Average Cost of Car Insurance in New Jersey (With Quotes, Updated September 2022)

Drivers in New Jersey spend $270 per month and $3,240 per year on auto insurance, which exceeds the national average rates by $37 per month and $444 per year. On an individual level, auto insurance premiums vary based on driving history, credit history, marital status, age, insurance policy, insurance provider, vehicle type, and location throughout New Jersey.

Auto insurance companies offer a wide variety of coverage options and annual premiums. Shop around for car insurance quotes from all the insurers available to you to find the best car insurance for your insurance needs. Try out the Insurify quote-comparison tool today to learn how much you can save on an auto insurance policy from the convenience of your home.

The average annual cost for car insurance in the Garden State is $3,240, which shakes out to monthly payments of $270. Though New Jersey drivers face insurance prices that are more expensive than the national average, individual rates depend on driving history, coverage type, credit history, marital status, age, location in the state, and the chosen auto insurance company.

Why would you settle for higher insurance rates when plenty of cheaper options exist? We identified the top auto insurers offering the best rates available in New Jersey to help you narrow your car insurance search. When it comes to car insurance premiums, car insurance companies are not created equal, which is why considering all of your options is so important.

See More: Best and Worst Sites to Compare Car Insurance

Auto insurance providers use unique methodologies when calculating insurance rates for their policyholders, but they generally consider common factors like driving history, credit history, age, marital status, vehicle type, discount eligibility, and coverage policy when assessing risk levels. Within New Jersey, rates will vary further depending on each policyholder’s city of residence.

Area-specific factors, like population, crime rates, weather, and climate, influence auto insurance rates on a city-by-city basis in New Jersey. Average rates in Camden, East Orange, Elizabeth, Newark, Passaic, and Paterson all exceed the state average monthly rate of $270 by over $100, while New Jersey residents in other cities may pay less.

See More: Car Insurance Quotes

New Jersey, like most states, allows auto insurance providers to consider credit score history when calculating rates for policyholders and assessing risk. On average, drivers with poor credit in New Jersey spend over $100 more per month on car insurance payments than their peers with excellent credit. Insurify identified average rates by credit tier, as seen in the chart below.

Auto insurers charge teen drivers and young drivers under the age of 25 the highest car insurance premiums by driver age. Generally speaking, insurance providers view a lack of driving experience as a high-risk factor that increases the likelihood of a policyholder having a car accident or other incident. Rates steadily decrease as folks age, except for drivers over 80.

See More: Compare Car Insurance by Age and Gender

Statistically speaking, women in the United States tend to practice safer driving habits than their male peers, and men are more likely to purchase larger or more expensive motor vehicles. As a result of these and other factors, women typically pay slightly lower rates for auto insurance, but women currently pay $1 more than men on auto insurance in the state of New Jersey.

Good news for married couples: insurance providers view married folks as lower-risk drivers than single individuals, perhaps due to perceived stability or additional financial security. In New Jersey, married couples spend an average of $45 less per month on car insurance than their single companions.

Driving history is one of the most reliable factors that regularly impact the insurance rates calculated by auto insurance providers. Policyholders with clean driving records earn the lowest rates since they have demonstrated reliability behind the wheel and safe driving practices. Drivers with any recorded DUI, at-fault accident, or speeding ticket pay higher rates accordingly.

See More: Best Cheap Car Insurance for High-Risk Drivers

The levels of coverage purchased significantly impact car insurance rates. A more basic policy, like minimum liability insurance or other state minimum coverage, costs less than a standard policy with comprehensive coverage, collision coverage, or full-coverage car insurance. Drivers save with less coverage but risk being underinsured.

See More: Compare Car Insurance by Coverage

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

Whereas the Basic Policy in New Jersey only provides $5,000 of property damage liability insurance per accident and $15,000 of PIP per person, per accident, the Standard Policy has higher minimum coverage. The minimum liability insurance requirements for a Standard Policy in New Jersey^[1] are:

• $15,000 per person for bodily injury
• $30,000 per accident for bodily injury

Personal injury protection coverage, also referred to as PIP coverage, will cover the policyholder for medical payments they incur in the event of an accident. Depending on your plan, you may also receive non-medical benefits, compensating you for lost wages, household expenses, and even funeral costs.

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 costs 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.

Many strategies for earning cheap car insurance exist, but shopping around for quotes before purchasing or renewing an auto policy is one of the most reliable ways to save money. With the Insurify quote-comparison tool, you can compare insurance quotes from top national and regional providers from the comfort of home. Give it a try today to find the perfect fit for you.