Best Car Insurance in New Jersey: Finding the best car insurance in New Jersey is crucial to stay protected and comply with state laws.
With so many options available, securing affordable coverage can feel overwhelming.
In this guide, you’ll learn how to get a free quote and find the best car insurance that fits your needs without breaking the bank.
Why You Need the Best Car Insurance in New Jersey
Below are some key points outlining the importance of car insurance in New Jersey, the legal requirements, and the consequences of driving uninsured.
Importance of Car Insurance in New Jersey
- Financial Protection: Car insurance provides coverage for damages to your vehicle and others in the event of an accident. Without proper insurance, you could face high repair costs, medical bills, and even legal fees.
- Accident Coverage: It ensures that you’re covered for medical expenses, property damage, and liability in case you’re involved in an accident.
- Peace of Mind: Knowing that you’re protected from financial losses and legal issues provides peace of mind, especially in high-traffic areas like New Jersey.
- Protects Against Uninsured Drivers: In case you’re hit by an uninsured driver, having uninsured motorist coverage ensures you’re still financially protected.
Legal Requirements for Car Insurance in New Jersey
- Liability Coverage: New Jersey law requires all drivers to have at least $15,000 in bodily injury liability per person and $30,000 per accident. Property damage liability must be at least $5,000.
- Personal Injury Protection (PIP): The state mandates a minimum of $15,000 for medical expenses per person per accident, which covers medical treatments and lost wages.
- Uninsured Motorist Coverage: Although not required, it’s highly recommended to protect yourself in case of an accident with an uninsured driver.
Consequences of Driving Uninsured in New Jersey
- Fines and Penalties: Driving without insurance in New Jersey can lead to fines ranging from $300 to $1,000 for the first offense.
- License Suspension: If caught driving uninsured, your driver’s license could be suspended for up to one year, significantly impacting your mobility.
- Community Service and Surcharges: In some cases, you may be required to perform community service or pay additional surcharges.
- Increased Future Premiums: If you’re caught driving uninsured, future insurance companies may view you as a higher risk, leading to higher premiums.
- Legal Consequences: If you’re involved in an accident without insurance, you may be sued for damages, leading to financial ruin.
By ensuring that you have the best car insurance, you not only stay compliant with New Jersey laws but also protect yourself from financial risks and legal consequences.
Factors to Consider When Choosing the Best Car Insurance in New Jersey
1. Coverage Options
When selecting car insurance in New Jersey, understanding the different coverage options is key. Ensure your policy includes liability insurance, which covers damage to others’ property or injuries in an accident where you are at fault. Additionally, consider comprehensive coverage for non-collision damages, such as theft or natural disasters, and collision coverage for damages to your vehicle caused by accidents. Lastly, uninsured/underinsured motorist coverage protects you if you’re hit by someone without insurance or insufficient coverage.
2. Cost of Premiums and Ways to Save
Premiums vary based on factors like your driving history, vehicle type, and coverage levels. To keep costs down, consider raising your deductible or lowering coverage limits if appropriate. Shop around and compare quotes from multiple insurers to find the most competitive rates. Many insurers also offer tools like online calculators to estimate your premium.
3. Discounts Available
Look for good driver discounts if you have a clean driving record, or ask about bundling discounts for combining car insurance with home or renters insurance. Student discounts may also be available for younger drivers with good academic performance, which can help reduce premiums. Always ask your provider about all available discounts to maximize your savings.
4. Customer Service and Claims Process
Reliable customer service is crucial when dealing with accidents or claims. Check reviews or ask for recommendations about insurers with strong customer support and a quick, hassle-free claims process. Choosing a company with a good reputation can save you stress and time when you need assistance the most.
By considering these factors, you can find the best car insurance in New Jersey that meets your needs and budget.
Top Car Insurance Companies in New Jersey
When looking for the best car insurance in New Jersey, several companies offer excellent coverage options, affordable rates, and outstanding customer service. Below are some of the top car insurance companies you should consider:
1. Geico
Geico is known for its competitive pricing and easy-to-use mobile app, making it a popular choice for drivers in New Jersey. With various discounts for safe drivers, military members, and students, Geico is a go-to for affordable coverage. Their 24/7 customer service is also a big plus for those who prefer quick assistance.
2. State Farm
State Farm offers personalized customer service through local agents, giving drivers in New Jersey the benefit of having a trusted contact for all their insurance needs. Known for their Drive Safe & Save™ program, State Farm rewards good driving behavior with discounts. They also offer a wide range of coverage options to fit your needs.
3. Allstate
Allstate is another top choice, especially for its extensive coverage options and safe driving rewards. Allstate’s New Jersey customers can benefit from accident forgiveness and new car replacement programs, ensuring drivers stay protected even in the event of an accident. Their Claim Satisfaction Guarantee makes them a reliable option for handling claims efficiently.
4. Progressive
Progressive is widely recognized for its customizable policies and tools like the Name Your Price® tool, which helps drivers find coverage within their budget. Their Snapshot® program rewards safe driving and can help lower premiums over time. Progressive also offers a variety of discounts, making it a top option for cost-conscious drivers.
5. New Jersey Manufacturers (NJM)
For residents of New Jersey, NJM is a highly reputable and local option. Known for their exceptional customer satisfaction, NJM provides competitive rates and personalized coverage. While membership is required, the company offers many discounts for policyholders, especially for those who practice safe driving.
By comparing these top companies, you can find the best car insurance policy that fits your needs and budget in New Jersey. Remember to consider factors like customer service, available discounts, and coverage options when making your decision.
Cheap full coverage insurance in New Jersey
Ffull coverage insurance in New Jersey averages around $1171 for a 6-month policy. It’s a popular choice because it offers more complete protection, covering both your vehicle and damages to others. In fact, 61% of The Zebra’s New Jersey customers request quotes for full coverage insurance.
While it’s more expensive than liability-only coverage, you can still find a fair price by comparing rates from companies like NJM and GEICO, known for their lower-than-average prices.
Full Coverage Quotes in NJ
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| New Jersey Manufacturers | $757 | $126 |
| GEICO | $758 | $126 |
| Travelers | $847 | $141 |
| Progressive | $981 | $164 |
| State Farm | $1,027 | $171 |
| Allstate | $1,095 | $182 |
| Amica Mutual | $1,322 | $220 |
Cheap liability insurance in New Jersey
Liability insurance in New Jersey costs an average of $492 for a 6-month policy. For our user profile, NJM and State Farm provide some of the most affordable rates. Only 39% of our New Jersey customers choose liability-only coverage.
Before choosing liability-only coverage, think about whether it offers enough protection for your needs. Remember, it’s cheaper because it only covers damage to others, not your vehicle. The table below shows monthly and 6-month quotes from top New Jersey insurers.
Cheapest Liability Coverage in NJ
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| State Farm | $181 | $30 |
| GEICO | $271 | $45 |
| New Jersey Manufacturers | $352 | $59 |
| Progressive | $363 | $61 |
| Travelers | $424 | $71 |
| Amica Mutual | $542 | $90 |
| Allstate | $702 | $117 |
New Jersey’s minimum requirements differ from other states, offering two options. The first is the Standard Policy, which is more similar to other states’ requirements: 25/50/25, meaning $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage per accident. This policy also requires $15,000 in Personal Injury Protection (PIP) and Uninsured/Underinsured Motorist coverage 25/50/25.
The second option is a bare-bones “Basic Policy” that provides minimal coverage at a lower cost. This policy offers $10,000 in property damage liability per accident and an optional $10,000 in bodily injury liability coverage.
Additionally, your right to sue for pain and suffering after an accident depends on your policy choice. The Basic Policy limits your right to sue to severe injuries like loss of a body part. The Standard Policy offers a choice between this limited right and an unlimited right to sue, which covers a broader range of injuries but comes with higher premiums.
Best car insurance in New Jersey — honorable mentions
To determine the best companies, we looked at J.D. Power auto insurer ratings and consumer reviews we collected from nearly 3000 drivers across New Jersey and the US.
Best Car Insurance Companies in New Jersey
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| New Jersey Manufacturers | $757 | $126 |
| State Farm | $1,027 | $171 |
| Amica Mutual | $1,322 | $220 |
Car insurance in popular New Jersey cities
Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. Have a look at the table below to see average car insurance costs in some of New Jersey’s biggest cities.
Auto Insurance Quotes in New Jersey’s Biggest Cities
| City | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| Toms River | $1,117 | $186 |
| Jersey City | $1,560 | $260 |
| Elizabeth | $1,697 | $283 |
| Paterson | $1,717 | $286 |
| Newark | $1,770 | $295 |
Cheap auto insurance for teens and young drivers in New Jersey
Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In New Jersey, teen drivers pay especially high rates: $4,066 per year — over 240% more than a typical New Jersey driver.
If you’re a teen or have a teen, consider GEICO, NJM, and State Farm for the cheapest car insurance.
Cheapest Car Insurance Quotes for Young Drivers in NJ
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| GEICO | $1,782 | $297 |
| New Jersey Manufacturers | $1,790 | $298 |
| State Farm | $2,911 | $485 |
| Amica Mutual | $3,159 | $527 |
| Allstate | $3,578 | $596 |
| Travelers | $3,585 | $598 |
| Progressive | $5,296 | $883 |
New Jersey auto insurance quotes after an accident or ticket
Your driving history plays a big part in how much you pay. If you have a recent at-fault accident on your record, insurance companies will likely determine that you pose a higher level of risk as a customer. An at-fault accident could see your car insurance rates increase to an average of $2,379 per year.Best Insurance Companies in NJ After an Accident
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| New Jersey Manufacturers | $824 | $137 |
| GEICO | $1,025 | $171 |
| Travelers | $1,344 | $224 |
| Amica Mutual | $1,460 | $243 |
| Progressive | $1,589 | $265 |
| State Farm | $1,687 | $281 |
| Allstate | $2,491 | $415 |
Tip: Don’t forget about claims satisfaction
In a perfect world, you wouldn’t need to use your insurance. But if you ever do, a smooth claims process makes all the difference. In our 2024 Customer Satisfaction Survey, we found that NJM and Amica stood out for their claims handling. If you’re in New Jersey, these companies are worth at least considering.
If you have a clean driving record in New Jersey — no speeding tickets, DUIs or other recent citations — you’ll probably pay less for car insurance. Conversely, a bad driving record will cause your rates to skyrocket: car insurance premiums typically increase by 109% after a DUI, 52% after an at-fault accident, and 99% after a reckless driving charge.
See below average auto insurance rates in New Jersey after several common citations.
New Jersey Auto Insurance Quotes by Violation
| Accident/Violation | Avg. Annual Premium | $ Rate Increase |
|---|---|---|
| None | $2,342 | $0 |
| One Med/PIP claim | $2,348 | $6 |
| Not-at-fault accident | $2,465 | $123 |
| One comp claim | $2,483 | $141 |
| Two Med/PIP claims | $2,494 | $152 |
| Speeding 6 – 10 MPH over limit | $2,684 | $342 |
| Speeding 11 – 15 MPH over limit | $2,694 | $352 |
| Two comp claims | $2,705 | $363 |
| Failure to show documents | $2,737 | $395 |
| At-fault accident – less than $1000 | $2,774 | $432 |
| Failure to wear a seat belt | $2,804 | $462 |
| Driving too slowly | $2,816 | $474 |
| Driving without lights | $2,828 | $486 |
| Driving with expired registration | $2,877 | $535 |
| Child safety restraint | $2,878 | $536 |
| Wrong way/wrong lane | $2,931 | $589 |
| Failure to yield | $2,934 | $592 |
| Failure to stop at a red light | $2,951 | $609 |
| Illegal turn | $3,005 | $663 |
| Texting while driving | $3,030 | $688 |
| Cell phone violation | $3,030 | $688 |
| Speeding in school zone | $3,080 | $738 |
| Speeding 16 – 20 MPH over limit | $3,091 | $749 |
| Operating a vehicle without permission | $3,093 | $751 |
| Improper passing | $3,171 | $829 |
| Following too closely | $3,176 | $834 |
| Passing school bus | $3,310 | $968 |
| In 65 MPH zone | $3,330 | $988 |
| Speeding 21 – 25 MPH over limit | $3,448 | $1,106 |
| At-fault accident – $1000-$2000 | $3,536 | $1,194 |
| At-fault accident – greater than $2000 | $3,560 | $1,218 |
| Open container | $3,978 | $1,636 |
| Reckless driving | $4,671 | $2,329 |
| Leaving scene of an accident/hit and run | $4,853 | $2,511 |
| DUI | $4,886 | $2,544 |
| Refusal to submit to a chemical test | $4,886 | $2,544 |
| Racing | $4,893 | $2,551 |
| Driving with a suspended license | $5,085 | $2,743 |
How have car insurance costs in New Jersey changed?
In New Jersey, average annual auto insurance costs increased by $86 in the past year. A typical New Jersey driver pays an average of $1,584 per year.
The recent pricing trend in New Jersey leans toward slightly cheaper car insurance costs. From 2018 to 2019, average annual rates in New Jersey dropped from $1,780 to $1,419. Since this significant drop, rates have increased moderately (excluding 2023). At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, increasing by less than $100 each year since 2014.
Car Insurance Costs in New Jersey since 2015
| Year | Avg. Annual Premium | Yearly Change |
|---|---|---|
| 2024 | $2,030 | $391 |
| 2023 | $1,639 | -$404 |
| 2022 | $2,043 | $584 |
| 2021 | $1,584 | $86 |
| 2020 | $1,498 | $79 |
| 2019 | $1,419 | -$361 |
| 2018 | $1,780 | -$16 |
| 2017 | $1,796 | $234 |
| 2016 | $1,562 | -$323 |
| 2015 | $1,885 | $216 |
How to Get a Free Quote for Car Insurance in New Jersey
Here’s a step-by-step guide to help you get a free online quote, along with the documents you’ll need and tips for comparing quotes effectively.
Step-by-Step Guide to Obtaining a Free Online Quote
- Visit Insurance Company Websites – Go to the official websites of car insurance companies that serve New Jersey, such as GEICO, State Farm, or Progressive. Most providers offer a “Get a Quote” button on their homepage.
- Enter Your Personal Information – Start by entering basic details such as your name, address, and date of birth. This helps the insurer know who you are and where you live, which are factors that influence your premium.
- Provide Vehicle Details – You will need to enter the make, model, year, and Vehicle Identification Number (VIN) of your car. If you own more than one car, make sure to include details for all of them.
- Answer Driving History Questions – Most forms will ask about your driving record, including any past accidents or traffic violations. Accurate information helps in receiving a precise quote.
- Submit for a Quote – After filling out the form, hit the “Submit” button, and you should receive a quote within minutes.
Documents and Information Needed
Before you start the process, gather the following documents and details:
- Driver’s License – You’ll need your driver’s license number to confirm your identity and driving record.
- Vehicle Registration – Information about your vehicle, including the VIN and registration details.
- Current Insurance Policy (if applicable) – If you already have car insurance, provide your current policy details for comparison purposes.
- Driving History – Be prepared to answer questions about any tickets, accidents, or claims you’ve had in the past.
Tips for Comparing Quotes Effectively
- Compare the Same Coverage Levels – Ensure you’re comparing quotes with identical coverage options. For example, if you’re comparing liability coverage, make sure the limits are the same across quotes.
- Look at Deductibles – Pay attention to the deductibles. A higher deductible may lower your premium but will increase your out-of-pocket costs in the event of an accident.
- Check for Discounts – Many insurers offer discounts for bundling policies, having a good driving record, or installing safety features in your vehicle. Make sure to ask about available discounts.
- Review Customer Satisfaction and Claims Service – Cheap insurance isn’t always the best. Look at reviews or ratings to see how each insurer handles claims and customer service.
By following these steps, you can easily get a free car insurance quote in New Jersey and compare the best options that suit your needs and budget.
Tips to Save on Car Insurance in New Jersey
Car insurance in New Jersey can be expensive, but there are several ways to lower your premium. Follow these tips to save money on your car insurance:
1. Shop Around and Compare Quotes
Not all insurance companies offer the same rates. It’s important to get quotes from different insurers to find the best deal. You can use online comparison tools to easily check prices from various companies. This way, you can make sure you’re getting the most affordable coverage for your needs.
2. Increase Your Deductible
One effective way to lower your premium is to increase your deductible. A higher deductible means you’ll pay more out of pocket if you file a claim, but it can reduce your monthly insurance costs. Just be sure you can afford the deductible if you need to make a claim.
3. Use Telematics or Mileage-Based Programs
Many insurers offer telematics or mileage-based programs that monitor your driving habits. If you’re a safe driver or don’t drive often, you may qualify for discounts. These programs can lower your rate based on how much and how safely you drive.
4. Take Advantage of Discounts
Most insurance companies offer a variety of discounts that you might be eligible for. Look for discounts like good driver discounts, bundling home and auto insurance, or having safety features like anti-theft devices in your car. Be sure to ask your insurer about any available discounts to save even more on your car insurance.
FAQs about Best Car Insurance in New Jersey
1. What are the minimum car insurance requirements in New Jersey?
New Jersey drivers must carry at least $15,000 per person and $30,000 per accident for bodily injury liability, along with $5,000 for property damage liability. Uninsured motorist coverage and personal injury protection (PIP) are also mandatory.
2. How can I find the best car insurance in New Jersey?
To find the best car insurance in New Jersey, compare quotes from multiple providers. Look for companies with strong customer service ratings, affordable premiums, and customizable coverage options. Make sure they meet state insurance requirements and offer discounts like bundling or safe driving.
3. What factors affect car insurance rates in New Jersey?
Car insurance rates in New Jersey depend on factors like your driving history, age, location, and the type of car you drive. Other factors include your credit score, annual mileage, and coverage limits.
4. Can I get car insurance with a bad driving record in New Jersey?
Yes, you can still get car insurance with a bad driving record, but your rates may be higher. To reduce premiums, consider taking defensive driving courses or asking for accident forgiveness programs. Some insurers specialize in high-risk drivers.
5. What discounts are available for car insurance in New Jersey?
Common discounts include good driver discounts, multi-car discounts, bundling policies (home and auto), and discounts for safety features like anti-theft devices or airbags. Be sure to ask your insurance provider about all available savings.
6. How does no-fault insurance work in New Jersey?
New Jersey follows a no-fault insurance system, meaning your insurance pays for your medical expenses regardless of who caused the accident. This is covered under your Personal Injury Protection (PIP) policy, and you can choose between different levels of PIP coverage.
7. Can I switch car insurance companies mid-policy in New Jersey?
Yes, you can switch car insurance providers at any time in New Jersey, but check for any cancellation fees with your current insurer. Compare new quotes and ensure continuous coverage before making the switch to avoid any lapses.
8. What is comprehensive car insurance, and do I need it in New Jersey?
Comprehensive car insurance covers damage to your vehicle caused by events like theft, vandalism, fire, or natural disasters. While not required by New Jersey law, it is recommended if you want extra protection for your car, especially for newer or valuable vehicles.
Conclusion
Finding the best New Jersey car insurance is crucial for protecting yourself and your vehicle. By comparing your options, you can ensure you’re getting the best coverage at a competitive price. Don’t hesitate—get a free quote today and see how much you could save.
Remember, taking the time to compare your options now can lead to long-term savings and peace of mind on the road.
References
For more detailed information and further reading on finding the best car insurance in New Jersey, check out these reputable sources:
- New Jersey Department of Banking and Insurance – This official resource provides up-to-date information on insurance regulations, coverage options, and consumer protection in New Jersey. Visit their website.
- The National Association of Insurance Commissioners (NAIC) – NAIC offers insights on insurance industry standards and consumer tools to compare rates and coverage across different states, including New Jersey. Learn more.
- Insurance Information Institute (III) – A reliable source for educational articles and data on how car insurance works, tips for getting affordable rates, and more. Explore their resources.
- New Jersey Motor Vehicle Commission – The MVC provides necessary information on legal requirements for car insurance in New Jersey, including liability coverage and penalties for uninsured driving. Check out their site.
- Consumer Reports – Car Insurance Buying Guide – An independent review guide that helps consumers understand insurance policies, coverage types, and tips to save on car insurance in New Jersey. Read the guide.
These sources can help you dive deeper into choosing the best car insurance in New Jersey based on facts, state regulations, and expert recommendations.
