Best Car Insurance In New Jersey For 2022


WRITTEN BY: Julia Matseikovich

UPDATED: NOVEMBER 17, 2022 | 2 MIN READ

The most densely-populated state in the country, New Jersey, features car insurance rates 3% higher than the national average. If you want to drive in the Garden State, here’s what you must know about New Jersey car insurance.

Best New Jersey Car Insurance Companies

It isn’t easy sifting through all of the New Jersey car insurance carriers, so we’ve made it easy on you. Using consumer data and market research, we’re breaking down the best picks by price, service quality, and discounts. 

Cheapest New Jersey Car Insurance Company

New Jersey has a variety of national and regional carriers. Still, when it comes to the cheapest car insurance, the choice is clear: Geico. Geico offers an average rate of $44 a month for minimum car insurance. Your rate may vary.

Company With the Best Customer Service

Affordable New Jersey car insurance needs excellent customer service; our research shows NJM wins that honor. NJM consistently wins high marks on the JD Power market surveys. Insurance customers overwhelmingly prefer NJM for their prompt response to claims and responsive service. 

Company With the Best Premium-Reducing Programs

Geico wins for discounts in the Garden State. Even if Geico has fewer discounts for New Jersey car insurance than other insurers, it makes up for this with affordable rates, which may further lower with discounts. You can save up to 20% on your vehicle insurance in New Jersey. 

Company With the Best Discounts

A home and auto insurance bundle helps save on New Jersey car insurance costs. Several insurers offer bundling discounts, and the best in New Jersey is Progressive. You can save over 20% when you bundle your car insurance with a home, boat, or RV policy. 

New Jersey Insurance Demographics

New Jersey sees around 90 million visitors yearly, meaning many people on the road. However, NJ car insurance companies also determine rates based on several demographic factors. 

  • Crime Rates: New Jersey is among the top 10 safest states in the country. The state’s vehicle theft and other crime rates are lower than the national average.
  • Average Household Income: The average annual household income for New Jersey sits at $126,695. 
  • Median Age Range: New Jersey is older than other states, with a median age of 40. Children under 18 are 23% of the population, while 63% of residents are 18-64. 
  • Education: New Jersey’s population is well-educated. Not only do 2.3 million residents have a Bachelor’s degree, but 13% of residents also have a Master’s degree.

Common Risk Factors In New Jersey

While lush and green in the spring, New Jersey can be a hazard zone during the winter months. Freezing rain, sleet, snow, and occasional blizzards increase accident risks. The state also sees Nor’easters, which feature wind, snow, and waves capable of widespread damage. 

Auto Insurance Laws In New Jersey

The laws for New Jersey vehicle insurance differ from other states. Here, the insurance follows the car, not the driver. Your car insurance policy must meet the state’s minimum requirements, or you’ll pay the price in penalties. 

What are the minimum car insurance requirements in New Jersey?

New Jersey car insurance laws mandate liability insurance, Personal Injury Protection (PIP), and Uninsured Motorist Coverage (UM). 

The liability limit required is $15,000/$30,000/$5,000, or $15,000 per person for an accident, and $30,000 total per accident. You must also have $5,000 in coverage for property damage. PIP requires $15,000 in coverage and $15,000 per person/$30,000 per accident for UM coverage. 

Am I required to carry uninsured motorist coverage in New Jersey?

Yes. According to the state car insurance regulations, you must have $15,000 per person and $30,000 per accident in New Jersey. New Jersey has a fewer number of uninsured drivers due to this requirement. 

New Jersey SR-22 policies

New Jersey requires drivers with violations to file an SR-22. An SR-22 is not a form of insurance but a document declaring you meet the state’s minimum requirements for car insurance. It’s proof of insurance that your insurer files. If you need an SR-22 in New Jersey, the state requires it for three years. 

Is New Jersey a no-fault state?

Yes. New Jersey is a no-fault state. In the event of an accident, you use your insurance company to cover your medical bills. New Jersey requires PIP insurance to help mitigate these costs. 

What happens if my vehicle isn’t properly insured in New Jersey?

Driving your car without insurance in New Jersey is punishable by up to 14 days of jail time and a year-long license suspension. The court may sentence you to community service, plus impound your vehicle. Fines for the violation range from $300 – $1,500. 

Does New Jersey accept digital insurance cards?

Yes. You may show electronic proof of insurance in New Jersey.

How Much Does Car Insurance In New Jersey Cost?

New Jersey car insurance costs $1,674 a year, about $200 more than the national average. Rates for car insurance depend on your age, gender, vehicle make/model, location, and other factors. 

You may pay more for insurance if you live near the state’s coastal areas, such as Elizabeth or Jersey City, while Trenton has the lowest rates. New Jersey’s potential for extreme weather causes higher rates in some areas of the state.

Average Cost of Car Insurance By City

Living in a bustling part of New Jersey, you can expect to pay higher car insurance rates. Areas such as Newark, which is close to New York City, cost more car insurance. The same goes for coastal cities vulnerable to hurricanes and other severe weather.  

CityAverage New Jersey Car Insurance Cost
Elizabeth$2,580
Jersey City$2,375
Newark$2,685
Paterson$2,615
Trenton$1,785

Average Cost of Car Insurance By Company

On average, Progressive is the most expensive New Jersey car insurance company, with a premium of $1,785 a year. For the cheapest car insurance in the Garden State, Geico offers an average of $1,375.

Car Insurance CompanyAverage Full-Coverage Premium (Annually)
Allstate$1,785
GEICO$1,375
Progressive$2,075
State Farm$1,535

Average Cost of Car Insurance By Age

Young drivers in New Jersey have high insurance rates due to increased accident risk. A 20-year-old driver may pay nearly $2,000 more than a 25-year-old. 

AgeAverage Full-Coverage Premium (Annually)
Age 16$2,355
Age 18$6,820
Age 20$4,225
Age 25$2,300
Age 30$2,025
Age 40$1,760
Age 50$1,690
Age 60$1,685
Age 70$1,785

Average Cost of Car Insurance By Gender

New Jersey residents’ insurance rates differ by gender, though the variance is usually less than $100. 

GenderAverage Full-Coverage Premium (Annually)
Male$1,725
Female$1,795

Average Cost of Car Insurance By Credit Score

Most NJ car insurance companies charge you higher premiums if you have a lower credit score. Low credit drivers are more likely to file claims and declare losses. Poor credit may cause you to pay over $2,000 more than a driver with “great” scores.

Credit ScoreAverage Premium (Annually)
Poor$3,545
Fair$2,790
Good$2,225
Very Good$1,700
Great$1,335

Average Cost of Car Insurance By Driving Record

New Jersey drivers with clean driving records pay much lower rates on average than drivers with violations. Your record may show the violation for several years, which will keep your rates higher. 

Driving IncidentAverage Full-Coverage Premium (Annually)% Increase In Average Full-Coverage Premium
Clean Driving Record$1,8958%
Speeding Ticket$2,15022%
Accident$2,81059%
DUI$3,51597%

What Optional Insurance Coverages Should You Consider?

If you want to expand your protection, consider these New Jersey car insurance coverage options:

  • Collision – New Jersey roadways saw 270,000 crashes in 2019 alone. If your car’s in a collision, Collision insurance helps pay for resulting damages and medical bills. 
  • Gap Insurance – Gap Insurance covers the amount between your owed amount and the car’s cash value if stolen or totaled for financed vehicles
  • Medical Payments – New Jersey has a higher rate of car accidents than the nation’s average. Still, this coverage helps with medical bills for you and your passengers after an accident.

Auto Insurance Discounts

New Jersey car insurance discounts vary by company and other factors. Some savings may not be available in your location, so you’re wise to shop around for the best offers. Typical discounts in NJ may include usage-based savings and discounts for vehicle features such as anti-theft devices.

FAQs

How can I lower my car insurance in NJ?

For lower car insurance in New Jersey, shop for competitive rates. You may also increase your deductible or ask for eligible discounts. 

How much is car insurance for a new driver in NJ?

A new driver in NJ should expect a rate of $200 to $500 a month, depending on their age and whether they have their policy. 

How much is monthly car insurance in NJ?

The average monthly car insurance rate for NJ residents is around $160 a month. Your rate may vary.

How much is car insurance in NJ for a 21-year-old?

Rates will vary by provider. New Jersey drivers 21 years old pay an average of $1,700.

How much is car insurance for a 22-year-old in NJ?

The exact rate varies by company. The average car insurance rate for New Jersey residents 22 years old is around $1,380 a month.

How To Purchase Affordable New Jersey Car Insurance

Your New Jersey car insurance rate depends on age, gender, car, location, and other criteria. Start with online quotes for your car insurance. Then, see what insurer offers the best match for your needs.