The Cheapest Auto Insurance in New Jersey in 2024

Drivers can get affordable car insurance in New Jersey by keeping a clean record, avoiding unnecessary coverage, using discounts, and more. Below, we cover cheap New Jersey car insurance from all angles: how to decide, how to purchase, and how to keep it.

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New Jersey is one of the most expensive states in the country for car insurance. But with the state’s Automobile Insurance Cost Reduction Act, New Jersey drivers can opt for a cheaper “Basic Policy” with less coverage — and lower costs — than a “Standard Policy.”

But no matter who you are or what type of insurance policy you buy, there are still ways for you to get cheaper car insurance in New Jersey. We’ll cover everything you need to know in the sections below.

Key Takeaways:

  • New Jersey is the fourth-most expensive state for auto insurance in the U.S.
  • Drivers in New Jersey have the choice between a bare-bones “Basic” policy and a “Standard” policy with better coverage.
  • Amica, GEICO, and NJM tend to offer the most affordable rates in New Jersey.

New Jersey’s Cheapest Car Insurance Companies

The average New Jersey driver pays $223 per month (or $2,676 annually) for auto insurance coverage. While these rates are higher than the national average, you have several ways to get a lower rate.

Let’s review the five cheapest car insurance companies in New Jersey.

Company Monthly Premium
NJM Insurance $102
Amica $106
Penn National $136
Plymouth Rock Assurance $137

GEICO offers the cheapest auto policies in New Jersey, on average, followed by local and well-regarded mutual insurance company, NJM. But remember that just because a company has the cheapest options on average doesn’t guarantee it’ll offer the cheapest rate to you.

These averages don’t account for factors such as driver ages, driving histories, locations, and policy types. Insurance companies will price policies differently based on a driver’s profile and their own proprietary pricing algorithms.

Let’s take a look at each driver type and see how different companies adjust their pricing.

How we chose the cheapest companies in New Jersey

Our team analyzed thousands of rates from dozens of the top insurance companies in New Jersey. Using that data, we listed the five cheapest options for New Jersey drivers based on several key factors, such as age, coverage level, driving history, and more. All of the rates listed are based on someone who drives a 2016 Honda Accord and has the minimum limits for coverage in New Jersey. The listed “full-coverage” rates include $500 deductibles for collision and comprehensive coverages in addition to state-minimum liability coverage.

The Average Cost of New Jersey Car Insurance

Welcome to New Jersey highway sign

At $223 per month, auto rates in New Jersey are higher than in every surrounding state except New York. Some areas of the state see much lower (and higher) rates.

Here are the average rates in New Jersey compared to its neighbors, as well as how it stacks up to the rest of the country.

State Monthly Rate State Rank
New Jersey $223 47th-cheapest
Delaware $164 42nd
New York $306 50th
Pennsylvania $142 36th
Rest of U.S. $129

New Jersey is the most densely populated state in the U.S., which has led to tightly packed roads and plenty of congestion. Car insurance companies correlate traffic congestion with higher rates of car accidents.

When a car insurance company has to take on additional risk, it’ll charge higher premiums to ensure the company remains financially stable.

Cheapest Car Insurance Rates for State-Minimum Insurance: Amica

State-minimum car insurance is the least amount of coverage you can legally carry in the state — making it the most affordable type of car insurance.

Let’s take a look at the cheapest car insurance companies for state-minimum liability insurance in New Jersey.

Company Monthly Premium
Amica $56
NJM Insurance $76
Plymouth Rock Assurance $100
Penn National $106

Amica is the cheapest option on average for state-minimum insurance in New Jersey, at $56 per month — $73 cheaper than the statewide average. The company offers a large number of discounts, making it easy for New Jersey drivers to save.

But GEICO and NJM Insurance also offer average monthly rates under $100, while Plymouth Rock and Penn National are at or just above $100 per month.

Which company offers you the best rate largely depends on your unique driving profile.

Cheapest Car Insurance Rates for Full-Coverage Insurance: GEICO

Full-coverage car insurance includes liability coverage, plus comprehensive and collision coverages. These additional coverages protect your car if it’s damaged in an at-fault accident or non-collision event (such as a hailstorm). That means full-coverage policies will cost more than basic liability — but there are still companies in New Jersey that can offer you a great deal.

Here are the five cheapest auto insurers for full-coverage policies in New Jersey.

Company Monthly Premium
GEICO $108
NJM Insurance $127
Amica $156
Penn National $166
Plymouth Rock Assurance $175

GEICO offers the best average rates for full-coverage policies in New Jersey. In fact, you’ll save an average of $114 over a six-month policy term compared to the next cheapest option, NJM.

Even so, GEICO won’t be the cheapest option for everyone, so be sure to compare multiple insurers before deciding on your following policy.

Find the Best Rates New Jersey Has to Offer

Compare New Jersey Auto Insurance Rates by Age

Woman comparing auto insurance quotes on her phone

Your age is one of the most influential factors that affect your premiums. Young drivers pay more due to their inexperience on the road and higher accident rates. However, premiums typically go down as you age, eventually leveling off in your mid-to-late 30s.

These rates remain low well into your 60s and later, depending on the other factors that influence your costs.

Sometime in your 70s, you’ll see rates begin to rise again. Our reaction time slows down as we age, which may increase the risk of car accidents (and your auto insurance premiums, to boot).

Cheapest car insurance for New Jersey teens: GEICO

Teens and young drivers pay the most for car insurance, all else being equal. Rates go down considerably between the ages of 16 and 20. Rates continue to decrease into your 20s, and, by the time you’re 25, rates are only slightly higher than drivers in older age brackets.

Here are the most affordable car insurance companies in New Jersey for 18-year-old drivers, sorted by the cheapest liability rates.

Company Liability Only Full Coverage
GEICO $130 $239
Amica $135 $388
NJM Insurance $184 $304
Penn National $317 $533
State Farm $347 $483

GEICO offers the best rates for both liability-only and full-coverage policies for teens. Though Amica also offers competitive rates for liability, GEICO offers an average full-coverage premium that’s $65 less per month than the next cheapest competitor (NJM).

Cheapest car insurance for New Jersey seniors: Amica

Most drivers will see their lowest premiums as they approach retirement age. And rates are especially even cheaper for seniors who drive less.

Seniors can save even more by getting a defensive driver discount or signing up for a telematics program, which tracks your driving habits and rewards safe driving behaviors.

Let’s check out the cheapest car insurance companies for 65-year-old drivers in New Jersey.

Company Liability Only Full Coverage
Amica $40 $115
GEICO $55 $92
NJM Insurance $66 $110
Penn National $99 $152
Plymouth Rock Assurance $103 $179

Amica provides the lowest average rate for seniors, at $40 per month, but GEICO offers the cheapest full-coverage policies of all the companies listed here.

Both companies provide quite a few discounts to help drivers save, and every insurer on the list offers a driver training discount to seniors.

NJM, Penn National, and Plymouth Rock also offer low rates, and one may even offer a cheaper rate to you.

Compare New Jersey Auto Insurance Rates by Driving Record

Man behind the wheel of an insured car

Your driving record has one of the largest affects on your auto premium costs. But it’s also the factor most in your control.

Drivers with clean records pay the lowest rates, all else being equal. Those with minor tickets see more modest increases when compared to drivers with an at-fault accident or more serious moving violations (such as DUI, reckless driving, and illegal racing).

Let’s look at how rates change based on different types of driving records.

Cheapest car insurance for good drivers in New Jersey: Amica

“Good drivers” are those with no traffic tickets or at-fault car accidents within the last five years (though each company has different rules). Insurers see these drivers as the least risky, so they tend to offer them the lowest rates.

Below are the cheapest auto insurance companies in New Jersey for drivers with a clean record, sorted by cheapest liability costs.

Company Liability Only Full Coverage
Amica $56 $156
GEICO $63 $108
NJM Insurance $76 $127
Plymouth Rock Assurance $100 $175
Penn National $106 $166

Once again, Amica offers the cheapest rates for liability only ($56 per month) and GEICO offers the cheapest full-coverage rates ($108) to the average New Jersey driver with a clean driving record.

NJM, Plymouth Rock, and Penn National also tend to offer low rates as well — plus, Plymouth Rock and GEICO both offer good driver discounts to help drivers with clean records can save even more.

Cheapest car insurance in New Jersey after a ticket: GEICO

Even if they seem minor at the time, one speeding ticket can increase your car insurance rates by about 30% for both liability-only and full-coverage policies, according to data.

The more severe the ticket, the higher the increase — so a speeding ticket for driving more than 10 mph over the speed limit usually raises rates more than a more minor infraction.

Here are the cheapest car insurance companies in New Jersey for drivers with a ticket.

Company Liability Only Full Coverage
GEICO $60 $106
NJM Insurance $94 $161
Amica $96 $273
Plymouth Rock Assurance $101 $179
Progressive $158 $238

GEICO offers the cheapest rates for both full-coverage and liability-only policies for drivers with a speeding ticket. Average costs are significantly lower than even the next cheapest option — $408 less annually for liability and $660 annually for full coverage.

NJM, Amica, and Plymouth Rock all offer affordable liability rates as well, with Progressive offering somewhat higher, but still affordable coverage.

Cheapest car insurance in New Jersey after an accident: Amica

The average at-fault accident drives up car insurance rates significantly — between 40% and 45% on average, according to data. Keep in mind that New Jersey is a “comparative fault” state, meaning both drivers can be found at fault for a car accident (they’re generally assigned a percentage of fault). Most companies only raise rates if you’re found 50% or more at fault, but not all.

Let’s take a look at the cheapest car insurance companies in New Jersey for drivers with one at-fault accident.

Company Liability Only Full Coverage
Amica $78 $221
NJM Insurance $81 $139
GEICO $83 $150
Plymouth Rock Assurance $120 $207
Penn National $160 $250

Amica offers the cheapest liability policy to New Jersey drivers with a recent accident, while NJM offers the cheapest full-coverage policies, on average. These costs are considerably below the national average of $179 per month for liability and $390 for full coverage. GEICO, Plymouth Rock, and Penn National also offer cheaper-than-average rates.

Every insurer on the list also offers at least a few discounts that drivers with an at-fault accident can use to reduce rates. But the best way to save after an accident is to compare quotes from multiple companies to make sure you’re still getting the best rates.

Get the Best Rates in New Jersey, Regardless of Driving Record

Cheapest car insurance in New Jersey after a DUI: NJM

DUIs can double premiums for liability and full-coverage policies, according to data. And that’s in addition to the legal ramifications, which, in New Jersey, include:

  • Fines between $250 and $500, depending on your level of intoxication
  • Up to 30 days in jail
  • Ignition interlock requirements for three to 15 months
  • Participation in an Intoxicated Driver Resource Center program
  • $1,000 annual insurance surcharge for three years

Plus, the offense stays on your record in New Jersey for the rest of your life, with no way to expunge it. Because of this, drivers with DUIs can see increased rates for up to a decade — though most insurers review only the last three to five years of a driver’s history.

Let’s check out the cheapest car insurance companies in New Jersey for drivers with one DUI.

Company Liability Only Full Coverage
NJM Insurance $94 $161
GEICO $120 $219
Plymouth Rock Assurance $141 $244
Progressive $143 $214
Amica $175 $502

NJM offers the lowest liability and full-coverage policies on average to New Jersey drivers with a DUI. The company also offers several insurance discounts that drivers can use no matter what’s on their record.

GEICO, Plymouth Rock, Progressive, and Amica all offer liability and full-coverage policies below the national average of $251 and $536 per month, respectively.

The Cheapest Cities for Car Insurance in New Jersey

Another major factor that significantly influences your rate is where you live. Local traffic patterns, accident rates, crime rates, and local weather patterns can all affect your costs. Areas with higher population densities tend to have higher rates — but not always.

Let’s take a look at which New Jersey cities offer the lowest average rates.

City Average Liability Rates
Mount Laurel $73
Phillipsburg $73
Hoboken $79
Wayne $81
East Brunswick $82
Jackson $83
Blackwood $84
Freehold $85
Neptune $85
Piscataway $85

Mount Laurel is the cheapest city in New Jersey for car insurance, with an average premium of just $73 per month. Despite being part of the Philadelphia metro area, Mount Laurel isn’t densely populated (especially compared to the rest of New Jersey). Phillipsburg — another town with a relatively small population (just over 15,000 as of this writing) — comes in at just a few cents more expensive per month.

New Jersey’s largest cities — Newark ($147 per month), Jersey City ($103), and Paterson ($165) — have much higher average premiums. Jersey City’s Elizabethport has the highest premiums of any area in New Jersey, at $165 per month, according to data.

5 Ways to Get Cheap Car Insurance in New Jersey

Man using his phone to research how to save on auto insurance

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

  1. Exhibit low risk: 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.

View New Jersey’s Best Rates

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:

You can opt to add $10,000 of bodily injury liability (for all persons, 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 it’s only recommended 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 drivers add 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. Drivers can only get noneconomic losses covered unless they suffer:

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

In these cases, drivers (or a representative party in the case of death) are allowed to 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 you’re caught 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

New Jersey Auto Insurance FAQs

Want to learn more? Below are the answers to the most common questions asked by New Jersey drivers like you.

What is the cheapest auto insurance company in New Jersey?

GEICO offers the cheapest car insurance policies in New Jersey, on average. But that doesn’t mean it will offer you your best rate. Be sure to compare quotes from several insurers before deciding on your policy.

How much is car insurance in New Jersey?

The average monthly cost of car insurance is $223 in New Jersey — higher than the national average. Even so, you can save money on your policy by comparing quotes, raising deductibles, and eliminating unnecessary coverage options.

Which city has the cheapest car insurance in New Jersey?

Mount Laurel has the cheapest auto insurance in New Jersey, at $73 per month. That’s $150 cheaper than the state average.

How much car insurance is required in New Jersey?

New Jersey calls the state-minimum insurance policy the “Basic Policy.” It must include $15,000 in personal injury protection and $10,000 in property damage coverage. It’s not recommended for people with families or real assets. The “Standard Policy” requires drivers to carry at least $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury coverage per accident, $25,000 of property damage liability coverage, and $15,000 of person injury protection.

What happens if you get caught driving without insurance in New Jersey?

Driving without insurance in New Jersey comes with a $300-to-$1,000 fine, a $250 insurance surcharge for three years, and possible community service. Subsequent charges come with higher fines, a potential driver’s license suspension, and a mandatory 14-day jail sentence.


Data scientists at analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article.’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.


  1. International Journal of Environmental Research and Public Health, “Current Understanding of the Effects of Congestion on Traffic Accidents,” Accessed July 21, 2023.
  2. State of New Jersey Department of Banking & Insurance, “Get Legal with New Jersey’s Basic Auto Insurance Policy,” Accessed July 23, 2023.
  3. State of New Jersey Department of Banking & Insurance, “Standard Auto Insurance Policy,” Accessed July 23, 2023.
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