How Much Is New Jersey Car Insurance?

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Recent Quotes

  • Mercury $110/mo

    2002 Mercedes-Benz E - NJ

  • Foremost Auto $71/mo

    2002 SATURN L100 - NJ

  • Everest $84/mo

    2011 Jeep Patriot - NJ

  • Liberty Mutual $120/mo

    2014 Hyundai Elantra - NJ

  • 21st Century $91/mo

    2005 Honda Cr-V - NJ

  • 21st Century $104/mo

    2009 Cadillac Cts - NJ

  • Safe Auto $114/mo

    2007 Chevrolet Express G2500 - NJ

  • Safe Auto $163/mo

    2008 Mitsubishi Galant - NJ

  • ClearCover $133/mo

    2017 Kia Forte - NJ

  • Foremost Auto $74/mo

    2007 Toyota Tacoma - NJ

  • 21st Century $143/mo

    2018 Hyundai Tucson - NJ

  • Liberty Mutual $146/mo

    2019 Kia Optima - NJ

Affordable Car Insurance in New Jersey

New Jersey packs an impressive statistical punch for its size. It’s the fourth-smallest state in the country, yet it’s the 11th most populous and the most densely populated of all. On top of that, it’s the second-wealthiest state in the U.S. according to income per capita—even if a lot of that money’s made next door in New York—with nearly one in five households earning over $150,000 per year.

It also happens to be one of the most expensive states to live in, with the third-highest cost of living nationwide. Auto insurance is one of many factors, and New Jersey usually ranks third for highest average premiums (with only Michigan and Montana beating it out).

So there’s plenty of incentive to seek out ways to lower your monthly car insurance payments. We talk about discounts and other ways to reduce your premium over the course of this page, but comparison shopping for the lowest quotes on a new policy is the single most effective way to minimize your car insurance costs. We assist you in doing just that, quickly and easily, delivering carrier-neutral information based on the coverage you need.

New Jersey car insurance

Cheapest Auto Insurance Rates in New Jersey

Carriers look at multiple variables when determining your insurance rate. Your age, location, driving history, and state requirements are all factors in determining the price you pay. We used our in-house reporting to determine the companies that offer the cheapest car insurance rates in New Jersey. New Jersey Manufacturers came in with the lowest rate currently available in New Jersey at $105.14 per month. Followed by GEICO at $113.42 per month and Progressive at $184.34 per month.

Lowest Rate

New Jersey Manufacturers

$105.14
Highest Rate

Hanover

$598.51
Average Rate

New Jersey

$168
RankCompanyAvg monthly rate
1 New Jersey Manufacturers $105.14 / month
2 GEICO $113.42 / month
3 Progressive $184.34 / month
4 State Farm $207.11 / month
5 Allstate $220.46 / month
6 Esurance $230.27 / month
7 PlymouthRock $230.82 / month
8 Penn National $235.45 / month
9 Mercury Insurance $243.57 / month
10 Mercury $244.61 / month
11 Encompass $333.99 / month
12 Metropolitan $390.52 / month
13 Hanover $598.51 / month

Top 10 Cheapest Cities for Car Insurance

If you are lucky enough to live in one of these cities you are likely paying some of the lowest car insurance rates available in New Jersey. According to our data, Piscataway comes in at the cheapest at only $101.03 per month. Other cities that made the top 10 list include Brick at $104.19 per month, Toms River at $110.14 per month, and Edison at $113.10 per month.

RankCityAvg monthly rate
1 Piscataway, NJ$101.03 / month
2 Brick, NJ$104.19 / month
3 Toms River, NJ$110.14 / month
4 Edison, NJ$113.10 / month
5 Somerset, NJ$114.67 / month
6 Willingboro, NJ$118.06 / month
7 Hackensack, NJ$123.33 / month
8 Bayonne, NJ$124.07 / month
9 Jersey City, NJ$126.70 / month
10 Sicklerville, NJ$130.29 / month

Top 10 Most Expensive Cities for Car Insurance

These top 10 cities ranked as the most expensive places in New Jersey for car insurance. Location is a big factor when determining the price you pay for car insurance and these cities came in at the top. Irvington is the most expensive city in New Jersey at $199.15 per month. Second and third place goes to Paterson at $191.31 per month and Orange at $189.27 per month.

RankCityAvg monthly rate
1 Irvington, NJ $199.15 / month
2 Paterson, NJ $191.31 / month
3 Orange, NJ $189.27 / month
4 Passaic, NJ $182.04 / month
5 Camden, NJ $178.44 / month
6 Newark, NJ $175.81 / month
7 North Bergen, NJ $175.76 / month
8 East Orange, NJ $175.52 / month
9 Elizabethport, NJ $169.88 / month
10 Atlantic City, NJ $166.64 / month

Average Quotes by Top Companies

Rates can vary wildly from company to company. Here is a quick look at a few rates from some of the top car insurance companies in New Jersey.

Compare Recent Car Insurance Quotes in New Jersey

SmartFinancial helps thousands of drivers every day find and compare the best car insurance rates available. Here is a list of some recent quotes that we recently found for drivers in New Jersey.

CompanyMonthly rateVehicle
Mercury $1102002 Mercedes Benz E
Foremost Auto $712002 SATURN L100
Everest $842011 Jeep Patriot
Liberty Mutual $1202014 Hyundai Elantra
21st Century $912005 Honda Cr V
21st Century $1042009 Cadillac Cts
Safe Auto $1142007 Chevrolet Express G2500
Safe Auto $1632008 Mitsubishi Galant
ClearCover $1332017 Kia Forte
Foremost Auto $742007 Toyota Tacoma
21st Century $1432018 Hyundai Tucson
Liberty Mutual $1462019 Kia Optima

Methodology

The statistics listed on this page are from our own in house reporting. We track and record quotes that carriers have provided based on various criteria. The rates and averages shown on this page should only be used as an estimate.

Minimum Car Insurance Coverage in New Jersey

Every state requires drivers to have a minimum amount of liability coverage. New Jersey drivers are required to carry liability insurance to pay for damages and injuries inflicted on someone else in an auto accident.

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$15,000

Personal Injury Protection per person or accident

Coverage for injuries sustained in an automobile accident by you or other persons covered under your policy

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$30,000

Bodily Injury Liability per accident

Coverage for claims and lawsuits by people injured as a result of an auto accident you cause

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$5,000

Property Damage Liability

Coverage for claims and lawsuits by people whose property is damaged as a result of an auto accident you cause

New Jersey’s minimum coverage options are a little more complicated than other states’. That’s because it offers two minimum coverage levels and requires more types of coverage than many other places.

There’s the Basic Policy, which only requires a minimum of $5,000 liability coverage for property damage per accident and—unlike other states—doesn’t mandate liability coverage for bodily injuries per person or per accident (though you can add on $10,000 bodily injury per accident). It also requires $15,000 personal injury protection (PIP) per person, per accident. The Basic Policy should generally only be considered by drivers with few or no family responsibilities and assets (like young drivers).

Then there’s the Standard Policy, which is the generally recommended minimum for most New Jersey consumers (this policy’s numbers are shown below). It sets minimum liability coverage at $15,000 bodily injury per person, $30,000 bodily injury per accident, and $5,000 property damage per accident. On top of that, you must carry personal injury protection (PIP) in the minimum amount of $15,000 per person or accident, as well as uninsured motorist coverage in the same minimum amounts as liability coverage.

Personal injury protection (PIP) is required because New Jersey is a no-fault state. This means that you can only pursue payment for accident-related medical bills through your own carrier, regardless of who or what caused the crash.

Optional Coverage in New Jersey

  • Collision
  • Comprehensive
  • Medical Payments
  • Gap Coverage
  • New Car Replacement
  • Accident Forgiveness
  • Towing and Labor
  • Custom Equipment
  • Loss of Use
  • Travel Expenses
  • Rental Car

Despite its name, some optional coverage might actually not be optional for you. If you’ve taken out a loan to purchase your vehicle, the bank or other financing institution probably requires that you add on a few optional coverages—usually collision and comprehensive.

If you’re worried about the extra costs of optional coverages, check out 12 Things You Can Do to Lower Your Auto Insurance Premium. If you get your premium down, it’ll help fit the add-ons into your budget.

New Jersey Car Safety

New Jersey car safety

Continuing with the thought above, there are, on average, well over 700 traffic accidents every day in New Jersey. Remember, this is the most densely populated state, so there are a lot of vehicles on the road. Plus, New Jersey is a heavily used corridor through the Mid-Atlantic region.

On a positive note, New Jersey does have a relatively low crash fatality rate, with 6.3 deaths per 100,000 residents. It’s certainly not the lowest in the country, but lots of states have higher rates—even twice as high or more. One main explanation is that a lot of crashes occur in congestion or traffic at lower speeds. So there’s a slight silver lining to all that maddening traffic you deal with.

Car Safety for New Jersey Kids

The passenger restraint system is a child’s best form of protection in a vehicle. New Jersey requires that all kids under 2 years old and 30 pounds be secured in a Federally approved rear-facing car seat with a five-point harness. Then, all kids under 4 years of age and 40 pounds shall be secured in an appropriate forward-facing car seat until they reach its manufacturer-designated size limit.

Children under 8 years of age and less than 57 inches tall must use an appropriately rated belt-positioning booster seat. After both of these thresholds are reached, kids can switch to the vehicle’s factory-installed seat belts.

While accidents are the main thing people think about in terms of the dangers posed by vehicles, there are some serious risks associated with parked cars, too. If you leave a child unsupervised in your car, van, truck, or SUV, he or she can get injured, kidnapped, otherwise victimized, or overheated.

To that last point—the interior of a vehicle heats up very quickly, even on a temperate day if it’s parked in the sun, and even with the windows cracked. This can lead to dehydration, heatstroke, brain damage, and death in young kids. The same goes for pets. Don’t leave either alone in a vehicle.

New Jersey doesn’t have a law specifically addressing this situation, but its child abuse and neglect laws may be applied for prosecution purposes if a child in your care were to get hurt while left unsupervised in your vehicle.

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264,582

Number of reported traffic crashes in 2015

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3,571

Number of handheld/hands-free cell phone-related accidents in 2015

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562

Number of traffic crash fatalities in 2015

Driving Green in New Jersey

Driving green in New Jersey

New Jersey has some air quality problems. Part of the State’s plan to address this issue is incentivizing residents to make more environmentally friendly decisions about their vehicles and driving habits. Below are some examples.

It’s also worth noting that your car insurance company probably offers some rewards for choosing a green vehicle or keeping your annual mileage below a certain threshold. So, if you’re an eco-minded motorist, be sure to ask your carrier about this subject.

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Electric and Diesel Vehicle Emissions Test Exemptions

New Jersey motorists are required to undergo periodic emissions testing for their vehicles—something that costs time and money. However, if you drive an entirely electric-powered vehicle or certain types of diesel vehicles, the State waives this requirement. Learn more about local emissions standards and testing on the State of New Jersey Motor Vehicle Commission website.

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HOV Lane Access for Hybrid Vehicles

High-occupancy vehicle (HOV) lanes on the NJ Turnpike are only open to autos carrying three or more people. That is unless you drive a qualifying hybrid electric vehicle between interchanges 11 and 14 at certain times (6:00 to 9:00 am Mondays through Fridays heading northbound and 4:00 to 7:00 pm on weekdays heading southbound). At these times on this part of the Turnpike, qualifying hybrids may use the HOV lane regardless of how many people are inside.

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Green Pass Discount for the NJ EZPass

Vehicles rated at 45 miles per gallon or better that meet the California Super Ultra Low Emission Vehicle (SULEV) standard qualify for a 10% discount on off-peak toll rates on the NJ Turnpike and the NJ Parkway through the EZPass program. Learn more about the Green Pass Discount, as well as the other types of discounts offered, on the New Jersey Turnpike Authority website.

New Jersey Car Insurance FAQ

New Jersey car insurance FAQs

Is my credit score a factor when obtaining car insurance in New Jersey?

Yes. Auto insurance companies in New Jersey use consumer credit scores as part of their formula for determining risk and premium offers. There are plenty of other variables, but generally speaking, a higher score helps you get lower rates.

Does New Jersey offer a good-driver discount?

Most carriers in the state are happy to reward and incentivize responsible, cautious driving. Ask yours if they offer a good-driver discount and what you need to qualify. Usually, it’s a period of 3 or more years without an accident and/or a moving violation. Other discounts you can inquire about include:

  • Full Pay
  • Multiple Car
  • Multiple Policy
  • Good Student
  • Resident Student
  • Accident-Free
  • Vehicle Safety
  • Anti-Lock Brake
  • Anti-Theft Device
  • Home Ownership
  • New Car
  • Passive Restraint
  • Utility Discount

Does New Jersey allow the use of digital insurance cards?

New Jersey joined the digital age in mid-2015 when it enacted a law allowing state drivers to show a carrier-issued digital insurance card on their smartphone, tablet, or other electronic mobile devices.

What happens if my coverage lapses?

New Jersey has some of the harshest penalties in the country for driving without insurance. These may include at least several hundred dollars in fines, plus a few hundred dollars in associated fees, as well as up to a 1-year license suspension, community service, and possible vehicle impounding. And that’s just for a first-time offense. Aggravating factors like causing an accident or injuries without coverage make things worse.

What are New Jersey's blood alcohol concentration (BAC) percentage limits under the state's driving under the influence (DUI) laws?

It’s illegal to operate a motor vehicle in New Jersey at the following BAC percentages:

.08%+ at 21 years old or older
.04%+ for commercial vehicle drivers
.02%+ at under 21 years old

New Jersey bumps up DUI penalties at 0.10% BAC. This is a little more aggressive than many other states, where it’s common to increase penalties at a reading of 0.15%.

What are the chemical test refusal penalties in New Jersey?

New Jersey’s implied consent law means that refusing a breath, urine, or blood test comes with automatic consequences. For a first-time refusal, these include up to several hundred dollars in fines and fees, mandatory completion of an alcohol education course, and installation of an ignition interlock device for 6 months to 1 year.

What are the consequences of being convicted of a DUI?

Many aggravating factors can up the consequences of a DUI conviction in New Jersey. These include—but aren’t limited to—having a BAC reading of 0.10% or greater, having prior DUI arrests, causing an accident or injury, and driving in possession of an open container or drugs.

Penalties for a first-time offender without aggravating circumstances may include around $1,800 in fines, fees, and surcharges, as well as up to 30 days in jail, community service, and compulsory completion of a drunk driving course.

Find more details about DUI convictions and penalties on the State of New Jersey Motor Vehicle Commission website’s DUI page.

Does New Jersey offer driver improvement courses to reduce my insurance premium?

Many carriers in New Jersey will extend a discount to you if you voluntarily complete a state-approved defensive driving course.

Is there any way I can reduce the cost of my New Jersey car insurance?

We’ve already discussed a number of discounts on this page, and keeping your credit score up and your driving record free of accidents and moving violations helps keep your rates down, too. Also, the higher your deductible, the lower your premium. But the single most effective way to reduce what you pay each month is to comparison shop for the lowest quotes on coverage that meets the needs of your vehicle and driver’s lifestyle.

What is uninsured motorist coverage and is it required in New Jersey?

Uninsured and underinsured motorist coverage offers you financial protection should you get into an accident with a driver who doesn’t have auto insurance, or who don’t have enough coverage to pay for all the damage and injuries they cause. It also covers you in the event of a hit-and-run accident. If you opt for only the Basic Policy in New Jersey, you don’t get uninsured motorist coverage. However, if you buy the Standard Policy, you’re required to get liability coverage of at least $15,000 bodily injury per person and $30,000 bodily injury per accident.

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