How to Find the Most Affordable Car Insurance in New Jersey

Fran
Lucy Lazarony
July 17, 2020

In New Jersey, the average cost of car insurance is $1,592 per year, which is 3 percent above the national average. Car insurance shoppers in New Jersey who are seeking insurance bargains will have to do some looking. Luckily, there are tips and strategies for lowering auto insurance premiums. And we will get to those tips in a bit but first let’s take a closer look at car insurance in New Jersey.

Standard Policy in New Jersey

In New Jersey, consumers have two types of auto insurance policies to choose from a standard policy and a basic policy. Most consumers choose a standard policy so we will look at that one first.

Liability coverage helps pay for the other person’s expenses if you are at-fault in an accident.

In New Jersey, a standard policy may have bodily injury liability as low as $15,000 per person, $30,000 per accident and as high as $250,000 per person, $500,000 per accident.

Property damage liability may be as low as $5,000 per accident or as high as $100,000 or more. Personal Injury Protection (PIP) is also known as no-fault insurance. This coverage pays the cost of lost wages and medical bills up the policy limit, regardless of who is at fault in an accident. PIP may be as low as $15,000 per person or accident or as high as $250,000 or more.

Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance. Underinsured motorist coverage protects you in the event of an accident where the other party is at fault and does not carry enough insurance. With a standard policy, uninsured and underinsured motorist coverage is available up to the amounts selected for liability coverage.

Basic Policy in New Jersey

In New Jersey, with a basic policy, bodily injury liability is not included but $10,000 for all persons per accident is available as an option.

Property damage liability is available at $5,000 per accident. Personal Injury Protection is available at $15,000 per person, per accident, up to $250,000 for certain injuries. No uninsured and underinsured motorist coverage is included in the basic policy.

Right to Sue

With a limited right to sue, a person can only pursue legal action in certain circumstances. With an unlimited right to sue, there are no limitations and all options are on the table including filing a lawsuit against the at-fault driver. In New Jersey with a basic policy, you automatically get a limited right to sue. With a standard policy, the consumer must choose between a limited right to sue and an unlimited right to sue.

Special Automotive Insurance Policy in New Jersey

In New Jersey, there is a special automotive insurance policy for Medicaid recipients only. These drivers can obtain a medical coverage only policy at a cost of $365 per year.

New Jersey Is a No-fault State

If you happen to get in a car accident in New Jersey, no-fault insurance will reimburse you any hospital or medical expenses and lost wages from inability to work. No-fault insurance will cover these expenses regardless of who is at fault in the accident.

Cheapest and Most Expensive Cities

In New Jersey, the city with the cheapest auto insurance is in Toms River with an average yearly premium of $1,476. The city with the most expensive car insurance is Newark with an average premium of $2,409.

How to Save Money on Car Insurance

There are tips and strategies for saving money on car insurance premiums. Here is a roundup. Use as many as you can to save money.

Safety first. Being a safe and responsible driver will save you money on your car insurance. In New Jersey, drivers without a recent speeding ticket save 37 percent on their car insurance premiums. So avoid DUIs, speeding tickets and at-fault accidents. Be a safe driver who follows the rules of the road. And be sure to let your insurance company know. You’ve been a safe driver you’re entitled to a good driver discount.

Bundle your policy. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Pay less often. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Use a multi-car discount. Got more than one car to insure? Insure them all with the same company and save money on your premiums.

Spend less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry comprehensive and collision coverages any longer.

Collision coverage is coverage that helps to repair or replace your car if it’s damaged in an accident with another vehicle or object such as a tree or a fence. Comprehensive coverage covers events that aren’t covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

When you still have a loan on a car, your lender requires you to carry both collision coverage and comprehensive coverage.

It is when a car gets older and depreciates in value that these coverages may no longer be applicable.

Check safety features. Having certain anti-theft and safety features will lower your car insurance. So be sure to check with your insurance company to find out if the features on your car warrant a discount.

Look into memberships. Members of some professional organizations and affiliates get discounts on car insurance. So check your memberships with your auto insurance company and see if you’re due any discounts.

Be a lady driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Check for discounts. The good driver discount was already mentioned. There are discounts for students and for veterans as well. So be sure to reach out to your insurance company if you qualify.

Build up your credit score. Insurance companies have been using consumer credit data for assigning risk pools and setting insurance rates since the mid-1990s. Because of this, drivers with good or excellent credit pay much less in auto insurance than drivers with no or poor credit. Looking for ways to improve your credit? Get current on all past due accounts, pay down debt and stop taking on new debt. Get in the habit of paying your credit bills on-time. This will help you build a positive payment history, which is good for your credit score.

Choose a high deductible. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a high deductible will help to lower your auto insurance premium, especially on newer cars. Just be sure to place the deductible amount in a small emergency fund. This way the money will be there should you need to file an auto insurance claim.

Stick with coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save.

Want to save money on auto insurance? Keep your mileage low. Low-mileage drivers are rewarded with low rates. So drive less and save money on car insurance.

Be a married motorist. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting good driving behavior. Because of this, married motorists pay less for auto insurance than singles.

Check your age. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for car insurance. Drivers of the in-between ages pay less.

Be a homeowner. Statistics show that people who own their homes drive more safely. So let your insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Pick a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for your car insurance. If you live in a neighborhood with few accident claims and low crime, you will pay less for your car insurance. So choose a safe neighborhood and save money on car insurance.

Shop around. One of the best ways to save money on car insurance is to shop around. So check out insurance quotes from several different insurance companies. SmartFinancial makes it easy to do. Just input the type of insurance you are looking for and a zip code to start. Next, answer a few, quick questions and you’ll be comparing auto insurance rates in New Jersey in no time.

SmartFinancial has access to more than 200 insurance companies so you’re bound to find the insurance coverage and price that you want. So shop smart for insurance and drive safely along the roadways of New Jersey.

Get a Free Auto Insurance Quote Online Now.

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