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Best Cheap Car Insurance In New Jersey (2023)

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09/20/2023 01:20 PM

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If you’re searching for the cheapest car insurance in New Jersey, we’ve got you covered. In this review, we’ll share our research on the Garden State’s top providers for affordable auto insurance and fill you in on coverage requirements and average premiums.

Based on our reviews of the best car insurance companies in the country, we found that Geico, Palisades Group, and New Jersey Manufacturers Insurance (NJM) tend to offer the cheapest car insurance in New Jersey. It’s still important to shop around, as you’ll find the cheapest rate possible by getting car insurance quotes from multiple providers.

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Cheapest Car Insurance In New Jersey

Geico typically offers the cheapest car insurance in New Jersey, with an average cost of $1,359 per year for full coverage. This estimate is for a 35-year-old driver in New Jersey with good credit and a clean driving record.

Auto Insurance ProviderEstimated Annual Cost
Geico$1,359
NJM Insurance$1,432
Palisades Group$1,588
Progressive$1,802
Selective Insurance$1,902
State Farm$2,070
Travelers$2,073

How Much Is Auto Insurance In New Jersey?

According to rate estimates, the average cost for full-coverage car insurance in New Jersey is $2,132 per year. This means Garden State drivers pay about 23 percent more than the national average of $1,730 per year.

Between the state’s busy streets and its proximity to New York City and Philadelphia, it’s not too surprising that New Jersey drivers pay high rates for coverage. You can save by using discounts and having a clean driving record, but your rates will vary based on these factors:

  • Age: Because young drivers have less experience on the road, they are considered high-risk motorists and pay higher rates for New Jersey auto insurance.
  • Marital status: Married drivers usually pay less for coverage than single drivers, and they’re often eligible for family discounts.
  • Driving record: Violations such as speeding tickets, recent accidents, and DUIs can increase rates for car insurance in New Jersey.
  • Credit score: New Jersey drivers with poor credit scores pay higher rates for auto coverage than those with strong credit.
  • Coverage level: Full-coverage policies almost always cost more than state minimum liability policies, though they also provide extra protection after an accident.

The best way to determine your potential rates for automobile insurance in New Jersey is by getting quotes from providers. That way, you’ll be able to compare car insurance rates to discover which policy best fits your cost and coverage needs.

Cheap New Jersey Car Insurance: Young Drivers

Car insurance companies in New Jersey charge higher rates for drivers in their teens and early 20s, since they have less experience behind the wheel. The tables below showcase the cheapest options for full-coverage auto insurance for drivers in these age groups.

Cheapest Car Insurance In New Jersey: 16-Year-Olds

The cheapest car insurance in New Jersey for 16-year-olds comes at roughly $231 per month on average from Geico. NJM Insurance also offers affordable coverage at $261 per month.

Cheap Car Insurance In New JerseyAverage Monthly CostAverage Annual Cost
Geico$231 $2,777
NJM Insurance$261 $3,127
State Farm$411 $4,935
Palisades Group$464 $5,572
Travelers$466 $5,586

Cheapest Car Insurance In New Jersey: 18-Year-Olds

Eighteen-year-old drivers in New Jersey can find the cheapest car insurance from NJM Insurance at around $214 per month and from Geico at around $231 per month.

Cheap Car Insurance In New JerseyAverage Monthly CostAverage Annual Cost
NJM Insurance$214 $2,566
Geico$231 $2,775
Travelers$339 $4,070
State Farm$398 $4,771
Selective Insurance$428 $5,141

Cheapest Car Insurance In New Jersey: 21-Year-Olds

Twenty-one-year-olds can find the cheapest coverage in New Jersey at Geico, which has an average monthly cost of $158. Drivers this age can also find affordable coverage from NJM Insurance and Palisades Group.

Cheap Car Insurance In New JerseyAverage Monthly CostAverage Annual Cost
Geico$158 $1,897
NJM Insurance$167 $2,003
Palisades Group$205 $2,465
Travelers$228 $2,731
Selective Insurance$238 $2,859

Cheapest Car Insurance In New Jersey: 25-Year-Olds

In New Jersey, the cheapest full-coverage car insurance for 25-year-olds comes from Geico at $123 per month. NJM Insurance comes in a close second at $138 per month.

Cheap Car Insurance In New JerseyAverage Monthly CostAverage Annual Cost
Geico$123 $1,476
NJM Insurance$138 $1,655
Palisades Group$145 $1,745
Travelers$173 $2,076
Progressive$177 $2,121

Cheapest Car Insurance In New Jersey: Bad Credit

Drivers with poor credit may want to consider Progressive for car insurance in New Jersey, as its rate of $2,163 per year is the state’s lowest. Selective and NJM Insurance also offer somewhat affordable auto insurance in the Garden State.

Car Insurance Providers in New Jersey Estimated Monthly Cost Estimated Annual Cost
Progressive $180 $2,163
Selective $209 $2,506
NJM Insurance $225 $2,701
Geico $276 $3,312

Farmers

$330 $3,971

Cheapest New Jersey Car Insurance: High-Risk Drivers

In general, those with clean driving records pay lower insurance premiums than drivers who have a history of speeding tickets, car accidents, or DUI convictions. The table below shows the difference in cost for each traffic violation by the top five cheapest companies for New Jersey drivers.

Car Insurance ProviderSpeeding TicketsRecent AccidentsDUI Convictions
Geico$1,400 $2,880 $1,983
NJM Insurance$1,823 $1,823 $1,709
Palisades Group$1,835 $1,767 $2,622
Progressive$4,034 $3,908 $5,257
Selective Insurance$3,463 $3,463 $3,969

*Speeding tickets are for 16 to 20 mph over the speed limit. Recent accidents are for a single vehicle ($2,500 worth of damage).


Top 5 Auto Insurance Companies In New Jersey

In our extensive auto insurance ratings, we look at factors such as pricing, coverage options, customer satisfaction, availability, and claims service. Below is our final scoring for the providers with the best car insurance in New Jersey.

Best Car Insurance In New Jersey Overall Rating Cost Rating Coverage Rating
1. Geico 4.6 4.7 4.2
2. Progressive 4.3 4.4 4.4
3. State Farm 4.7 4.6 4.6
4. NJM Insurance 4.0 3.5 3.5
5. Travelers 4.5 4.4 4.7

*Our research team scores car insurance companies by taking nationwide factors into account. The order of insurers in this table is specific to car insurance in New Jersey.

#1 Geico: Best For Discounts

Geico is our top pick for cheap car insurance in New Jersey, as it combines some of the state’s lowest prices with a strong industry reputation that’s shown through its A++ financial strength rating from AM Best and A+ score from the Better Business Bureau (BBB). J.D. Power also gave Geico an above-average score in the 2022 U.S. Auto Claims Satisfaction Study℠.

With Geico, you’ll gain access to standard coverage options, along with offerings such as rental car reimbursement, mechanical breakdown insurance, and 24/7 roadside assistance. You could also qualify for discounts for driving safely, bundling insurance policies, or being a good student.

Read moreGeico insurance review

Geico Pros And Cons

Pros A++ AM Best rating and A+ score from the BBB Affordable rates for New Jersey drivers Wide range of discounts available
Cons Claims process satisfaction can vary Doesn’t offer gap insurance

#2 Progressive: Best Usage-Based Insurance

In our search for the best car insurance in New Jersey, we found Progressive to be a strong choice based on its cost, coverage options, and car insurance discounts. The insurer also holds an A+ for financial strength from AM Best.

The provider’s usage-based Snapshot® program can help drivers save an average of $156 per year by monitoring their driving habits. Progressive is also a great choice for those with multiple policies, as the provider also offers homeowners and renters insurance. The company features additional insurance products such as gap insurance, rideshare coverage, and custom parts and equipment coverage.

Read moreProgressive insurance review

Progressive Pros And Cons

Pros A+ AM Best rating Offers Snapshot® discount program Large selection of coverage options
Cons Slightly below-average J.D. Power ratings

#3 State Farm: Best For Student Drivers

State Farm, our third pick for car insurance in New Jersey, holds an A++ financial strength rating from AM Best and placed third in the J.D. Power 2022 U.S. Auto Insurance Study℠ for the mid-Atlantic region.

In addition to standard auto insurance coverage, State Farm offers rental car reimbursement, rideshare coverage, and emergency road service as add-ons. The provider also offers savings for young drivers through its Steer Clear® program and additional discounts through Drive Safe and Save™ usage-based insurance.

Read moreState Farm insurance review

State Farm Pros And Cons

Pros Offers great discounts for students A+ financial strength rating from AM Best Wide range of discounts available
Cons B rating from the BBB

#4 NJM Insurance

NJM Insurance offers auto insurance products in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. The provider has an A+ financial strength rating from AM Best and a 4.7-star rating out of 5.0 on Trustpilot.

NJM provides exceptional customer service, scoring fourth for customer satisfaction in the mid-Atlantic in the latest J.D. Power Auto Insurance Study. The company offers standard plan options along with gap insurance, transportation expense coverage, and roadside assistance.

NJM Insurance Pros And Cons

Pros 4.8-star customer rating on Trustpilot A+ financial strength rating from AM Best Wide range of discounts available
Cons B rating from the BBB

#5 Travelers: Best Coverage Options

Travelers carries a great reputation and stands as a top option for car insurance in New Jersey. With more than 13,000 independent representatives, Travelers allows drivers to work with local agents to find the best auto insurance policies available.

Travelers offers New Jersey drivers coverage options such as gap insurance, new car replacement, accident forgiveness, and rideshare coverage. Travelers agents can help motorists bundle car insurance policies with home, business, and life insurance as well.

Read moreTravelers insurance review

Travelers Pros And Cons

Pros A++ financial strength rating from AM Best Local agents in most communities Rated A by the BBB
Cons Below-average satisfaction with claims process

Requirements For Car Insurance In New Jersey

Auto insurance rates and requirements vary by state, so it’s essential to understand the laws specific to New Jersey. In the Garden State, there are two policy types that meet minimum coverage requirements:

  • Standard policy: Pricier than a basic policy but provides far more benefits, along with liability car insurance
  • Basic policy: Offers less protection than the standard policy but is more affordable

Both policies require New Jersey drivers to get two types of liability insurance: bodily injury coverage and property damage coverage.

Coverage Types Available Standard Policy Minimum Basic Policy Minimum
Bodily injury liability coverage

$15,000 per person,

$30,000 per accident

Not included, but $10,000 per accident

can be added as an option

Property damage liability coverage $5,000 per accident $5,000 per accident
Personal injury protection (PIP) $15,000 per person or accident $15,000 per person or accident

Optional Coverage

If you’re looking for full-coverage New Jersey car insurance, the following can be added to your plan:


How To Get Car Insurance In New Jersey

When looking for cheap car insurance in New Jersey, compare rates from several top-rated providers. It’s easy to learn how much car insurance is for you by either getting quotes online or reaching out to an insurance agent.

According to our research, New Jersey drivers find the cheapest car insurance coverage from Geico, NJM Insurance, and Palisades Group. Remember that your rates will depend on factors such as vehicle type and your driving record, age, and credit history, so compare car insurance quotes to find the best coverage.

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Best Cheap Car Insurance in New Jersey: FAQ

What is the recommended car insurance in New Jersey?

Our Jalopnik Reviews team recommends full-coverage car insurance for New Jersey drivers. A good policy would be:

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury per accident
  • $50,000 property damage liability per accident
  • $30,000 in PIP insurance
  • Comprehensive coverage
  • Collision coverage

Which company gives the cheapest car insurance?

Geico gives the cheapest car insurance in New Jersey, with full-coverage car insurance that averages out to $1,359 per year, according to our estimates. Full-coverage policies from Geico are significantly cheaper than the state average ($2,037 per year) and the national average ($1,730 per year).

What are the three types of insurance in New Jersey?

The three types of car insurance required in New Jersey are:

  • Bodily injury liability coverage ($15,000 per person, $30,000 per accident)
  • Property damage liability coverage ($5,000 per accident)
  • Personal injury protection ($15,000 per person/accident)

Why is car insurance so high in New Jersey?

Since New Jersey is a no-fault state with high population density, the cost of car insurance premiums is consistently above the national average. The state’s proximity to New York City and Philadelphia also causes car insurance rates to stay on the higher end.

How much is full-coverage car insurance?

According to our rate estimates, the average annual cost of full-coverage car insurance in New Jersey is $2,037. Your rate will likely increase considerably if you have poor credit or speeding tickets, accidents, and DUIs on your driving record. New Jersey drivers can often find cheaper full-coverage auto insurance from Geico, which averages out to $1,359 per year.

How can I lower my car insurance in New Jersey?

Safe drivers in New Jersey can save hundreds on car insurance, as can individuals who maintain good credit. Check with your insurer to see if you qualify for any discounts, as many are available for safe drivers, students, and multi-policy holders. It’s also smart to compare rates from other car insurance providers in New Jersey.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.