Best Car Insurance in New Jersey in April 2024

New Jersey auto insurance rates are significantly higher than the national average. That's tough for drivers to swallow, but those who choose the best car insurance in New Jersey can often find coverage for far less.

Here's a closer look at the top companies for various types of drivers, along with key information all drivers in New Jersey should know.

Best auto insurance in New Jersey:

• Best overall: NJM Insurance
• Best budget pick: Geico
• Best for typical drivers: NJM Insurance
• Best for customer satisfaction: State Farm
• Best for minimum coverage: Geico
• Best for military veterans: NJM Insurance
• Best for teen drivers: NJM Insurance
• Best for drivers with one speeding ticket: NJM Insurance

Best car insurance in New Jersey overall: NJM Insurance

NJM Insurance is our pick for the best car insurance in New Jersey, thanks to its comprehensive policies and competitive rates. Customers have also given the company above-average ratings for overall customer service and claims handling.

Best budget pick: Geico

Geico is a strong contender for those on a tight budget. Its average annual premium in the state is just $1,870 -- well below the state average of $4,316 per year. However, its customer service isn't rated as highly as some of the other companies listed here.

Best for typical drivers: NJM Insurance

Drivers with clean records can find affordable rates and excellent service with NJM Insurance. Its average annual premium for these drivers is just $1,988. By contrast, the state average is a whopping $3,285 per year.

Best for customer satisfaction: State Farm

State Farm is an excellent choice for those who place a premium on helpful service. It earned one of the highest scores in the Mid-Atlantic region of J.D. Power's most recent U.S. Auto Insurance Study, and it was also in the top five of J.D. Power's U.S. Auto Claims Satisfaction Study. The company has an A rating with the Better Business Bureau as well.

Best for minimum coverage: Geico

Price is typically the most important factor for those seeking minimum coverage. The New Jersey average is a costly $1,434 per year. But those who go with Geico can get the same coverage for just $545 per year.

Best for military veterans: NJM Insurance

Military veterans can also find something to appreciate with NJM Insurance. While it doesn't offer military-specific discounts, it does have some of the most affordable rates for military members and veterans. Their average annual premium is just $1,990.

Best for teen drivers: NJM Insurance

Teen drivers pay some of the highest average New Jersey car insurance rates at $9,202 per year. But NJM offers them a much more reasonable $3,978 per year. The company also offers Good Student and Defensive Driving course discounts that could help teens save even more.

Best for drivers with one speeding ticket: NJM Insurance

Drivers with a single speeding ticket see their average New Jersey auto insurance premiums rise to $4,256 per year. But those who go with NJM pay just $2,461 per year typically.

How much does car insurance cost in New Jersey?

New Jersey car insurance is well above the national average of $3,017 per year. The table below gives the typical monthly and annual premiums for several common driver personas. But keep in mind that actual rates will vary depending on the driver in question, their vehicle make and model, their location within the state, and more.

New Jersey auto insurance laws

Here are a few auto insurance laws all New Jersey drivers need to be aware of:

New Jersey is a no-fault state

New Jersey is one of the country's few no-fault states. This means that in the event of an accident involving injuries, all drivers bill their own insurance, regardless of who was at fault. This is different from at-fault states where the driver who caused the accident must pay for the hospital bills for all parties involved.

Consequences for driving without insurance in New Jersey

New Jersey drivers who skip the state's minimum coverage could face the following penalties:

• Fines
• Community service
• License suspension
• Insurance surcharges

What is the minimum car insurance required in New Jersey?

New Jersey has an unusual approach to minimum car insurance coverage. Drivers may either opt for basic coverage or standard coverage.

Basic coverage

This coverage includes:

• $5,000 of property damage liability coverage
• $15,000 of personal injury protection (PIP) with coverage up to $250,000 for certain injuries

However, this policy also gives drivers limited rights to sue for damages in severe accidents.

Standard coverage

The standard coverage option is closer to what most of the rest of the country requires. Drivers who go this route must have at least:

• $25,000 of bodily injury liability coverage per person
• $50,000 of bodily injury liability coverage per accident
• $25,000 of property damage liability coverage per accident
• $15,000 of personal injury protection (PIP)

The standard policy option gives drivers the right to choose between an unlimited right to sue for pain and suffering and a limited right to sue.

Other things to consider when looking for car insurance in New Jersey

Here are a few other things New Jersey drivers should keep in mind when shopping for car insurance:

New Jersey has the lowest rate of uninsured drivers

Perhaps due to the state's flexible coverage options, only 3.1% of its drivers lack insurance. But as the coverage requirements outlined above show, it's possible to have insurance and still come up short in a severe accident. Drivers who want to be well-protected should purchase higher limits if they're able to.

State minimum coverage doesn't protect the policyholder's vehicle

New Jersey minimum auto insurance pays for damages to other people's property and the policyholder's medical care. But it doesn't cover repairs to the policyholder's vehicle following a crash. Those who want help with these bills will find what they need with collision and comprehensive coverage.

How to find the best car insurance in New Jersey

Here are a few things New Jersey drivers can do to keep their costs manageable:

• Shop around: All providers charge unique rates to a driver based on their own risk assessment formulas. Comparing rates is the best way to find out which offers the most favorable rate for a specific person.
• Watch out for discounts: Drivers with unique situations, like those who own hybrid vehicles, could find big savings by seeking out insurers who offer car insurance discounts for these things.
• Raise the deductible: A higher auto insurance deductible reduces monthly premiums. But drivers who do this may feel safer saving for the deductible in an emergency fund so they aren't caught off guard in the event of an accident.