Cheap Car Insurance in New Jersey

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

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

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.

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.

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

• 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

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.