The Cheapest Auto Insurance Companies in New Jersey in 2024

The average driver in New Jersey pays $161 per month for car insurance, according to Compare.com data. You can expect to pay around $112 per month for liability insurance and $210 for full coverage, based on the statewide averages.

Every driver in New Jersey must have car insurance, so it’s important to know what to look for not only in a policy but also in an insurance company. This guide will explore both the best and cheapest car insurance companies in New Jersey for numerous types of drivers, as well as other ways to save on car insurance in the Garden State.

Key Takeaways:

• NJM is the cheapest car insurance company in New Jersey, with an average monthly rate of only $111.
• New Jersey drivers must have liability insurance to legally operate a vehicle in the state.
• AAA is the cheapest car insurance company for drivers in their 20s, offering them an average rate of $134 per month.

In This Article:

• Average Price for Car Insurance in NJ
• Cheapest NJ Car Insurance Companies
• Best New Jersey Insurers of 2024
• Average New Jersey Rates by Age and Driving Record
• New Jersey Auto Insurance Requirements
• How to Get Cheap Car Insurance in NJ
• Frequently Asked Questions

How Much Is Car Insurance in New Jersey?

See the table below to get an idea of how New Jersey’s car insurance rates compare to the national average.

The average cost of car insurance in New Jersey is $161 per month, according to Compare.com data. But this is only an average — your exact car insurance premium depends on your unique driving characteristics and the type of policy you buy.

We found that New Jersey drivers pay an average of $112 per month for liability-only policies and $210 per month for full-coverage car insurance. But remember, these rates are just averages — not an exact indicator of what you’ll pay.

Below, we’ll explore the factors that affect how much you pay for car insurance and how you can keep your premiums affordable.

New Jersey’s Cheapest Car Insurance Companies

New Jersey’s average monthly car insurance rate is $161, but you still have numerous ways to save money on your car insurance policy. One of the best ways to find cheap rates is to compare car insurance quotes from at least three companies before choosing a policy.

Take a look at the five cheapest insurance companies for New Jersey drivers in the table below, according to Compare.com data. These insurers are a good place to start your car insurance search.

NJM has the cheapest average rates in New Jersey, with an average monthly rate of only $111. That said, it may not be the cheapest car insurance company for you, since each insurer determines rates differently. It’s important to compare car insurance quotes from multiple companies before making a decision.

The Best New Jersey Insurance Companies of 2024

No singular insurance company will be the best car insurance option for every driver. And the insurer with the cheapest rates often isn’t the best choice, either. The right insurance company for you depends on things like your insurance needs, budget, and how you use your car. Fortunately, New Jersey has plenty of good insurers to choose from.

We’ve selected the following three insurance companies based on a combination of average rates, coverage options, available discounts, and customer reviews. Each company has the best available car insurance in New Jersey for a certain kind of driver.

Best for New Jersey drivers on a budget: NJM

• Average premium: $111 per month
• Compare.com Rating: 4.53 out of 5

Pros:

• Affordable average rates
• High customer satisfaction in NJ

Cons:

• No mobile app for policy management
• Not affordable for high-risk drivers

NJM (New Jersey Manufacturers) is a great insurance company for New Jersey drivers looking to save money on their car insurance policies. It has the cheapest average rates in the state and a strong Compare.com Rating. It also earned an AM Best financial strength rating of A+ (Superior).

Best for perks: AAA

• Average premium: $120 per month
• Compare.com Rating: 4.28 out of 5

Pros:

• One of the cheapest average rates in New Jersey
• Highly rated roadside assistance

Cons:

• Must have a AAA membership
• Policies not available online

AAA also offers some of the cheapest car insurance policies in New Jersey, according to Compare.com data. The insurer also has a strong AM Best rating of A (Excellent), indicating good financial strength and an ability to pay claims.

While you have to buy a membership of at least $65 per year to get a policy, you’ll also get membership perks, such as roadside assistance and license renewal services.

Best for discounts: GEICO

• Average premium: $140 per month
• Compare.com Rating: 4.65 out of 5

Pros:

• Good telematics program
• Plenty of discounts and insurance products

Cons:

• Hit-or-miss customer service
• Below-average customer ratings

GEICO is a bit more expensive than some of the other top insurers in New Jersey, but it also has one of the highest number of car insurance discounts in the industry. Check out its safe driving, good student, and multi-car discounts to save on your policy. The insurer also has an A++ (Superior) rating from AM Best, indicating excellent financial strength.

Cheapest State-Minimum Car Insurance in New Jersey: AAA

Your coverage level has a significant effect on your car insurance rates — the more coverage you have, the more expensive your premiums will be. Liability-only insurance coverage at the state’s minimum limits is the cheapest policy available, but it leaves you vulnerable since it only covers medical bills and property damage of other drivers in an accident and not your own.

The table below highlights the cheapest companies for state-minimum insurance coverage in New Jersey, according to our research.

AAA is the cheapest car insurance company in New Jersey for liability-only car insurance, with an average monthly premium of only $91, according to Compare.com data. But insurance agents advise purchasing more than just minimum coverage since it leaves you financially vulnerable. And if you took a lease out on your car or a loan to buy it, your lender will likely already require you to buy full coverage.

With that in mind, let’s see how rates change if you upgrade your coverage.

Cheapest Full-Coverage Car Insurance in New Jersey: AAA

Full-coverage car insurance generally refers to policies that include collision and comprehensive coverage as well as liability insurance. Comprehensive insurance and collision coverage pay for vehicle repairs or replacement after an accident or non-collision incident, making full coverage more expensive than a liability-only policy.

Full coverage is optional in New Jersey, but, if you finance or lease your car, your lender will likely require you to have the additional protection anyway.

The table below shows the cheapest car insurance companies in New Jersey for full coverage, according to Compare.com data.

NJM is the cheapest insurer in New Jersey for full-coverage car insurance, with an average monthly premium of $125. Still, insurers consider numerous factors, including your age, driving record, location, and even credit history, when setting rates, so it’s crucial to find the right company for you.

Let’s take a look at how each factor affects rates in New Jersey.

Compare New Jersey Auto Insurance Rates by Age

Your age is one of the most important factors when it comes to car insurance rates. Insurance companies consider younger drivers with minimal experience as a bigger risk than older drivers — and they tend to charge them a lot more because of it. But once you get older and gain more driving experience, your rates usually start to decrease.

See the table below to understand how much different ages pay for auto insurance in New Jersey and the cheapest company for each group, according to Compare.com data.

Cheapest for New Jersey teens: NJM

Teens pay the highest car insurance rates since they’re more likely to drive recklessly and speed. In fact, young drivers have a fatal crash rate almost three times higher than drivers older than 20, according to the Centers for Disease Control and Prevention (CDC).

While the average teen pays around $280 per month for car insurance, NJM offers the cheapest car insurance rates for teen drivers in New Jersey. Its average premium is just $174 per month, according to Compare.com data.

Cheapest for New Jersey seniors: NJM

The older you get, the cheaper your car insurance rates are likely to be. Senior drivers generally have plenty of driving experience, so insurance companies offer them cheaper rates. But rates start to increase again when you reach your 70s — the age many drivers begin to experience driving impairments, making them risky to insure.

NJM also has the cheapest car insurance rates for seniors, with an average monthly rate of $76 for New Jersey drivers in their 70s, according to Compare.com data. That’s quite a bit less than the statewide average for this age group — $139 per month.

Compare New Jersey Auto Insurance Rates by Driving Record

Your driving record also has a major effect on your car insurance rates since it helps insurers understand how you drive. People with clean driving records often pay the cheapest rates, while drivers with one or more infractions usually pay more.

For example, if you have more than one speeding ticket on your driving record, insurers will consider you more likely to cause an accident than someone who consistently stays under the speed limit. They’ll charge you higher premiums to account for the increased risk.

The table below shows how much New Jersey drivers pay for car insurance based on their driving records, as well as the cheapest insurance company for drivers with different driving records, according to Compare.com data.

Cheapest insurer in New Jersey after a ticket: Plymouth Rock

Even a single speeding ticket causes average rates to increase by 27% nationwide, according to Compare.com data. Speeding tells insurers you’re not a safe driver, so they increase your rates to account for the risk.

Plymouth Rock is the cheapest car insurance company for New Jersey drivers with a speeding ticket, at $154 per month, according to Compare.com data. That’s substantially lower than the statewide average for this group, $224 per month.

Cheapest insurer in New Jersey after an accident: AAA

Getting into an at-fault accident almost always results in your insurer increasing your rate. An at-fault car accident indicates to insurers you’re a dangerous driver and risky to insure. They increase your rates to account for the added risk. The average amount an insurer increases rates is 34% nationally, according to Compare.com data.

The average New Jersey driver with a recent accident pays $251 per month for car insurance, according to our research. But AAA has the lowest average premium for these drivers, at $176 per month.

Cheapest insurer in New Jersey after a DUI: AAA

If you’re caught driving under the influence (DUI), your rates will increase drastically — significantly more than they would after any other infraction. A DUI is serious, and insurance companies don’t want to be liable for someone who drinks and gets behind the wheel. Some insurers will refuse to insure you, and others will charge extremely high rates to account for the risk.

Premiums go up by an average of 50% nationwide after one DUI, according to Compare.com data.

In New Jersey, that means an average rate of around $283 per month, according to our research. But NJM offers rates around $174 per month for New Jersey drivers with a DUI.

New Jersey Auto Insurance Requirements

State minimum car insurance is done differently in New Jersey, where drivers can choose between “basic” and “standard” policy types. A basic car insurance policy provides the lowest amount of legal car insurance coverage. It must include at least:

• $5,000 of property damage coverage per accident
• $15,000 of personal injury protection (PIP) per person, per accident

You can opt to add $10,000 of bodily injury liability (per accident), collision, and comprehensive coverage. But you can’t add uninsured and underinsured motorist protection to a basic policy in New Jersey.

The basic policy is the cheapest option, but the state only recommends it for drivers with “few family responsibilities and few real assets.” For everyone else, a standard policy must include:

• $25,000 of bodily injury liability per person, $50,000 per accident
• $25,000 of property damage liability
• $15,000 of personal injury protection per person or accident

The state also recommends underinsured and uninsured motorist protection. You can also raise coverage limits to suit your needs, up to the state maximum.

Both standard and basic policies can include comprehensive and collision coverage, so both plans can meet lender requirements if you have a loan or lease on your vehicle.

No-fault insurance in New Jersey

New Jersey follows a “choice no-fault” system. With this system, drivers can choose a traditional “tort” (or at-fault) or no-fault policy. A no-fault policy covers medical expenses and other related costs, regardless of who caused the accident. It also limits your ability to sue for damages. This makes it much easier to get medical costs paid for in a timely manner and reduces litigation.

‘Right to sue’ in New Jersey

“Right to sue” refers to your right to pursue a lawsuit against an at-fault party to seek compensation for damages, injuries, or, sometimes, noneconomic losses (such as pain and suffering) resulting from the collision. Car insurance policies default to limited tort coverage, so drivers must opt into either no-fault or full tort policies.

Limited right to sue

If you choose limited tort, you can sue an at-fault driver for damages and injuries, but it’s harder to sue for noneconomic losses. You can only get noneconomic losses covered unless you suffer one or more of the following:

• Loss of limbs or dismemberment
• Significant disfigurement or scarring
• Broken bones or fractures
• Permanent injury
• Loss of an unborn child
• Death

In these cases, you (or a representative party in the case of death) can sue for pain and suffering up to $250,000.

Limited tort is cheaper than full tort and sometimes cheaper than no-fault car insurance. The Basic policy has a limited right-to-sue option.

Unlimited right to sue

If you choose unlimited tort, you opt for the ability to sue for damages, injuries, and noneconomic losses, with no limits. Because there’s no limit, insurance companies take on more risk, so they charge more for unlimited right-to-sue policies.

Penalties for driving without auto insurance in New Jersey

If the police or the New Jersey Motor Vehicle Commission catch you driving without a license, you can face substantial penalties, including:

• $300 to $1,000 in fines
• $250 annual insurance surcharge for three years
• Possible community service

Subsequent offenses have even stronger penalties, such as:

• Up to $5,000 in fines
• $250 annual insurance surcharge for three years
• Nine insurance eligibility points (which makes it difficult to get new insurance)
• Possible community service
• Possible license suspension of one to two years
• Mandatory 14-day jail term

How to Get Cheaper Car Insurance in New Jersey

Here are five of the most effective strategies to save money on car insurance in New Jersey:

1. Lower your risk profile: Demonstrate responsible driving behavior by obeying traffic rules, practicing defensive driving, paying insurance premiums on time, and maintaining continuous coverage to earn lower-than-average rates, regardless of your age or location.
2. Review and adjust your policy terms: Check out your policy documents and ensure your coverage types and limits align with your needs. Raising deductibles or eliminating unnecessary coverage can lower your costs.
3. Use all available discounts: Many insurance companies offer plenty of discount opportunities, and some will offer more favorable terms based on your eligibility. Combining discounts can lead to even cheaper coverage, so be sure to explore your options.
4. Consider downsizing your vehicle: Opting for an older, less expensive vehicle can lower insurance costs, especially if you can move to a liability-only standard or a basic policy.
5. Regularly compare rates: Car insurance rates are subject to change, and the cheapest option today may not be the cheapest tomorrow. It’s a good practice to compare rates about every six months. Using a price-comparison site can make this task quick and effortless.

New Jersey Auto Insurance FAQs

If you’re still unsure about buying car insurance in New Jersey, check out the answers to these commonly asked questions.

What’s the cheapest auto insurance company in New Jersey?

NJM is the cheapest auto insurance company in New Jersey, with an average rate of $111 per month, according to data from Compare.com.

How much is car insurance in New Jersey?

The average cost of car insurance in New Jersey is $161 per month, according to Compare.com data. Drivers pay an average of $112 per month for liability insurance and $210 per month for full coverage.

Why is car insurance so expensive in New Jersey?

Car insurance is expensive in New Jersey partially due to its population density. Certain parts of New Jersey, like Jersey City and Hoboken, are densely populated, so traffic accidents and claims occur at high rates. That said, car insurance is likely cheaper in more suburban or rural areas of New Jersey due to lower density.

What’s the best car insurance to have in New Jersey?

The best car insurance to have in New Jersey depends on your specific insurance needs and other unique characteristics. If you’re mainly looking to save money, NJM will be the cheapest option in most cases. But if you have an at-fault accident on your record, AAA may be a more affordable option. If you’re looking to take advantage of discounts, GEICO is the best company. It all depends on what you’re looking for.

Does New Jersey require SR-22 certificates?

No. New Jersey doesn’t require SR-22 certificates. But if you commit a violation in another state that does require SR-22 certificates, you may need to file the SR-22 in that state to be able to legally drive again.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. State of New Jersey Department of Banking & Insurance, “New Jersey’s Basic Auto Insurance Policy,” accessed July 22, 2024.
2. NJ.com, “What you need to know about sr-22 insurance,” accessed July 22, 2024
3. AAA, “AAA Hosts New Jersey MVC Mobile Unit,” accessed July 22, 2024.
4. J.D. Power, “2023 U.S. Auto Insurance Study,” accessed July 22, 2024.
5. Insurance Information Institute, “Auto insurance basics—understanding your coverage,” accessed July 22, 2024.
6. National Association of Insurance Commissioners, “National Complaint Index Report,” accessed July 22, 2024.
7. Centers for Disease Control and Prevention, “Risk Factors for Teen Drivers,” accessed July 22, 2024.