The Cheapest Car Insurance in New Jersey for 2022 | MoneyGeek.com
Although GEICO is the cheapest car insurance company in New Jersey for MoneyGeek’s average driver, age, driving history, coverage amount, credit score, and other factors affect your car insurance rate in New Jersey.
For example, New Jersey drivers with a bad credit score or who have a DUI on their record get the best car insurance rate through New Jersey Manufacturers.
For those looking for an even more local solution, we also broke down the cheapest companies by city, as well as the best car insurance companies in New Jersey for those looking to balance quality service and cost.
To find out how MoneyGeek calculated the cheapest car insurance in New Jersey, read our methodology.
cheapest
auto insurance
New Jersey
2022
The Cheapest Car Insurance in New Jersey
Cheapest Minimum Liability Car Insurance in New Jersey
Some New Jersey drivers may wish to get a liability coverage policy to meet the state’s minimum car insurance requirements. This package covers the other party’s expenses in an at-fault accident but not your own costs.
On average, the cheapest car insurance companies in New Jersey for minimum coverage are:
- GEICO: $499 per year
- New Jersey Manufacturers: $769 per year
The most expensive car insurance company for minimum coverage in New Jersey is Mercury, costing an average of $1,407 per year.
Cheapest Minimum Car Insurance in New Jersey
These prices are only estimates based on rates for an average New Jersey driver and should not be used to compare insurance prices.
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Cheapest Full Coverage Car Insurance in New Jersey
A full coverage policy with higher liability limits and comprehensive and collision insurance can safeguard you against most incidents in New Jersey. Its rate is higher than the cost of minimum coverage, but it protects against the expenses of repairing damages to your car, not just the other driver’s vehicle. It’s recommended to compare car insurance quotes so you can find the least expensive prices.
The most affordable full coverage car insurance providers in New Jersey are:
- GEICO: $1,035 per year
- New Jersey Manufacturers: $1,362 per year
Esurance is the most expensive company for full coverage, with average annual costs of $2,302.
Cheapest Full Coverage Car Insurance in New Jersey
Please remember that your prices will be different than these examples. The rates are for a policy with comprehensive and collision insurance, along with $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.
How to Compare Cheap New Jersey Car Insurance Quotes Online
Most insurance providers offer an easy-to-use online quote tool that gives reasonably accurate prices. You should ideally identify the coverage amount you need so you can compare insurers with consistent limits. For example, if you get a quote for $50,000 in bodily liability insurance per accident from one carrier, you should ensure to use the same figure to get rates from another company.
MoneyGeek’s car insurance calculator can give you a quote for an average driver without entering any personal information. To get a personalized quote, you do need to include more information. The three cheapest companies on average in New Jersey are GEICO, New Jersey Manufacturers and Allstate, and you can start by getting quotes from these providers.
Auto Insurance Calculator
State
New Jersey
Age
30-65
Driving Record
Clean
Credit Score
Excellent
Vehicle Type
Compact
Vehicle Year
2020
Liability Coverage
State Min
Comprehensive and Collision Insurance
None
Gender
Female
Average Annual Auto Insurance Rates
Click the section of the wheel in your price range to see options.
low end
on average
high end
Click your preferred price range to see company options.
Click an insurer below to visit their review page or continue to your personalized quote.
Company
Average Annual Rates
1 .
GEICO
$ 549
2 .
New Jersey Manufacturers
$ 799
3 .
Amica Mutual
$ 859
4 .
Allstate
$ 864
Cheapest Car Insurance for Drivers With a DUI in New Jersey
Car insurance for high-risk drivers, such as those with a severe driving violation like a DUI on their record, is significantly more expensive. In New Jersey, a driver with a DUI needs to pay an average of $3,320 per year for their auto insurance, compared to $1,674 for those with a clean record.
The cheapest car insurance companies in New Jersey for a driver with a DUI and full coverage are:
- New Jersey Manufacturers: $1,631 per year
- Progressive: $1,732 per year
Although GEICO is the cheapest insurer for New Jersey drivers with a clean record, New Jersey Manufacturers and Progressive has lower rates for those with a DUI.
Average Car Insurance Rates With a DUI
Getting a DUI will impact the cost of your auto insurance. The percentage of adults who reported driving after drinking too much (in the 30 days prior to being surveyed) was 1.0% in New Jersey, according to a study done by the Centers for Disease Control and Prevention. Additionally, 1,459 people were killed in alcohol-related car crashes in New Jersey from 2009-2018.
The financial repercussions of getting a DUI are costly and can range from court and legal fees to alcohol education treatment programs. Your insurance rate will also see a spike in cost in addition to the legal fees. The above auto insurance rates show what drivers who receive a DUI in New Jersey can expect to pay for insurance.
While each insurance company calculates premiums differently, getting a DUI could cost you up to $40,000 over the course of 13 years. Your rate increase will depend on your insurance company, location and driving record. To avoid increased premiums, don’t drink and drive.
Cheapest Car Insurance in New Jersey for Drivers With an At-Fault Accident
An at-fault accident can significantly increase your car insurance rate in New Jersey. MoneyGeek’s data shows that drivers with an at-fault accident on their record pay an average of $2,766 annually for an auto insurance policy.
The best cheap car insurance for people with an at-fault accident in New Jersey are:
- New Jersey Manufacturers: $1,362 per year
- GEICO: $1,437 per year
With New Jersey Manufacturers or GEICO, you may save as much as $2,500 after an accident compared to other insurance companies’ average car insurance rates in New Jersey.
Cheapest Car Insurance With an At-Fault Accident
Cheapest Car Insurance for Drivers With Tickets in New Jersey
Drivers need to avoid even minor offenses, as a speeding ticket can increase their car insurance prices. New Jersey drivers with a speeding ticket on their record pay an average of $2,259 per year, $585 more than a driver with a clean record typically pays.
The car insurance carriers that offer the least expensive full coverage auto insurance with a speeding ticket in New Jersey are:
- GEICO: $1,035 per year
- New Jersey Manufacturers: $1,631 per year
State Farm is the least affordable insurer in New Jersey for drivers with speeding tickets, as they charge an average rate of $3,476.
Average Car Insurance Rates With a Ticket
The National Highway Traffic Safety Administration reports that 525 crashes in New Jersey were caused by distracted driving. Getting a ticket because of distracted driving or speeding can cause your car insurance rates to increase since distracted drivers are more likely to get into an accident.
Here’s what drivers in New Jersey might pay for auto insurance if they get a ticket for speeding or distracted driving.
Getting a ticket for speeding or for distracted driving could cause your auto insurance rates to go up. If you want to avoid rate increases, stay focused on the road and don’t speed.
Cheapest Car Insurance Companies in New Jersey for Drivers With Bad Credit
Car insurance providers also use a driver’s credit score to determine their premiums. Therefore, it’s recommended to maintain a healthy credit score as it can reduce your rates. In New Jersey, drivers with poor credit need to pay an average annual cost of $3,409 for their car insurance coverage, compared to $1,674 for the average driver with good credit.
The most affordable auto insurance firms in New Jersey for a driver with poor credit and full coverage are:
- New Jersey Manufacturers: $2,166 per year
- GEICO: $2,310 per year
These two carriers also offer the cheapest full coverage for drivers with good credit.
Cheapest Car Insurance Rates for Drivers With Bad Credit
Data from Experian shows that the average FICO score in New Jersey is 714. It’s not uncommon for insurance agencies to look at credit scores when determining premiums. This is because research has shown that credit scores can be indicators of your likelihood of filing an insurance claim.
The above breakdown shows estimates of auto insurance prices for people with bad credit scores.
Want lower car insurance rates? Take the time to raise your credit score. Doing this could help you save money in the long run.
Cheapest Car Insurance in New Jersey for Seniors
In New Jersey, senior drivers need to pay less for car insurance than the average 40-year-old driver. The cost for senior drivers is $1,465 per year on average, $209 less than a typical driver.
The cheapest car insurance providers in New Jersey for senior drivers with full coverage are:
- GEICO: $937 per year
- New Jersey Manufacturers: $1,140 per year
GEICO and New Jersey Manufacturers also present the cheapest full coverage options for the average driver who is 40 years old.
Cheapest Car Insurance Rates for Seniors
In a study done by National Highway Traffic Safety Administration, 16% of fatal car crashes in New Jersey in 2017 were caused by drivers older than 65.
Senior drivers in New Jersey who want to get the best rates should ask for discounts if they complete driver safety courses, drive infrequently or have a vehicle with safety features. Taking the time to compare car insurance rates can also ensure they get the most affordable policy for their needs.
The following chart shows estimates of how much seniors in New Jersey can expect to pay for car insurance.
According to NOLO, New Jersey does not have special provisions for senior drivers. Like other drivers, senior drivers in New Jersey must renew their licenses every four years.
Cheapest Car Insurance in New Jersey for Young Drivers
Young drivers are much less experienced than people who have been driving for a while, so they pay more for car insurance. MoneyGeek’s data shows that a policy for a 16-year-old costs an average of $4,172 annually; a 25-year-old pays, on average, for the same policy, $1,734 per year.
MoneyGeek’s analysis shows that GEICO is the most affordable insurance company for young drivers between 16-25 years old.
Annual Car Insurance In New Jersey for Young Drivers
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Age
Average Cost
Cheapest Company
Company Cost
- 16
$4,172
GEICO
$2,235
- 17
$3,926
GEICO
$2,203
- 18
$3,635
GEICO
$2,158
- 19
$3,538
GEICO
$2,120
- 20
$3,149
GEICO
$1,886
- 21
$2,544
GEICO
$1,639
- 22
$2,393
GEICO
$1,599
- 23
$2,141
GEICO
$1,392
- 24
$2,003
GEICO
$1,348
- 25
$1,734
GEICO
$1,228
Young drivers typically pay high rates for car insurance due to their inexperience behind the wheel. Helping your teen in New Jersey comparison shop for insurance before you add them to your policy can help keep costs affordable. Raising your deductible is another way to lower premiums for a young driver. Just keep in mind that you pay more out of pocket if you raise your deductible and your teen gets into an accident.
MoneyGeek Top Pick
USAA
Although USAA did not offer quotes for MoneyGeek’s sample driver in New Jersey, it is consistently one of the cheapest insurance providers in the country (in 35 out of 50 states and Washington, D.C.). USAA exclusively serves the families of active military members and veterans, offering discounts and unique benefits for their needs.
Car Insurance in New Jersey: What You Need to Know
All motor vehicle owners in New Jersey must have insurance to legally operate a vehicle on state roads.
Proof of Insurance in New Jersey
All drivers must show proof of insurance when registering a car or truck with the New Jersey Motor Vehicle Commission or when stopped by a police officer. Failure to show proof of insurance can lead to driver’s license suspension and revoked registration. Proof of insurance can consist of a paper or electronic New Jersey Insurance Identification Card for each vehicle under your policy.
Minimum Liability Insurance Requirements in New Jersey
New Jersey law has some of the lowest liability insurance requirements in the country, but it also requires personal injury protection. Drivers can select a basic policy that offers very little liability protection and a standard policy that offers more. The state says this option should only be considered “by those with few family responsibilities and few real assets,” but it is available to all drivers.
A basic policy provides the bare minimum auto insurance coverage mandated by the state:
- No bodily injury liability coverage included
- $5,000 property damage liability per accident
- $15,000 of personal injury protection per person or accident (up to $250,000 of personal injury protection for severe or permanent injuries)
With a standard policy, you get a minimum of:
- $15,000 of bodily injury liability insurance per person; $30,000 per accident
- $5,000 of property damage liability per accident
- $15,000 of personal injury protection per person or accident (up to $250,000 of personal injury protection for severe or permanent injuries)
If you choose the standard policy, you also have to check a box choosing between an unlimited or limited right to sue. If you do not make a choice, the state insurance department warns that you may have only a limited right to sue following a car accident. As for the basic policy, only the “limited right to sue” option is available.
Alternatives to Insurance in New Jersey
Auto insurance is mandatory in New Jersey, but the type and cost of that coverage can vary significantly. The Automobile Insurance Cost Reduction Act mandated that a basic policy be available to all drivers.
High-Risk Auto Insurance Program in New Jersey
NJPAIP Insurance is the assigned risk pool for drivers unable to obtain coverage in the New Jersey auto insurance voluntary market.
How Much Coverage Do You Need in New Jersey?
Experts advise that you get much higher liability coverage than the state requires if you can afford it. Consumer and insurance experts recommend liability coverage of $100,000 per injury and $300,000 per accident. You may also want to consider comprehensive and collision insurance to protect your car, as well as uninsured motorist coverage in case a driver hits you without insurance.
FAQs About Car Insurance in New Jersey
Here are the answers to some commonly asked queries about auto insurance coverage and prices in New Jersey to help consumers make the right choice.
GEICO is the cheapest car insurance company in New Jersey, with an average rate of $499 per year. However, the most affordable option for you may vary based on your driver profile. For example, New Jersey Manufacturers is the cheapest option for drivers with a DUI or accident on record.
For reference, the average cost of car insurance in New Jersey is $1,674 per year for full coverage and $1,018 per year for minimum coverage.
The cheapest option is not always the best when it comes to car insurance. In New Jersey, the company offering the best balance of cost and customer service is New Jersey Manufacturers.
You can lower your insurance premium by getting less coverage, but this sacrifices protection. Although a minimum coverage car insurance policy in New Jersey meets state requirements, it doesn’t cover damages to your car on and off the road.
Methodology
For this analysis, MoneyGeek used New Jersey quotes, data and information provided by the New Jersey Department of Insurance and Quadrant Information Services.
Drivers and Cars in New Jersey
Unless otherwise noted, MoneyGeek used the following sample driver profile to obtain quotes for this analysis:
- 40-year-old male
- Clean driving record
- 2010 Toyota Camry LE
- Driving 12K miles annually
MoneyGeek also collected quotes to find the cheapest companies for drivers with different backgrounds, considering various violations (speeding ticket, at-fault accident and DUI), credit histories and ages.
For the minimum liability policy, MoneyGeek used the minimum car insurance limits required in New Jersey.
Coverage Levels in New Jersey
MoneyGeek analyzed insurance providers to find the cheapest options for both minimum coverage and full coverage auto insurance policies in New Jersey.
Minimum car insurance liability limits in New Jersey are the following:
- $15,000 per person for injury or death
- $30,000 per accident for all injuries
- $5,000 for property damage
- $15,000 per person for personal injury protection
Meanwhile, full coverage limits include:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
Data Depth
To find the cheapest companies in New Jersey, MoneyGeek analyzed 960 quotes from 10 companies across six ZIP codes.
Expert Advice on Finding Cheap Car Insurance in New Jersey
To help you find trustworthy and accurate information on car insurance in New Jersey, MoneyGeek received expert advice from proven professionals. The perspectives and opinions expressed are those of the individual contributor.
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What are the key factors drivers in New Jersey should look for when searching for the best auto insurance coverage?
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What steps can drivers in New Jersey take to find affordable car insurance?
Gerard Pinto
Assistant Professor of Finance at Drew University
About the Author
Laura Longero is an award-winning writer, content strategist, and communications leader with 15 years of experience in journalism, public relations and marketing for start-ups to global companies. A gifted storyteller, she leads creative teams to produce targeted, high-quality content.
Highly organized and detail-oriented with a bias for action, she has a strong sense of urgency in driving projects to completion and enjoys creating order from chaos. Laura possesses exceptional experience in building and leading teams – with a keen eye for strong talent, especially in cultivating future leaders.