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New Jersey is home to more than nine million people, and nearly 70 percent of that population are licensed drivers. That’s significantly more drivers than most other states have. In fact, New Jersey is just shy of cracking the top 10 U.S. states with the most licensed drivers. By comparison, Georgia, Michigan, and North Carolina have a similar number of drivers, while New York, Florida, and Texas have 13 million or more drivers each. The sprawling state of California is home to the most drivers in the country, with about four times as many motorists as New Jersey.

Even with all those drivers, New Jersey’s average insurance rates are quite attractive compared to those of some other states. Michigan, for example, has an average insurance rate of nearly $2,450. That’s about 30% more than the average cost of coverage in New Jersey. To get the cheapest auto insurance rates in New Jersey, you’ll want to have a clean driving record, good credit, and residency in a county that receives fewer insurance claims than others, though you can save money by shopping around. New Jersey car insurance rates vary quite a bit depending on the insurance company you choose.

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Cheapest Car Insurance Companies in New Jersey

The rates shown here are based on a study performed by Quadrant Information services on behalf of U.S. News. The study examined rates from 10 largest car insurance companies in the United States, using certain driver profiles. Your rates will differ.

How We Found the Cheapest Car Insurance Companies

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our ranking in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Cheapest Car Insurance Rankings. 

Our Study Rates

For this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the 10 largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford-F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. To get the state-wide study rates shown here, we computed the mean rate for male and female drivers ages 24, 35 and 60 who drive 15,000 miles per year, have medium coverage, good credit and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

How Much Does Car Insurance Cost in New Jersey?

See the Cheapest Car Insurance Companies

Based on data from seven insurance companies, the average insurance rate in our study in New Jersey is $1,667. According to our analysis, Geico offers the cheapest car insurance in New Jersey, with average annual study rates coming in at $1,088. Progressive is the second-cheapest in New Jersey, with average annual study rates at $1,211.  New Jersey drivers looking to save money may want to pass on Farmers insurance. With an average annual rate in our analysis of $2,753, it is the most expensive car insurance company in the Garden State.

New Jersey Car Insurance Rates by Age

To determine the average rates based on gender and age, we created driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for driving up to 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

According to our analysis, young drivers have the most expensive coverage because they’re at the highest risk of being involved in a motor vehicle. Furthermore, our study shows that young men have higher rates than young women. The 25-year-old female driver profile has an average insurance rate in our study of $1,866; a male driver profile of the same age tends to pay a bit more, with a study rate at $1,905. The 35-year-old male and female representative profiles have one of the lowest risks of being involved in an accident, which explains why their study rates are lower by more than $250 on average. The profiles for male and female drivers aged 60 get slightly lower study rates, averaging about $1,492 and $1,498, respectively.

Company

25-year-old male

25-year-old female

35-year-old male

35-year-old female

60-year-old male

60-year-old female

Allstate

$2,121.47

$2,047.60

$1,759.31

$1,766.24

$1,707.58

$1,707.58

Farmers

$3,226.72

$3,186.55

$2,640.96

$2,629.14

$2,374.02

$2,460.43

Geico

$1,192.31

$1,214.52

$1,058.40

$1,085.66

$988.34

$988.34

Progressive

$1,396.67

$1,439.94

$1,111.40

$1,195.34

$1,075.61

$1,049.49

State Farm

$2,041.05

$1,864.21

$1,661.30

$1,661.30

$1,545.05

$1,545.05

Travelers

$1,451.17

$1,443.38

$1,432.03

$1,445.14

$1,259.00

$1,238.45

New Jersey Car Insurance Rates by Annual Mileage

We created two driver profiles to compare how annual mileage can change car insurance rates in New Jersey. One with low mileage (6,000 miles driven per year) and one with high mileage (12,000 miles driven per year). The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

We found that annual mileage only has a minor impact on car insurance rates in our study. The driver profile with 6,000 miles annually in New Jersey has an average insurance study rate of $1,630, while the profile with 12,000 miles annually has an average premium of $1,667 in our analysis.  

Company

6,000 miles annually

12,000 miles annually

Allstate

$1,836.50

$1,851.63

Farmers

$2,752.98

$2,752.97

Geico

$1,052.04

$1,087.93

Progressive

$1,211.41

$1,211.41

State Farm

$1,547.75

$1,719.66

Travelers

$1,378.20

$1,378.20

New Jersey Car Insurance Rates by Credit Score

Our study verified that credit score also affects car insurance rates using male and female driver profiles with ages of 25 years, 35 years, and 60 years. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and up to 12,000 miles driven per year. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

Good credit has a significant impact on the amount of coverage an insurer is willing to offer. The driver profile with good credit has an average car insurance representative rate in New Jersey of $1,667. On the other hand, the profile with poor credit's rate in our analysis is $3,304 in New Jersey. The average study cost of insurance for the fair credit driver profile is about $2,127.

Company

Good

Fair

Poor

Allstate

$1,851.63

$2,346.56

$3,618.03

Farmers

$2,752.97

$3,125.07

$4,891.18

Geico

$1,087.93

$1,470.09

$2,496.30

Progressive

$1,211.41

$1,531.53

$2,130.43

State Farm

$1,719.66

$2,165.96

$3,498.36

Travelers

$1,378.20

$2,120.69

$3,188.23

New Jersey Car Insurance Rates by Driving Record

As you might expect, a person's driving record has a large impact on insurance rates, according to our study. To find out just how much of an effect, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Representative auto insurance rates in our study increase with each driving violation, including speeding, accidents, and DUIs. For the driving profile with a clean record, the average insurance study rate is $1,667, while the rate for the profile with one speeding violation is $2,050. The representative profile with a single accident has rates in our analysis that are higher still, at $2,780. Finally, with representative rates at $3,160, the driver profile with one DUI has the highest rates in the bunch.

Company

Clean record

With 1 speeding violation

With 1 accident

With 1 DUI

Allstate

$1,851.63

$2,234.38

$3,022.54

$2,646.16

Farmers

$2,752.97

$3,033.62

$5,228.01

$4,159.28

Geico

$1,087.93

$1,087.93

$1,510.51

$2,160.65

Progressive

$1,211.41

$1,558.02

$2,009.75

$1,509.23

State Farm

$1,719.66

$2,465.42

$2,705.22

$6,354.22

Travelers

$1,378.20

$1,920.17

$2,205.67

$2,128.42

New Jersey Car Insurance Rates by Coverage Level

Most major insurers offer car insurance coverage in three general tiers: low, medium, and high (even if they don’t necessarily advertise it as such). We created identical profiles in our study to represent drivers, then found out how rates changed with the three levels of coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both males and females with the ages of 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

According to our analysis, New Jersey insurance rates vary depending on the type of coverage you have. Low coverage doesn’t offer much protection from damage and injury after an accident, but it’s the most affordable option. The driver profile in our study with low coverage has an average representative rate of $1,511, but study rates only increase by about $250 per year to an average of $1,771 with the profile with the highest level of coverage. The driver profile with medium coverage has an average study rate of $1,667.

The driver profile with low coverage has study rates as low as $952 from Geico. Farmers has the highest representative rates across the three driver profiles, ranging from $2,537 for the profile with low coverage up to $2,919 for the profile with high coverage.

Company

Low

Medium

High

Allstate

$1,658.71

$1,851.63

$1,955.68

Farmers

$2,536.74

$2,752.97

$2,918.50

Geico

$951.78

$1,087.93

$1,170.71

Progressive

$1,088.93

$1,211.41

$1,296.70

State Farm

$1,562.39

$1,719.66

$1,797.28

Travelers

$1,266.90

$1,378.20

$1,487.35

New Jersey Car Insurance Rates by City

We checked our study's driver profiles in some of New Jersey's largest cities to find out how city of residence can affect insurance rates. Our profiles are based on 25-, 35-, and 60-year-old males and females with a clean driving record, up to 12,000 miles driven per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

In New Jersey, annual car insurance premiums in our study start at around $1,868 for the driver profile in Trenton. No other city in our analysis had a representative rate below $2,000. Bayonne and Clifton were the next cheapest cities, with average study rates of $2,004 and $2,141, respectively. The study rates for Paterson, Elizabeth, and Passaic were all on the upper end of the price range, between $2,400 and $2,500. The Newark driver profile had the highest study rates in the state, at $2,531.

City

Average Rate

Newark

$2,531.16

Jersey City

$2,149.42

Paterson

$2,430.17

Elizabeth

$2,435.09

Clifton

$2,141.39

Trenton

$1,868.02

Camden

$2,275.68

Passaic

$2,459.10

Union City

$2,333.97

Bayonne

$2,004.42

New Jersey Auto Insurance Minimum Coverage Requirements

New Jersey requires three types of car insurance coverage for all drivers: liability, personal injury protection (PIP), and uninsured motorist.  

There are two common types of auto insurance policies in New Jersey: basic and standard. Both include the minimum auto insurance required by New Jersey, as well as some additional coverage. The basic policy is the least expensive, but it offers limited protection. It doesn’t include bodily injury (BI) coverage, but you have the option to purchase $10,000 in coverage for all people, per accident. The basic policy includes $5,000 per accident in property damage (PD) liability coverage and $15,000 per person, per accident in PIP coverage. Uninsured and underinsured motorist coverage isn’t available with the basic policy. Collision and comprehensive coverage are available as options from some insurers. Neither comprehensive coverage nor collision coverage is required under New Jersey law. However, some automobile leasing and financing contracts require them.

The standard policy is more popular in New Jersey, and it offers a wider variety of coverage options. It includes BI coverage as low as $15,000 per person and $30,000 per accident, or you can get a policy with up to $250,000 per person and $500,000 per accident. PD coverage ranges from $5,000 to $100,000 or more per accident. PIP protection coverage starts at $15,000 per person or accident and can reach $250,000 or more. Uninsured and underinsured motorist coverage is available with this plan. Collision and comprehensive coverage in New Jersey has a standard deductible of $750, but higher and lower deductible amounts are available.

With the standard policy, drivers must also choose between two options regarding their right to sue other drivers. The “under no limitation on lawsuit” option gives you the right to sue the at-fault driver for pain and suffering or any injury after an accident. With the “limited right to sue” option, you forfeit your right to sue a person who caused you pain and suffering in an auto accident unless you sustain a permanent injury. Permanent injuries include loss of a body part, significant disfigurement or scarring, a displaced fracture, loss of a fetus, permanent injury, and death.

All drivers in New Jersey must carry proof of insurance via a paper or electronic New Jersey insurance identification card for each car under their policy. Paper identification cards must meet the specifications established by the New Jersey Motor Vehicle Commission. Paper cards must be on 20-pound white card stock and measure between three inches by five inches and 3.5 inches by 8.5 inches. The front of the card must contain the insured party’s name and address; the policy number; an expiration date; an effective date; a vehicle description with VIN number, the name, company code, and address of the insurance company; and a State of New Jersey insurance identification card heading. The back of the card must display the insurer’s address for filing notifications of the commencement of medical treatment.

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Cheapest Car Insurance in New Jersey

Category

Cheapest Company

Single Young Adult Drivers

Geico

Married Adult Drivers

Geico

Senior Drivers

Geico

Drivers with Good Credit

Geico

Drivers with Poor Credit

Progressive

Drivers with a Clean Record

Geico

Drivers with One Speeding Violation

Geico

Drivers with One Accident

Geico

Drivers with One DUI

Progressive

Low-mileage Drivers

Geico

High-mileage Drivers

Geico

Drivers with Low Coverage

Geico

Drivers with High Coverage

Geico

Drivers with Used Cars

Geico

Drivers with New Cars

Geico

To find which car insurance company offers the lowest rates in New Jersey, our study used representative driver profiles with good credit, medium insurance coverage, a clean driving record, and up to 12,000 miles driven per year. Our profiles included male and females with the ages of 25, 35, and 60. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

In most of the representative driver profiles, Geico came out on top with the cheapest study rates. Progressive was a better option for a few of the high-risk driver profiles, such as the one with a poor credit score and the one with a DUI.

Why Car Insurance Rates Vary in New Jersey

There are also a number of personal factors that can affect a driver’s insurance rates, including their city, credit score, driving record, marital status, and more. Age and marital status are two of the biggest factors in insurance costs. According to the New Jersey Department of Banking and Insurance, young married couples receive excellent coverage rates because they tend to have fewer accidents and claims than single people. Still, 60-year-old married men and women get the best insurance premiums in the state, as insurers find that this age group has the lowest potential of being involved in accidents.   

Younger drivers tend to have the highest insurance premiums, since their lack of experience makes them four times more prone to accidents than any other age group. In our analysis, the 25-year-old driver profile pays study rates that are on average between $400 and $500 more for car insurance than the 60-year-old driver profile.

(MCCAIG / Getty Images)

The make and model of your car also has an impact on your insurance rates. Older cars are less expensive to insure, while luxury and sports cars are likely to have the highest premiums due to their high cost of repairs. Insurance companies can also base your premium on how much you use your vehicle. For example, insurers may charge you more if you quickly rack up mileage or have a lengthy daily commute, regardless of whether your vehicle is for personal or professional use. However, insurance companies consider mileage to varying degrees. Driving 6,000 miles per year will cost you the same as driving 12,000 mile per year if you’re insured by Farmers or Progressive. However, if you’re insured by State Farm, doubling your annual mileage from 6,000 to 12,000 miles costs an extra $390 on average.

Drivers with good credit typically save about $3,000 on insurance premiums over those with poor credit. They save about $1,000 compared to those with fair credit. New Jersey introduced an insurance scoring system in 2003. Much like the credit scoring system used by banks, this system allows insurance companies to assign individual drivers a rating based on their risk factors for an accident. The insurers coverage cost is determined by the driver’s score, which is based on their driving record, driving experience, vehicle type, coverage limits, claims, and credit history.

If you live in an area where people file a high number of car insurance claims, you may also be charged higher premiums than areas with fewer claims. Other factors that can affect coverage rates include policy adjustments, deductible changes, relocation, or adding new drivers or cars to your policy.

How to Get the Cheapest Car Insurance in New Jersey

The best way to get cheap car insurance in New Jersey is to shop around and find the company with the lowest rates for your situation.  You can also make sure you’re not paying for coverage you don’t need and that you’re maximizing any discounts you are eligible for. For example, between New Jersey’s two major coverage policies, basic and standard, the latter offers the most cost-saving options. The standard policy is available with extra PIP package coverage, which pays for lost wages and temporary disability due to an auto accident. It also includes reimbursement for necessary services that require outside help due to injuries, including house cleaning and lawn services. This package also pays uncollected benefits to family members of the deceased or their estates.

You can also save some money on your car insurance premiums by paying higher deductibles. Although it means you’ll have to fork over more cash to handle repairs or medical costs associated with an accident, a higher deductible will bring down your annual insurance rates.  

Additionally, the fewer driving infractions you have, the lower your insurance premiums will be. For instance, the New Jersey driver profile with a clean driving record pays a representative rate of $1,720 for car insurance coverage from State Farm. With one DUI, the profile pays nearly four times as much for insurance from State Farm, with a study rate of $6,534. Differences in what you pay based on your driving record will vary by insurance company. 

Be sure to ask your insurance company about special discounts that may be available to you. Some offer good student discounts to teen drivers who maintain a 3.0 GPA or higher. You can save money by insuring more than one car on a policy or by having another active policy with the insurer. You may also get a discount on vehicles that comes with active safety features like a rearview camera or blind spot monitoring. Insurers are required to offer discounts to drivers who have completed the state-approved Defensive Driving Course.

New Jersey state employees can apply for automotive insurance discounts from NJM Insurance Group if the company insures both your house and car. Liberty Mutual also offers car insurance savings to NJ state employees.

If you need help figuring out the right amount of coverage for you, the New Jersey Department of Banking and Insurance offers an auto insurance purchasing planner. It can help you determine the best policy and protection for your driving habits. Our guide on how much insurance you need can also help point you in the right direction.

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Important Laws Around Auto Insurance in New Jersey

New Jersey requires all drivers – even those who don’t own a vehicle – to have car insurance.

The state’s no-fault coverage or personal injury protection (PIP) covers medical bills from injuries related to auto accident. It also covers any expenses resulting from injuries, including lost wages and hiring household help.

Digital insurance cards are permitted in New Jersey, so long as they are visible as an image on an electronic device like a cell phone or tablet. If a driver does not have a paper insurance card, an electronic card must be present in the vehicle. A driver must be able to produce the electronic document before an inspection, when involved in an accident, when stopped for a traffic violation, or when stopped in a spot check by a police officer. Failure to present a paper or electronic card may result in fines.

Driving an uninsured vehicle is illegal in the state of New Jersey, and it can carry the consequences of fines, community service, license suspension, and insurance surcharges. Insurance fraud, including providing false claim information to insurance companies may result in jail time, up to $15,000 in civil fines for each violation, and the loss of your driver’s license.

New Jersey law gives you the right to choose the best insurance policy for you at any time. You can always change your coverage or policy limits, as well as get refunds on your unused premium within 60 days. Additionally, insurance agents, brokers, and agencies are required to inform you of your coverage options regardless of your current insurance policy status.

New Jersey Driving Laws and Punishments

Under New Jersey law, a distracted driver is anyone participating in an activity that could divert focus from their principal role of driving. This includes using a handheld cell phone, smartphone, or wireless electronic communication device to text, talk, or listen to another person. Distracted driving also includes eating, drinking, talking to passengers, grooming, reading (including maps), using a navigation system, watching a video, and using audio systems.  

There is a fine of $200 to $400 for the first distracted-driving offense. A second offense within 10 years carries a $400 to $600 fine. A third or subsequent offense within a 10-year period results in a $600 to $800 fine, three motor vehicle points, and a possible 90-day license suspension.

(Icon Sportswire / Getty Images)

Motorists who keep one hand on the wheel are permitted to use handheld electronic device under certain conditions, such as when you are reporting to appropriate emergency response authorities or when you have a reason to fear for your own safety or that of another person.

You’re considered guilty of drunk driving in New Jersey if you operate a motor vehicle with a blood alcohol concentration (BAC) of .08 percent or higher. However, you can still be convicted of driving while under the influence of alcohol with a BAC below .08 percent.

Parents or guardians convicted of driving while intoxicated when a 17-year-old or younger passenger is in the vehicle can also be charged with a disorderly persons offense. As a result, they forfeit their right to operate a motor vehicle for up to six months and are required to perform community service for up to five days.

There are also potential consequences for underage drinking and driving in New Jersey, including a $500 fine, the loss of your driver’s license for six months, postponement of future driving privileges for up to 90 days, 15 to 30 days of community service, and participation in an alcohol and traffic safety education program.

New Jersey Car Insurance FAQs

Is car insurance required in New Jersey?

Yes, New Jersey requires three types of car insurance coverage: liability, personal injury protection (PIP), and uninsured motorist.  

Which cars are required to be insured in New Jersey?

Any vehicles registered in New Jersey are required to have all three types of mandatory car insurance. They cover expenses from auto accidents involving vehicles that are running, not running, or in storage.  

When should I get car insurance in New Jersey?

If you’re driving in New Jersey, you’re required to have car insurance, so get it as soon as possible. You can purchase, cancel, or change your auto insurance at any time and for any reason. You can also get a refund on a previous policy’s unused premium. You don’t have to wait until it’s time to renew your policy to start considering better coverage, so be sure to regularly shop around to find the best insurance for your needs.

What happens if my car is not properly insured in New Jersey?

Improperly insuring your car in the state of New Jersey could result in fines, suspension of your driver's license or registration, car impoundment, or jail time.

Is New Jersey a no-fault state?

Yes, New Jersey is a no-fault state. The state’s no-fault coverage (personal injury protection) pays for your medical expenses from injuries related to an auto accident. It also covers any expenses incurred from injuries, including lost wages and hiring household help.

Do I need uninsured motorist coverage in New Jersey?

Yes, uninsured motorist coverage is required in New Jersey. It reimburses you for injuries or damages resulting from an auto accident caused by an uninsured driver. New Jersey also offers underinsured motorist coverage, which pays for damages or injury from an accident caused by an insured motorist who has a plan that covers fewer expenses than your uninsured or underinsured motorist coverage.   

Is liability insurance required in New Jersey?

Yes, New Jersey requires liability insurance. There are two types of liability insurance: bodily injury (BI) and property damage (PD).

Body injury liability insurance covers claims and lawsuits from people who were hurt or killed in an auto accident you caused. It reimburses victims for pain, suffering, and lost wages. This coverage is generally paid out in two separate dollars amounts. One amount is for the coverage per individual and the other is the maximum combined amount to all parties injured in an accident you caused. Property damage liability insurance pays for lawsuits and claims from people whose property was damaged as a result of an auto accident you caused. Both types of coverage can be purchased as a combined single limit, which provides a maximum combined limit of bodily liability and property damage coverage for each accident.  

Does New Jersey accept digital insurance cards?

Yes, New Jersey accepts digital insurance cards. Your insurance company is required to issue you either a paper or electronic New Jersey Insurance Identification Card for every vehicle your policy covers. Paper cards must meet a specific set of physical guidelines outlined by the New Jersey Motor Vehicle Commission. Digital insurance identification must be viewable as an image on an electronic device such as a cell phone, tablet, or computer. 

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