Low-cost car insurance in New Jersey

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NJM provides the lowest car insurance rates in New Jersey at $2,134 a year. The average premium is $228 per month in New Jersey, though your actual rate may vary.

Car insurance requirements differ by state. In New Jersey, drivers are required to carry at least the minimum liability coverage: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.

Full coverage car insurance can be a smart choice for drivers who want more than the bare minimum. It combines liability with collision and comprehensive coverage, protecting not only other drivers and their property but also your own vehicle in cases of accidents, theft, or weather damage.

Below, you’ll find which insurance companies are the most affordable for different categories.

Key Takeaways

NJM has the cheapest average premium in New Jersey, coming in at $2,134 per year – about $602 compared to the state average.
For drivers with an at-fault accident on their record, NJM offers the lowest rates, with annual costs averaging $2,315.
The 8730 ZIP code is the least expensive area in New Jersey for car insurance, with an average yearly premium of $2,274.

Low-cost car insurance businesses in New Jersey

When comparing insurers in New Jersey, NJM leads the pack with an annual average of $2,134. That’s $602 less than the statewide average. Individual premiums vary depending on your driving record, vehicle type, age, and ZIP code.

To make sure you’re getting the best price, it’s always smart to check quotes from multiple carriers.

Here are the annual averages from the most affordable insurance companies in New Jersey.

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

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Carriers reviewed

78M+

Quotes analysed

34K+

ZIP codes examined

ZIP codes with the cheapest car insurance in New Jersey

Drivers in 8730 benefit from the lowest average premium in the state, at $2,274 per year. See the table below to find other ZIP codes in New Jersey where insurance tends to be cheaper.

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

Just one speeding ticket in New Jersey can raise your rates by 56% – $1,518 more per year. Along with the ticket fine, that makes speeding an expensive mistake. The table below shows insurers offering lower-cost options even with a violation.

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

Being at fault in an accident will drive your premiums up, but some insurers remain more affordable than others. NJM is the lowest-cost option for these drivers, with an average annual premium of $2,315.

If you’ve had an accident, comparing quotes can help you avoid overpaying. See the table below for the cheapest companies after one at-fault accident.

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 places you in the high-risk driver category, which usually leads to much higher premiums. Still, some insurers in New Jersey are more affordable than others. The table below shows which companies offer the lowest average rates after a DUI conviction.

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

Full coverage insurance costs more than minimum liability insurance, but the extra cost is worth it for most drivers. That’s because minimum liability only pays for injuries or damage you cause to others, leaving you to cover repairs or replacement of your own car out of pocket. Full coverage, on the other hand, includes collision and comprehensive insurance, so your vehicle is protected in situations like accidents, theft, storms, or vandalism.

The average cost of full coverage car insurance in New Jersey is $223 more than the national average car insurance rates in the U.S.

We recommend that you carry at least coverage limits of 100/300/100 – that’s $100,000 in bodily injury coverage per person, $300,000 per accident, and $100,000 in property damage coverage. These limits provide a better safety net if you’re involved in a serious accident where costs could quickly exceed minimum requirements.

What is full coverage car insurance?

Full coverage refers to liability insurance plus both collision and comprehensive. Collision pays for damage to your vehicle after an accident, while comprehensive covers non-collision events like theft, fire, or hail damage.

If you lease or finance your vehicle in New Jersey, your lender may require collision and comprehensive insurance on top of the state’s liability minimums.

The bottom line on saving and staying protected

It’s natural to look for ways to lower your insurance costs, but cutting corners on coverage can leave you financially vulnerable after an accident.

Make sure you choose a policy that balances affordability with protection. Always compare quotes from at least three companies to find low-cost car insurance 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 78,451,280 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.