The best, cheapest car insurance in New Jersey

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Best car insurance company in New Jersey

In New Jersey, the average premium for car insurance is $1,902 a year or $159 a month, which is the 23^rd highest in the country – Louisiana was number one.

For drivers looking for cheap car insurance in New Jersey, New Jersey Manufacturers, GEICO, Travelers, Plymouth Rock Assurance and others on our list are great options, offering plenty of coverage options at affordable rates.

Our research found NJM offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. NJM was our top scorer and was awarded 4.92 out of 5 stars.

GEICO finished second in our rankings with a score of 3.96 stars and Travelers was third at 3.75 stars.

The best car insurance companies in New Jersey

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

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Full coverage car insurance in New Jersey

As noted, the rates above are for full coverage car insurance. Full coverage car insurance simply means you are carrying liability and any other state requirements as well as collision and comprehensive.

Full coverage insurance includes collision and comprehensive, which protects your own vehicle. Collision insurance will pay to repair your vehicle when it is damaged after colliding with another vehicle or object. Comprehensive covers damage that is done by perils such as fire, theft, flooding, vandalism, and more.

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 – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, 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

Car insurance rates will vary by age as reams of statistics show that teen and young adult drivers, because they are inexperienced on the road, take bigger risks and are more likely to get in anaccident and file a claim, which is why they pay more for coverage than older more experienced drivers.

New Jersey Manufacturers turned out to be the best insurer in New Jersey for drivers of all ages. The numbers show the difference between young and old drivers with the lowest premium for a teen coming in at 91% more than the lowest premium for a senior driver.

Once a driver hits 25, rates will start to drop, assuming they keep their driving record clean, and will stay stable until their 70s when they will start climbing a bit.

Cheapest car insurance for senior drivers in New Jersey

Seniors pay more for car insurance than other drivers, excluding teens. New Jersey Manufacturers is the best choice for seniors in New Jersey, according to our data, with an average premium of $1,229 annually, which translates to $102 a month.

GEICO was the second most affordable at $1,505 and Travelers was next with a premium of $1,758.

“Seniors tend to have slower reaction times and may suffer from vision or hearing impairments, which can impair their driving ability. This makes them more prone to accidents and thus considered high-risk by insurance companies,” says Tariro Goronga, CEO of DriveSafe driving schools in Colorado.

The table below shows the average premium for senior drivers.

Average rates for seniors in New Jersey

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

Car insurance for teen drivers in New Jersey

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For New Jersey teens, GEICO is the most affordable option with a premium of $3,384 a year or $282 a month. New Jersey Manufacturers is the next most affordable at $4,325 a year or $360 a month followed by Travelers running $4,447 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

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

Average rates for teens in New Jersey

Average cost of car insurance in New Jersey

In New Jersey, the average premium is $1,902, which makes New Jersey the 23^rd most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

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

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

When it comes to cheap car insurance in New Jersey, these ZIP codes have the most affordable coverage. The area around Brielle has the lowest premiums in New Jersey with an average premium of $1,602.

Least expensive ZIP codes in New Jersey

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

Minimum car insurance requirements in New Jersey

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. New Jersey requires drivers to carry 25/50/25 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 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.

“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.”

Mark Vallet

Contributing Researcher

 

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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.

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