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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.
Find the lowest rate with these auto insurance firms based on the criteria you meet:
|Age and gender||Male teens||GEICO||$2,108|
|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|
|Credit score||Excellent or good||GEICO||$1,058|
These are the top 10 car insurance companies for New Jersey drivers:
Follow these tips to purchase the best — and cheapest — coverage possible:
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.
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:
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.
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:
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
You have to pay a $1,000 filing fee to apply for a certificate of self-insurance in New Jersey.
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.
Another option for those who are eligible for Medicaid with hospitalization is the Special Automobile Insurance Policy. SAIC covers the following:
In other words, SAIC only covers medical payments. It does not cover the following:
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:
New Jersey car insurance isn’t cheap, with prices 27 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.
The average cost of car insurance for New Jersey residents is $111 per month, according to recent 2020 data from the National Association of Insurance Commissioners.
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.
Yes, New Jersey car insurance is expensive. According to the National Association of Insurance Commissioners, the average annual spending in 2020 was $1,334, 27 percent more than the U.S. average.
Get Legal with New Jersey’s Basic Auto Insurance Policy. State of New Jersey Department of Banking and Insurance. (2022).
One in Eight Drivers Uninsured. Insurance Research Council. (2021, Mar 22).
2009 New Jersey Code TITLE 39 – Certificate of self-insurance. Justia US Law. (2022).
New Jersey Automobile Insurance Plan. AIPSO. (2022).
Special Automobile Insurance Policy (SAIP). State of New Jersey Department of Banking and Insurance. (2022).
2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).