Best Cheap Car Insurance in New Jersey (2023)

New Jersey packs more than 1,260 residents per square mile into its 8,722 square miles of space.^{[1] [2]} The Garden State’s population density definitely plays a role in its position as the sixth most-expensive U.S. state for auto insurance.

New Jersey drivers pay an average of $354 per month for coverage. 

If you need new coverage, you can find the cheapest and best options available by comparing quotes from different insurers. To compare quotes online, you’ll only need to provide your ZIP code and some basic information about your driving history. 

Best cheap car insurance in New Jersey: GEICO

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GEICO

Best Cheap Car Insurance New Jersey

To help identify the best cheap car insurance in New Jersey, Insurify collects and analyzes data about insurers in the state to calculate an Insurify Composite Score (ICS). Each company’s score is a reflection of their reliability, quality, and financial stability. With an ICS of 88 and a relatively affordable average monthly quote of $196, GEICO is our top pick for cheap auto coverage in New Jersey.

Learn More: Best Car Insurance Companies

Minimum car insurance requirements in New Jersey

All motor vehicles operated or parked on New Jersey roadways are required to be insured. Proof of insurance must be carried in your car at all times and must be available when:

• Requested by law enforcement

• Renewing vehicle registration

• The vehicle is involved in a car accident

Where the basic plan only requires $5,000 per accident of property damage liability insurance, the minimum liability insurance requirements for a standard plan in New Jersey are:1

• $15,000 per person for bodily injury

• $30,000 per accident for bodily injury

As a major part of your liability insurance, bodily injury coverage covers medical bills for people other than the policyholder who are injured during an accident. New Jersey is a no-fault state, meaning both parties’ insurance providers will pay for expenses, regardless of which party caused the accident.

• $5,000 per accident for property damage

If it’s determined that an insured driver is at fault for an accident, this coverage pays for repairs to the property of the other involved parties. Additionally, property damage coverage can cover legal costs if the insured driver is involved in a lawsuit following the accident.

• $15,000 per person for uninsured underinsured motorist bodily injury

• $30,000 per accident for uninsured/underinsured motorist bodily injury

• $5,000 per accident for uninsured/underinsured motorist property damage

Uninsured and underinsured motorist coverage pays for damages caused by a driver with little or no insurance after a car accident. In New Jersey, drivers are required to purchase this coverage for bodily injuries.

New Jersey MVC information

Drivers in New Jersey who want to access driving-related services can start online through the New Jersey Motor Vehicle Commission. The state’s MVC website provides step-by-step information about how to get a learners permit and license, and new drivers can also get information on road tests. For existing drivers, the MVC lets you renew your license, register a new vehicle or renew a registration, restore a suspended license, and more.

Public transportation in New Jersey

Like many states, New Jersey has both urban and rural areas. In general, its larger cities have more options for public transit, providing both rail and bus service. Many New Jersey residents also commute to New York City for work, and NJ Transit trains provide regular round-trip service to The Big Apple. Ferry and water taxi services are also available in select locations, like Hoboken.

Tips for getting cheap car insurance in New Jersey

Insurers look at several factors when determining insurance rates in New Jersey. They typically consider your location, age, driving record, and more. The best way to get cheap auto coverage is to maintain a clean record and shop around for car insurance when buying a policy. Comparing quotes from different insurance companies will help you understand what’s available and get the best price on coverage

Liability-only vs. full-coverage insurance in New Jersey

If you live in New Jersey, you can opt to carry liability-only auto insurance, which pays for expenses related to injuries and damage to the other party’s car if you cause an accident. Each state sets its own minimums for how much liability insurance it requires drivers to carry. Liability-only insurance can make sense if:

• You have a low-value vehicle.

• You can afford to repair or replace your car out of your own pocket.

• Getting the cheapest insurance possible is your top priority.

For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, theft, weather, and damage caused by animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed.

You may also opt for full coverage if:

• You have a high-value vehicle.

• You wouldn’t be able to afford to repair or replace your car out of pocket.

• Your car’s actual cash value (the payout you’d likely get if your car is totaled) exceeds your annual premium to carry full coverage.

Here’s a look at the average monthly quotes for the cheapest auto insurance in New Jersey by policy type.

How your driving history affects New Jersey car insurance rates

Driving violations like speeding tickets, DUIs, or at-fault accidents can increase the cost of car insurance for New Jersey drivers. The safest drivers tend to pay the lowest rates, while drivers with infractions like a speeding ticket, at-fault accident, or DUI on their records pay much higher rates. Check out how car insurance quotes in New Jersey vary based on drivers’ driving records in the table below, sourced from Insurify’s proprietary database of more than 70 million quotes.

See More: High-Risk Car Insurance New Jersey

See More: SR-22 Car Insurance New Jersey

SR-22 insurance in New Jersey

In the majority of states, drivers who are convicted of a DUI need to file an SR-22 form before they can get back on the road. This form serves as proof of minimum coverage. However, New Jersey doesn’t require an SR-22 after an in-state DUI conviction. If you have a DUI conviction in New Jersey, talk with your insurance company about your coverage options.

How credit scores affect New Jersey car insurance quotes

In general, insurance companies consider drivers with excellent credit to be a lower financial risk to insure. These drivers tend to get lower car insurance rates than drivers with average or poor credit. In New Jersey, drivers with excellent credit pay $301 per month for auto insurance coverage on average, while those with poor credit pay $603 per month on average. 

New Jersey lawmakers are currently considering a bill calling to ban insurers from using credit scores while setting car insurance rates. If this bill becomes law, drivers’ credit scores will no longer affect their insurance rates.2

See More: Car Insurance Quotes for Bad Credit

How your city affects New Jersey insurance quotes

Car insurance costs in New Jersey also vary based on where you live. Generally, it’s more expensive to get auto insurance coverage in large cities and high-crime areas. In New Jersey, drivers in East Orange pay the highest average rates for car insurance, at $502 per month, while drivers in Middletown pay the lowest on average, at $145 per month.

How your age affects your New Jersey car insurance rates

Auto insurers generally consider younger drivers to be a higher risk to insure due to their inexperience on the road. Higher risk often means higher rates, and this holds true in New Jersey, where teen drivers pay $784 per month on average for auto insurance coverage. Drivers in their 60s pay the lowest average monthly rates of $214. The table below shows the average car insurance quote associated with each age group, sourced from Insurify’s proprietary database.

Quotes for younger drivers

In New Jersey, as in most states, drivers under the age of 25 are considered the highest risk to insure. Teen drivers pay the most, followed by drivers in their early 20s. This is due to their lack of a proven driving record. Young drivers with infractions on their record, like speeding tickets and DUIs, can expect to pay even higher rates. Check out the table below for a closer look at what young drivers in New Jersey pay for car insurance.

Quotes for middle-aged drivers

Middle-aged drivers in New Jersey typically find much cheaper car insurance rates compared to younger drivers. This is because they have a proven driving record that makes them a lower risk to insure. However, middle-aged drivers with DUIs and accidents can still expect higher rates than their clean-record counterparts, given that the infractions make them a risk to insure in the eyes of insurance companies.

The table below gives an idea of how much middle-aged drivers in New Jersey can expect to pay, based on their driving record. The quotes shown below are from Insurify’s proprietary database.

Quotes for senior drivers

Senior drivers in the garden state can expect some of the cheapest rates compared to other age groups. This is due to the group’s safer driving behaviors as well as their tendency to have better credit scores, which makes them a lower risk to insure.3 The table below shows how much senior drivers in New Jersey can expect to pay, based on their driving record and policy preferences.

New Jersey car insurance FAQs

Here are answers to some commonly asked questions about car insurance in New Jersey.

Insurify Insights

How New Jersey Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in New Jersey below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how New Jersey drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Honda Accord

Most Popular Car in New Jersey

#49

State with the Most Speeding Tickets Rank

#47

State with the Moving Violations Rank

#47

State with the Most DUIs Rank

#41

State with the most Suspended Licenses

• Accidents in New Jersey

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. New Jersey is the #42 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #42
  • Percent of drivers in New Jersey with an accident: 6.9%
• DUIs in New Jersey

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. New Jersey is the #47 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #47
  • Percent of drivers in New Jersey with a DUI: 0.8%
• Reckless Driving in New Jersey

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. New Jersey is the #20 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #20
  • Percent of drivers in New Jersey with a reckless driving offense: 1.4%
• Rude Driving in New Jersey

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. New Jersey is the #17 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #17
  • Percent of drivers in New Jersey with a rude driving violation: 1.8%
• Speeding in New Jersey

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. New Jersey is the #49 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #49
  • Percent of drivers in New Jersey with a speeding ticket: 4.7%
• Failure to Yield Rates in New Jersey

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. New Jersey is the #11 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #11
  • Percent of drivers in New Jersey with a failure to yield violation: 0.2%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.