Compare Cheap Car Insurance in New Jersey

• Full coverage auto insurance in New Jersey costs $2,781 annually on average. Minimum coverage costs an average of $1,431 annually.
• GEICO and NJM have the lowest average rates for most driver profiles.
• State Farm, Travelers, and Progressive also have below-average rates for many driver profiles.

Not only does NJM offer some of the cheapest rates for most driver categories in New Jersey, but it also has the highest customer satisfaction ratings. It’s a good idea to compare rates from multiple companies, as your rates may differ from the average, but NJM will be a solid option for many drivers in the Garden State.

1. Maintain a clean driving record: The safer you drive, the less of a risk you are to your insurer, and that means that your insurer can offer you a lower premium. The best way to demonstrate your prudent driving is by maintaining a clean driving record, free from traffic violations and accidents.
2. Choose a limited tort policy: New Jersey allows drivers to choose between a limited tort policy (no-fault) or a standard tort policy (standard at-fault policy). Limited tort policies will come with lower premiums, but they also limit your ability to sue for non-economic damages following an accident.  8436208326274446692OP.
3. Bundle policies: Most insurers offer discounts if you combine auto insurance with homeowners or renters — it boosts their profits overall if you buy multiple products from them.
4. Sign up for a telematics program: Many New Jersey auto insurance providers offer discounts if you sign up for a telematics program. In these programs, your insurer will provide you either a plug-in device or an app that monitors your driving behavior. If you drive safely, according to the device’s or app’s measurements, you’ll get a discount on your insurance. But be careful: with some telematics programs, driving over the speed limit and other risky behaviors can actually increase your premium.

Increase your deductibles: If you increase your deductibles (the amount of money you need to pay out of pocket in case of a claim before your insurance kicks in), you’ll save money on your premium. However, keep in mind that there’s a risk here: you’re essentially sharing more of the risk with your insurer, which means you’ll have a lower premium, but you’ll be exposing yourself to more financial risk.

New Jersey car insurance costs depend, in part, on where you live. Even within a state, rates can sometimes vary significantly. Newark has the most expensive auto insurance rates in New Jersey at $4,103 per year on average. Rates are significantly lower in Jersey City at $3,601 annually. Drivers outside of major cities can expect to pay even less.

While New Jersey’s previous liability requirements were minimal compared to most other states, it increased its minimums. As of January 1, 2026, New Jersey requires these limits:

• Bodily injury liability: $35,000 per person/ $70,000 per accident
• Property damage liability: $25,000 per accident
• Personal injury protection: $15,000
• Uninsured/underinsured motorist coverage: $35,000 per person/ $70,000 per accident

It’s strongly recommended that New Jersey drivers opt for more robust protection. In major accidents, damages can easily exceed the minimum limits and leave you responsible for remaining costs. In addition, consider adding full coverage if you have a newer car (and your lender may require it if you leased or financed).

We analyze average auto insurance premiums in New Jersey for full and minimum coverage for good drivers with good credit. We also analyzed premiums for drivers with speeding tickets, at-fault accidents, low credit, DUIs, or households with teens. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $50,000 per accident
• Personal injury protection: $15,000
• Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible