2020 New Jersey Car Insurance Report
New Jersey is the third most expensive state for car insurance in the country. At around 84,000 lane miles, the Garden State’s road system is smaller than that of all but fourteen other states. New Jersey drivers are also in less danger on the road than drivers in other states. The state's motor vehicle occupant death rate is the third lowest in the country and is lower than the national rate. Despite this lowered risk, New Jersey premiums are still high, especially for poor drivers.
In this report, WalletHub dug deeper into how car insurance premiums in New Jersey vary. More specifically, it measured how individual factors such as gender, age, coverage type and location can impact a driver’s overall rate.
Best Car Insurance Companies in New Jersey
|Overall Rank||Company Name||Cheapest Rank||Customer Service Rank|
Best Cities for Cheap Car Insurance in New Jersey
The most expensive city in New Jersey is 75% more expensive than the least expensive
|Rank||City||Premium Relative to Baseline*||Rank||City||Premium Relative to Baseline*|
|2||Brick||102%||17||West New York||142%|
|6||Cherry Hill||108%||21||Perth Amboy||149%|
Small-sized cities in New Jersey offer premiums that are around 15 percent lower than in other cities.
Complaints and Market Share by the Largest Car Insurance Companies in New Jersey
|Company||Complaints Ratio||Complaints Index||WalletHub User Reviews||The Overall Customer Satisfaction Rank|
|Geico||0.017||0.513||3.8 (556 reviews)||1|
|State Farm||0.032||0.984||3.9 (440 reviews)||2|
|Allstate||0.034||1.066||3.6 (233 reviews)||3|
|Progressive||0.046||1.438||3.5 (318 reviews)||4|
|Liberty Mutual||0.075||2.328||3.3 (214 reviews)||5|
Complaint Index compares the complaint ratios with all other insurers on the report. The lower the index the better.
How Demographics Impact Your Quotes in New Jersey
In New Jersey there is no significant difference in premiums between men and women.
In New Jersey, 16-year-olds pay 336% more than 66-year-olds.
There is no significant difference in premiums between married and non-married people.
Unlike other states, there is no apparent difference in premiums by profession in New Jersey.
Auto Usage Impact
Small business owners pay 8% more on car insurance in New Jersey.
In New Jersey, drivers who travel 25,000+ miles per year in their car pay around 7% more than those who only travel 3,000 miles.
Type of Coverage Impact
Adding Comprehensive and Collision coverage in New Jersey can increase your car insurance cost by 50%.
A Super Premium insurance plan costs 90% more than the state’s minimum requirement in New Jersey.
Driving Record Impact
DUI infractions are the enemy of cheap car insurance rates in New Jersey, raising the average driver's premiums by 161% for at least 12 months.
Regional Characteristics Correlated with New Jersey Car Insurance
Living in a city with a high Vehicle Theft Rate in New Jersey can cost you up to 34% more on your car insurance.
|Lowest||Highest||∆ Highest vs Lowest Premium Difference||Correlation Factor|
|African American Pop||Lakewood
|Vehicle Theft Rate||Bayonne
Tips for How to Get Cheap Car Insurance
- Get a car that’s cheap to cover. Certain car models cost more to insure than others. Cars that are safer and cost less, like minivans and SUVs, are cheaper to insure than expensive, fast sports cars.
- Be on your best behavior. Safe drivers with no history of accidents, tickets or arrests can look forward to cheaper rates than people who haven’t been as responsible. Convicted felons will also often have to pay more, even if their record isn’t related to driving.
- Take advantage of discounts. You may be able to get discounts if you are a veteran, get paperless statements, have a good driving record, bundle policies, are a student or have an anti-theft system, to name a few.
- Build good credit. Your credit score will often factor into your auto insurance rates – people with no credit pay 67% more than people with excellent credit on average. Insurers know that financial responsibility often correlates with responsibility in other areas of life. People with poor credit are more likely to file an insurance claim. To boost your credit score, always pay you credit bills on time and try to use less than 30% of your available credit.
- Look locally. There are several big-name nationwide auto insurers with lots of satisfied customers, but you don’t necessarily have to get coverage from a company that takes clients from all across the country. Plenty of car insurance companies only cater to customers in certain regions or states. These local insurers may provide lower rates but are often overlooked. Make sure to include them in your comparison, at least.
- Choose a higher deductible. An insurer may lower your monthly rates in return for a higher deductible - the amount you personally have to pay when you make a claim. That can save you money if you never have an accident. This approach makes the most sense for people who are very infrequent drivers.
- Select less comprehensive coverage. There are many types of car insurance. You will usually need liability coverage, to pay for the other person’s damages if you’re at fault in an accident. But you may not need collision damage (pays your repairs) or comprehensive coverage (pays for non-accident-related damages). Both pay out based on your car’s current value. If your car is older and will cost more to fix than to buy a new vehicle, it may not be worth it.
- Consider pay-per-mile plans. You don’t always have to pay a set amount per month. There are also plans based on how much you drive. If you have a car but rarely use it or only drive very locally, a pay-per-mile plan may be best for you. The insurance company will place a device in your car that tracks your mileage. It may also track things like your speed and braking, which could affect your rates positively if you’re a safe driver and negatively if not.
In order to examine how auto insurance premiums vary within New Jersey, we collected insurance quotes from the websites of five of the largest providers in the state. Collectively they represent 68% of the market and they all offer online quotes.
City Selection: We chose the 30 most populated cities, according to U.S. Census Bureau data.
City Zip Code Selection: For each quote, we were required to enter a zip code on the insurer’s quoting platform. For each city we picked the zip code with the highest population.
DRIVER AND AUTOMOBILE DATA
Experienced Female Driver
|Licensed: 20 Years|
|Age: 36 Years|
|Employment Status/Profession: Unemployed|
|Marital Status and Gender: Single Female|
|Membership in Organization: None|
|Traffic Violations: None|
|Annual Mileage: 15,000|
|Daily Use Purpose: Commute to School/Work (20 Miles Each Way)|
|Days per Week: 5|
|$50,000 for Injury/Death to One Person|
|$100,000 for Injury/Death to More than One Person and $50,000 for Damage to Property|
|Collision Coverage with Uninsured Motorist of $30,000|
|Collision Coverage with Underinsured Motorist of $60,000 (UMUND)|
|$500 Collision Coverage (COLL)|
|$500 Comprehensive Coverage (COMP)|
|2014 Toyota Camry L, 4-Cyl., Sedan|
|Assume: driver-side air bag, standard performance, no anti-theft device|
In order to obtain comparable results across different scenarios, we kept the car information the same for each quote. Starting with the above base case, we altered the parameters one at a time and extracted the resulting quotes to outline the differences across gender, marital status, age, profession, annual mileage and daily use of the car.
For traffic violations and liability coverage, full details were not included in the above charts for simplicity's sake. They are as follows:
Traffic Violations from the Past 36 Months:
- 1 Speeding Ticket, 1–19 Miles Over Limit (3 Months Ago)
- Reckless Driving – 1 Speeding Ticket, 20+ Miles Over Limit (3 Months Ago)
- Improper Turn/No Signal (3 Months Ago)
- DUI (12 Months Ago)
- 1 Accident, No Casualties, $1000+ Claim (12 Months Ago)
- 1 Accident, No Casualties, $1000+ Claim (3 Months Ago)
- Clean Driving History (Base Case)
- Minimum: $25,000 per person and $50,000 per accident for bodily injury and underinsured bodily injury liability, and $25,000 for property damage.
- Economy Full: $25,000 per person and $50,000 per accident for bodily injury and underinsured bodily injury, $25,000 for property damage, $500 collision and $500 comprehensive deductible.
- Base: $50,000 per person and $100,000 per accident for bodily injury, $30,000 per person and $60,000 for underinsured bodily injury, $30,000 for property damage, $500 collision and $500 comprehensive deductible.
- Premium: $100,000 per person and $300,000 per accident for bodily injury, $50,000 per person and $100,000 for underinsured bodily injury, $50,000 for property damage, $500 collision and $500 comprehensive deductible.
- Super Premium: $100,000 per person and $300,000 per accident for bodily injury, $50,000 per person and $100,000 for underinsured bodily injury, $50,000 for property damage, $250 collision and $250 comprehensive deductible.
Complaints Index: The complaints index was obtained by dividing the total complaints for each individual company by the total number of complaints across all insurance companies in New Jersey (complaint market share), all divided by total market share. The Overall Customer Satisfaction Rank was determined by averaging the rankings for the Complaint Index and WalletHub User Review categories.
Was this article helpful?