Cheap Car Insurance Companies In New Jersey

The average semiannual cost of car insurance in the state of New Jersey is $851.00. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in New Jersey across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/3/2024

The New Jersey car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in NJ. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

New Jersey Minimum Liability Coverage

New Jersey requires all drivers to carry a minimum amount of car insurance coverage. Even if you have an old car or a vehicle you don’t drive often, you’re still required to carry at least the minimum amount of coverage in order to drive legally in New Jersey. Here are the minimum coverage requirements:

Bodily Injury Liability: $15,000 per person/$30,000 per accident
This covers injuries to other people in an accident you cause. The $15,000 covers injuries to one person and the $30,000 covers cumulative injuries up to that amount if there are multiple injured parties.

Property Damage Liability: $5,000
This covers damage you cause to another vehicle or property in an accident. The $5,000 covers up to that amount in damage.

Personal Injury Protection (PIP): Unlimited
This covers your medical expenses and lost wages if you’re injured in an accident, no matter who causes the accident. New Jersey has some of the most comprehensive PIP coverage requirements in the country.

Uninsured/Underinsured Motorist: $15,000/$30,000
This covers injuries to you if you’re in an accident caused by someone who either doesn’t have insurance or doesn’t have enough coverage to compensate you fully.

Collision: Not required but recommended
This covers damage to your own vehicle in an accident, regardless of fault. While not legally required, carrying collision coverage is recommended to cover repairs to your own vehicle.

Comprehensive: Not required but recommended
This covers damage to your vehicle from events other than collisions, like theft, vandalism, fire, floods, falling objects and hitting animals. Comprehensive coverage is not legally required but can help cover repairs for non-collision damage.

Penalties for Driving Without Insurance in New Jersey

Driving without insurance in New Jersey can result in serious penalties. First, you will receive a ticket for violating the state’s mandatory insurance law. The ticket fine ranges from $300 to $1,000 for a first offense. In addition, your vehicle registration and license plates will likely be suspended for one year. You will need to pay a restoration fee of $150 to the Motor Vehicle Commission to have your registration and plates reinstated.

For a second offense within three years, penalties increase. You will face another $300 to $1,000 fine. Your vehicle registration and license plates will be suspended for two years this time, and you’ll need to pay a $150 restoration fee to get them reinstated. You may also face a license suspension of up to one year and be required to install an ignition interlock device on your vehicle for one year upon license reinstatement.

For a third or subsequent offense within three years, penalties become more severe. You will face a $1,000 fine and may be charged with an unclassified misdemeanor. Your vehicle registration and license plates will be permanently revoked, and you will not be able to register a vehicle in your name again in New Jersey. You also face a license suspension of two years and will likely have to install an ignition interlock device on any vehicle you drive for two years after license reinstatement. You may even face jail time of up to 30 days for subsequent offenses.

Auto Insurance Rates in New Jersey

Auto insurance rates in New Jersey can vary greatly depending on many factors. New Jersey has some of the highest auto insurance rates in the nation, so it pays to shop around and compare rates from different insurance providers.

Several factors impact your auto insurance rates in New Jersey. Your driving record plays a big role, with tickets, accidents, and violations leading to higher premiums. Your credit score is also considered, with lower credit scores correlating to higher premiums. Your age, gender, and marital status are taken into account, with younger unmarried males typically paying higher rates.

The type of car you drive affects your rates as well. Sportier or luxury vehicles tend to be more expensive to insure. You can lower your rates by choosing a vehicle with good safety ratings and features like anti-lock brakes and airbags. The level of coverage you select also impacts your premiums. Choosing higher deductibles and limiting certain types of coverage can lower your rates.

Where you live and garage your vehicle also matters, with urban areas typically costing more to insure due to higher rates of theft, vandalism, and accidents. You may be able to lower your rates by garaging your vehicle in a less risky area.

Low Cost Car Insurance Programs and Discounts in New Jersey

Car insurance is mandatory in New Jersey, but that doesn’t mean it needs to break the bank. There are several ways to lower your premiums and find an affordable policy. Compare quotes from multiple insurers to find the best deal. You may qualify for discounts that can save you hundreds per year.

New Jersey has a number of programs aimed at helping lower-income drivers get affordable coverage. The NJ Auto Insurance Risk Exchange offers policies starting at $400 per year for basic coverage. The FAIR Plan provides high-risk drivers with coverage and gives discounts for taking driver safety courses.

Many insurers offer discounts for good students, multiple policies, safe drivers, and more. Check with your provider to see what discounts you qualify for. Some of the most common are:

• Good student discount. If you have a GPA of B or higher, you may get up to 25% off.
• Multiple policy discount. Bundling home and auto policies can save 5% to 15%.
• Safe driver discount. Accident-free driving for several years could earn a discount of 5% to 10%.
• Anti-theft devices. Having an alarm, immobilizer, or tracking device may lower your rates by 5%.
• Low annual mileage. Driving fewer than 10,000 miles per year could save up to 10%.
• Driver safety courses. Completing a defensive driving course may earn a 5% discount.
• Military discount. Many insurers offer discounts for active and retired military personnel.

New Jersey Car Insurance Statistics

New Jersey Car Insurance Statistics: What You Should Know

New Jersey has some unique car insurance regulations that impact insurance rates in the state. Here are some key New Jersey car insurance statistics to keep in mind:

• New Jersey has the second highest average car insurance rates in the nation at $1,847 per year, according to the Insurance Information Institute. Only Michigan has higher rates.
• New Jersey is the only state that does not allow insurance companies to consider a driver’s gender when setting rates. In most states, women typically pay lower premiums than men.
• New Jersey is a “verbal threshold” state, meaning drivers must meet a monetary threshold to file a claim for pain and suffering from an accident. The threshold is currently $1,000 in medical expenses. This helps keep insurance rates lower.
• New Jersey requires drivers to carry “personal injury protection,” or PIP, which covers medical expenses from car accidents regardless of fault. This adds to the cost of insurance.
• New Jersey also requires drivers to carry “uninsured/underinsured motorist coverage” of at least $15,000 per person/$30,000 per accident for bodily injury and $5,000 for property damage.
• Teen drivers ages 16 to 19 typically pay some of the highest insurance rates in New Jersey. However, good student discounts of up to 25% can help offset the costs for teens.

The 10 Largest New Jersey Car Insurance Companies

New Jersey has one of the highest rates of auto insurance in the country, so it’s important to find a reputable and affordable insurer. Here are the 10 largest car insurance companies in New Jersey based on market share:

1. NJM Insurance – As New Jersey’s only homegrown insurance company, NJM has been serving the Garden State for over 100 years. Their competitive rates and customer service make them a top choice.
2. State Farm – State Farm has been providing reliable auto insurance in New Jersey for over 90 years. They have a large agent network to help customers find the right policy.
3. Allstate – Allstate has been protecting New Jersey drivers since 1931. They offer many discounts and usage-based insurance programs to help lower rates.
4. Progressive – Progressive has grown quickly in New Jersey thanks to their name-your-price tool and wide range of coverage options. Their 24/7 claims service is also convenient.
5. Liberty Mutual – Liberty Mutual has a large market share in New Jersey thanks to their multi-policy discounts, loyalty programs, and wide coverage options.
6. GEICO – GEICO’s low rates have helped them grow rapidly in New Jersey in recent years. They offer 24/7 online and phone claims service.
7. MetLife – MetLife Auto & Home has been serving New Jersey for over 90 years. They offer multi-policy discounts and a variety of coverage options.
8. Travelers – Travelers has been insuring New Jersey drivers for over 160 years. They offer usage-based programs, multi-policy discounts, and superior claims service.
9. Nationwide – Nationwide has been providing auto insurance in New Jersey for over 70 years. They offer many discounts and coverage options for drivers of all types.
10. Farmers – Farmers has been serving New Jersey drivers for over 80 years. They are known for their 24/7 claims service and wide range of coverage options.