Best Car Insurance in New Jersey

The #1 car insurance company is State Farm because it is the largest auto insurer in the U.S., with a market share of 16%. State Farm insures over 80 million people and offers coverage in all 50 states.

Largest Auto Insurance Companies in America

Together, these 10 companies own more than 70% of the auto insurance market share in the U.S. As a result, it shouldn't come as a surprise that these companies tend to be the best options for most types of drivers.

Best Car Insurance Companies by Category

To learn more, check out WalletHub's guides to the best car insurance and the largest auto insurers.

In New Jersey, drivers need $15,000 in personal injury protection insurance (up to $250,000 for certain injuries) and $5,000 in property damage liability insurance. Insurers in New Jersey offer basic and standard insurance plans, which are two different options that both fulfill the state's coverage requirements. The difference is that standard plans are more expensive and include $15,000 per person in bodily injury liability coverage ($30,000 per accident). Standard plans also allow drivers to purchase higher PIP and property damage liability limits.

New Jersey does not require uninsured/underinsured motorist coverage, which applies when the at-fault driver does not have any liability insurance or does not have high enough liability limits to pay for the damage. Instead, personal injury protection can pay for medical expenses for you and your passengers in New Jersey.

Here's How Much Car Insurance Drivers Need in New Jersey:

Car Insurance for a Leased or Financed Car in New Jersey

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under New Jersey law.

Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance.

You might also have to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.

Even if you're not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in New Jersey to make sure you're paying for the coverage you need.

Car insurance in New Jersey costs $107 monthly ($1,287 per year) for minimum coverage, on average, and around $250 per month ($3,006 annually) for a full-coverage policy. The cheapest insurance companies in New Jersey are Geico, State Farm, and NJM Insurance, but insurers calculate premiums differently, so it's a good idea to get quotes from more companies to find the best deal.

Average Cost of Car Insurance in New Jersey by Category 

• Clean driving record: $107 per month
• After an at-fault accident: $170 per month
• Driver with poor credit: $180 per month
• Teen driver: $356 per month
• After a DUI: $208 per month

The average cost of car insurance in New Jersey is 79% higher than the national average auto insurance premium, and New Jersey ranks 48 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you'll pay for car insurance in New Jersey, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.

Finally, it's worth noting that car insurance premiums in New Jersey are average, compared to the cost of coverage in neighboring states like New York and Delaware. You can find more details in the table below. 

Cost of Car Insurance in New Jersey vs. Neighboring States

In New Jersey, you need $5,000 in property damage liability insurance to drive legally, as well as $15,000 in personal injury protection (PIP) (up to $250,000 for certain injuries). Unlike most other states, New Jersey does not require every driver to carry bodily injury liability insurance.

Even though New Jersey's no-fault system means that drivers file injury claims with their own policy, the at-fault driver can be sued if they cause an accident that results in death, dismemberment, significant disfigurement or scarring, or another serious injury. As a result, it's a good idea to purchase bodily injury liability insurance, anyway, since it can help cover legal fees and other expenses if you cause a serious accident. And no matter what, you should be sure to fulfill the minimum New Jersey car insurance requirements to avoid facing consequences for driving without insurance.

Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder's own injuries or property. For instance, collision insurance covers damage to the policyholder's car regardless of fault. And comprehensive insurance pays if the policyholder's vehicle is damaged by something besides an accident, like a natural disaster or vandalism.

Full coverage insurance in New Jersey costs an average of $250 per month ($3,006 annually). A full coverage policy usually includes collision and comprehensive insurance, plus the types of coverage required by New Jersey law. In New Jersey, liability insurance and personal injury protection are mandatory for all drivers.

Monthly Cost of Full Coverage Insurance in New Jersey

Note: Premiums are for a 45-year-old good driver in New Jersey; individual premiums will vary.

How to Get Cheaper Full Coverage Insurance in New Jersey

1. Compare quotes from several companies to make sure you're getting the best deal.
2. Increase your deductible. Higher deductibles lead to lower premiums, but remember to only pick a deductible you'd be able to afford in an emergency.
3. Don't forget to make sure you're getting all the discounts you can.

To learn more, check out WalletHub's guide to full coverage car insurance.