Low-cost car insurance in New Jersey

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In New Jersey, NJM offers the cheapest average premium at $2,134 per year. For comparison, the statewide average monthly cost is $228, though individual rates vary depending on your driving profile, location, and vehicle.

Every state sets its own car insurance rules. In New Jersey, the minimum liability requirement is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.

For drivers who want greater protection, full coverage can be a smart investment. It combines liability with both collision and comprehensive coverage, ensuring that your own car is also covered in the event of an accident, theft, weather damage, or other unexpected events.

Below, we highlight which insurers provide the most affordable rates across different driver categories.

Key Takeaways

NJM offers the lowest car insurance rates in New Jersey, at $2,134 per year, which is about $602 the state average.
NJM has the lowest car insurance rates for drivers with a history of at-fault accidents, with an average annual cost of $2,315.
The ZIP code 8730 has the low-cost car insurance rates in New Jersey, at an average annual rate of $2,274.

Low-cost car insurance companies in New Jersey

NJM offers the lowest car insurance rates in New Jersey, with an average annual premium of $2,134 per year. It’s $602 less expensive than the average car insurance cost in New Jersey. Your actual rate will vary based on factors such as your driving history, age, ZIP code and the make and model of your car.

When shopping for auto insurance, compare rates from multiple companies to make sure you’re getting the best deal.

Below are the annual rates from low-cost car insurance companies..

Company	Average annual rates
NJM	$2,134
Selective Insurance	$2,232
Plymouth Rock Assurance	$2,400
GEICO	$2,487
Travelers	$2,579
Farmers	$2,712
Progressive	$3,071
Allstate	$3,206
State Farm	$3,819
The Hanover	$5,557

How we choose low-cost car insurance companies in New Jersey

170+

Carriers reviewed

78M+

Quotes analysed

34K+

ZIP codes examined

ZIP codes with the cheapest car insurance in New Jersey

Drivers in the 8730 ZIP code pay the lowest average annual premium in New Jersey, at $2,274. See which other areas of the state offer more affordable rates below.

ZIP code	City	Average annual rates
8730	Brielle	$2,274
8736	Manasquan	$2,274
8738	Mantoloking	$2,274
8739	Normandy Beach	$2,274
8742	Point Pleasant	$2,274
8750	Sea Girt	$2,274
7719	Belmar	$2,284
7762	Spring Lake Heights	$2,299
8720	Allenwood	$2,305
7717	Avon-by-the-Sea	$2,332

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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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Low-cost car insurance in New Jersey by age

Teen drivers in New Jersey pay higher insurance rates than adult drivers because they are more likely to get into accidents and file claims. For example, our data shows that a 16-year-old driver pays $11,223 more than a 40-year-old driver in New Jersey.

The table below shows low-cost car insurance rates for drivers of different ages.

Age group	Full coverage annual premiums
Teens (16-19)	$10,682
Young Adults (20-24)	$4,539
Adults (25-60)	$2,716
Seniors (65-75)	$2,828

Low-cost car insurance in New Jersey by driver history

Your driving history is one of the main factors insurers look at when determining how much you pay for coverage.Your auto insurance premiums will increase if you’re responsible for an accident or pulled over for a violation. However, if you have a clean driving record, insurance companies see you as a low-risk driver, and you will likely get coverage for a lower price.

Low-cost car insurance after a speeding ticket in New Jersey

One speeding ticket in New Jersey can cause your insurance rates to jump by 56%, or roughly $1,518 per year. Combined with the cost of the fine, a violation can get expensive fast. The table below highlights insurers with lower-priced options even after a ticket.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
NJM	$2,134	$2,805	31%	$671
Plymouth Rock Assurance	$2,400	$3,041	27%	$641
Travelers	$2,579	$3,759	46%	$1,180
Progressive	$3,071	$4,157	35%	$1,086
Allstate	$3,206	$4,561	42%	$1,355
Farmers	$2,712	$4,648	71%	$1,936
State Farm	$3,819	$7,797	104%	$3,978

Low-cost car insurance after an accident in New Jersey

NJM offers the lowest car insurance rates to drivers after an at-fault accident at $2,315 a year.

If you’re in an accident and are at fault, you will see your car insurance premiums increase. However, this doesn’t mean you can’t shop around to find better rates.

Below, you’ll see which companies offer low-cost car insurance for drivers with one accident on their record.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
NJM	$2,134	$2,315	8%	$181
GEICO	$2,487	$3,496	41%	$1,008
Plymouth Rock Assurance	$2,400	$3,555	48%	$1,155
Travelers	$2,579	$4,371	70%	$1,792
Progressive	$3,071	$5,237	71%	$2,166
Farmers	$2,712	$5,996	121%	$3,284
State Farm	$3,819	$6,362	67%	$2,543
Allstate	$3,206	$7,222	125%	$4,016

Low-cost car insurance after a DUI in New Jersey

A DUI often places drivers in the high-risk driver category, resulting in much higher rates. Still, some companies in New Jersey keep their premiums lower than others. The table below shows the most affordable options available after a DUI.

Company	Average annual premium	New rate after accident	$ Increase	% Increase
NJM	$2,134	$2,805	$671	31%
Plymouth Rock Assurance	$2,400	$2,959	$559	23%
Progressive	$3,071	$3,727	$655	21%
Travelers	$2,579	$4,138	$1,560	60%
Allstate	$3,206	$4,805	$1,599	50%
GEICO	$2,487	$5,047	$2,559	103%
Farmers	$2,712	$5,293	$2,581	95%
State Farm	$3,819	$15,296	$11,477	301%

Average cost of car insurance New Jersey

While full coverage is more expensive than minimum liability, the extra protection is worth it for most drivers. Liability-only policies cover damage you cause to others, but not your own car. Full coverage adds collision and comprehensive protection, covering accidents, theft, weather, and other risks.

In New Jersey, the average cost of full coverage is $223 more compared to the national average.

We recommend carrying at least 100/300/100 in coverage – $100,000 for bodily injury per person, $300,000 per accident, and $100,000 in property damage liability. These limits provide stronger protection in serious accidents that could otherwise exceed state minimums.

What is full coverage car insurance?

Full coverage includes liability, collision, and comprehensive coverage. Collision covers your car if it’s damaged in an accident, while comprehensive applies to damage from non-collision events such as theft, fire, or hail.

If you finance or lease your vehicle in New Jersey, your lender may require both collision and comprehensive coverage in addition to state-mandated liability insurance.

The bottom line on saving and staying protected

When it comes to car insurance, everyone is looking for ways to save. However, skimping on coverage to save a few dollars now could end up costing you more down the road.

Ensure you’re adequately protected and consider your specific needs before buying an auto insurance policy. Car insurance rates vary, so compare quotes from at least three different companies to find low-cost coverage in New Jersey.

Methodology

Insure.com gathered data from Quadrant Information Services to get car insurance rates in New Jersey. The rates are based on a sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and no violations on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles.

We analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes nationwide.

To determine car insurance rates for high-risk drivers with a history of traffic violations, we used a sample profile of a 40-year-old male and female driver who own a Honda Accord LX.

We also used sample profiles of drivers from different age groups: Teen drivers (Age 16-19), young drivers (Age 20-24), adult drivers (Age 25-60) and senior drivers (Age 65-75)

We determined the premiums for a high-risk driver with the following incidents applied

1 At-fault property damage accident over $2K
1 At-fault property damage accident under $2K
At-fault bodily injury accident
Poor credit
DUI/DWI first offense
Speeding 30+ over limit
Speeding ticket 1-10 MPH over limit
Speeding ticket 11-29 MPH over the limit

These are sample rates, and your exact rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.