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If you are looking for auto insurance in New Jersey, knowing how much it will cost is a promising idea. The average premium for car insurance in New Jersey is $1,921 per year or $160 per month. While the national average is $1,682. There is a difference of $239 more between the national average and the state average.

If you live here, you know that already. But do you know why? There are a range of factors that affect car insurance rates. A few of them are –age group, gender, driving history, credit score, and location where you live.

Apart from the factors which affect auto insurance rates, this guide also talks about the average rate of full coverage in state, companies offering cheap monthly premiums for car insurance, average car insurance rates by cities in New Jersey, and car insurance rates by age group.

Shop around and compare quotes to save money on your auto insurance. Keep reading the guide to make sure the insurance policy does not cost you more than your requirements.

Average car insurance cost in New Jersey per month

In New Jersey, the average premium for car insurance is $160 per month.

The price for the same coverage may differ between companies, which is true of every auto insurance company. When looking for car insurance rates in New Jersey, it is a promising idea to get quotes from many firms.

As per the rate analysis conducted by Insure.com, the company which offers cheapest car insurance premiums in New Jersey is Palisades Safety & Ins Assn. The average annual cost is $1,033 while the average cost per month is $86. The second-best option available is, Government Employees Ins Co, offering insurance at an average per month cost of $105.

The table below lists the other available car insurance companies which offer car insurance in New Jersey, along with their average cost per month and average annual cost.

Company nameAverage per month costAverage annual cost
Palisades Safety & Ins Assn$86$1,033
Government Employees Ins Co$105$1,256
NJ Manufacturers Ins Co$107$1,283
State Farm Ind Co$141$1,688
Allstate NJ P&C Ins Co$146$1,754
St Paul Protective Ins Co$153$1,839
Metropolitan P&C Ins Co$154$1,850
Mercury Ind Co of Am$178$2,133
Foremost Ins Co Grand Rapids$264$3,166
Progressive Garden State Ins$267$3,204

Read our guide to best car insurance companies of 2022

Average cost of car insurance by coverage levels in New Jersey

The amount of coverage you purchase has an impact on how much car insurance costs in New Jersey. Your premium is determined by your liability limits, as well as whether you want comprehensive and collision coverage.

Liability only insurance protects a third party’s property damage and personal injuries in the event of an accident. In the case of a collision, having only liability coverage on your auto insurance would not cover your injuries or personal property damage since you are the driver responsible for the accident. If your coverage limit is 50/100/50 Liability only, the average cost per year in New Jersey is $1,160.

When you add more coverage to your policy, your insurance premium increases. As the insurance provider will have to compensate you if you are in an accident or suffer damage in any other manner. Hence, the average cost of full coverage car insurance in New Jersey is $1,921 per year.

For someone who does not own the car, but frequently rents a car, non-owner state minimum liability coverage is best suited. It is like liability-only coverage and covers for property damage and bodily injury caused to another driver. In New Jersey, the average annual cost for non-owner state minimum liability only is $1,029.

And for those who wish to save money on car insurance premiums can opt to have only the state minimum liability coverage, to be able to legally drive in the state. The state minimum liability only coverage costs $1,030 per year in New Jersey.

Coverage limitsAverage annual cost
50/100/50 Liability Only$1,160
100/300/100 Liability with $500 Comp/Coll Deductible$1,921
Non-Owner State Minimum Liability Only$1,029
State Minimum Liability Only$1,030

Average car insurance cost in New Jersey by City

Your car insurance premium is determined by a variety of factors, including your state, city, and even ZIP code. The incidence of accidents and the likeliness of vehicle theft or vandalism can influence the overall cost of a city or ZIP code.

The table below depicts the top popular cities in New Jersey:

CityAverage annual cost
Newark$2,846
Jersey City$2,427
Paterson$2,769
Elizabeth$2,739
Clifton$2,397
Trenton$2,164
Camden$2,718
Passaic$2,792
Union City$2,640
Bayonne$2,292

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Know car insurance rates in New Jersey by city

Average car insurance cost in New Jersey by age of the driver

Age is also a consideration when it comes to auto insurance rates. Teens are more likely to be in automobile accidents than any other generation. For example, the average annual rate for young drivers in New Jersey is $3,548 while for seniors is $1,986. Here, the rate for young drivers is $1,562 more than the rate for senior drivers.

According to statistics, young drivers are more likely to be in a vehicle accident than more experienced drivers. As a result, they are deemed high-risk and costly to insure. They are considered a high-risk driver because of over-speeding and less driving experience on road. Although, premiums start to rise again about age 70 when some aspects of aging start affecting driving abilities.

Average car insurance cost in New Jersey for young drivers

The average car insurance cost for female young drivers in New Jersey is $3,330 per year or $278 per month and rate for a male young driver is $3,767 per year or $314 per month.

The average annual rates for young male and female drivers are listed in the table below:

Age of driverAverage annual cost for Male driversAverage annual cost for Female drivers
18$7,183$6,285
19$4,626$3,970
20$4,229$3,643
21$3,377$2,960
22$3,118$2,758
23$2,749$2,511
24$2,598$2,368
25$2,257$2,145

Average car insurance cost in New Jersey for senior drivers

In New Jersey, the cost of car insurance for senior female driver is $1,975 per year or $165 per month and cost of car insurance for male senior driver is $1,996 per year or $166 per month.

Age of driverAverage annual cost for Male driversAverage annual cost for Female drivers
65$1,886$1,871
70$1,967$1,956
75$2,135$2,099

Read more about senior car insurance

Summary of average car insurance cost in New Jersey
Average annual cost
$1,921
Average per month cost
$160
Average cost for state minimum coverage
$1,030 / Year
Cheapest car insurance company
Palisades Safety & Ins Assn
($1,033/ Year)
Average cost for young drivers
$3,548 / Year
Average cost for Senior drivers
$1,986 / Year

Know how much is car insurance in other states

Alaska$1,354/Year
Alabama$1,547/Year
Arkansas$1,591/Year
Arizona$1,611/Year
California$2,115/Year
Colorado$1,930/Year
Connecticut$1,744/Year
Delaware$2,158/Year
Florida$2,624/Year
Georgia$1,660/Year
Hawaii$1,306/Year
Iowa$1,319/Year
Idaho$1,111/Year
Illinois$1,565/Year
Indiana$1,252/Year
Kansas$1,587/Year
Kentucky$2,104/Year
Louisiana$2,580/Year
Massachusetts$1,538/Year
Maryland$1,618/Year
Maine$1,095/Year
Michigan$2,133/Year
Minnesota$1,472/Year
Missouri$2,066/Year
Mississippi$1,594/Year
Montana$1,692/Year
North Carolina$1,368/Year
North Dakota$1,400/Year
Nebraska$1,987/Year
New Hampshire$1,305/Year
New Mexico$1,507/Year
Nevada$2,031/Year
New York$2,072/Year
Ohio$1,023/Year
Oklahoma$1,799/Year
Oregon$1,272/Year
Pennsylvania$1,445/Year
Rhode Island$1,839/Year
South Carolina$1,902/Year
South Dakota$1,553/Year
Tennessee$1,370/Year
Texas$1,867/Year
Utah$1,478/Year
Virginia$1,312/Year
Vermont$1,135/Year
Washington$1,377/Year
Wisconsin$1,476/Year
West Virginia$1,609/Year
Wyoming$1,685/Year
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