The cheapest car insurance companies in New Jersey are GEICO, New Jersey Manufactures, and Amica. The difference between the cheapest and most expensive car insurance in New Jersey is $5,303 per year, so it pays to compare quotes.
Many New Jersey drivers can save as much as $5,303 per year, or even more, just by shopping around and going with one of the cheapest quoted rates. New Jersey is the most densely populated state in the country, and densely populated states pay more for auto insurance. That’s because more people equals more traffic, and more traffic inevitably means more accidents and insurance claims. This drives up the cost of insurance for everyone in New Jersey.
New Jersey drivers are also required to carry more coverage than drivers in other states. In addition to liability insurance, New Jersey state law requires personal injury protection. This drives up the average cost of minimum coverage to nearly $1,300 per year in New Jersey, compared to the national average of just $716. That’s a big reason why New Jersey ranked 48th among the most expensive states in our cheap car insurance study.
Finding cheap car insurance in New Jersey might not be easy, but it’s definitely worth it. Garden State drivers who compare rates and go with one of the lowest quotes can save more than $1,000 per year on full coverage car insurance, in many cases. To help New Jersey drivers compare rates, WalletHub analyzed quotes from all major insurance companies using multiple driver profiles and zip codes in the state. You can find the cheapest options listed below. You can also compare the cheapest car insurance coverage to the best car insurance companies in New Jersey. The cheapest option isn’t always the best option, so you’ll want to confirm you’re getting a good value.
Cheapest Insurance Rates by Category
Cheap for Good Drivers
Cheap for Full Coverage
Cheap for Speeding Ticket
Cheap for One At-Fault Accident
Cheap for Poor Credit
Cheap for Young Drivers
Cheap for Old Drivers
Cheap for Drivers with a DUI
Cheap for Married Drivers
Cheapest Car Insurance in New Jersey for Good Drivers
GEICO has the cheapest car insurance for most good drivers in New Jersey. Drivers who have never had an accident or received a citation are considered good drivers by insurers and pay less for insurance than drivers with bad records. In addition to low rates, good drivers can often qualify for additional discounts from their insurance company.
Cheapest Car Insurance in New Jersey for Full Coverage
Full coverage refers to a policy that goes beyond the minimum state requirements. Because full coverage protects you in more situations, it costs more than minimum coverage.
After a speeding ticket, most drivers will see their insurance rates go up for 3-5 years. It’s important to keep in mind that each insurance company calculates rates differently, so you should always get multiple quotes in order to make sure that you get the best deal.
Cheapest Car Insurance in New Jersey for Drivers with One At-Fault Accident
One at-fault accident will usually affect your insurance negatively for 3-5 years as insurers will consider you high-risk. Because of your higher rates, it is even more important to comparison shop.
Cheapest Car Insurance in New Jersey for Drivers with Poor Credit
A low credit score often flags drivers as higher risk, so insurers will usually charge them more for coverage. However, since insurers use different formulas to calculate premiums, poor credit might affect your rates more with one company than another. Because each insurance company treats credit differently, it pays to compare quotes.
Cheapest Car Insurance in New Jersey for Young Drivers
Since young drivers have less experience behind the wheel, insurers tend to charge them higher rates than more mature drivers. On average, most drivers will see their rates drop as they get older with a considerable decrease once they turn 25 years old.
Cheapest Car Insurance in New Jersey for Older Drivers
Although mature drivers pay less for car insurance than teens, older drivers start to see their rates go up as they enter their senior years. Comparing car insurance rates can save older drivers hundreds of dollars a year.
Cheapest Car Insurance in New Jersey for Drivers with a DUI
Drivers who have a DUI on their record typically experience much higher rates than drivers with a clean driving record or people with a history of less severe violations. A DUI usually affects your insurance rates for 3-10 years, but the violation itself may stay on your driving record for much longer than that.
To identify the cheapest post-DUI insurance companies, WalletHub compared rates for a 45-year-old, single man, with minimum coverage, one DUI, and good credit across major insurers.
Cheapest Car Insurance in New Jersey for Married Drivers
Married drivers typically enjoy cheaper car insurance rates than drivers who are single. Auto insurance companies generally view drivers who are married as more responsible and less of a risk to insure. To help married drivers further reduce their insurance costs, WalletHub compared major insurance companies’ rates for a 45-year-old, married man with minimum coverage, a clean driving record, and good credit.
Cheapest Cities for Car Insurance in New Jersey
City
Premium
Increase vs. Cheapest City
Princeton
$1,851
0.00%
Springdale
$2,021
9.20%
Freehold
$2,033
9.80%
Brick
$2,055
11.00%
Toms River
$2,058
11.20%
Jackson
$2,123
14.70%
Wayne
$2,129
15.00%
Piscataway
$2,140
15.60%
Edison
$2,176
17.60%
New Brunswick
$2,258
22.00%
Sicklerville
$2,305
24.50%
Vineland
$2,385
28.80%
Lakewood
$2,400
29.70%
Trenton
$2,446
32.10%
Bayonne
$2,524
36.40%
Jersey City
$2,719
46.90%
Plainfield
$2,748
48.50%
Union
$2,748
48.50%
Perth Amboy
$2,850
54.00%
Clifton
$2,852
54.10%
Camden
$2,912
57.30%
West New York
$2,953
59.50%
Union City
$2,953
59.50%
Elizabeth
$2,991
61.60%
East Orange
$2,999
62.00%
North Bergen
$3,015
62.90%
Newark
$3,028
63.60%
Irvington
$3,039
64.20%
Paterson
$3,044
64.50%
Passaic
$3,072
66.00%
The table above reflects the average annual cost of car insurance in New Jersey’s largest cities and towns.
Factors That Affect Car Insurance in New Jersey
Recap: Cheapest Auto Insurance Companies in New Jersey
The cheapest car insurance company in New Jersey is GEICO, which charges an average of $61 per month for state-minimum coverage. In addition to being the cheapest auto insurer for New Jerseyans overall, it is the cheapest option for a number of specific categories, such as full coverage and insurance for good drivers.
For your convenience, we’ve summarized the cheapest companies overall below.
7 Tips for How to Get Cheap Car Insurance in New Jersey
1. Compare quotes from both national and regional insurers
Don’t forget to include local insurance companies in your search for cheap car insurance. In New Jersey, regional insurers like Erie Insurance and The Hartford might have lower rates than national companies like GEICO and State Farm, along with comparable customer satisfaction ratings.
2. Know the factors affecting insurance in New Jersey
Everyone knows that your driving habits and claims history affect how much you pay for car insurance. But in New Jersey, companies can also consider your age, gender, credit history, marital status, and more when setting premiums. The car you drive, your annual mileage, and even some factors beyond your control all impact the price of insurance.
3. Choose coverage that is right for you
You need liability insurance to pay for the other driver’s expenses if you’re at fault in an accident in New Jersey. Collision and comprehensive coverage, on the other hand, are optional and may be unnecessary if you own an older car. Going with a higher deductible or lower coverage limits costs less, too. Don’t skimp on the coverage you need, but make informed choices so you don’t pay more than you have to.
4. Search for discounts
Top car insurance companies in New Jersey have a variety of discounts, so almost anyone can find ways to save. You may be able to get a discount if you’re a student, veteran, good driver, homeowner, willing to go paperless, and more.
5. Stay in less expensive zip codes
Car insurance prices can vary a lot based on zip code in New Jersey. On average, drivers in the most expensive parts of New Jersey spend nearly $1,400 more per year on full coverage car insurance than those living in the least expensive areas.
6. Try usage-based insurance
New Jersey uses public transportation more than any other state in the country except New York. Around 11% of New Jersey residents use public transportation, which means they are probably driving less than the average American. Usage-based insurance is great for low-mileage, non-aggressive drivers. You have to be comfortable with your insurer monitoring your actual driving habits using your smartphone or a device attached to your car, but you could save as much as 50% with some companies.
7. Maintain coverage
You’ll see higher rates if you let your insurance lapse, even if you don’t own a car. New Jersey drivers who don’t maintain continuous coverage pay an average of 30% more than those with five or more years of insurance history.
Video: Cheap Auto Insurance in New Jersey
Methodology for Selecting the Cheapest Auto Insurance in NJ
WalletHub’s analysis of cheap car insurance companies in New Jersey is based on data from the New Jersey DMV and Quadrant Information Services. Together with that data, WalletHub used the characteristics listed below to create 40 different driver profiles designed to identify the cheapest car insurance companies for New Jersey drivers in a collection of key categories. For each profile, WalletHub compared quotes among top New Jersey car insurance companies by averaging premiums from 32 zip codes that represent at least 20% of New Jersey's population. Military-specific companies like USAA were only considered for the military-specific category, due to their eligibility restrictions. In some cases, they may still be the best option overall for eligible drivers.
In the table below, you can see all of the profile characteristics that were used in WalletHub’s analysis, in addition to the specific subset of characteristics that make up our Good Driver profile.
Clean, One Speeding Ticket, One At-Fault Accident, One DUI, Suspended License, Open Container, Red Light Infraction, Reckless Driving, One Not At-Fault Accident
Clean
Miles Driven Per Year
7,500 Miles, 15,000 Miles, 20,000 Miles
15,000 Miles
Coverage Level
Minimum, Standard, Full
Minimum
Discounts
None, Multi-Policy, Homeowner, Student
None
Credit Level
Poor, Good
Good
Filings
None, SR22, FR44
None
Car
Sedan, Minivan, SUV, Coupe, Truck
Sedan
Below are additional details regarding the terminology and specific characteristics of the variables in the above table:
Minimum Coverage: Coverage requirements of $5,000 in property damage liability per accident, and $15,000 in personal injury protection, as required by New Jersey's minimum coverage requirements.
Standard Coverage: Coverage levels of 50k/100k/25k of liability coverage, 50k/100k/25k of uninsured motorist coverage and $15,000 of personal injury protection.
Full Coverage: Coverage levels of 100k/300k/50k of liability coverage, 100k/300k/50k of uninsured motorist coverage, collision and comprehensive coverage with a $500 deductible and $15,000 of personal injury protection.
Sedan: 2018 Toyota Camry.
Minivan: 2018 Dodge Grand Caravan.
SUV: 2018 Toyota RAV4.
Coupe: 2018 Ford Mustang.
Truck: 2018 Ford F-150.
Where driver profiles are not specified, WalletHub averaged New Jersey insurance quotes across 40 different driver profiles, using the above variables. Quote information is from Quadrant Information Services and is representative only. Individual rates will be different.
Questions & Answers
Finding the cheapest car insurance in New Jersey can be tough. But you’ve got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines.
Car insurance in New Jersey costs $107 per month or $1,283 per year for minimum coverage, on average. The cheapest car insurance companies in New Jersey are USAA, Central Mutual, and State Farm, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in New Jersey is 26% lower than the national average auto insurance premium. There are several factors that affect how much you'll pay for car insurance in New Jersey, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.
Average Cost of Car Insurance in New Jersey by Category
After an at-fault accident: $349 per month
Driver with poor credit: $199 per month
Teen driver: $441 per month
After a DUI: $195 per month
Average Cost of Car Insurance in New Jersey by Company
Note: Rates are an approximation based on a driver in New Jersey with minimum coverage and a clean driving record. Actual rates will vary.
How to Lower the Cost of Car Insurance in New Jersey
Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.
GEICO has the cheapest full coverage car insurance in New Jersey, charging an average of $163 per month or $1,951 per year. This is cheaper than the $6,080 per year drivers pay for full coverage in New Jersey on average.
Cheapest Full Coverage Car Insurance in New Jersey
The city in New Jersey with the least expensive auto insurance premiums is Princeton, which has an average annual premium of $1,851 per year. By comparison, the overall average cost of car insurance in New Jersey is $2,572 per year.
You can get car insurance discounts in New Jersey based on how you drive, the car you own, and your relationship with your insurance company. In New Jersey, car insurance companies are allowed to consider factors such as employment, residential, and marital status when setting premiums. That means there are also discounts available for being married, owning a home, or being affiliated with certain employers or educational institutions.
NJM Insurance has the cheapest insurance in New Jersey for drivers who have committed SR-22-type violations, charging an average of $666 per year. New Jersey is one of 12 states that do not require high-risk drivers to file an SR-22 form as proof of insurance.
Even though drivers in New Jersey are not required to file an SR-22, coverage can still be a lot more expensive than average for risky drivers. For example, drivers in...
To get the best high-risk auto insurance in New Jersey, you should compare quotes from at least three different insurance companies. The best high-risk auto insurance companies in New Jersey are GEICO, NJM Insurance, and Amica because they offer the most competitive rates for high-risk drivers. You should also practice safe driving habits moving forward, so you can get even lower rates in the future.
Best High-Risk Auto Insurance Companies in New Jersey
The best car insurance in New Jersey for drivers with a DUI is from NJM Insurance, GEICO, and Allstate. Getting a DUI in New Jersey will raise your insurance premiums by around 82%, bringing the cost of minimum coverage to $2,335 per year for the average New Jersey driver. You can minimize the cost of post-DUI car insurance by comparing quotes from the cheapest companies.
The cheapest car insurance in New Jersey costs an average of $52 per month ($624 per year), which is significantly less expensive than the national average cost of car insurance. Some of the cheapest car insurance companies in New Jersey include GEICO, NJM, and Amica.
New Jersey law requires you to have $5,000 in coverage for other people's property damage when you are at fault. New Jersey also requires $15,000 in personal injury protection (PIP) to cover medical expenses for you and your passengers after an accident.
The best car insurance for young drivers in New Jersey is from GEICO, which is rated highly by WalletHub's editors for its discounts, customer reviews, ability to pay out claims, and competitive rates for young drivers. GEICO charges young drivers an average of $60 per month, while the state average is $239 per month.
Best Car Insurance for Young Drivers in New Jersey
Car Insurance is a necessary expense if you’re a driver, but trying to find the cheapest rates can be a time-consuming process. To gain more insight about getting cheap car insurance while still having quality coverage, WalletHub posed the following questions to a panel of experts in New Jersey. Click on the experts below to view their bios and answers.
What does it say about car insurance companies that so many have celebrity endorsers?
Do you think car insurance companies try to mislead customers or is it just marketing?
Is it fair for car insurance companies to consider gender or age when setting premiums?
Is it fair for car insurance companies to consider a driver’s occupation when setting premiums?
Do you think car insurance companies are fair to college students?
What advice do you have for new drivers when it comes to car insurance?
How do you think the increased adoption of electric vehicles will change the car insurance landscape?
To what extent has technology disrupted the car insurance industry relative to others?
Patrali Chatterjee Ph. D. Chair and Professor, Department of Marketing; Associate Editor, Journal of Business Research -Technology, Interactive and Digital Marketing - Montclair State University - Feliciano School of Business Read More
Dr. Ranjan George Instructor of Teaching in the Management area, Rutgers School of Business–Camden Read More
Mitchell Fillet Assistant Professor of Professional Practice with the Finance & Economics department at Rutgers Business School Read More
Can (John) Uslay Ph.D., Professor of Marketing and Director, CM3A - Rutgers Business School at Newark and New Brunswick Read More
Michael Busler Ph.D., Professor of Finance, Finance Program Chair, Stockton University Read More
Jennifer Barr Professor of Business Administration, Marketing, School of Business, Stockton University Read More
