Cheapest Auto Insurance in Jersey City, New Jersey (2024)

New Jersey’s second-largest city is also one of the most expensive for car insurance. Drivers in Jersey City pay an average auto insurance premium of $220 per month — a bit higher than the state monthly average of $175, according to Insurify data. The city’s proximity to New York City likely plays a large part in its higher auto insurance rates.

If you live in Jersey City, the good news is you still have plenty of affordable options in your area. Comparing quotes can help you find the best policy for your situation.

3 of the cheapest car insurance companies in Jersey City

You have plenty of options for quality auto insurance companies in Jersey City. The following highlighted insurers rank at the top based on several factors, including average premiums, customer satisfaction, Insurify Quality (IQ) Scores, and available coverage and discounts.

While these three are the top overall companies for many Jersey City drivers, the best company for you will depend on your individual situation and needs.

Best insurer for low rates: NJM

Best insurer for customer satisfaction: State Farm

Best insurer for discounts: Travelers

How to get the cheapest car insurance in Jersey City

Many factors affect your car insurance premiums, including your driving history, age, gender, vehicle, coverage type and limits, location, and more. While some of these factors may be out of your control, you can still do several things to save money on insurance, including:

• Shop around. Don’t just assume the cheapest company overall will be the cheapest for you. Get quotes from multiple companies to ensure you find the one that offers the best rates for your specific situation.

• Reconsider your car insurance coverage. A simple way to reduce your premiums is to reduce your coverage limits. But proceed with caution, because you don’t want your limits to fall below your needs.

• Raise your deductible. You can lower your premiums by raising your deductible, the amount you’ll pay out of pocket before your insurance company covers the rest, up to your coverage limits.

• Improve your credit. Generally speaking, the higher your credit score, the lower your insurance premiums. This means you can save money on premiums by increasing your credit score.

• Save with discounts. Just about every top insurer offers discounts to help their customers save money. Common discounts include those for bundling your auto and renters or home insurance policies, having certain vehicle safety features, maintaining a safe driving record, and more.

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Liability rates start at $111 per month

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Cheapest liability-only car insurance in Jersey City: CSAA

Liability car insurance provides bodily injury and property damage coverage when you cause an accident that results in damages or injury to others. But it won’t cover any damage to your own vehicle in an accident or another incident.

Jersey City drivers pay a monthly average of $127 for liability-only auto insurance. Liability-only car insurance rates are the most affordable. Below, you can see the average liability-only quotes from insurers serving Jersey City.

Cheapest full-coverage car insurance in Jersey City: NJM

Full-coverage car insurance is more expensive than liability-only insurance but provides you with more coverage. Full coverage generally includes collision and comprehensive coverages, which pay for damages to your vehicle from an accident or another incident. It also often includes uninsured motorist coverage, which applies if you’re in an accident caused by someone who doesn’t have insurance or lacks sufficient coverage.

Full coverage is more expensive. But it’s better for drivers who wouldn’t be able to replace their vehicles out of pocket if their car was totaled. Drivers in Jersey City pay a monthly average of $313 for full-coverage auto insurance.

Car insurance requirements in New Jersey

Like most states, New Jersey law requires that all drivers have a minimum amount of liability insurance.

New Jersey is also a no-fault state, which means that after an accident, all drivers file a claim for bodily injury with their own car insurance company, regardless of who’s at fault. Because of that, the state’s minimum insurance requirements look a bit different from other states.

Included in New Jersey’s required coverage minimums is personal injury protection (PIP). Each person’s PIP pays for their own injuries after an accident. This coverage replaces the bodily injury liability that most other states require.^[5]

• 

  Bodily injury liability

  • Not required

  • $10,000 coverage must be available as an option

• 

  Property damage liability

  • $5,000 per accident

• 

  Personal injury protection

  • $15,000 per person, per accident

  • $250,000 for certain injuries, including brain injury, spinal cord injury, and disfigurement

When you opt for the minimum coverage, known as the basic policy, you also have a limited right to sue, which allows you to sue the at-fault driver of an accident only in certain situations. If you choose the standard policy, which has more expansive coverage, you can also opt for “unlimited right to sue,” which allows you to sue for any damages after an accident. The standard policy includes:

• $25,000 per person and $50,000 of bodily injury liability coverage

• $25,000 per accident of property damage liability coverage

• $15,000 per person or accident of personal injury protection

• Optional uninsured/underinsured motorist coverage

• Optional collision coverage

• Optional comprehensive coverage

Cheapest car insurance for drivers with an incident

If you have an incident on your driving history — such as an at-fault accident, speeding ticket, DUI, or another moving violation — then you’re likely to pay more for insurance.

The effect on your rates will depend primarily on the type of incident. The more serious the incident, the higher the rate increase. For example, a DUI is likely to increase your rate far more than a speeding ticket.

In the following sections, you’ll see how each incident type affects the rates you receive from the top insurers in Jersey City.

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Monthly rates start at $144 for drivers with an incident

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Cheapest car insurance for drivers with a speeding ticket: CSAA

A speeding ticket in New Jersey is likely to increase your insurance premiums. The exact effect a ticket will have depends on several factors, including your insurance company and the severity of the incident. Generally speaking, subsequent incidents will continue to increase your premiums.

In New Jersey, speeding results in either two, four, or five points on your record, depending on how far over the speed limit you’re driving. Three points will be subtracted after each year you don’t have a violation, but that doesn’t necessarily mean the ticket will no longer affect your insurance premiums.^[6]

Jersey City drivers with a speeding ticket pay a monthly average of $164 for liability-only insurance and $404 for full-coverage insurance.

Here, you can see average policy rates for drivers with a speeding ticket from insurers serving Jersey City.

Cheapest car insurance for drivers with an at-fault accident: CSAA

Being at fault for an accident can have a major effect on your car insurance. On average, insurance premiums increase 26% after an at-fault accident, according to Insurify data. The accident can also affect your insurance rates for several years, but the effect may lessen over time.

It’s also worth noting that an accident can increase your premiums even when you aren’t at fault. Due to New Jersey’s no-fault insurance law, your insurance company may have to pay out for a claim even when another driver caused the accident. As a result, your insurance rates could go up.

Drivers in Jersey City with an at-fault accident on record pay a monthly average of $181 for liability-only insurance and $445 for full-coverage insurance.

Here’s a look at the average monthly quotes for Jersey City drivers with at-fault accidents.

Cheapest car insurance for drivers with a DUI: NJM

A DUI represents a serious driving infraction and can result in fines, imprisonment, license forfeiture, and more. A DUI can also have a major effect on your insurance premiums and may even cause your insurer to drop you altogether.

It’s also important to note that a DUI stays on your record permanently in New Jersey.

Jersey City drivers pay a monthly average of $206 for liability-only insurance and $508 for full-coverage insurance. Here, you can see the average monthly quotes for drivers with a DUI in Jersey City.

Cheapest car insurance for seniors: NJM

Age plays an important role in car insurance rates as well. While senior drivers generally have the lowest car insurance rates of any age group, their premiums can begin to increase as they grow older. This is because insurers see older drivers as a greater risk — not only because of their slowed reflexes but because of their increased risk of severe injury in a crash.

Drivers in Jersey City older than 60 pay a monthly average of $112 for liability-only insurance and $276 for full-coverage insurance. Here’s a list of the top insurers available for senior drivers.

Cheapest car insurance for teens: NJM

Drivers ages 16 to 19 have a fatal crash rate nearly three times as high as all other people.^[7] This is due to a lack of experience, a high rate of nighttime and weekend driving, distracted driving, speeding, and more. As a result, teens pay higher insurance premiums than any other age group.

Teen drivers in Jersey City pay monthly averages of $215 for liability-only auto insurance and $530 for full-coverage auto insurance.

If you have a teen driver in your house, you have some ways to save money on insurance, including keeping your teen on your insurance policy for as long as possible, having them drive a safe vehicle, and taking advantage of discounts such as a good student discount.

Jersey City car insurance quotes by credit tier

Your credit history is an important factor that helps determine your insurance premiums. While some states have banned insurance companies from using credit as a factor for insurance rates, New Jersey isn’t one of them.

Generally speaking, the higher your credit score, the lower the insurance rates you’ll pay. Drivers with excellent or good credit scores tend to get the best insurance rates. On the other hand, drivers with poor credit scores tend to pay considerably higher rates because of the higher perceived risk to the insurance company.

Is car insurance more expensive in Jersey City?

Unfortunately, New Jersey drivers generally pay rates that are well above the national average.

The average annual insurance expenditure in the U.S. is $1,892, according to Insurify data. Meanwhile, the yearly average in New Jersey is $2,104.

More cities in New Jersey

Jersey City’s rates are just slightly higher than the state average but considerably lower than some other large New Jersey cities, like Newark and Paterson. But Jersey City is more expensive than Trenton and Toms River.

The table below shows average monthly quotes in some other New Jersey cities.

Jersey City car insurance FAQs