If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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|
1 accident on driving record|
1 speeding ticket on driving record|
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:
Drivers seeking New Jersey minimum car insurance must carry the following:
Focus on these three areas to get the best possible rate on your New Jersey auto insurance.
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.
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.
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:
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.
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).
Our Insurance Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2024 The Ascent. All rights reserved.