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The Best Cheap New Jersey Car Insurance for 2022

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Auto insurance laws are no joke, and if you want to drive in the state, you're probably looking for the cheapest car insurance in New Jersey. We've combed through carriers to find the best car insurance in New Jersey with low-cost options.

  • Cheapest for typical drivers: Geico
  • Cheapest for drivers with one accident: Selective
  • Cheapest for teen drivers: Geico
  • Cheapest for drivers with one speeding ticket: Geico
  • Cheapest for drivers looking for minimum coverage: Geico

Cheapest for typical drivers

When it comes to cheap auto insurance in New Jersey, it pays to be a good driver. When we searched New Jersey car insurance quotes, we found that a safe driver with a clean driving record can land a low cost car insurance policy with Geico for around $1,550 annually (or $129 per month).

Geico

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Best for price conscious consumersGeico
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Other companies with affordable car insurance include:

  • Selective, with an average annual rate of $1,692
  • NJ Manufacturers, coming in with an average yearly rate of $1,957

Cheapest for drivers with one accident

Drivers who were at fault for an accident quickly learn that their rates can increase until the accident falls off their driving record. With an annual average rate of $1,798, Selective appears to be one of the best car insurance companies in New Jersey for drivers who've been in an accident.

Selective

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Selective
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4.00 stars
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Selective is followed by:

  • New Jersey Manufacturers Insurance, with an average rate of $1,962
  • Geico, with an average annual rate of $2,284

Cheapest for teen drivers

Learning how much car insurance is in New Jersey for young drivers is enough to make you feel faint. When it comes to insurance coverage for teen drivers, Geico is the clear winner, offering an average annual rate of $3,034 ($253 per month). If that sounds expensive, it may help to put it in perspective. The average rate for teen drivers (including major insurance carriers) is $8,595 per year. Geico's rates don't look so bad in comparison.

Other carriers worth consideration are:

  • New Jersey Manufacturers, with an annual rate of $3,922
  • Selective, coming in with a rate of $4,302

Cheapest for drivers with one speeding ticket

A driver is not expected to pay an arm and a leg for a single speeding ticket. Still, it does boost the price of auto insurance by a bit. Geico offers drivers with one ticket an average annual rate of $1,503.

Other contenders include:

  • Selective, with a rate of $2,757
  • NJ Manufacturers, coming in with an average rate of $2,415

Cheapest for drivers looking for minimum coverage

Drivers looking for cheap liability car insurance in New Jersey have a few great options. The winner in this category is Geico, with an average rate of $597.

Other companies offering low rates are:

  • NJ Manufacturers, offering an average annual rate of $886
  • Selective, ringing in with an average rate of $908

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.

Ask the experts

Susan Hume, Ph.D.

Susan Hume, Ph.D.

Associate Professor of Finance at The College of New Jersey

What additional coverage do you recommend specifically for New Jersey drivers?

NJ law requires a car owner to have minimum car insurance to cover some of the financial liability for property damage and personal injury. The minimum policy types are standard and basic. The basic, cheaper policy is very minimal coverage, while a standard policy covers bodily injury, personal injury protection, and property damage. Let’s consider the standard minimum coverage as it is comparable across many states.

Consider adding:

  • Collision insurance to repair or replace your vehicle if it's damaged in an accident. New cars are expensive to replace. Or consider buying a car that is last year’s model, which will be less expensive to insure.
  • Comprehensive insurance to cover the cost of loss due to events out of your control, such as bad weather, vandalism, and wild animal damage. In my family, deer have unexpectedly jumped on our cars on two separate occasions.
  • Uninsured motorist coverage. This protects New Jersey residents because it has higher averages of uninsured/underinsured drivers due to higher average costs of auto insurance.

For New Jersey drivers that don’t have a clean driving record, what can they do to improve their insurance rate?

My family lives in a very stressful time and are driving in the most urbanized state in the U.S. with lots of traffic. Accidents are just that -- accidents. Learn about defensive driving courses, which are online opportunities to learn to stop tailgating, reduce speeding, and provide a bubble cushion for allowing your car to stop safely. The state accepts some instructional programs to help reduce your point offensives.

Consider an insurance usage program. This is a plug-in device that will track your actual driving and customize a policy for you. Finally, commit to managing your stress, like with deep breathing exercises.

Why do you think drivers in New Jersey pay about 40.6% more than the national average?

Car insurance costs are reflected in population density and urbanization, age (younger drivers have more accidents due to needing more driving experience), and miles driven. Our commuting times are among the highest in the country, cost of repairs are higher than nationwide, and we have higher health care costs. New Jersey’s higher costs reflect these economic and demographic conditions.

Another factor in determining higher premiums is a customer's socio-economic status, which is unfairly impacted by their race.

For example, African American renters who were unmarried, single, or in divorced relationships had higher premiums than white renters of similar marital status. Plus, African American homeowners with professional occupations had smaller discounts than their white peers.

As a result, several states have required that occupation, credit history, and rental status be stopped as risk factors used for determining premiums. Still, further reform is needed to stop the institutional bias of higher premiums for a given level of risk to drivers of color.

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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