The Best Car Insurance Companies in New Jersey

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Written by Nick Versaw Edited by Quiana Darden Reviewed by Amanda Clear

Updated January 27, 2023

It takes some planning to get the best cheap car insurance policy in New Jersey, but only a little. The Garden State has the highest population density of any state. Yet, the cost of car insurance remains surprisingly normal in most areas. Moreover, many rival insurance companies compete to offer high-quality insurance products at low rates. 

This article gives you all the essential details on the best auto insurance companies in New Jersey. Plus, we offer our top tips to find the best deal now and in the future. 

Key Takeaways

• The average cost of car insurance for New Jersey drivers is about $950 for state minimum and $1,800 for full coverage auto insurance, close to the national average. In some areas, premiums are more expensive.
• The best cheap car insurance provider is Plymouth Rock for average drivers and Metromile for low-mileage drivers. 
• Car insurance costs vary based on a driver’s car, ZIP code, age, driving record, and other factors. 
• Drivers with clean driving records, good credit scores, and liability-only car insurance pay the lowest rates — sometimes lower than $50 a month. 
• Policyholders can save money by raising their deductibles, using discounts, and comparing car insurance quotes.

Best Car Insurance Companies in NJ 

While you’ll ultimately decide which New Jersey car insurance provider is best, you can pick from several top companies. Below, we detail the five best and cheapest options with information about the products, services, customer satisfaction, discounts, and other important facts to consider. 

Plymouth Rock

J.D. Power: Below Average

AM Best Score: A (Excellent)

Pros

• Lots of valuable discounts.
• Cheaper than average car insurance rates, especially for more complicated policies.
• Fewer than average customer complaints.
• Many coverage options include glass deductible modification, pet injury coverage, and original equipment manufacturer (OEM) coverage.
• Good website, mobile app, and 24/7 claims service.

Cons:

• Lower than average customer satisfaction.
• There are better rates for people with specific insurance needs.
• Not cheap for high-risk drivers or people with multiple insurance claims in their recent history.

Coverage Options:

• Accident forgiveness
• Emergency roadside assistance
• Full-coverage
• New car replacement
• Rental car reimbursement
• Personal property replacement (cell phone, laptop, car seat, etc.)

Discounts:

• Bundling
• Multi-vehicle
• Good Student
• Student away at school
• Safe Driver
• Advance shopped 
• Pay-in-full
• Electronic documents
• Anti-theft device

Plymouth Rock is a regional insurer that operates in five states. It offers affordable premiums to drivers, especially ones with clean records. But, one of the reasons this company is so for these drivers is because the company sets higher-than-average rates for high-risk drivers. Therefore, drivers with a few tickets in the last five years should look elsewhere for insurance. 

New Jersey Manufacturers Insurance

J.D. Power: Higher than average

AM Best Score: A+ (Superior)

Pros:

• High customer and claims satisfaction.
• Cheap car insurance rates for drivers with one ticket and teen drivers. 
• Low number of customer complaints.

Cons:

• No mobile app, so you won’t have digital proof of insurance.
• Charges higher rates for drivers with multiple tickets or serious tickets (DUI, reckless driving, etc.).
• No safe driving discount.

Coverage Options:

• Gap insurance
• Roadside assistance
• RV coverage, motorcycle, ATV
• Rideshare insurance
• Rental car reimbursement
• Pet coverage
• Classic car

Discounts:

• Bundling
• Multi-vehicle
• Defensive driving 
• Pay-in-full and e-pay
• Driver training 
• Good student 
• Mature driver for senior drivers who complete driver training
• Vehicle safety equipment
• New car

Considered one of the best insurance companies in the country, NJM Insurance only offers policies in five states. There are many reasons why NJM customers love getting their insurance here. The company operates as a mutual insurance company and can issue its customers dividend payments or premium credits. The company uses a centralized system to quickly manage customer questions, claims, and other needs. And they offer competitive, affordable rates. Be sure to get a quote.

Liberty Mutual

J.D. Power: Average

AM Best Score: A (Excellent)

Pros:

• Many discount and savings programs.
• Generous bundling discount.
• Low rates for drivers with new vehicles (younger than three years).
• User-friendly web and mobile tools

Cons:

• Often not the most affordable option, especially for drivers who can’t access discounts. 
• Fewer customization options than other insurers on the list. 
• Below average customer and claims satisfaction.
• Higher than average customer complaints.

Coverage Options:

• Accident forgiveness
• Gap insurance
• Rental car reimbursement
• Roadside assistance
• Deductible fund
• New car and better car replacement
• Original parts replacement
• Teacher’s car insurance
• Lifetime repair guarantee
• Car-sharing insurance

Discounts:

• Bundling
• Multi-car
• Good driver
• Electric vehicle
• Good student and student away at school
• E-Pay, buying online and paying in full
• Affiliation (employers, alums, professional associations)
• Car safety features
• Early shopper

As one of the largest insurance companies on the list, Liberty Mutual offers an extensive list of car insurance options and various other insurance products. The insurer also provides excellent self-service options via its website and mobile app. Liberty can be affordable for drivers who can bundle their auto policy with homeowner’s or renter’s insurance.

Metromile

J.D. Power: Not yet rated

AM Best Score: Not yet rated

Pros:

• Highly affordable rates, most affordable for low-mileage drivers. 
• Easy to shop for and buy a policy online. 
• Excellent self-service options online and with the mobile app. 
• Pet injury protection is standard with full-coverage policies.

Cons:

• Prices fluctuate each month based on monthly mileage.
• Customers must keep a small tracking device plugged into their car’s diagnostic port.
• Prices aren’t affordable for high-mileage drivers.
• Not available to rideshare drivers.
• Higher than-average customer complaints

Coverage Options:

• Collision insurance
• Comprehensive insurance
• 24/7 roadside assistance
• Rental car reimbursement
• Collision deductible waiver 

Discounts:

• Multi-car
• Homeowner (not bundling)
• Bundling for people with Hippo homeowner’s insurance (this may change soon)
• Good driver
• Continuous insurance
• Mature driver
• Online purchase

Metromile is a pay-per-mile auto insurer currently only available in a few states. Where it is available, it’s known for providing affordable rates to policyholders who drive less than 10,000 miles per year. Metromile was acquired by Lemonade, another digital insurer, in August of 2022. The companies are still in the process of combining, but customers can rest assured that Lemonade is highly popular with its renter’s and home insurance customers.

Selective 

J.D. Power: Not yet rated

AM Best Score: A+ (Superior)

Pros:

• Generally affordable rates.
• Manage the claims process entirely online and with the mobile app. 
• Bundling options for home, renter’s, condo, flood, and business insurance.
• Lots of coverage options

Cons:

• More than average customer complaints. 
• Fewer than average discount programs.
• Fewer insurance products for bundling than other insurers on this list. 

Coverage Options:

• Collision coverage
• Comprehensive coverage
• Roadside assistance
• Accident forgiveness
• Rental car reimbursement
• Pet injury coverage
• Diminishing deductible
• Trip interruption
• New and better car replacement
• Key replacement

Discounts:

• Bundling
• Good payer
• Driver training
• Vehicle safety features
• Advanced quote
• Good student

Selective Insurance offers some of the best rates in the state and provides one of the best web and mobile experiences. But, prospective customers will have to call to receive a quote. We recommend getting a quote if the price is your most important factor. Selective lags behind competitors in terms of customer satisfaction in general and during the claims process. 

Average Car Insurance Cost in NJ

The average driver in New Jersey spends between $1,400 and $1,700 a year on car insurance. Of course, depending on several factors, you may pay much more or less than the average New Jersey driver. The things that most influence costs are:

• Where you live: Drivers in Trenton pay different rates than Newark due to differences in claim rates, traffic patterns, crime rates, and additional factors. 
• Your vehicle: Higher-value cars tend to cost more than value vehicles. 
• Your policy: Full coverage car insurance is more expensive than liability-only policies. 
• Your age: Younger drivers pay more than older drivers with the same car and driving record. 
• Your driving record: People with clean records pay less than those with accidents or tickets. 
• Your credit score: People with higher credit scores pay lower rates. 
• Annual mileage: The more miles you drive, the higher your premiums. 
• Marital status: Married couples are considered lower risk and pay lower premiums than single people. 
• Gender: Women generally pay less than men, but how big the difference depends on the insurer. 

What is the Cheapest Car Insurance Company in New Jersey?

Metromile, Plymouth Rock, Liberty Mutual, and others tend to offer the lowest rates to drivers in New Jersey. But, the cheapest companies may not offer the cheapest car insurance rate. It’s essential to compare quotes from all the best providers in your area, so you know you’re getting the best rate. 

Cheapest State Minimum Car Insurance in NJ

State minimum policies come with the cheapest auto insurance rates, but most drivers need more than minimum coverage car insurance. Be sure to compare quotes for state minimum and policies with additional coverage, the cost difference is usually minimal, especially for drivers with clean records. 

Cheapest Full Coverage Car Insurance in NJ

Full coverage auto insurance policies include collision and comprehensive coverage options, which are more expensive. But for drivers with car loans or vehicles with a lease or loan, they’re a must. Here are the best average rates based on our research. 

How Can I Lower my Car Insurance in NJ?

The best ways to get cheaper car insurance premiums include the following:

• Increasing your deductible
• Comparing car insurance rates before buying
• Comparing rates every six months
• Combining discounts
• Bundling car insurance with home or renter’s insurance 
• Keeping a clean driving record
• Maintaining good credit

Suppose you’re still having trouble finding an affordable rate. In that case, you can consider switching to a cheaper vehicle, using usage-based insurance, or temporarily keeping your car in storage (and paying less expensive storage insurance). 

How to Find the Best Auto Insurance Companies in NJ

The best way to find the best car insurance is through comparison shopping. That means getting quotes from several insurers, checking reviews, and getting to know their products. You can do this quickly and for free with Compare.com. Our tools let you review quotes and companies side-by-side, making it super easy to see which companies offer the best policy details for the best price and with the best reputation.

What You Need to Know About NJ Auto Insurance Coverage 

State minimum coverage is the minimum coverage you need to comply with New Jersey state law. The minimum amount of car insurance required is:

• $15k bodily injury liability coverage per person
• $30k bodily injury liability coverage per accident
• $5k property damage liability coverage per accident
• $15k personal injury protection (for medical expenses)

You should also know that New Jersey is a “no-fault” state. That means you cover your medical bills following a car accident regardless of fault – enter personal injury protection (PIP). People can still sue the at-fault driver in cases where a victim of a car accident dies or suffers:

• Significant scarring or disfigurement
• Loss of a body part
• Displaced fracture
• Loss of a fetus
• Permanent or other severe injuries

Car Insurance Discounts in NJ

Discounts can help you save a ton, and many discounts are available. Discounts differ based on the insurer, so comparing the details is essential. Below are the most common and lucrative discounts for New Jersey drivers. 

FAQs About Car Insurance in NJ

What is the recommended car insurance coverage in NJ?

New Jersey drivers usually need more than state minimum coverage to protect themselves, and higher liability limits — 100/300/100 — are generally recommended. Consider purchasing collision and comprehensive coverage for drivers with vehicles valued over $5,000, even if you paid off the car. GAP insurance is necessary if your car depreciates faster than your loan pay-down period. Finally, umbrella insurance, which extends your liability coverage limits, is also advised for people with high-value assets.

How do I choose the right car insurance?

Start by considering how much coverage you need to protect yourself and your car. And decide the maximum premium amount for your budget. Next, you should gather quotes from insurance providers in your area. Compare each provider based on cost, customer service reviews, financial strength, and accessibility (website, mobile app, etc.). Prioritize your needs and preferences when deciding which company best fits you. 

Nick Versaw Insurance Managing Editor

Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.