How Much Does Auto Insurance Cost in New Jersey?
rivers in New Jersey can compare multiple cheap car insurance coverage options with free insurance quotes & rates from local providers. We will break down the average auto insurance policy costs in this guide based on different driver demographics in NJ.
- State minimum liability on average in New Jersey costs $118 a month or $1,411 a year. Full coverage auto policies costs around $298 a month or $3,579 a year in NJ.
InsuranceQuotes cost rates are pulled from our real-time auto insurance database from recent quotes in New Jersey – Rates are based on a used car driver who is single, middle aged & has a clean driving record. Read on to learn about the cheapest local rates filtered by insurance providers, new cars, vehicle types and age.
Who Has the Cheapest Car Insurance in New Jersey?
- In New Jersey on average the cheapest auto insurance providers are GEICO and Progressive. State minimum liability coverage starts at $63 a month or $759 a year – Full coverage would cost around $181 a month or $2,166 a year.
Cheapest Providers:
| Insurance Provider: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| NJM Insurance: | $759 | $63 | $2,166 | $181 |
| GEICO: | $931 | $78 | $3,046 | $254 |
| Progressive: | $1,158 | $97 | $2,642 | $220 |
| Allstate: | $1,377 | $115 | $3,990 | $333 |
| State Farm: | $2,829 | $236 | $6,050 | $504 |
| Average Costs: | $1,411 | $118 | $3,579 | $298 |
Car Insurance Rates for Popular New Jersey Cities:
Getting local car insurance quotes in New Jersey will be based on your city. Drivers living in more popular urban city areas often pay more than those who live in more urban areas. Use the table below to search for your city and see how much on average you should be paying locally for minimum and full coverage policies.
| New Jersey City: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Absecon | $1,724 | $144 | $3,885 | $324 |
| Adelphia | $1,418 | $118 | $3,537 | $295 |
| Allendale | $1,279 | $107 | $3,364 | $280 |
| Allenhurst | $1,384 | $115 | $3,441 | $287 |
| Allentown | $1,287 | $107 | $3,319 | $277 |
| Allenwood | $1,253 | $104 | $3,102 | $258 |
| Alpha | $1,042 | $87 | $3,204 | $267 |
| Alpine | $1,565 | $130 | $3,786 | $315 |
| Andover | $1,075 | $90 | $3,232 | $269 |
| Annandale | $1,028 | $86 | $3,175 | $265 |
| Asbury | $1,028 | $86 | $3,175 | $265 |
| Asbury Park | $1,384 | $115 | $3,441 | $287 |
| Ashland | $1,452 | $121 | $3,515 | $293 |
| Atco | $1,650 | $138 | $3,876 | $323 |
| Atlantic City | $1,873 | $156 | $4,519 | $377 |
Popular NJ City Cost Guides:
Auto Insurance Rates by Age
In New Jersey, age is a significant factor that influences your auto rates. Generally, younger drivers tend to face higher annual premiums compared to older, more experienced drivers.
Statistics show that younger drivers, particularly teenagers and individuals in their early twenties, are more likely to be involved in accidents due to their limited driving experience and potential risky behavior on the road.
* Full Coverage Average Costs:
- 17 – 25 years: $6,747 yearly – $562 monthly
- 25 – 54 years: $3,290 yearly – $274 monthly
- 55+ years: $3,357 yearly – $280 monthly
* State Minimum Liability Average Costs:
- 17 – 25 years: $2,610 yearly – $218 monthly
- 25 – 54 years: $1,379 yearly – $115 monthly
- 55+ years: $1,435 yearly – $120 monthly
Here is a breakdown of the average costs for car insurance based on age in New Jersey:
| Age: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| 17 | $3,621 | $302 | $9,397 | $783 |
| 18 | $3,256 | $271 | $8,358 | $697 |
| 20 | $2,441 | $203 | $6,414 | $535 |
| 22 | $2,017 | $168 | $5,158 | $430 |
| 24 | $1,716 | $143 | $4,408 | $367 |
| 29 | $1,445 | $120 | $3,588 | $299 |
| 34 | $1,377 | $115 | $3,319 | $277 |
| 39 | $1,385 | $115 | $3,295 | $275 |
| 44 | $1,387 | $116 | $3,265 | $272 |
| 49 | $1,364 | $114 | $3,217 | $268 |
| 54 | $1,315 | $110 | $3,057 | $255 |
| 64 | $1,300 | $108 | $3,013 | $251 |
| 74 | $1,464 | $122 | $3,435 | $286 |
| 76 | $1,540 | $128 | $3,625 | $302 |
Does Vehicle Type Affect Coverage Costs?
The type of vehicle you drive in New Jersey will affect the overall costs of car insurance.
To determine how much you can expect to pay for your insurance based on vehicle type we averaged multiple cost quotes in NJ and pulled data for vehicles such as a Toyota Camry, Chevrolet Bolt, BMW 4 Series, Honda CRV and Nissan Titan.
We pulled data from New Jersey insurance policy cost records across multiple providers. Our table displays the average costs associated with vehicle types for state minimum vs. full coverage policies of a driver who is single, middle aged, has a clean driving record, for a used vehicle:
| Vehicle Type: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Car (4door): | $1,571 | $131 | $3,130 | $261 |
| Hybrid Electric: | $1,418 | $118 | $3,183 | $265 |
| Luxury Coupe: | $1,326 | $110 | $4,044 | $337 |
| SUV: | $1,342 | $112 | $2,637 | $220 |
| Truck: | $1,393 | $116 | $3,211 | $268 |
How Much is Insurance for a New Car in NJ?
Newer vehicles are often more expensive to insure since they cost more to repair and have higher rates of theft. However, coverage is sometimes cheaper than older models of the same vehicle because of enhanced security features on newer models.
We pulled insurance cost rates data for new 2022-2023 vehicles to give you an idea of the difference in coverage price for newer cars vs. used vehicles:
| New Vehicle Type: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Car (4door): | $1,388 | $116 | $3,391 | $283 |
| Hybrid Electric: | $1,348 | $112 | $3,469 | $289 |
| Luxury Coupe: | $1,223 | $102 | $4,502 | $375 |
| SUV: | $1,262 | $105 | $2,872 | $239 |
| Truck: | $1,360 | $113 | $3,674 | $306 |
How Much Car Insurance Do I Need?
New Jersey car insurance regulations require drivers to have certain minimum coverage in order to legally operate a vehicle on the state’s roads. Here are the key car insurance requirements in New Jersey to decide how much car insurance you need:
- Liability Insurance: New Jersey requires drivers to have liability insurance, which includes both bodily injury and property damage coverage. The minimum liability limits are typically represented as 15/30/5, which means:
- $15,000 bodily injury liability coverage per person
- $30,000 bodily injury liability coverage per accident
- $5,000 property damage liability coverage per accident
- Personal Injury Protection (PIP): New Jersey follows a no-fault insurance system, so drivers are required to carry Personal Injury Protection (PIP) coverage. PIP helps cover medical expenses, lost wages, and other costs related to injuries sustained in a car accident, regardless of who is at fault.
- Uninsured/Underinsured Motorist Coverage: While not mandatory, New Jersey car insurance policies must offer uninsured/underinsured motorist coverage. This coverage helps protect you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage to fully compensate you for damages.
These are the minimum coverage requirements in New Jersey. However, it’s important to note that these minimums might not provide sufficient coverage to fully protect you in more serious accidents. Many drivers opt for higher coverage limits and additional optional coverages like comprehensive and collision coverage to provide broader protection.
The New Jersey Motor Vehicle Commission (MVC) regulates these requirements. The MVC can offer advice when it comes to reducing your insurance costs. Some advice includes the following:
- Check for available discounts.
- Consider choosing higher deductibles.
- Consider choosing a limited right-to-sue clause.
- If you’re a student, maintain good grades for a potential student discount.
Finding Auto Insurance Resources
To find an auto insurer that is licensed to cover you in New Jersey, you can use the Department of Banking & Insurance (DBI) auto insurance finder. This auto insurance finder allows you to search for a provider or agent according to your vehicle type. You can also narrow your search to the insurance you require or just
The DBI also allows you to use an interactive auto insurance planning tool. This tool helps you determine which type of insurance is right for you and how much coverage you need.
Useful Tips for Drivers
If you want to reduce the cost of your auto insurance, you can take a defensive driving course. Insurance companies often offer a discount to drivers who complete the course as they are deemed less of a risk.
If you just want to meet the basic insurance requirements in New Jersey and save money, take out a basic policy. It is worth keeping in mind this policy limits your coverage significantly. If you want enhanced protection, opt for the standard policy.
If you’re enrolled in certain Medicaid programs, you may qualify for a low-cost auto insurance program. This type of insurance only covers medical costs, which New Jersey requires, but can save Medicaid users a significant amount of money.
Moving to New Jersey: Important Information
If you move to New Jersey from another state, transfer your title and registration. To do this, visit your local MVC agency and complete the following steps:
- Fill out the sales tax stamp.
- Complete an application for ownership.
- Pay a title fee.
If you are moving to New Jersey from another country, you’ll need to follow special regulations to drive in the state. In order to drive your foreign vehicle in New Jersey, you must put your request in writing to the MVC. You must also register for a New Jersey title following the normal rules.
Understanding Driving Laws in New Jersey
If you are under the age of 21 or you are new to driving, you must complete a period of supervised driving. In order to drive alone, you must complete one of the following programs:
- The Early Bird Road (for drivers 16 and older).
- The Young Adult Road (for drivers 17 and older).
- The Adult Road (for drivers 21 and older).
New Jersey observes strict speed laws. To prevent acquiring points on your license and raising your insurance premium, you must follow them. These laws are:
- 25 mph in school zones and business and residential areas.
- 35 mph in low-density areas.
- 55 to 65 mph on certain highways, interstates and turnpikes.
In New Jersey, you can’t use handheld electronic devices while you’re in control of a car. Those caught talking or texting with a cellphone while driving (unless using a hands-free device) face a fine of $100 as a first-time offender.
Frequently Asked Questions
1. How is your right to sue affected by your New Jersey auto insurance policy?
Both the unlimited right to sue and limited right to sue policies cover emotional pain and suffering. They don’t cover economic losses. You can sue for medical expenses under both plans.
2. What deductible should you choose?
The deductible you choose when taking out your auto insurance policy should depend on how much you can afford to pay now and in the long run. If you want a lower monthly premium, choose a higher deductible. However, ensure you are able to afford to pay the deductible in the event of an accident.
3. What is personal injury protection?
When driving in New Jersey, or any state, you cannot rely on other drivers to have adequate insurance. Personal Injury Protection (PIP) covers expenses from accidents if the other driver is not insured. Taking out this insurance ensures you do not face hefty medical bills without coverage.
