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 lowest average car insurance premium in New Jersey, costing $2,134 per year. That’s $602 the state average.
For drivers with an at-fault accident on record, NJM offers the most affordable coverage at around $2,315 annually.
The 8730 ZIP code stands out as the cheapest area for auto insurance in New Jersey, with an average yearly cost of $2,274.

Low-cost car insurance companies in New Jersey

Among all insurers in New Jersey, NJM comes in lowest at $2,134 per year – $602 less than the statewide average. Keep in mind that your actual premium depends on factors like age, driving history, ZIP code, and the type of car you drive.

Comparing quotes from multiple companies is the best way to make sure you’re getting a competitive rate.

Below are the annual premiums from the cheapest car 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

170+

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

Teenagers pay significantly more for car insurance than adults in New Jersey. For instance, a 16-year-old driver pays $11,223 more on average than a 40-year-old.

The following table shows car insurance rates by age group in New Jersey.

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

Insurers weigh your driving record heavily when setting premiums. You can expect your rates to rise if you’re ticketed or at fault in an accident. On the other hand, drivers with clean records are considered lower risk and usually qualify for cheaper coverage.

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 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 costs more than liability-only, but for most drivers, the additional protection is worth it. Liability-only policies cover injuries and damage you cause to others, but don’t pay for your own vehicle. Full coverage adds collision and comprehensive, protecting you against accidents, theft, weather damage, and more.

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

We recommend carrying coverage limits of 100/300/100 – $100,000 in bodily injury per person, $300,000 per accident, and $100,000 in property damage liability. These higher limits help protect you financially in severe accidents.

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

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.