Cheap Car Insurance in New Jersey for 2024

New Jersey is an expensive state for auto insurance coverage with an average premium around $1,800 per year. The average cost of an auto policy in the state is expected to decline slightly in 2024 after having risen a bit in 2023. We researched the cheapest insurers in New Jersey to see how you can save.

See our overall recommendations for Best Car Insurance

Who has the Cheapest Car Insurance in New Jersey?

• GEICO
• New Jersey Manufacturers (NJM)
• Travelers
• State Farm
• Progressive

We sampled information from a number of sources and developed a range of what cheap car insurance usually costs per year in New jersey. We based these samples on a driver with at least a decade of driving experience, a clean driving record, driving one of America’s most popular, non-exotic vehicles.

The important thing to remember is that insurance rates can vary widely, and prices can change almost daily. This range is only a GUIDE to give you a basic idea about the rates insurance companies charge today in New Jersey.

DISCLAIMER: There are numerous other factors that are going to impact the cost of insurance on your car, crossover, or truck. We’ll provide info on some of those variables, but your best bet is to read our deep dive on Cheap Car Insurance for 2024 to get a better idea.

Who has the Best Cheap Car Insurance in New Jersey?

• Best Large Insurance Carrier - In New Jersey, our data shows that it is GEICO. Cutting out agents has an impact on your premium.

• Cheapest Insurance with Bad Credit - NJM has the lead here for folks who view due dates as a suggestion.

• Cheapest Insurance with One Accident - NJM is also the cheapest when you have wrinkled the fenders.

• Cheapest Insurance for Higher Mileage - NJM again. Like many states, the local company seems to be best when you have a situation that points to higher premiums.

How Much Does Car Insurance Cost in New Jersey?

In Car Talk’s deep dive on affordable car insurance, we found that a national average for auto insurance was $1,935 per year. In New Jersey, depending on what city and county you live in, you’re probably going to be paying up to 15% more. Our prior research also revealed that the overall average is about $1,800 for insurance in New Jersey.

(*) The “adjusted average” is computed by eliminating the highest and lowest values and averaging the remaining values.

What Causes Rates to Go Up In New Jersey?

Let’s start by asking, “Why is insurance expensive in New Jersey to begin with.” There are some factual answers. To begin with, New Jersey is an urban area with mainly a high population density. That always adds cost to insurance. New Jersey is also located in a very busy corridor for traffic. That congestion only adds to the risk of a crash, and thus raises rates. Finally, New Jersey is not the hurricane magnet that Florida is, but it has had its share of recent disasters that added cost to auto premiums.

Insurers also say that New Jersey’s way of handling personal injury and protection (PIP) is unusually expensive. The default is $250K. Some drivers can carry less, but few opt to do so. That drives up the average. However, only in comparison to states that allow for lower protection.

Helping New Jersey’s costs is a low ranking for drunk driving deaths. In fact, New Jersey is one of the lowest states for drunk driving deaths per population. Perhaps drivers in New Jersey know that one DUI can more than double your insurance costs.

How Do Accidents Affect Rates In New Jersey?

Crashing your car means you win the bet. You just beat your insurer who was betting that you would not crash. Congratulations! Now pay up going forward. The house always wins. If you trade paint with another motorist, your insurance rate is going to go up. Exactly how much is known only to the insurer you have. New Jersey is one of the majority states that uses a “no-fault” system. That actually helps reduce costs overall. But not much.

Here are the best estimates we could find from various sources on how much one accident will raise your policy premium in New Jersey:

This information is just an approximation. Many factors can change how much your insurance goes up after you have one accident. For example, if you’ve paid more in your annual insurance cost to be a part of an accident forgiveness program, your increase for one accident is nothing, but your overall cost of insurance is higher every year than if you hadn’t. Almost all of the insurers on our list above of cheap insurance providers, and many others, offer this option which was popularized by Allstate.

How Do Traffic Tickets Affect Rates In New Jersey?

Breaking the law gives your insurer an excuse to raise rates. One they are not going to pass up. How much the sting will be varies based on the type of ticket and the severity of the offense.

Here is the data we could dig up on the percent increase range a ticket will raise your car insurance policy premium in New Jersey:

How Can You Get Car Insurance Discounts in New Jersey?

The most significant discount you can realize in New Jersey is to move to a location with lower rates. Even just being outside of the downtown area can help. Move to a county with lower claim rates and you may save as much as 20% per year. We looked at the comparative costs of insurance by county and found that those living in Hudson County pay about 20% more than those living in Union or Morris. But moving comes with a lifestyle change many are not willing to make.

The easier way to manage your insurance costs is to avoid having accidents and getting speeding tickets. And your car and phone apps can help. Avoiding accidents has gotten easier in recent years as vehicles with adaptive cruise control and automatic emergency braking systems have come to market, even in affordable vehicles like the Hyundai Elantra and Toyota Camry. Ironically, insurers don’t discount cars with those systems yet because they cost a lot to repair (so they say…)

Avoiding speeding tickets in New Jersey is harder than in some states. The speed limit in Texas on a lonely state highway is as much as 35 MPH higher than in New Jersey. However, apps like Google Maps Waze to help you know where the speed traps are and warn you to slow down.

We also have an entire story on the tens of thousands of discount programs available, based on memberships, military service, and other associations. Some of the more common meaningful discounts relate to low mileage driving, bundling with your home owner’s policy, and carrying high deductibles. Students take note: Many insurers will offer good students a discount. Parents take note: If your kid is at college more than 100 miles away you may see big savings.

What’s the Minimum Coverage Allowed in New Jersey?

Insurance is required by law in New Jersey. To drive in New Jersey, you must have at least $15,000 in liability coverage for each injured person, up to a total of $30,000 per accident, and $5,000 for property damage per accident. This basic coverage is called 15/5/30. Almost no homeowner with any assets will buy just the basic coverage required by law. More typical is coverage on the order of 100/300/50.

Nearly every state’s minimum is way too low. If you have a vehicle loan or lease, or own a home, you will find that you are required to carry higher levels of coverage to satisfy other agreements and responsibilities you have. Our focus in this story is on cheap car insurance. However, for a full list of all the coverage you may want to buy, check out the New Jersey Department of Banking and Insurance’s page on coverage. It helps explain the difference between basic, standard, and optional coverage.