How much is car insurance in New Jersey? – Bankrate.com

The average cost of car insurance in New Jersey is $1,757 a year for full coverage and $847 for minimum coverage. Although it may seem like a significant cost to factor into your financial goals, New Jersey is a state in which adequate coverage is highly recommended by experts. In 2019 alone, the state had 276,861 crashes, 59,850 car related injuries and 524 fatalities. With that many crashes, injuries and fatalities to consider, having adequate auto insurance can be a highly beneficial protection.

Crash statistics aren’t the only things that contribute to what New Jersey drivers pay for car insurance. Quoted premiums are commonly affected by numerous variables unique to each driver, as well as geographical considerations.

How much does car insurance cost in New Jersey?

The average cost of car insurance depends on important risk factors or unique determiners, such as the following:

  • Age
  • Gender
  • Car
  • City
  • Driving history
  • Insurance company
  • Deductible
  • Discounts
  • Credit score
  • Coverage level

The average annual car insurance rates in New Jersey are $1,757 for full coverage and $847 for minimum coverage; the U.S. average is $1,674 and $565 for full and minimum coverage, respectively. While the average minimums may differ by $282, the full coverage amounts are pretty similar to one another, which is good news for New Jersey residents. It is widely recommended by experts that drivers should consider full coverage if it fits into their yearly budget.

New Jersey car insurance rates by company

Below are the top providers (by market share) insuring New Jersey drivers. To see which receive outstanding ratings for customer service, discounts, coverage options and other aspects, review those on our Best Car Insurance in New Jersey page. These providers may also land a spot on our review of the cheapest providers in the garden state.

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Allstate $909 $1,686
American Independent $1,463 $3,414
Amica $430 $1,504
Farmers $1,359 $2,803
Geico $559 $1,316
Mercury $1,022 $1,845
MetLife $795 $1,307
NJM $370 $1,271
Palisades $528 $1,135
Penn National $970 $1,820
Progressive $735 $1,469
Selective $474 $1,085
State Farm $724 $1,244
The Hanover $2,123 $4,638
Tower Grp $1,087 $2,010
Travelers $703 $1,320

New Jersey car insurance rates by city

To get an idea of how rates can vary widely by city, the following table shows the top 20 New Jersey cities by population and the average amount each pays for car insurance.

City Average annual premium for full coverage Percentage difference in average annual premium
Newark $2,624 49%
Jersey City $2,304 31%
Trenton $1,910 9%
Paterson $2,565 46%
Edison $1,773 1%
Elizabeth $2,515 43%
Toms River $1,635 -7%
Lakewood $1,896 8%
Clifton $2,203 25%
Camden $2,404 37%
Brick $1,637 -7%
Passaic $2,565 46%
Union City $2,461 40%
Vineland $1,786 2%
East Orange $2,573 46%
Bayonne $2,141 22%
North Bergen $2,516 43%
New Brunswick $1,815 3%
Wayne $1,805 3%
Irvington $2,628 50%

New Jersey car insurance rates by age

Age plays a significant role in New Jersey auto insurance rates. As you can see, younger drivers commonly pay more for car insurance than older, more experienced drivers, based largely on risk factors associated with those ages. Of course, these are just the average amounts drivers of these age groups pay. What you pay may be more or less than the numbers below.

*16 year old calculated on parent’s policy disclosure

New Jersey car insurance rates by driving record

Car insurance rates in New Jersey are also heavily influenced by each person’s driving history. Past driving history affects how much you’ll pay because it suggests how likely you are to file a claim in the future. The table below illustrates the percentage difference you’ll see following a severe traffic violation, compared to the average rate for New Jersey of $1,757 annually for full coverage:

Driving incident Average annual full coverage premium in New Jersey Percentage difference in average annual premium
Speeding ticket $2,001 +14%
Accident $2,617 +49%
DUI $3,264 +86%

How to save on car insurance in New Jersey

With a little bit of time and research, most drivers can typically find ways to save on their car insurance based on one or more of the following strategies:

  • Increase your deductible— A higher deductible means you will receive less money from your insurer after an accident, but it also means you’ll pay less each month. Talk with your provider about deductible options and choose a limit that will allow you to balance your short-term and long-term budget.
  • Compare providers— Multiple variables affect your premium, but each provider weighs the importance of those variables differently. Simply by obtaining quotes from different providers, you may discover more affordable rates or better perks with one versus another.
  • Compare discounts— Most insurance companies offer multiple discounts, but the amount you’ll save with each company through its discounts varies. Speak with an agent to get the total estimated percentage of savings before choosing a provider.
  • Drive an older car— Older cars may not cost as much to insure. If you are looking for alternative ways to save money, buying an older car that has a high safety rating may net you a lower rate.
  • Increase your credit score— A low credit score can be an indicator to insurers that you are a risky driver. Increasing or improving your credit score generally has a positive impact on insurance rates, in most states.

Frequently asked questions

What is the best car insurance company in New Jersey?

For each driver, the best car insurance in New Jersey for 2021 may vary based on personal preference for factors such as rates, customer experience, mobile app features, online policy management options or even agent availability.

What affects the cost of car insurance in New Jersey?

Many variables unique to each driver ultimately have the most significant impact on rates. However, geographic factors such as proximity to climates with severe weather, local crime rates as well as population density and number of uninsured drivers in your area can also affect rates.

What is the best car insurance company in the nation?

To find the best car insurance companies for 2021 overall, many drivers look for the largest providers by market share, then compare quotes and coverage options. Financial strength and customer satisfaction are also important factors to consider when choosing the best provider for your needs.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age
Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.

Teens
Rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married couple’s policy. The rates displayed reflect the added cost to the parents’ policy.