All drivers in New Jersey must take out an auto insurance policy that meets the state’s minimum liability requirements. Finding cheap car insurance in New Jersey is not easy and the amount you pay depends on many factors. The average cost of minimum liability coverage in New Jersey is around $846 per year, while you could find yourself paying as much as $1,828 on average for full coverage. However, you can make certain choices when buying insurance that can help lower your premium.
Cheapest New Jersey Car Insurance
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Quotes from insurance companies can vary wildly, and by comparing quotes, you can save yourself hundreds of dollars. The average cost of a minimum coverage auto policy in New Jersey from insurers is:
- State Farm: $427 per year or $36 per month
- Geico: $476 per year or $40 per month
- Plymouth Rock: $724 per year or $60 per month
- NJM: $854 per year or $71 per month
- Progressive: $990 per year or $82 per month
- Allstate: $1,104 per year or $92 per month
- Travelers: $1,346 per year or $112 per month
For full coverage car insurance in New Jersey, the average cost per year is:
- Geico: $1,134
- Plymouth Rock: $1,332
- State Farm: $1,558
- NJM: $1,769
- Progressive: 1,909
- Travelers: $2,531
- Allstate: $2,562
Full insurance coverage includes collision and comprehensive coverage, while minimum coverage does not.
Minimum Car Insurance Coverage in New Jersey
Unlike in other states, drivers in New Jersey have the option of a Basic or a Standard insurance policy, which provides drivers with potential monthly insurance savings.
For cheap car insurance in NJ, drivers can choose the Basic Policy, which provides the bare minimum of coverage:
- Optional bodily injury liability of $10,000 for all people per accident
- Property damage liability of $5,000 per accident
- Personal injury protection of $15,000 per accident, or up to $250,000 for certain specific significant or permanent injuries
While this is the cheapest option, it may not provide sufficient cover for your circumstances, so it’s important to consider your needs and budget before purchasing this type of insurance.
The majority of drivers in New Jersey opt for the Standard car insurance policy, which offers additional minimum coverage:
- Bodily injury liability of $15,000 per person, or $30,000 per accident
- Property damage liability of $5,000 per accident
- Personal injury protection of $15,000, or $250,000 for specified injuries
- Uninsured or underinsured motorist coverage for $15,000 of bodily injury liability per person or $30,000 per accident, and $5,000 per accident for property damage
With the Standard Policy, you can choose to increase the amount of liability for each category, which would give you more protection, but increases the premium you pay. You can also add collision and comprehensive coverage
Drivers who fail to take out at least the minimum car insurance could have their license suspended and receive a fine. Repeat offenders could be looking at a jail sentence.
Factors that Affect Insurance Premiums
The amount you pay for your car insurance in New Jersey can be affected by many factors. Your age and experience, vehicle usage, your driving record, where you live, the age and value of your car, the level of coverage and the deductible you choose, and even your marital status can be taken into account by insurance companies when they give you a quote. For example, on average:
- A 16-year-old will pay 341% more than a 55-year-old
- A driver who’s had their license suspended will pay 116% more than a driver with a clean record, and a driver with a DUI will pay 94% more
- A married driver will pay 3% less than a single driver
A driver who’s been involved in an accident, even when not at fault, is deemed by insurers to be more likely to have another accident, meaning you’ll pay more for your insurance. One of the best ways to get cheap car insurance in NJ is to drive responsibly and maintain an unblemished driving record.
The deductible is the amount of an insurance claim that you’re responsible for before your insurer pays out. For instance, if you have a $500 deductible, and you have an accident resulting in a total claim of $1,500, you will pay $500 and your insurer will pay the remaining $1,000.
The higher the deductible you choose, the lower your premium will be, but the more you’ll be out of pocket after an accident.
Depending on your insurance company, you may be eligible for certain discounts on your insurance policy to help you get cheap car insurance in NJ. If your insurer considers you to be a safe and responsible driver, you could get the following discounts:
- Defensive driving discount: A defensive driving course teaches drivers safe driving techniques that can help reduce accidents or lessen their impact. New Jersey drivers could get up to 10% by voluntarily finishing an approved defensive driving course.
- Good student discount: Young New Jersey drivers who are full-time students, have eight or fewer years driving experience, and have at least an average B grade, could save up to 15% on certain insurance coverages.
- Good driver discount: New Jersey drivers who’ve had no accidents for five years or more could receive up to 22% discount on their insurance.
- Usage Based Discount: Some insurance companies offer the option of having a tracking device fitted to your car, or a smartphone app to track your driving style and how often you drive. Joining the program could get you a discount of up to 30%.
Other discounts may be available for New Jersey drivers whose cars are equipped with certain factory installed safety and security features. You can get additional loyalty discounts for insuring more than one vehicle with your insurer, or taking out additional policies such as home insurance.
Hopefully, this article will help you make informed choices for finding cheap car insurance in New Jersey. It is important to make sure you have the right coverage for your needs and that you compare quotes from different insurers to get the best deal.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.