What Is the Best Car Insurance in New Jersey?

Fran
Lucy Lazarony
November 16, 2020

Looking for a great deal on car insurance in New Jersey? According to U.S. News, the cheapest car insurance companies in New Jersey are Geico, Progressive, Travelers, State Farm, Allstate and Farmers. So put these insurance companies at the top of your list when shopping for car insurance in the Garden State. In New Jersey, the average cost of car insurance is $1,592 per year, which is three percent above the national average. But who wants to be average when you can land a great price on car insurance? There are tips and strategies for lowering car insurance and we will look at those a little bit later on. But first, we’ll take a closer look at car insurance in New Jersey.

Cheapest and Most Expensive Cities for Car Insurance

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 yearly premium of $2,409.

New Jersey is No-Fault State

If you happen to get in an accident in New Jersey, no-fault insurance will reimburse you for 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.

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 coverage as low as $15,000 per person, $30,000 per accident and as high as $250,000 per person and $500,000 per accident.

Property damage liability may be as low as $5,000 per accident or as high as $100,000 or more. New Jersey gives its drivers a wide range of liability coverages in its standard policy. How much liability protection do you need? Experts recommend at least $100,000 bodily injury liability coverage per person, $300,000 bodily injury liability coverage per accident and $100,000 property damage liability coverage.

Personal Injury Protection (PIP) is also known as no-fault insurance. This coverage pays the cost of lost wages and medical bills up to the policy limit, regardless of who is at-fault in an accident. PIP coverage may be as low as $15,000 per person or per accident or as high as $250,000. 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 driver 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 coverage is available at $5,000 per accident. PIP coverage is available at $15,000 per person, per accident, up to $250,000 for certain injuries. No uninsured or underinsurance motorist coverage is included in the basic policy.

A Right to Sue in New Jersey

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.

Saving Money on Car Insurance in New Jersey

Looking for ways to lower that car insurance premium in New Jersey? Follow these money saving tips and strategies. Use as many as you can to drop that car insurance premium as low as it can go.

Shop Around. This one comes first and it may be the biggest way to lower your car insurance premium, make several car insurance companies compete for your business. You want to compare insurance quotes from several car insurance companies in your area. Don’t forget to start with the ones listed above as having the lowest rates. Here they are again, Geico, Progressive, Travelers, State Farm, Allstate and Farmers. Now let SmartFinancial help you compare rates. You’ll be comparing the best rates in your area. How good are the deals from these companies and other companies in your area? You’re looking for the best deal you can find for the coverage you want.

Find Affordable Car Insurance in NJ

Get Your Credit in Good Shape. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. Drivers with good or excellent credit pay much less for car insurance than drivers with no or bad credit. So get your credit score in shape and save money on your car insurance. Need some help getting started? Get all past-due accounts current, pay down debt and avoid taking on new debt. All these things will help your credit score.

Choose Safety First. If you are a safe and responsible driver and follow the rules of the road, you will save money on your car insurance. Good drivers get good driver discounts and these discounts lower your auto insurance premium. So if you have a good driving record be sure to let your car insurance company know. You’ll save money on your auto premium. But if you break the rules, you will pay more for your car insurance. A speeding ticket, a DUI, an at-fault accident, all these things will raise your insurance rates. So stick to following the rules of the road, be a safe driver and save on your car insurance.

Get a Multi-Car Discount. Insure more than one car with the same company and save with a multi-car discount.

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

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

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. So choose a $1,000 deductible or higher for a break on your car insurance premium. Just be sure to put the deductible amount in a small emergency fund. That way the money will be there should you need to make an insurance claim.

Get Married. If you are married, you will pay less on car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married motorists pay less for car insurance than singles.

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

Keep Mileage Low. If you are a heavy commuter and rack up the miles, you will pay more on your car insurance. If you are a low-mileage driver, you will pay less on your car insurance.

So drive less and pay less on your car insurance.

Check Discounts. The good driver discount has already been mentioned. There are discounts for veterans and students as well. Qualify for one of these discounts? Reach out to your car insurance company and let them know and enjoy the savings on your car insurance premium.

Choose a Safe Neighborhood. If you live in a neighborhood with high accident claims and high auto theft, you are going to pay more for your car insurance. If you live in a neighborhood with low accident claims and low crime, you are going to pay less for your car insurance. So choose a safe neighborhood and save money on your car insurance.

Check Safety Features. Having certain safety and anti-theft features on cars will reduce auto insurance premiums. So check to see if the safety and anti-theft features on your car warrant a discount.

Review Memberships. Members of certain professional organizations and affiliates get discounts on car insurance. Check to see if the memberships in your wallet qualify you for a discount on your car insurance premium.

Check Your Age. Drivers below 25 and over 65 have more serious accidents and pay more for their auto insurance. Drivers of the ages in-between pay less for car insurance.

Get a Free Auto Insurance Quote Online Now.

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