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Best Car Insurance Companies in New Jersey 2022: Quotes, Discounts

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Jennifer Pendell

By: Jennifer Pendell

Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka

Last Updated April 5, 2022

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Quick Facts

  • Insurify’s best-rated insurance provider in New Jersey is Nationwide.
  • Travelers is the cheapest insurer on average in New Jersey, with average rates of $186 per month.
  • The best-rated car insurance provider might not be the best for every unique driver profile, so it’s important for drivers to compare quotes from multiple insurers before buying a policy.

New Jersey offers the perfect combination of small towns and large cities. New York City, Syracuse, Boston, D.C., and other cultural hubs are all an easy day trip or weekend jaunt away. Living in the Garden State means you can throw a bag in your car and find a completely new experience within just a few hours.

One of the oldest states in the U.S., New Jersey is the 11th-largest state in the country and the most densely populated. And because the population is so closely packed together, the roads are relatively congested, which can increase average car insurance rates. To combat this, the state has worked to make it easier for New Jersey drivers to meet minimum coverage requirements.

Most states set limits for minimum liability coverage that all drivers must carry, but New Jersey handles insurance requirements differently. New Jersey car insurance comes in two flavors:

  • Basic policy: This is the cheap car insurance option. It provides drivers with much less coverage and choices than a standard full-coverage policy. The state minimum doesn't come with bodily injury liability (though you can add that separately) and limits your right to sue after a car accident to a short list of permanent injuries.
  • Standard policy: Drivers who choose a standard policy can go with either the minimum liability limits or choose higher limits. Policyholders also have the option of choosing an unlimited right to sue.

No matter which option you choose, you should think about adding additional coverage to your auto policy, such as collision coverage, underinsured motorist coverage, or uninsured motorist coverage. Searching for the best auto insurance coverage can be tough, so to make it easier for you, we’ve ranked the top auto insurance companies in New Jersey.

Need help finding cheap car insurance? Insurify simplifies the process. This online tool compares car insurance quotes from lots of top providers, whether you’re a good driver with good credit and a clean driving record, a teen driver who’s just starting out on the road, or someone who has a few mistakes in their driving history, like a DUI or accident.

See More: Best Car Insurance Companies

See More: Best and Worst Sites to Compare Car Insurance

Best Car Insurance Companies 2022

RankCompany NameAverage Cost Per Month in New JerseyInsurify Composite Score
1Nationwide$23889
2Liberty Mutual$27782
3Travelers$18680
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Insurify Composite Score Methodology

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.

Top Car Insurance Companies: Find the Right One for You

Who has the best car insurance rates in New Jersey?

In New Jersey, Travelers and Nationwide generally offer low rates to drivers. Keep in mind that what you pay for car insurance will depend on your age, gender, driving record, credit score, and other factors in your unique driving profile.

The New Jersey car insurance marketplace is full of recognizable names, from GEICO, Allstate, Progressive, and State Farm to local providers like NJM (which stands for New Jersey Manufacturers). But when we looked at all the options, a few select companies emerged above the others. These top companies had the best rates combined with high customer satisfaction and financial strength. Here are our top contenders for New Jersey auto insurance.

See More: Full-Coverage Car Insurance

See More: Bundle Home & Auto Insurance

1
Nationwide logo

Nationwide

Average monthly cost:
$238
Insurify Composite Score:
89

Nationwide often ranks at the top of our affordable car insurance rankings, and there’s a good reason for that. This insurance company has fewer complaints than we expected for insurance providers its size, and it also ranks better than the national average for customer satisfaction in J.D. Power studies. It can meet the minimum amounts of liability insurance allowed in the New Jersey auto insurance market, and it also offers additional coverage options to help you customize your car insurance coverage.

You can have a Nationwide agent review your account once a year to see if you qualify for any of the company’s many discounts and make sure your coverage limits are meeting your needs. This ensures that you’re always paying the lowest possible car insurance premium that Nationwide offers.

Top discounts that the company offers include:

  • Bundling multiple policies
  • Installing anti-theft devices
  • Using automatic payment to pay your bills
  • Remaining accident-free
  • Being a good student
  • Taking a defensive driving course

The best rates for your individual auto insurance policy may differ based on your age, credit score, driving history, and other factors. Young drivers tend to pay more, while older drivers with a clean history pay less.

Driver CategoryAverage Monthly Cost
Drivers Under 25$374
Drivers Over 60$169
Safe Drivers (No Prior Violations)$214
Drivers With a Prior Accident$335
Drivers With a Prior Speeding Ticket$336
Drivers With Average Credit$275
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Liberty Mutual is the sixth-biggest insurer in the U.S. It offers many different kinds of insurance policies, which is great news if you’re looking to bundle multiple policies together to save money. The company offers policies from basic to full coverage and also has some exciting add-on optional coverage, including:

  • New car replacement: If you total your car in the first model year and first 15,000 miles, the company will pay you for the cost of a new car, not the depreciated value. This ensures that you can actually afford to replace your totaled car.
  • Better car replacement: If you total your car, you’ll be reimbursed for a car that’s one year newer than the one you totaled and with 15,000 fewer miles on it.

Top discounts that the company offers include:

  • Homeowners discount
  • Being a member of the U.S. military
  • Earning good grades
  • Driving a hybrid or electric car
  • Installing safety features
  • Avoiding traffic violations and not filing insurance claims
  • Bundling multiple policies or insuring multiple cars
  • Paying your full premium up front or enrolling in automatic payments

Average rates for Liberty Mutual, like most other insurance companies in the state, vary by person depending on your age, risk profile, and other factors.

Driver CategoryAverage Monthly Cost
Drivers Under 25$463
Drivers Over 60$161
Safe Drivers (No Prior Violations)$273
Drivers With a Prior Accident$301
Drivers With a Prior Speeding Ticket$289
Drivers With Average Credit$299
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.
3
Travelers logo

Travelers

Average monthly cost:
$186
Insurify Composite Score:
80

Travelers is one of the biggest insurance companies in the U.S. and one of the largest providers of auto insurance policies. It offers many discounts and coverage options to customize your policy. It also tends to have fewer complaints to state regulators than expected for a company of its size.

Looking to manage your account online? You’re in luck. Travelers has a robust website and a mobile app that let you file claims, pay bills, call for roadside assistance, and more - all from your phone or computer.

Top discounts that the company offers include:

  • Buying multiple policies from Travelers
  • Owning a home
  • Being a safe driver
  • Owning or leasing a hybrid car
  • Paying electronically, up front, or on time
  • Getting a quote before your policy expires
  • Good student discount

Auto insurance rates from Travelers vary depending on your driving history and age.

Driver CategoryAverage Monthly Cost
Drivers Under 25$285
Drivers Over 60$132
Safe Drivers (No Prior Violations)$177
Drivers With a Prior Accident$211
Drivers With a Prior Speeding Ticket$241
Drivers With Average Credit$208
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

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Average Monthly Cost of Car Insurance in New Jersey

Your ZIP code can also affect the rates you’ll pay for car insurance. For example, people who live in Irvington pay an average of $399 per month to insure their cars, while people in Trenton pay just $275 a month.

CityAverage Monthly Cost
Atlantic City$346
Hoboken$213
Irvington$399
Jersey City$238
Morristown$190
Newark$372
Trenton$281
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

How to Determine the Best Car Insurance Company for Yourself

Need to find a good price on car insurance? Start by getting quotes from multiple insurers. You need to be able to ask questions and compare different insurance offerings to figure out what’s best for you.

Tools like Insurify make this process easier than ever. Answer a few questions about yourself, your car, and your driving history, and get accurate quotes from top insurers in seconds.

See More: Car Insurance for Bad Driving Records

Frequently Asked Questions

  • Good car insurance is about more than the lowest premiums or a tiny deductible. You need a company that is easy to deal with, makes filing claims simple, and offers tools to help you manage your account in the meantime.

  • There’s no one cheapest car insurance company in New Jersey. The cheapest one for you will depend on many factors, including your age and driving history. Different companies will offer different rates and discounts, so it’s important to get lots of quotes.

  • You need to find a company that meets your needs as a driver and does so at a decent price. That means that your policy needs to meet the state minimum limits listed above. If you took out a loan to buy your car, the lender may also have some stipulations about the kind of insurance you can carry.

  • Discounts, discounts, discounts. You may qualify for discounts you didn’t even know the company had. Make sure to ask about them when you’re comparing quotes. Some common ones include being a good student, not filing a lot of claims, and bundling multiple policies from the same company.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS 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. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Jennifer Pendell
Jennifer Pendell

Content Writer at Insurify

Jennifer Pendell is a personal finance writer from the Midwest. Her passion is breaking down tough subjects to make them easier to understand. When she’s not writing, she loves reading, camping and spending time with friends and family.

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