your credit history as an indicator of how risky you may be to insure.
When an insurance company checks your credit for a quote, it conducts a soft pull, which does not hurt your credit score.
New Jersey car insurance rates by city
In New Jersey’s cities, car insurance rates range from $2,045 a year in Middletown to $3,324 a year in Newark for full coverage.
Jersey City’s full-coverage rates average $2,840 a year, while Trenton drivers pay $2,474 a year.
Average cost of car insurance in New Jersey by city
| City | Annual rate |
|---|---|
| Bayonne | $2,734 |
| Brick | $2,156 |
| Camden | $2,957 |
| Cherry Hill | $2,148 |
| Clifton | $2,886 |
| East Orange | $3,158 |
| Edison | $2,315 |
| Elizabeth | $3,188 |
| Franklin | $2,124 |
| Gloucester City | $2,159 |
| Hamilton Square | $2,046 |
| Jersey City | $2,840 |
| Lakewood | $2,580 |
| Middletown | $2,045 |
| Newark | $3,324 |
| Old Bridge | $2,334 |
| Passaic | $3,259 |
| Paterson | $3,235 |
| Piscataway | $2,273 |
| Toms River | $2,140 |
| Trenton | $2,474 |
| Union | $2,845 |
| Union City | $3,076 |
| Vineland | $2,386 |
Rates are for a 30-year-old male with a clean driving record and good credit. Your rates may vary.
Cost of car insurance in New Jersey
The average cost of car insurance in New Jersey is $1,393 a year, or $116 a month. This is for minimum coverage. Full-coverage car insurance in New Jersey costs an average of $2,236 a year, or $186 a month.
What you pay for car insurance depends on several factors, including:
- Your age and ZIP code
- Your driving record and credit history
- The type of car you drive
- Any discounts you may be eligible to receive
Since each insurance company weighs these factors differently, you may qualify for a much lower rate with one company than you do with others. Comparing quotes from multiple companies helps you to find the cheapest rate.
Auto insurance laws in New Jersey
New Jersey is a no-fault insurance state and requires you to carry proof of insurance in your vehicle at all times.
Under the state’s no-fault laws:
- The PIP coverage in your own car insurance policy pays to treat injuries you and your passengers suffer in a car accident, no matter who causes it.
- If you cause an accident, your policy’s bodily injury liability coverage pays for the portion of an injured person’s medical bills that exceed their PIP limits.
- Your uninsured motorist coverage pays for medical expenses that exceed your PIP limit if a driver without insurance injures you or your passengers.
No-fault laws do not apply to property damage:
- If you cause an accident, your property damage liability covers others’ car repairs. Your policy’s collision coverage, if you have it, pays for your repairs.
- Uninsured motorist property damage kicks in if someone without insurance or a hit-and-run driver damages your car.
If the amounts you owe after an accident are more than your policy’s liability limits, you can be held responsible for the shortfall. This is the main reason to consider higher limits than the state requires.
Minimum coverages for car insurance in New Jersey
The minimum amount of car insurance you need to drive legally in New Jersey depends on whether you choose a standard or basic policy.
Basic policies offer minimal protection and are only recommended for those with few assets. Standard policies come with minimum limits you can increase to match your needs.
Standard vs. basic car insurance comparison
| Coverage | Standard policy minimums | Basic policy minimums |
|---|---|---|
| PIP | $15,000 | $15,000 |
| Bodily injury liability | $25,000 per person/$50,000 per accident | $10,000 per accident (optional) |
| Property damage liability | $25,000 | $5,000 |
| Uninsured motorist bodily injury | $25,000 per person/$50,000 per accident | Not included |
| Uninsured motorist property damage | $25,000 | Not included |
Source: New Jersey Department of Banking and Insurance
You can also buy these optional car insurance coverages in New Jersey:
- Collision: Covers damage your vehicle sustains in a collision with an object or other vehicle.
- Comprehensive: Covers your vehicle for most non-collision causes, including theft, vandalism, fire, flood and falling objects.
- Underinsured motorist: Covers you and your passengers for medical expenses that exceed an at-fault driver’s liability limits.
If you receive Medicaid, you may be eligible for a special automobile insurance policy (SAIP). SAIP is low-cost insurance that comes with less coverage than a basic policy.
The right to sue over car accident injuries
When you buy standard car insurance in New Jersey, you have to choose between a limited and unlimited right to sue.
A limited-right-to-sue policy is cheaper. It only lets you or your survivors sue an at-fault driver for pain and suffering if your injuries are severe. Examples include the loss of a body part, traumatic brain injury or death.
An unlimited-right-to-sue policy has no restrictions on your ability to sue a driver who injures you in a car accident.
Methodology
The rates in this article are based on an analysis of auto insurance quotes obtained from Quadrant Information Services for sample drivers in every New Jersey ZIP code.
Unless otherwise noted, our sample driver is a single 30-year-old male who owns a 2015 Honda Civic EX. Our young base driver is an 18-year-old male with a good driving record.
Minimum-coverage rates are for standard policies that meet the state’s minimum requirements for liability, uninsured motorist and PIP.
Full-coverage policies include:
- Bodily injury liability: $50,000 limit per person/$100,000 limit per accident
- Property damage liability: $25,000 limit
- Uninsured motorist bodily injury: $50,000 per person/$100,000 per accident.
- Uninsured motorist property damage: $25,000
- PIP: $15,000
- Collision: $500 deductible
- Comprehensive: $500 deductible
Rates are shown for comparative purposes only. Yours may vary.
Frequently asked questions
Car insurance in New Jersey costs an average of $116 a month for minimum coverage and $186 a month for full coverage.
Liability, uninsured motorist and PIP are mandatory for most drivers in New Jersey. If you choose a basic policy, you can meet the state’s requirements with PIP and liability.
Yes. New Jersey is a no-fault state for car insurance. Your own car insurance covers injuries you and your passengers suffer in a car accident regardless of fault, up to your policy’s PIP limit. If you cause an accident, you are responsible for portions of a victim’s medical expenses that exceed their PIP limit.