The best, cheapest car insurance in New Jersey for 2025

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Best car insurance company in New Jersey

Drivers in New Jersey pay an average of $1,902 a year, or $159 per month, which is the 23^rd highest in the country, according to our research.

Actual car insurance rates vary by company, and NJM, GEICO, and others continue to offer some of the most competitive premiums in New Jersey.

When it comes to the best cheap car insurance in New Jersey, NJM is our No. 1 choice followed by GEICO and Travelers.

NJM scores well with third-party rating organizations and it has an average premium in New Jersey of $1,318 a year, or $110 a month, which is roughly $584 less than the New Jersey average.

The best car insurance companies in New Jersey

Company Group	NAIC	J.D. Power	AM Best Rating	Score (out of 5)
NJM	0.05	711	A+	4.92
GEICO	0.69	647	A++	3.96
Travelers	0.52	628	A++	3.75
Plymouth Rock Assurance	0.19	619	A-	3.57
State Farm	0.79	652	A++	3.34
Progressive	0.71	624	A+	3.05
Farmers	0.86	610	A	2.72
Allstate	1.06	624	A-	2.60

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

Premiums: 25%
JD Power: 30%
AM Best: 25%
NAIC: 20%

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Cheapest car insurance in New Jersey

New Jersey Manufacturers has the cheapest average rate in the state at $1,318 a year.

While New Jersey Manufacturers is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The data clearly shows the range of premiums for similar drivers.

In New Jersey, as mentioned earlier, the cheapest policy is New Jersey Manufacturers with an average rate of $1,318 a year. GEICO follows with an average premium of $1,563 a year or $130 a month and Travelers with premiums of $1,706 a year or $142 a month.

Allstate is the most expensive insurer with an average premium of $2,294.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in New Jersey

Company	Average annual premium	Average monthly premium
New Jersey Manufacturers	$1,318	$110
GEICO	$1,563	$130
Travelers	$1,706	$142
Plymouth Rock Assurance	$1,737	$145
State Farm	$2,153	$179
Progressive	$2,187	$182
Farmers	$2,254	$188
Allstate	$2,294	$191

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.

Car insurance rates in New Jersey by city

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Full coverage car insurance in New Jersey

As noted, the rates above are for full coverage car insurance. Residents of New Jersey will often be advised to get full coverage, which includes both liability protection as well as collision and comprehensive. Liability helps pay medical and legal bills for injuries or damages you are responsible for after an accident. However, liability doesn’t cover damage to your vehicle or your injuries.

Collision will pay to repair your vehicle if it is damaged after colliding with another vehicle or object. Comprehensive covers perils such as fire, theft, flooding, vandalism and more.

You can find out more about liability, collision, and comprehensive coverage here.

Shopping for car insurance in New Jersey

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – he will recommend higher coverage.

“Depending on their age/income and profession,” he says, “I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in New Jersey by age

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in New Jersey, New Jersey Manufacturers is the most affordable coverage with an average rate of $1,318 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

Cheapest car insurance for senior drivers in New Jersey

Seniors in the state pay more for coverage than all other driver groups, except for teens. New Jersey Manufacturers is the most affordable option for seniors with a yearly premium of $1,229 or $102 a month. GEICO was the second cheapest at $1,505 and Travelers rounded out the top three at $1,758.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart below shows the average premium for senior drivers.

Average rates for seniors in New Jersey

Company	Average annual premium	Average monthly premium
New Jersey Manufacturers	$1,229	$102
GEICO	$1,505	$125
Travelers	$1,758	$147
Plymouth Rock Assurance	$1,886	$157
State Farm	$2,100	$175
Allstate	$2,342	$195
Progressive	$2,431	$203
Farmers	$2,611	$218

Car insurance for young drivers in New Jersey

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In New Jersey, Plymouth Rock Assurance is the cheapest option for young adults with a yearly premium of $2,137 or $178 a month.

New Jersey Manufacturers is the next most affordable with an average rate of $2,143 followed by Travelers at $2,234.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 20s.

The table below shows the best insurers for young drivers in New Jersey:

Average rates for young drivers in New Jersey

Company	Average annual premium	Average monthly premium
Plymouth Rock Assurance	$2,137	$178
New Jersey Manufacturers	$2,143	$179
Travelers	$2,234	$186
GEICO	$2,441	$203
Progressive	$3,548	$296
State Farm	$3,564	$297
Allstate	$3,857	$321
Farmers	$4,627	$386

Car insurance for teen drivers in New Jersey

Although teen drivers always pay much higher premiums than other driver groups, GEICO offers teens the cheapest rate at $3,384. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

New Jersey Manufacturers has the second most affordable premium at $4,325 a year followed by Travelers at $4,447 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While GEICO was the most affordable at $3,384, Farmers was the most expensive with an annual premium of $11,525.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in New Jersey:

Average rates for teens in New Jersey

Company	Average annual premium	Average monthly premium
GEICO	$3,384	$282
New Jersey Manufacturers	$4,325	$360
Travelers	$4,447	$371
State Farm	$5,518	$460
Plymouth Rock Assurance	$5,792	$483
Allstate	$7,407	$617
Progressive	$10,921	$910
Farmers	$11,525	$960

Average cost of car insurance in New Jersey

The average cost of car insurance in New Jersey is $1,902, which makes it the 23^rd most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like New Jersey,” says Gao.

Average rates for a 40-year-old in New Jersey

Average annual premium	Average monthly premium
$1,902	$159

Which New Jersey ZIP codes are most expensive for car insurance?

Car insurance costs in New Jersey can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Newark area came out as the most expensive with an average annual premium of $2,641. Irvington was No. 2 and Elizabethport was No. 3.

Here are the most expensive ZIP codes in New Jersey for car insurance:

Most expensive ZIP codes in New Jersey

City	Average annual Premium
Newark	$2,641
Irvington	$2,641
Elizabethport	$2,576
Elizabeth	$2,576
Passaic	$2,554
Paterson	$2,518
North Bergen	$2,511
Fairview	$2,511
Orange	$2,494
East Orange	$2,494

Which New Jersey ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in New Jersey is in Brielle with an annual premium of $1,602.

Least expensive ZIP codes in New Jersey

City	Average annual Premium
Brielle	$1,602
Manasquan	$1,602
Mantoloking	$1,602
Normandy Beach	$1,602
Point Pleasant	$1,602
Sea Girt	$1,602
Belmar	$1,609
Spring Lake Heights	$1,618
Allenwood	$1,621
Avon-by-the-Sea	$1,633

Cheapest car insurance for high-risk drivers in New Jersey

If you have an incident on your driving record, you may be considered a high-risk driver, and you will pay more for coverage. A speeding ticket, at-fault accident, or DUI can send your premium skyrocketing.

When we ran the numbers, we found that a speeding ticket in New Jersey will push the average rate to $3,074 and an at-fault accident will push it to $4,443.

An accident will stay on your record for at least three years so you will be paying a higher premium for quite a while after an accident.

A DUI will usually result in a massive increase and could push your premium into unaffordable territory. If you are convicted of a DUI, your rate on average will climb to $4,378 a year. A DUI will be reported to insurers for three years, and if you are a commercial driver, it stays on your record for 55 years.

The table below shows the average increase for drivers with various incidents on their record:

How much rates increase in New Jersey after a traffic incident

Profile Groups	Average annual premium	Rates after Incident	Rates increase after incident ($)	Rates increase after incident (%)
At-Fault Accident	$2,262	$4,443	$2,181	96%
Bad Credit	$2,262	$3,988	$1,726	76%
DUI	$2,262	$4,378	$2,116	94%
Speeding	$2,262	$3,074	$812	36%

Minimum car insurance requirements in New Jersey

Most states require drivers to carry a minimum amount of liability car insurance, and New Jersey is no exception. Drivers are required to carry 25/50/25 in liability coverage, which translates into:

$25k for injury/death per person
$50k for injury/death per accident
$25k for damage to property

But state-required minimums are rarely enough coverage in a serious accident. If you cause an accident and the damages exceed your coverage levels, you will need to cover the damages out of pocket.

The most common required coverages are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage.

Experts typically recommend carrying 100/300/100 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

Mark Vallet

Contributing Researcher

Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.