The 10 Cheapest Cities for Car Insurance in New Jersey

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Updated June 1st, 2022
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If you’re thinking of moving to New Jersey or are just considering moving to another city within the state, you might want to consider how that move could affect your car insurance rates. While car insurance rates can vary from state to state, they can also increase or decrease depending on which city you live in. Some New Jersey cities can have very high rates, but you can also potentially save money by choosing a city with lower average car insurance premiums. 

This is particularly important if you haven’t yet decided where you want to move. In New Jersey, the most affordable city, Mount Laurel, has average monthly premiums of just $73 per month. But if you move to the most expensive city, Paterson, your rates could be more than double that at $165 per month. Over the course of a year, you would pay $1,104 more for car insurance if you lived in Paterson compared to what you would pay if you lived in Mount Laurel. 

If you’re planning a move, you might want to focus on these 10 cities which offer the most affordable auto insurance in New Jersey. 

10. Edison

Edison has a population of 107,588, so it’s a larger city. Of those residents, 55.4% are college graduates, which may help to lower their insurance rates. Only 14.6% of the population is over 65, and 5.5% are ages 18 to 24, meaning most drivers don’t face the higher insurance rates seniors and drivers pay. 

Average Monthly Premium – $86

Learn More: Auto Insurance in Edison

9. Piscataway

Piscataway is a medium-sized city with a population of 56,948. Of those residents, 31.47% have earned a post high school certificate, while 24.7% have a bachelor’s degree. Since car insurance companies often consider drivers with higher education degrees to be a lower risk, many may receive discounted car insurance rates. Additionally, 46.14% of residents are married, which may also help to reduce their car insurance costs.

Average Monthly Premium: $85

Learn More: Auto Insurance in Piscataway

8. Neptune

Neptune had a 2019 population of 4,672, indicating this city is quite small, which helps to reduce the risk of car accidents. Since the median household income is $62,076 most drivers probably purchase used or affordably priced new vehicles, which can also help to reduce car insurance costs. The commute time of 24.6 minutes, which is shorter than the national average of 25.5 minutes, also means drivers are spending less time on the road, further reducing the risk of car accidents. 

Average Monthly Premium: $85

Learn More: Auto Insurance in Neptune

7. Freehold

Freehold’s 2019 population was just 11,797. The 2019 median household income was $61,314, so luxury car purchases are probably somewhat rare in this city, which helps to keep rates down. Freehold also has a 25-minute commute time, which is slightly shorter than the 25.5-minute national average. Drivers aren’t spending excess time on the road, which reduces their chances of being involved in an accident. 

Average Monthly Premium: $85

Learn More: Auto Insurance in Freehold

6. Blackwood

With a population of just 4,929 in 2019, Blackwood is a very small city. The city’s median household income is $55,045, and the median property value is $176,400, so most residents likely aren’t buying expensive vehicles, which costs more to insure. 


Additionally, Blackwood has a relatively low poverty rate of 13.3%. That lower poverty rate often indicates that the area experiences lower crime, so insurers may be willing to decrease car insurance rates given this reduced risk. 

Average Monthly Premium: $84

Learn More: Auto Insurance in Blackwood

5. East Brunswick

East Brunswick has a population of 49,715, so while it’s a decently sized city, there’s a reduced risk of car accidents compared to a major city. Since 57.7% of residents are college graduates, car insurance companies may discount their rates because they’re considered lower risk drivers. The city’s per capita income is $51,214, so most residents are probably buying more economically priced vehicles that are more affordable to insure as well.

Average Monthly Premium: $82

Learn More: Auto Insurance in East Brunswick

4. Wayne

Wayne has a population of 54,838, so it’s also a medium-sized city. Of that population, 24.8% are between ages 35 and 54, and 14.7% are between ages 55 and 64. Since nearly 40% of the population isn’t subjected to the high insurance rates that come with being a teen or a senior, it keeps the average car insurance rates down. 

The area is also well-educated. With 56.5% of residents being college graduates and 6.9% currently attending college, the majority of Wayne drivers may be eligible for car insurance discounts because of their higher education degrees and good student status. Many insurance companies consider these drivers to be lower risk, and may adjust their rates as a result. 

Average Monthly Premium: $81

Learn More: Auto Insurance in Wayne

3. Hoboken

Hoboken had a population of 53,193 in 2019, making it a medium-sized city. Though it has a larger population, its 2019 poverty rate was just 8.66%, which reduces a car insurance company’s risk when insuring vehicles against theft or vandalism. 

Hoboken’s average commute time is over 30 minutes, which is longer than the 25.5-minute national average. However, in 2019, 61.1% of commuters took public transit, and 8.4% walked. These alternative transportation choices indicate that commuters are driving their cars less and spending less time on the road, so they may be eligible for low mileage car insurance discounts.

Average Monthly Premium: $79

Learn More: Auto Insurance in Hoboken

2. Phillipsburg

With a population of just 14,344, Phillipsburg is quite small. The median age is 39, which indicates that many residents aren’t teens or seniors, so they’re not subjected to those higher car insurance rates those populations often face. The median household income is $54,459, so it’s unlikely that many households are buying luxury vehicles, which cost more to insure than lower-priced cars. 

Average Monthly Premium – $73

Learn More: Auto Insurance in Phillipsburg

Cheapest City for Auto Insurance in New Jersey: Mount Laurel

Mount Laurel is a city with 41,443 residents, which makes it smaller. That smaller population decreases the amount of traffic on the roads, so car insurance companies may lower their rates because of that reduced chance of car accidents. The average household income is $128,800, and of the more than 40,000 residents, just 1,479 people are below the poverty level. That low poverty level often corresponds with reduced crime rates, which means car insurance companies are less likely to have to replace or repair a vehicle that has been vandalized or stolen in the city.

Average Monthly Premium – $73

Learn More: Auto Insurance in Mount Laurel

City Average Monthly Car Insurance Premium
Mount Laurel $73
Phillipsburg $73
Hoboken $79
Wayne $81
East Brunswick $82
Blackwood $84
Freehold $85
Neptune $85
Piscataway $85
Edison $86

While these insurance premiums give you an idea of what you might expect to pay in these more affordable cities, if you want to know how much you’d pay, the best thing to do is get a quote.

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More Expensive Cities for Car Insurance in New Jersey

While strategically moving to certain New Jersey cities may save you money on car insurance, other cities have higher-than-average insurance rates. Factors like higher household incomes, more crime and long commutes can contribute to the higher monthly premiums in the following cities. 

5. Orange

Orange has a population of 64,374 and an 18% poverty rate, which could indicate a higher crime rate. Additionally, the city’s average commute time of 32.6 minutes is significantly longer than the national average commute time of 25.5. With this longer commute, drivers spend more time on the road each day, which can increase their chance of being in an accident. Car insurance companies are likely to increase their insurance premiums to account for that increased risk. 

Average Monthly Premium: $146

Learn More: Auto Insurance in Orange

4. Irvington

Irvington’s population is 61,176, but only 21% of those residents have graduated from college. This means that most drivers aren’t getting the lower rates insurance companies tend to offer drivers with a college degree. The city also has a poverty rate of 17.6%, which may contribute to increased crime rates. 

Average Monthly Premium: $148

Learn More: Auto Insurance in Irvington

3. Passaic

Passaic has a 2019 population of 70,019, but the above average poverty rate of 28.6% may correlate with increased crime in the area, meaning car insurance companies assume higher risk when covering vehicles. Residents also feature a longer-than-average commute of 26.2 minutes which contributes to an increased risk of car accidents. 

Average Monthly Premium: $149

Learn More: Auto Insurance in Passaic

2. Elizabethport

Elizabethport is a smaller city with a population of 13,145, but several characteristics contribute to its higher insurance rates. Since 30.1% of residents are divorced, car insurance companies may see them as being higher risk and may increase their rates more than married drivers. Additionally, the city has an unusually long commute of 30 to 45 minutes on average, which is significantly longer than the 25.5-minute national average. That longer commute means residents spend more time on the road, so they’re at an increased risk of being in an accident. 

Average Monthly Premium: $165

Learn More: Auto Insurance in Elizabethport

Most Expensive City for Car Insurance in New Jersey: Paterson

With a population of 145,710 in 2019, Paterson is a larger city, meaning there are more vehicles on the road that contribute to a higher chance of being involved in a car accident. The city also has a high poverty rate of 26.6%, which can correlate with increased crime, causing car insurance companies to increase their premiums to account for that increased risk. 

Average Monthly Premium: $165

Learn More: Auto Insurance in Paterson

City Average Monthly Car Insurance Premium
Paterson $165
Elizabethport $165
Passaic $149
Irvington $148
Orange $146

If you’re searching for car insurance in New Jersey, it is possible to find affordable rates. Compare.com can help you find the most affordable rates for your city in minutes. Simply enter your zipcode below to get started.


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