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Best Car Insurance in New Jersey in March 2024

Updated
Kailey Hagen
By: Kailey Hagen

Our Insurance Expert

Jamie Matthews
Check IconFact Checked Jamie Matthews
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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.

Average car insurance cost in New Jersey compared to the national average

The average rate for auto insurance in New Jersey is $4,229. That's 32% higher than the national average rate of $2,875.

AVERAGE RATE CATEGORY NEW JERSEY NATIONAL AVERAGE
Overall $4,229 $2,875
Young drivers $9,041 $6,087
1 accident on driving record $4,828 $3,226
1 speeding ticket on driving record $4,165 $2,840
Data source: Quadrant data.

New Jersey auto insurance laws

New Jersey car insurance laws make it clear that driving without insurance can be costly. Here's what a driver can expect if they're pulled over in the Garden State without proof of insurance:

  • First offense: A fine between $300 and $1,000, community service, and one-year mandatory license suspension
  • Second (or subsequent) offense: A fine up to $5,000, 30 days community service, a two-year mandatory license suspension, and 14 days in county jail

New Jersey minimum coverage requirements

Drivers seeking New Jersey minimum car insurance must carry the following:

  • $15,000 in bodily injury per person
  • $30,000 in bodily injury per incident
  • $5,000 in property damage

How to get cheap auto insurance in New Jersey

Focus on these three areas to get the best possible rate on your New Jersey auto insurance.

Driving record

Drivers with a clean driving record are offered the best rates. If you're concerned about the price of New Jersey auto insurance, focus on how you're driving. Avoid speeding tickets or other blemishes on your record.

Credit score

Insurance industry studies have shown that drivers with strong credit scores also tend to be safe drivers with fewer insurance claims. That's why insurers routinely offer a lower rate quote to people with high credit scores. If your credit score is not as high as you would like, take steps to boost that number. Drivers who raise their scores can often get lower auto insurance rates.

Discounts

Car insurance discounts are a great, easy way to snag a lower rate. While searching for the best insurance companies in New Jersey, check out their discounts. Many drivers are surprised by how much they can save. Here are some discounts to look for:

  • Good student discount
  • Defensive driver discount
  • Pay-in-full discount
  • Away-at-school discount
  • Occupational discount
  • Alumni discount
  • Professional organization discount
  • Safety feature discount
  • Usage-based discount
  • Multi-car discount
  • Multi-policy discount
  • New car discount

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

Any driver looking for more proof that minimum auto insurance coverage (at very the least) is a necessity need look no further than the state Motor Vehicle Commission (MVC). MVC charges a mandatory surcharge to drivers who have had their license suspended due to lack of insurance. So, in addition to paying for an insurance policy and possibly an SR-22 (proof of insurance sent from an insurer to the MVC), a driver will likely be hit with a $250 reinstatement fee before they can legally get back on the road.

FAQs

  • Overall, the cost of auto insurance in New Jersey is 32% higher than the national average. Still, there are things policyholders can do to keep rates on the low end (see next question).

    • Protect driving record by avoiding accidents, speeding tickets, and other driving violations.
    • Keep credit score high (drivers with higher credit scores tend to file fewer claims, so they often get better rates).
    • Drive a car that is less expensive to insure.
    • Choose a higher deductible, if it's affordable.

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