Cheap Car Insurance in New Jersey (With Quotes, September 2022)

Car insurance in New Jersey is somewhat expensive compared to the national average, and while the state offers a low-cost alternative, it’s not available to everyone. Luckily, it’s possible to find affordable car insurance in the Garden State if you compare car insurance quotes across providers using an insurance comparison platform like Insurify.

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The cheapest car insurance company for you will depend on individual information in your driver profile, so it’s best to compare customized quotes with Insurify. But if you’re curious what insurers in New Jersey are charging on average, below are the cheapest New Jersey auto insurance companies, along with their average monthly premiums.

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Cheapest Liability Auto Insurance in New Jersey

A standard policy includes bodily injury liability coverage, property damage liability coverage, and personal injury protection. New Jersey drivers can also opt for a basic policy, which provides minimum coverage but does not include bodily injury liability coverage. Here’s what drivers pay, on average, for liability-only insurance in New Jersey.

Cheapest Full-Coverage Auto Insurance in New Jersey

In addition to liability insurance, full-coverage car insurance typically includes optional coverages, such as collision coverage, comprehensive coverage, and underinsured or uninsured motorist coverage. Keep in mind, if you opt for full-coverage insurance, you’ll have a deductible that is your share of the financial responsibility.

Auto insurance rates are higher for full-coverage car insurance, but it’s worth it for the financial protection in the event of an accident. Here’s what drivers in New Jersey pay, on average, for full-coverage car insurance at the cheapest companies in the state.

Price is not the only important factor to consider when signing up for an insurance policy. You also want to make sure the company you choose is reliable and offers the insurance coverage you need. That’s why we reviewed a variety of data on each company to generate Insurify Composite Scores.

A high score indicates high marks in the areas of financial strength, customer satisfaction, and more. New Jersey drivers can compare their customized quotes against the best auto insurance companies in the area to find a reputable company offering a cheap rate.

See More: Best Car Insurance Companies

Insurify Composite Score

The Insurify Composite Score is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

One of the factors that significantly impacts your car insurance rates is your driving history. If you have a clean driving record, you’ll be eligible for some of the cheapest auto insurance rates. If you have car accidents or DUIs on your record, on the other hand, you’ll be considered a higher risk to insure, so you’ll pay higher premiums.

Even a speeding ticket can be enough to raise your rates significantly. Here’s what drivers pay, on average, with each type of infraction.

See More: High-Risk Car Insurance New Jersey

Cheap Car Insurance for Good Drivers in New Jersey

Safe drivers with no violations on their records pay the lowest car insurance premiums and can often qualify for car insurance discounts as well. That’s because insurance providers view them as a lower risk to insure. Here’s what good drivers pay, on average, for auto insurance coverage in New Jersey.

Cheap Car Insurance for Drivers with DUI in New Jersey

A DUI typically results in a driver’s license suspension. When you’re ready to reinstate your license after a DUI, insurance companies will view you as a high-risk driver and charge you higher rates. Here’s what you can expect, on average, from the cheapest insurance providers for drivers with DUIs in New Jersey.

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SR-22 Insurance in New Jersey

If you had a violation like a DUI that resulted in license suspension, the reinstatement process in New Jersey requires you to have an SR-22 form on file. Your insurance company will need to file the SR-22 with the Motor Vehicle Commission on your behalf. Insurance companies typically charge higher rates or fees to motorists who need an SR-22.

Keep in mind that having an SR-22 on file also means your insurer will notify the MVC if you cancel your policy, so make sure to keep it in force. If you’re getting back on the road and seeking an auto insurance policy, the following companies will file an SR-22 form for you:

Cheap Car Insurance for Drivers with an At-Fault Accident in New Jersey

Car insurance companies charge higher average rates to drivers with accidents on their records, but it’s still possible to find affordable car insurance if you compare quotes. Below are the companies offering the cheapest rates to drivers who have been in car accidents in the past.

Cheap Car Insurance for Drivers with Speeding Tickets in New Jersey

Having a speeding ticket shows insurance companies that you’re not taking every precaution on the road. As a result, you’ll pay more for auto insurance. But some car insurance companies offer cheaper rates to drivers with speeding tickets than others. Here are the cheapest providers, along with the average monthly cost drivers pay for coverage.

In many states, auto insurance companies use your credit-based insurance score to determine your premium because of a correlation between low scores and high claims filing. However, the New Jersey Senate voted to prohibit this practice in the state in 2022.

The bill, if passed, will ban auto insurers from using credit score, education, and occupation when determining a driver’s rates. Currently, New Jersey law restricts car insurance companies from using credit scores to establish rates for drivers with a basic policy or covered by the Dollar-a-Day program.

Many drivers’ rates are still impacted by insurance scoring, however. Here’s what drivers pay for car insurance in each credit tier.

See More: Bad Credit Car Insurance New Jersey

Young drivers pay more for car insurance in New Jersey because they have less experience on the road. In fact, teen drivers are at a greater risk of a crash than any other age group. That can make it pricey for teens to obtain auto insurance. Rates generally decrease with age, though. Here are the average rates New Jersey drivers pay in each age group.

Car insurance is more expensive in some areas of New Jersey than in others, due to the frequency of claims in each area. For example, some high-traffic cities tend to have more car accidents, so residents of these cities will pay more for insurance. Here are the average rates for some of the top major cities in New Jersey.

Every state has minimum insurance requirements, and New Jersey is no exception. Additionally, all drivers in New Jersey will have to visit their local DMV and may at some point need to rely on public transportation. The following sections break down minimum insurance requirements, DMV services, and public transit options in New Jersey.

Minimum Car Insurance Requirements in New Jersey

All motor vehicles operated or parked on New Jersey roadways are required to be insured with either a basic or standard insurance plan. 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^[1] are:

• $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.

• $15,000per 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 costs caused by a driver with little or no insurance after a car accident. In Massachusetts, drivers are required to purchase this coverage for bodily injuries.

New Jersey DMV Information

The New Jersey MVC offers several online services, including driver’s license and registration renewals. If you need to title your vehicle, get your first license, or complete another in-person service, there are also more than 70 local offices throughout the state that can serve you.

Public Transportation in New Jersey

NJ Transit operates trains, buses, and light-rails that reach most of the state. Public transportation is a more popular option in New Jersey than in many other states, with about 12 percent of New Jersey residents using the transit system to get to work. Still, many residents rely on their vehicles and will need an auto insurance policy to stay legal on the road.

With the aid of Insurify’s comprehensive quote-comparison tool, young drivers in New Jersey can easily compare up-to-date auto insurance rates from the nation’s top insurance providers. Individuals simply have to enter information regarding their vehicle and driving habits to find the rates that work best for them. On average, young New Jersey drivers pay monthly rates of around $392 for their auto coverage.

Age, Driving Experience, and the Cost of Car Insurance

Insurance companies consider factors like age and driving experience when calculating insurance premiums for auto coverage. Young and inexperienced drivers pay more for insurance coverage due to companies viewing them as higher-risk drivers. With more time and experience, drivers earn lower rates from their providers based on personal and driving histories—as well as eligibility for certain discounts.

Best Car Insurance Companies in New Jersey for New Drivers

Plenty of car insurance provider options exist, but Insurify identified the providers best suited for young New Jersey drivers. Available insurance providers include Plymouth Rock, Travelers, and Progressive—all of which offer young drivers quality coverage at affordable rates. Providers like Allstate, GEICO, and State Farm may offer better coverage for drivers with a recorded DUI or poor credit history.

How New Drivers Can Lower Their Car Insurance Premiums

Young and new drivers can save money on their premiums by joining their parents’ auto policy, deciding on the coverage types that meet their insurance needs, earning good grades for good student discounts, initiating good credit practices, and driving a vehicle that is a few years old. Drivers can compare monthly quotes from top providers in their consideration with ease on Insurify.

For some New Jersey drivers struggling to afford car insurance, a low-cost program exists that provides insurance coverage for only one dollar a day. The Special Automobile Insurance Policy (SAIP, or NJSAIP) is an insurance program for eligible drivers enrolled in federal Medicaid with hospitalization. Ultimately, the program lacks many important aspects of insurance coverage but does allow drivers to drive legally.

Through the New Jersey Department of Banking and Insurance, SAIP provides policyholders coverage for some emergency treatment, brain or spinal cord injury treatment, and $10,000 to the policyholder’s family in the event of a fatal accident. Additional medical treatment, injuries and damage to the other driver, and vehicle damage are not covered.

Read more about New Jersey’s Dollar-a-Day program.

When it comes to finding auto insurance in New Jersey, you have a few options. You can hire a broker, pull individual quotes from different insurers’ websites, or use Insurify to quickly and easily compare quotes in one spot. (Hint: The third option will save you a ton of time and effort.)

You’ll be able to change your coverage options and deductible amount to see the effect on your premiums. And we’ll even factor in certain discounts you may be eligible for, such as a homeowners discount. You’ll just need to answer a few questions about your vehicle and driving record to get started, and Insurify’s artificial intelligence technology will do the rest of the work.