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Published: May 12, 2022Last updated: October 20, 2022

Cheap Car Insurance in New Jersey

The state will find a provider for you if you can’t find an affordable option.

Along with the cost of living, car insurance rates are high in New Jersey. They’re so high, in fact, the state offers a program that provides affordable car insurance to its residents. We’ll further explain the program and more to help you find the lowest rate possible in the Garden State.

Cheap Car Insurance in New Jersey

Find the lowest rate with these auto insurance firms based on the criteria you meet:

Category Criteria Insurance company Price
Gender Males Metromile $1,200
Females Metromile $1,356
Age and gender Male teens GEICO $2,108
Female teens GEICO $2,099
Age 16-year-olds GEICO $2,235
17-year-olds GEICO $2,203
18-year-olds GEICO $2,158
19-year-olds GEICO $2,120
Adults in their 20s GEICO $539
Adults in their 30s GEICO $516
Adults in their 40s GEICO $532
Adults in their 50s Amica $516
Adults in their 60s GEICO $532
Adults in their 70s GEICO $1,002
Coverage amount Minimum coverage New Jersey Manufacturers $370
Full coverage GEICO $1,035
Credit score Excellent or good GEICO $1,058
Bad credit Selective $2,114
Driving record Good GEICO $468

These are the top 10 car insurance companies for New Jersey drivers:

  • Allstate
  • Farmers
  • GEICO
  • Liberty Mutual
  • New Jersey Manufacturers (NJM)
  • Palisades Group
  • Progressive
  • Selective
  • State Farm
  • Travelers

How to Obtain the Cheapest Premiums

Follow these tips to purchase the best — and cheapest — coverage possible:

  1. Opt for minimum coverage. New Jersey is one of four states — along with Florida, New Hampshire, and Virginia — that doesn’t require bodily injury coverage. Normally, bodily injury coverage is part of liability insurance. You can get away with buying $5,000 worth of property damage liability coverage and up to $250,000 of personal injury protection (PIP) for certain injuries.1 Even though your premiums are lower, understand if you cause injuries to another party or damage your property, you will be financially responsible.
  2. Use the New Jersey Automobile Insurance Plan or Special Automobile Insurance Policy. New Jersey provides two programs for those who can’t afford insurance and for those with certain forms of Medicaid. Learn more about these low-cost options below.
  3. Raise your deductible. Raising your deductible for collision and comprehensive coverage will lower your premium. However, you’ll be held more financially responsible for covered insurance claims should an accident occur. These coverages aren’t required in New Jersey, so you could save the most by dropping them.
  4. Bundle policies. Bundle all your insurance policies — such as home or life insurance — under the same provider to save on all of them.
  5. Request discounts. Every company offers different deductions, including discounts for federal employees and students with good grades. So don’t be afraid to ask your agent which discounts to take advantage of.
  6. Take a defensive driving course. Some insurance companies, like State Farm, will let you take a defensive driving course if you have a speeding ticket or other traffic violation.
  7. Raise your credit score. Improve your credit score to truly find the cheapest auto insurance rates. Higher credit score applicants will acquire lower rates than New Jersey drivers with poor credit scores.

CheckFYI:

Plymouth Rock offers discounts to New Jersey drivers for various reasons, including accident-free driving, completing a defensive driving or driver training course, getting good grades, bundling home and auto, and insuring multiple cars on one policy.

Minimum Coverage: Is It Enough?

Since New Jersey is a no-fault state like Florida, drivers are responsible only for the property damages they cause to someone else in at-fault accidents, and must obtain property damage coverage of $5,000. However, every driver is responsible for their own injuries and those of their passengers under PIP, which is either $15,000 per person or up to $250,000 for injuries such as these:

  • Disfigurement
  • Permanent or significant brain injury
  • Spinal cord injury

While $250,000 may sound like enough, the coverage doesn’t apply to all types of injuries. Additionally, $5,000 of property damage is often well below the cost for repairs or replacement. It also doesn’t cover your property, only the other party’s. So if you cause an accident, you may find yourself responsible for costs out of pocket.

To avoid this scenario, we recommend the following policies.

  • High liability limits: Buy as much liability coverage as you can afford, up to $500,000 of both property damage and bodily injury coverage.
  • Collision coverage: To pay for your property damages from collisions, regardless of fault, add on collision coverage. The limit should be your car’s actual market value (AMV). That way, if your car is declared a total loss, you can replace it.
  • Comprehensive coverage: Vandalism, weather, and theft can also damage your car. For these instances, purchase comprehensive coverage with a limit matching your AMV.
  • Uninsured/underinsured motorist coverage: Only 3 percent of New Jersey drivers are uninsured, a fraction of the national average of 12 percent.2 Yet, if someone driving without insurance or without sufficient insurance hits you, you want to know your bodily injuries and property damages will be paid for. To ensure this, match your uninsured/underinsured motorist coverage to your liability limits.

Alternative Car Insurance Options

Self-Insurance

If you have more than 25 vehicles, you can self-insure them in New Jersey by receiving a certificate of self-insurance from the commissioner of insurance. To acquire this certificate, provide these items to the commissioner:

  • The number of vehicles
  • Types of vehicles
  • Proposed use of vehicles
  • Your financial information

Whether you’ll get the certificate is completely at the discretion of the commissioner of insurance. The commissioner can cancel the certificate if you fail to pay a judgment within 30 days, with only five days’ notice prior to the cancellation.3

Light BulbNOTE:

You have to pay a $1,000 filing fee to apply for a certificate of self-insurance in New Jersey.

New Jersey Automobile Insurance Plan

New Jersey requires car insurance to register your vehicle. The New Jersey Automobile Insurance Plan (NJAIP) is available if you can’t find car insurance elsewhere that’s affordable.  To learn more, contact the Automobile Insurance Plan Service Office (AIPSO) directly.

  • Mailing address:
    • NJAIP
    • P.O. Box 6530
    • Providence, RI 02940-6530
  • Email address: njaip@aipso.com
  • Phone number: 800-652-2471
  • Fax number: 856-722-93824

Special Automobile Insurance Policy

Another option for those who are eligible for Medicaid with hospitalization is the Special Automobile Insurance Policy. SAIC covers the following:

  • Emergency treatment following an accident, up to $250,000
  • Treatment of a serious brain or spinal cord injury, up to $250,000
  • Death benefits, up to $10,000

In other words, SAIC only covers medical payments. It does not cover the following:

  • Outpatient treatments, like Medicaid-covered doctor’s appointments
  • Liability coverage
  • Collision coverage
  • Comprehensive coverage

To obtain a policy, you can visit an insurance provider just as you would do when shopping for car insurance outside the program. You’ll need to bring your driver’s license, vehicle registration, and Medicaid ID card. Here is the contact information for the Personal Automobile Insurance Plan, which oversees the SAIC:

  • Phone number: 800-652-2471
  • Online search for a producer: https://www.nj.gov/cgi-bin/dobi/paip/paipmenu.cgi5

New Jersey Motor Vehicle Commission Contact Information

  • Email: https://www.state.nj.us/mvc/About/ContactEmail.htm
  • Phone number: 609-292-6500, ext. 5014 for registration
  • Mailing address:
    • Motor Vehicle Commission
    • Customer Advocacy Office
    • P.O. Box 403
    • Trenton, NJ 08666-0403

Conclusion

New Jersey car insurance isn’t cheap, with prices 23 percent higher than the national average.6 Since the state requires property damage and personal injury protection, the state programs offer affordable insurance. For more information on obtaining state or private auto coverage, view our frequently asked questions.

Frequently Asked Questions

How much does car insurance cost monthly in New Jersey?

The average cost of car insurance for New Jersey residents is $116.29 per month, according to recent data from the National Association of Insurance Commissioners.

Is NJM cheaper than GEICO?

No, NJM is not cheaper than GEICO to cover New Jersey drivers. GEICO ranges from $476 to $624 annually, with an average cost of $546.66. NJM’s range is much higher at $852 to $2,148, with an average of $1284.66 per year.

Is New Jersey car insurance expensive?

Yes, New Jersey car insurance is expensive. According to the National Association of Insurance Commissioners, the average annual spending is $1,395.53, which is 23 percent more than the U.S. average.

Citations

  1. Get Legal with New Jersey’s Basic Auto Insurance Policy. State of New Jersey Department of Banking and Insurance. (2022).
    https://www.state.nj.us/dobi/division_consumers/insurance/basicpolicy.shtml

  2. One in Eight Drivers Uninsured. Insurance Research Council. (2021, Mar 22).
    https://www.insurance-research.org/sites/default/files/downloads/UM%20NR%20032221.pdf

  3. 2009 New Jersey Code TITLE 39 – Certificate of self-insurance. Justia US Law. (2022).
    https://law.justia.com/codes/new-jersey/2009/title-39/39-6/39-6-52

  4. New Jersey Automobile Insurance Plan. AIPSO. (2022).
    https://www.aipso.com/Plan-Sites/New-Jersey

  5. Special Automobile Insurance Policy (SAIP). State of New Jersey Department of Banking and Insurance. (2022).
    https://www.state.nj.us/dobi/division_consumers/insurance/saip.htm

  6. 2018/2019 Auto Insurance Database Report. National Association of Insurance Commissioners. (2022).
    https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf