Although New Jersey isn’t generally considered as expensive as its neighbor, New York, the cost of living, including auto insurance, can be higher than expected. The average annual cost of car insurance in the Garden State is $2,080 for full coverage and $941 a year for the state’s minimum coverage, compared to the national average of $1,582.
- Key takeaways
- Best car insurance companies in New Jersey
- State Farm: Highest customer satisfaction
- Allstate: Best for lowest deductible
- GEICO: Most affordable coverage
- Progressive: Best for senior discounts
- Plymouth Rock: Best for coverage options
- New Jersey auto insurance requirements
- How to choose a car insurance provider in New Jersey
- How much does car insurance cost in New Jersey?
- New Jersey car insurance rates by city
- FAQs about car insurance costs in New Jersey
- The best car insurance in New Jersey is State Farm by customer satisfaction ranking, which costs $1,700 per year for comprehensive coverage.
- Drivers in New Jersey with a clean driving record pay an average of $173 per month.
- The average insurance cost for high-risk drivers in New Jersey is $2,684 a year.
Best car insurance companies in New Jersey
The best car insurance in New Jersey varies based on the type of coverage you need. State Farm is the highest-rated insurance company in New Jersey, but it’s not the cheapest. GEICO has the lowest cost, but it also has one of the lowest customer service scores.
|Provider||J.D. Power customer satisfaction rating||Estimated annual full coverage||Estimated annual minimum liability coverage|
State Farm: Highest customer satisfaction
State Farm earned the highest customer satisfaction rating in New Jersey, earning 843 out of 1,000. While State Farm’s average cost of $1,700 per year for full coverage insurance is lower than New Jersey’s average of $2,080, you may still pay more based on your driving record and other factors.
- State Farm has multiple coverage options, including specialty policies like travel expenses and rideshare coverage
- Has agents and offices throughout New Jersey
- It doesn’t offer some specialty policies like traditional gap insurance
- It has above-average costs for New Jersey minimum coverage
Allstate: Best for lowest deductible
Although Allstate has some of the most expensive coverage in New Jersey, its vanishing deductible program and other discount options may help you save some money on your car insurance. Drivers can save $100 a year up to $500 on their deductible for every year they don’t have an accident.
- Offers multiple policy options, including vehicle protection plans and theft deterrents
- Allstate earned the second-highest customer satisfaction score in New Jersey
- Allstate’s minimum coverage options may be more expensive than some competitors
- Discounts and policies may only be available in some areas
GEICO: Most affordable coverage
GEICO is the lowest-cost option for full and minimum insurance coverage in New Jersey. Drivers who use GEICO will pay an average of $1,175 yearly for full coverage and $514 for minimum coverage, well below the state average. It has a good mix of coverage and discounts but limited access to agents in New Jersey.
- The lowest cost available of the companies we surveyed in New Jersey
- It has multiple discount options, including new vehicles and multi-policy
- GEICO may not offer some policies like rideshare or gap insurance
- It has limited agents in New Jersey compared to some competitors
Progressive: Best for senior discounts
Senior drivers in New Jersey pay an average of $2,000 annually and may see their costs increase as they age. Although Progressive is the second most expensive carrier in the Garden State, it can be helpful for senior drivers because of the discounts offered. It may provide lower rates than some competitors.
- Progressive may offer discounts for seniors who complete state-approved driving courses
- It has multiple insurance agents in New Jersey
- A more expensive option compared to other New Jersey providers
- Progressive only has average customer service ratings in New Jersey
Plymouth Rock: Best for coverage options
Plymouth Rock is the only regional insurance option on our list, but it has coverage options that even some national competitors don’t offer. Plymouth Rock is more expensive than some competitors, averaging $1,932 a year for full coverage and $804 for minimum coverage. However, access to optional policies like accident forgiveness and gap coverage could be worth it in the right circumstances.
- Offers accident forgiveness and full glass coverage
- It has multiple agents throughout New Jersey
- It has a relatively low customer satisfaction rating in New Jersey
- Plymouth Rock may be more expensive than some competitors
New Jersey auto insurance requirements
Nearly all states require drivers to maintain a basic amount of coverage. In New Jersey, the minimum requirements are:
- $5,000 property damage liability per accident
- $15,000 Personal Injury Protection (PIP) per accident minimum (up to $250,000 for permanent or significant brain or spinal cord injuries)
How to choose a car insurance provider in New Jersey
Finding the right insurance in New Jersey depends on your insurance provider. To find the best provider with the best pricing, consider the following:
- Check financial stability: Before starting a policy with any insurance company, check its overall financial stability on a website like Standard & Poor’s or AM Best. It’s also wise to check with the New Jersey Department of Banking & Insurance to confirm a company is licensed.
- Ask for reviews: Ask people you trust for recommendations and read online reviews to get a feel for how a company handles claims. Check with the Better Business Bureau and Trustpilot to see what existing customers say.
- Check pricing and discounts: Get quotes from at least three companies to compare pricing and discount structures. Ensure the policy amounts and coverage options are similar to compare.
How much does car insurance cost in New Jersey?
New Jersey generally has higher costs than other parts of the country. The average cost of car insurance in New Jersey is $2,080 for annual full coverage or $941 for minimum coverage.
Drivers in Union City generally pay a lot more, averaging $3,107 a year. Jersey City residents spend only $2,492 annually, well over the state and national averages.
New Jersey car insurance rates by city
People who live in dense urban areas with higher crime rates are more likely to pay more for their auto insurance. Newark, the city with the largest population in New Jersey, earned a low 24 out of 100 on NeighborhoodScout’s crime index, and residents pay an average of $2,993 a year for car insurance. Nearby Union City has similar crime ratings but pays even more, an average of $3,107 annually.
|City||Avg. annual full-coverage premium|
Our analysis was conducted using six different auto insurance marketplaces to determine the best auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.
FAQs about car insurance costs in New Jersey
What are the minimum car insurance coverage requirements in New Jersey?
The minimum car insurance requirements in New Jersey are $5,000 for property damage liability per accident and $15,000 for Personal Injury Protection (PIP) per accident minimum. Drivers must also maintain up to $250,000 PIP protection for significant injuries sustained in an accident.
How much does car insurance cost in New Jersey?
The cost of car insurance in New Jersey varies, but it averages $2,080 a year for full coverage and $941 a year for the state’s minimum insurance.
Which car insurance companies cover New Jersey?
Several national and regional car insurance companies cover New Jersey, including Allstate, State Farm, Progressive, GEICO, and Plymouth Rock.
What is the cheapest car insurance company in New Jersey?
The cheapest car insurance company in New Jersey is GEICO, averaging an annual cost of $1,175 yearly for full coverage and $514 annually for minimum coverage.