How Much Is Car Insurance in New Jersey? (2026)
Drivers in New Jersey pay an overall average of $2,629 per year for car insurance.
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Written byCarley Clark
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Carley ClarkInsurance Writer
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
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Quick Facts
The average monthly cost of full-coverage car insurance in New Jersey is $256. Minimum coverage averages $182 per month.
NJM is the cheapest insurance company in New Jersey, with an average rate of $119 per month for minimum-coverage policies.
Rates in New Jersey increased 20% in 2025, and Insurify data scientists project a 1% increase by the end of 2026.
How much is car insurance in New Jersey?
New Jersey car insurance rates are among the most expensive in the country. Drivers pay an average of $182 per month, or $2,179 per year, for state-minimum coverage. Full-coverage car insurance costs more, averaging $256 per month, or $3,078 per year.
New Jersey saw a sharp increase in average rates in 2025 — more than any other U.S. state, according to Insurify’s Insuring the American Driver Report. The average cost of car insurance in New Jersey is now well above the national average and the average in most neighboring states, including New York and Pennsylvania.
New Jersey drivers likely pay more due to dense traffic, a rising rate of uninsured drivers, and recently increased minimum-coverage requirements.
Coverage Type | Average Monthly Quote | Average Annual Quote |
|---|---|---|
| State-minimum coverage | $182 | $2,179 |
| Full coverage | $256 | $3,078 |
Disclaimer: Table data is based on real-time New Jersey quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
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Minimum car insurance requirements in New Jersey
Drivers have a choice between a basic policy and a standard policy in New Jersey. Most drivers choose the standard policy, which includes bodily injury liability and higher property damage liability limits.[1]
A basic policy, on the other hand, is typically cheaper but doesn’t offer as much protection. New Jersey is a no-fault state, so both insurance policy types must include personal injury protection to meet minimum car insurance requirements.
Here are New Jersey’s minimum car insurance requirements for both basic and standard policy types. New Jersey drivers can add collision and comprehensive to standard and basic policies.
Coverage Type | Basic Policy | Standard Policy |
|---|---|---|
| Bodily injury liability (per person) | Not required | $35,000 |
| Bodily injury liability (per accident) | Not required (optional $10,000) | $70,000 |
| Property damage liability | $5,000 | $25,000 |
| Personal injury protection (PIP) | $15,000 | $15,000 |
| Uninsured motorist coverage | None | Required; available up to your liability coverage amounts |
Cheapest car insurance companies in New Jersey
NJM has the cheapest liability-only insurance rates in New Jersey, with policies averaging $119 per month. Liability insurance costs less than full coverage because it doesn’t include collision coverage and comprehensive coverage, which pay for damage to your own vehicle.
In New Jersey, you can save even more by opting to limit your right to sue if you sustain an injury in an accident. This means you won’t be able to sue the driver who caused an accident for pain and suffering, except in cases involving death or a permanent injury.
New Jersey has about 30 insurance groups writing private-passenger auto insurance, so drivers have several options when shopping for liability insurance. The table below shows the cheapest car insurance in New Jersey for minimum coverage.
The below rates in New Jersey are estimated rates current as of: Monday, August 10 at 5:00 PM PDT.
Insurance Company | Average Monthly Quote: Liability Only |
|---|---|
| NJM | $119 |
| Plymouth Rock | $132 |
| CSAA | $137 |
| Allstate | $170 |
| Direct Auto | $173 |
| Bristol West | $180 |
| Progressive | $180 |
| Mercury | $219 |
| GEICO | $221 |
| Liberty Mutual | $263 |
| State Farm | $278 |
| Travelers | $359 |
Disclaimer: Table data sourced from real-time New Jersey car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in New Jersey may vary based on the policy buyer's unique driver profile.
Average New Jersey car insurance rates by city
Newark, Irvington, and Passaic are among the most expensive cities in New Jersey for car insurance, while Brick and Toms River are the cheapest.
Newark reached an estimated 12,647 people per square mile in 2022 — nearly five times the density of Toms River, at 2,425.[2] Since it’s near the Port of New York and New Jersey, the nation’s busiest seaport as of May 2025, Newark can see a lot of traffic. Essex County also ranked third-highest for accident fatalities in the state in 2024.
Brick and Toms River — both in Ocean County along the Jersey Shore — have much lower population density, which may help keep their average rates lower. The table below compares car insurance quotes across several major New Jersey cities.
The below rates in New Jersey are estimated rates current as of: Monday, August 10 at 5:00 PM PDT.
City | Average Monthly Liability-Only Quote | Average Monthly Full-Coverage Quote |
|---|---|---|
| Toms River | $152 | $218 |
| Brick | $156 | $193 |
| Hoboken | $158 | $253 |
| Edison | $163 | $259 |
| Vineland | $171 | $239 |
| Bayonne | $179 | $288 |
| Fair Lawn | $187 | $279 |
| Kearny | $190 | $276 |
| Trenton | $190 | $279 |
| Bloomfield | $194 | $245 |
| Jersey City | $197 | $283 |
| Clifton | $210 | $293 |
| Fort Lee | $211 | $314 |
| Linden | $213 | $334 |
| Roselle | $226 | $315 |
| West New York | $227 | $319 |
| Plainfield | $230 | $329 |
| Perth Amboy | $232 | $315 |
| Elizabeth | $242 | $353 |
| Paterson | $242 | $359 |
| Camden | $243 | $337 |
| East Orange | $243 | $366 |
| Passaic | $253 | $360 |
| Irvington | $254 | $358 |
| Newark | $255 | $379 |
Disclaimer: Table data sourced from real-time New Jersey car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in New Jersey may vary based on the policy buyer's unique driver profile.
Average New Jersey car insurance rates by age
Your age can affect your auto insurance rates in New Jersey. Age is a car insurance rating factor because accident data shows that younger drivers are more likely to get into a crash. New Jersey teens pay $426 per month, on average, for full-coverage car insurance, compared to $273 for drivers in their 40s and $215 for senior drivers.
Teen drivers pay the most because they have less experience behind the wheel. They’re more likely to make mistakes and engage in risky driving behaviors.
New Jersey requires new drivers to complete the graduated driver licensing (GDL) process before they can get their full driver’s license. The state’s teen driving laws, including the GDL law, helped reduce teen driving fatalities by 50% between 2010 and 2020.[3] That said, 77 drivers aged 16–20 died in crashes in New Jersey in 2024, showing why insurers view young drivers as high risk.
Age | Average Monthly Liability-Only Quote | Average Monthly Full-Coverage Quote |
|---|---|---|
| Teens | $303 | $426 |
| Adults (40s) | $194 | $273 |
| Seniors | $153 | $215 |
Disclaimer: Table data is based on real-time New Jersey quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
How your driving record affects car insurance rates in New Jersey
About 3% of New Jersey drivers have a ticket on their driving record, according to Insurify data. Another 5% have an at-fault accident, and less than 1% have a driving while intoxicated (DWI) conviction.
Drivers with incidents on their record pay more for car insurance in New Jersey than drivers with a clean record. A DWI raises your rate by 61%, on average, while a speeding ticket can increase it by 45%. Insurers consider both violations as signs of a high-risk driver.
Insurers also assign insurance eligibility points for violations. If you rack up seven or more points within three years, you may have to buy insurance through New Jersey’s Personal Automobile Insurance Plan (PAIP) instead of the voluntary market. Although the state standardizes rates for this coverage, it’s often much more expensive than going through the voluntary market.
The following table shows how different moving violations increase monthly car insurance premiums in New Jersey.
Driving Record | Average Monthly Quote in NJ | % Increase Compared to Clean Driving Record |
|---|---|---|
| Clean driving record | $218 | N/A |
| With speeding ticket | $316 | 45% |
| With accident | $267 | 23% |
| With DWI | $350 | 61% |
Disclaimer: Table data is based on real-time New Jersey quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
What affects car insurance rates in New Jersey?
Several factors are responsible for New Jersey’s higher-than-average car insurance rates, including:
Population density: New Jersey ranks No. 1 in the nation for population density, and it’s the only state where the U.S. Census Bureau classifies every county as urban.[4] More traffic typically means more accidents and claims, which, in turn, lead to higher premiums.
Uninsured drivers: Between 2017 and 2023, New Jersey saw one of the largest increases in uninsured motorists nationwide, climbing to 14%, according to the Insurance Information Institute. Insurers factor the cost of that risk into everyone’s coverage.
Flood risk: The state faces flood risk year-round from winter snowmelt, heavy rainfall in spring and summer, and hurricanes and tropical storms.[5] Storm damage can increase comprehensive claims in an area.
Hurricanes: New Jersey typically sees tropical storms between August and late October, while the Atlantic hurricane season is June through November. Flooding, storm surge, and strong winds from these storms can damage vehicles.
Vehicle theft: New Jersey ranked No. 15 in the nation for vehicle thefts by volume in the first half of 2025. Higher auto theft rates mean insurers may charge more for comprehensive coverage.
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How New Jersey car insurance rates have changed over the past five years
In 2025, New Jersey car insurance rates increased more than any other state’s — up 20% following a 10% increase in 2024. It became the sixth-most expensive state for car insurance when it was previously No. 15, Insurify data shows.
Severe weather may have contributed to this increase. In July 2025, a storm caused flash flooding strong enough to sweep cars away and killed two people in the central New Jersey city of Plainfield.
Higher minimum-coverage requirements also took effect in 2026, which can increase costs. Insurify projects rates to rise another 1% nationally by the end of 2026.
See More
To find car insurance rates in Pennsylvania and the U.S. over the last five years, download our data here.
How to lower car insurance costs in New Jersey
Although New Jersey has some of the highest car insurance rates in the nation, the following tips could help you lower your premiums:
Take a defensive driving course. State law requires insurers to reduce your premium by at least 5% when you complete an approved course.
Opt for limited right to sue. You can give up the right to sue for pain and suffering (except if you sustain a permanent injury) to lower your insurance premiums.
Consider the basic policy. If you don’t have many assets or family responsibilities, the basic policy meets New Jersey’s minimum requirements at a lower cost than the standard policy.
Look into the Special Automobile Insurance Policy (SAIP). Drivers who receive federal Medicaid with hospitalization can get dollar-a-day insurance, which provides emergency medical insurance coverage for $365 per year.
Shop regional insurers. Request auto insurance quotes from companies headquartered in New Jersey, like NJM, Plymouth Rock, Selective, and CURE, when shopping for the best car insurance in New Jersey.
New Jersey average car insurance cost FAQs
From the cheapest insurers to the state’s no-fault rules, the information below answers the most common questions New Jersey drivers have about auto insurance.
What company has the cheapest car insurance in NJ?
NJM offers the cheapest rates for car insurance in New Jersey, with liability policies averaging $119 per month. Quotes vary based on your driving history, credit-based insurance score, coverage level, deductible, and discount eligibility, like bundling auto and home insurance.
Why are NJ auto insurance rates so high?
New Jersey auto insurance is expensive partly because it’s the most densely populated state in the nation. The state also experiences year-round flooding, high accident rates, and a rising rate of uninsured motorists.
Who should consider buying the basic policy in New Jersey?
New Jersey drivers who don’t have many assets or family responsibilities might consider a basic policy since they have less to protect in a lawsuit. The basic policy usually costs less than the standard policy.
Is New Jersey a no-fault state for car insurance?
Yes. New Jersey is a no-fault state. If you’re in an accident, your personal injury protection (PIP) pays for your medical bills no matter who caused the crash.
Sources
- New Jersey Department of Banking and Insurance. "Everything you wanted to know about auto insurance."
- New Jersey Department of Health. "Population Density by County and Municipality: New Jersey, Census 2020 and Estimates 2022."
- State of New Jersey Department of Law & Public Safety, Division of Highway Traffic Safety. "Teen Driver Safety."
- U.S. Department of Health and Human Services. "III.B. Overview of the State - New Jersey - 2024."
- New Jersey Office of Emergency Management. "Floods."
Methodology
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Carley ClarkInsurance Writer
5+ years experience in personal finance writing
Personal finance blogger
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in