Key Takeaways
- GEICO has the cheapest car insurance for most New Jersey drivers.
- The average cost of car insurance in New Jersey is higher than the national average.
- NJM is the cheapest car insurance company in New Jersey for drivers with bad credit.
- Drivers in New Jersey with an accident on their records pay 64% more for car insurance than they would with a clean record.
In this article
The cheapest car insurance companies in New Jersey
GEICO, NJM and Plymouth Rock are the cheapest car insurance companies for New Jersey drivers, according to our survey of the state’s top providers.
Cheapest overall: GEICO
Cheapest with an accident: NJM
Cheapest with a DUI: Plymouth Rock
GEICO has the cheapest car insurance rates in New Jersey overall. It is the cheapest company for minimum and full coverage, as well as for drivers with a speeding ticket, senior drivers, young drivers and married drivers.
NJM has the cheapest car insurance rates for drivers with an accident on their records, while Plymouth Rock is cheapest for those with a DUI.
To find the cheapest rates for the coverage you need, compare auto insurance quotes from several companies.
New Jersey car insurance state minimums
All New Jersey drivers must have car insurance, and they can choose between either a Basic or Standard policy when buying coverage. Here’s what that means.
| Type of coverage | Basic policy | Standard policy |
|---|---|---|
| Bodily injury liability | Not included, but $10,000 per accident is an option | Minimum coverage is $25,000 per person, $50,000 per accident |
| Property damage liability | $5,000 per accident | Minimum coverage is $25,000 per accident |
| Personal injury protection | $15,000 per person, per accident | Minimum coverage is $15,000 per person, per accident |
| Uninsured/underinsured motorist coverage | None | Not included, but can be bought up to amounts selected for liability coverage |
| Source: State of New Jersey Department of Banking & Insurance | ||
Find the cheapest car insurance rates in New Jersey
Cheapest minimum-coverage auto insurance rates in New Jersey: GEICO
GEICO has the cheapest auto insurance in New Jersey for drivers who want state-minimum coverage with an average rate of $64 a month.
The average cost of minimum-coverage car insurance in New Jersey is $108 a month. This is 33% higher than the national average for such coverage.
| Insurance company | Monthly rate |
|---|---|
| GEICO | $64 |
| Plymouth Rock | $73 |
| NJM | $88 |
| State Farm | $96 |
| Progressive | $122 |
| Allstate | $140 |
| Travelers | $177 |
| Average | $108 |
| Rates are for minimum-coverage car insurance for a 35-year-old male with a good driving record. | |
Buying minimum-coverage car insurance that only meets the state’s coverage requirements is a good way to get the lowest rate, but it’s not always good for your bank account. This is because it can leave you vulnerable to high out-of-pocket costs if you get into an accident.
Cheapest full-coverage auto insurance rates in New Jersey: GEICO
GEICO has the cheapest full-coverage auto insurance rates in New Jersey, too, charging $132 a month, on average, for such policies.
The average cost of full-coverage car insurance in New Jersey is $180 a month. This is 11% higher than the national average.
| Insurance company | Monthly rate |
|---|---|
| GEICO | $132 |
| Plymouth Rock | $149 |
| NJM | $150 |
| State Farm | $172 |
| Progressive | $180 |
| Allstate | $218 |
| Travelers | $261 |
| Average | $180 |
| Rates are for full-coverage car insurance for a 35-year-old male with a good driving record. | |
Full-coverage car insurance usually includes collision and comprehensive coverages as well as liability coverage. While no state mandates that drivers carry full-coverage car insurance, lenders often require it if you're financing or leasing your vehicle. This is to protect their investment in your vehicle until you've paid off your loan or lease.
Getting full-coverage car insurance can be a good decision, particularly if your vehicle is newer or has a high market value. Despite the higher premiums, this comprehensive protection helps ensure you won’t face substantial out-of-pocket expenses if your vehicle is damaged or destroyed.
For example, if a hailstorm damages your car, you’ll need to pay for its repairs out of your own pocket without comprehensive coverage. The same is true if you cause an accident and don’t have collision coverage. These costs can escalate quickly without full coverage, especially if you have a high-end vehicle.
Therefore, while full-coverage car insurance isn't a legal requirement, it's worth considering as a tool for financial protection. By evaluating your vehicle's value, your financial situation and your risk tolerance, you can make an informed decision on whether full coverage makes sense for you.
Cheapest car insurance in New Jersey for drivers with bad credit: NJM
NJM is the cheapest car insurance company in New Jersey for drivers with bad credit. It charges these drivers an average rate of $256 a month for full-coverage policies.
| Insurance company | Monthly rate |
|---|---|
| NJM | $256 |
| Progressive | $298 |
| GEICO | $318 |
| Plymouth Rock | $354 |
| State Farm | $368 |
| Allstate | $403 |
| Travelers | $608 |
| Rates are for full-coverage car insurance for a 35-year-old male with poor credit and a good driving record. | |
In New Jersey, like many other states, credit scores can significantly impact car insurance rates. The average cost of car insurance for New Jersey drivers with bad credit is $372 a month. This is twice what these same drivers would pay if they had good credit.
This harsh difference underscores the critical role credit scores can play in determining auto insurance premiums. Insurance companies use credit scores as one of several indicators of financial stability and the likelihood of a driver filing a claim. In essence, drivers with lower credit scores are seen as a higher risk, leading to increased insurance rates.
Cheapest car insurance for drivers with a prior incident
Drivers with a ticket or accident usually pay higher car insurance rates than they would if they had clean driving records. This is even more true for drivers with a DUI on their records.
The key to getting the lowest rate possible with an incident on your driving record is to compare rates from several car insurance companies, starting with the ones highlighted in the chart below.
Also consider taking a defensive driving course or other driver education programs. Many insurers offer discounts for drivers who complete approved courses, and it shows a commitment to safe driving. It's also crucial to maintain a clean driving record moving forward. Over time, as incidents age and eventually drop off your record, you'll likely see your premiums decrease.
Remember, while having a tarnished driving record can lead to higher premiums, it doesn't mean affordable insurance is out of reach. It just might require a little more time and effort to find the right fit.
Cheapest for drivers with a speeding ticket: GEICO
GEICO is the cheapest car insurance company for New Jersey drivers with a speeding ticket on their records, offering an average rate of $132 a month.
New Jersey drivers with a speeding ticket pay 17% more for car insurance than they would with a clean driving record.
| Insurance company | Monthly rate |
|---|---|
| GEICO | $132 |
| Plymouth Rock | $149 |
| State Farm | $172 |
| NJM | $185 |
| Progressive | $241 |
| Allstate | $265 |
| Travelers | $336 |
| Rates are for full-coverage car insurance for a 35-year-old male with one speeding ticket on his driving record. | |
Cheapest for drivers with an at-fault accident: NJM
NJM has the cheapest car insurance for drivers with an at-fault accident. Its average rate of $150 a month is $39 a month cheaper than its closest competitor here, GEICO.
New Jersey drivers who have an at-fault accident on their records pay 64% higher rates for car insurance than they would with a clean record.
| Insurance company | Monthly rate |
|---|---|
| NJM | $150 |
| GEICO | $189 |
| Plymouth Rock | $205 |
| State Farm | $284 |
| Progressive | $294 |
| Travelers | $430 |
| Allstate | $516 |
| Rates are for full-coverage car insurance for a 35-year-old male with one at-fault accident on his driving record. | |
Cheapest for drivers with a DUI: Plymouth Rock
A DUI on your record means much higher car insurance rates in New Jersey. Specifically, the average driver with a DUI pays 79% more for a full-coverage car insurance policy than they would with a clean record.
To get cheap car insurance in New Jersey with a DUI on your record, get a quote from Plymouth Rock. Its average rate for drivers with a DUI is $174 a month, by far the lowest of all the companies we surveyed.
| Insurance company | Monthly rate |
|---|---|
| Plymouth Rock | $174 |
| NJM | $185 |
| Progressive | $218 |
| GEICO | $275 |
| Allstate | $312 |
| Travelers | $411 |
| State Farm | $680 |
| Rates are for full-coverage car insurance for a 35-year-old male with one DUI on his driving record. | |
Compare auto insurance quotes from top companies
Cheapest car insurance for senior drivers: GEICO
Drivers tend to pay less for car insurance as they get older, and our data on New Jersey car insurance proves it. We found that GEICO has the state’s cheapest car insurance for seniors at an average rate of $115 a month. This is $17 a month less than what it charges the average 35-year-old driver.
The average 65-year-old driver in New Jersey pays $160 a month for full-coverage car insurance, which is 11% less than what a 35-year-old pays.
| Insurance company | Monthly rate |
|---|---|
| GEICO | $115 |
| NJM | $120 |
| State Farm | $141 |
| Plymouth Rock | $147 |
| Allstate | $191 |
| Progressive | $196 |
| Travelers | $213 |
| Rates are for full-coverage car insurance for a 65-year-old male with a clean driving record. | |
Cheapest car insurance for teen drivers: GEICO
Young drivers usually pay more for car insurance than older drivers do. That’s even true when it comes to New Jersey’s cheapest car insurance company for young drivers, GEICO.
The average rates GEICO charges 18-year-old drivers are more than twice what the company charges 35-year-old drivers for minimum- and full-coverage car insurance, respectively. Still, GEICO’s rates for teen car insurance in New Jersey are by far the cheapest in the state, especially for minimum coverage.
| Insurance company | Minimum coverage | Full coverage |
|---|---|---|
| GEICO | $127 | $290 |
| NJM | $176 | $314 |
| State Farm | $270 | $474 |
| Allstate | $295 | $547 |
| Travelers | $316 | $523 |
| Plymouth Rock | $359 | $730 |
| Progressive | $471 | $872 |
| Rates are for an 18-year-old male with a clean driving record. | ||
All that said, teen car insurance in New Jersey is cheaper than the national average. For example, the average cost of full-coverage car insurance for an 18-year-old driver in New Jersey is $536 a month, while the U.S. average rate for these drivers is $607.
Cheapest car insurance for married drivers: GEICO
GEICO offers the cheapest car insurance for married drivers in New Jersey at an average rate of $141 a month. This is $9 a month more than what it charges a single driver for the same amount of coverage.
| Insurance company | Monthly rate |
|---|---|
| GEICO | $141 |
| NJM | $142 |
| Plymouth Rock | $146 |
| Progressive | $151 |
| State Farm | $172 |
| Allstate | $209 |
| Travelers | $261 |
| Rates are for full-coverage car insurance for a married 35-year-old male with a good driving record. | |
Married drivers usually pay lower rates for car insurance than single drivers do, even if that’s not the case with GEICO here. For example, the average married driver in New Jersey pays $175 a month for full-coverage car insurance, while the average single driver pays $180 a month for the same policy.
Insurance companies charge married drivers lower rates because they’re less likely to be involved in an accident or otherwise file a claim than single drivers.
Car insurance laws in New Jersey
Understanding the car insurance laws in New Jersey is an essential step to ensure you're legally covered and can make informed decisions about your insurance needs. Below, we provide an overview of the key laws and regulations you need to be aware of:
Basic and standard policies
New Jersey uniquely offers two types of auto insurance policies — Basic and Standard. The Basic policy provides less coverage but at a lower cost. The Standard policy offers more extensive coverage and options at a higher cost.
Right to sue limitations
New Jersey policyholders have the option to choose between "limited right to sue" and "unlimited right to sue" in their policies. Limited right to sue is cheaper but restricts your ability to sue for pain and suffering unless the injuries meet certain thresholds. Unlimited right to sue allows you to sue for any injury, but comes with a higher premium.
Uninsured/underinsured motorist coverage
Although not mandatory, it's highly recommended to add uninsured/underinsured motorist coverage to your policy. This protects you if you're involved in an accident with a driver who doesn't have sufficient insurance to cover the damages caused.
Proof of insurance
New Jersey law requires drivers to carry proof of insurance in their vehicles at all times. Failure to provide proof of insurance when requested by a law enforcement officer may result in fines, suspension of your driver's license or even community service.
No-fault car insurance
New Jersey is a “choice” no-fault car insurance state. This means drivers can choose between a no-fault policy and a pricier policy that does not restrict their right to sue.
Most no-fault insurance states require drivers to carry personal injury protection, which typically covers:
- Medical costs for the insured driver and any passengers
- Loss of income
- Essential services like housekeeping or cooking
- A small death benefit for burial or cremation costs
Most no-fault states also restrict, but do not eliminate, an injured party’s right to sue an at-fault driver after an accident.
New Jersey driver report
New Jersey roads are not in the best condition compared to the rest of the country, but even with potholes and failing bridges, drivers in the state are on average among the best. According to our team of auto analysts, New Jersey drivers rank within the top 25 best drivers in the nation.
- Brick, Howell and Jackson are the worst-driving cities in New Jersey.
- North Bergen, Vineland and Hackensack are the best-driving cities.
- Poor road infrastructure costs drivers $713 a year.
- Forty-five percent of roads and 7% of bridges are in poor condition.
Best and worst drivers in New Jersey
In New Jersey, drivers receive fewer citations than most states, ranking fourth-best in that category. But when it comes to DUIs and speeding, they are among the worst. Our annual report on the best- and worst-driving states found that New Jersey ranks as the 18th-best-driving state overall.
As for New Jersey cities, Brick, Howell and Jackson are considered home to the worst drivers in the state. North Bergen, Wineland and Hackensack have the best drivers.
Best Drivers by City
- North Bergen
- Vineland
- Hackensack
- Elizabeth
- Paterson
- Perth Amboy
- Mount Laurel
- Camden
- Passaic
- Cherry Hill
Worst Drivers by City
- Brick
- Howell
- Jackson
- Woodbridge
- Middletown
- Toms River
- Lakewood
- Old Bridge
- Wayne
- Manchester
Rating New Jersey’s infrastructure and how it impacts drivers
New Jersey has some of the worst road conditions in the nation, which costs drivers hundreds of dollars each year. Our team of analysts looked at road and bridge conditions nationwide and found that New Jersey has a much higher percentage of roads and bridges in poor condition.
- Forty-five percent of roads are in “non-acceptable” condition.
- Seven percent of bridges are in poor condition.
- Poor road and bridge conditions cost drivers an average $713 a year.
New Jersey’s roads are in the second-worst condition in the nation. And motorists in the Garden State pay the seventh-most costs to maintain its failing infrastructure.
Best and worst drivers by age group
As in most states, New Jersey drivers under the age of 20 have more dangerous driving incidents than any other age group. Those between the ages of 40 and 49 see the lowest number of incidents overall, and are nearly five times less likely to cause an infraction than those under 20. Motorists over the age of 80 are, surprisingly, better drivers than those ages 20 to 29.
New Jersey car insurance: FAQs
GEICO has the cheapest car insurance in New Jersey for most drivers. It has the cheapest rates for minimum-coverage policies at an average of $64 a month, and the cheapest rates for full-coverage policies at an average of $132 a month.
GEICO also has New Jersey’s cheapest car insurance for married drivers, senior drivers and young drivers.
The average cost of car insurance in New Jersey is $108 a month for minimum coverage and $180 a month for full coverage.
Plymouth Rock has the cheapest car insurance for New Jersey drivers with a DUI on their records, charging them $174 a month, on average, for full-coverage policies.
Methodology
The rates shown in this article are based on an analysis of more than 300,000 auto insurance quotes obtained from Quadrant Information Services for sample drivers from across New Jersey.
Unless otherwise noted, our sample driver is a single 35-year-old. All sample drivers own a 2012 Honda Accord LX that they drive for an average of 13,500 miles per year.
Minimum-coverage rates reflect the cost of policies meeting the minimum liability limits required by the state.
Full coverage policies include the following coverages, limits and deductibles:
- Bodily injury liability: 100,000 limit per person/$300,000 limit per accident
- Property damage liability: $100,000 limit
- Collision: $500 deductible
- Comprehensive: $500 deductible
Driver report: QuoteWizard analyzed over 100,000 car insurance quotes to determine New Jersey’s best- and worst-driving cities. Drivers were evaluated based on the number of accidents, citations, speeding tickets and DUIs in each city. QuoteWizard evaluated Federal Highway Administration data on road and bridge quality to determine the number of roads and bridges in “poor” or “unacceptable” condition.
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