Average Cost of Car Insurance in New Jersey in 2025

At $2,432 per year for full coverage, New Jersey’s average cost of car insurance is right around the national average. However, minimum coverage in the state costs about double than the national average. Let’s examine how much you might pay on average for various demographics and locations in New Jersey.

By City

If you live in a large or heavily populated city, you’ll pay more for car insurance because of the increased risk of vandalism, stolen vehicles, or accidents. Here’s the yearly average cost for full coverage auto insurance in several New Jersey cities.

By Age

Insuring a teenager is almost always more expensive than insuring other age groups. In New Jersey, teens pay over $6,000 annually for car insurance on average, while adults and seniors pay less than $3,000 annually on average. Regardless of age, many carriers have discounts to help you lower your premium.

* Some data for 16-year-olds is for family policies, which is why it shows as less expensive than some older age groups

By Gender

In New Jersey, car insurance companies can legally take gender into account when determining premiums. This tends to affect teens more than other age groups, as young men are more likely to be involved in accidents. This translates to higher average auto insurance rates.

By Coverage Level

Buying more than the minimum car insurance will keep you, your passengers, and your vehicles better covered in case of an accident.

By Violation

Improving your driving record will net you significant savings on your auto insurance premium in New Jersey. To deduct points from your driving record, you can take one of the pre-approved defensive driving courses.¹

By Company

Each issuer has its own way of calculating rates, which is why you’ll see such variances in cost. IGEICO has the cheapest full coverage auto insurance in New Jersey on average at $1,507 per year.

By Credit Score

New Jersey residents may have their credit score considered by insurance companies when writing policies. The less robust your credit history is, the higher your insurance costs will be.

Because New Jersey has some of the country’s highest insurance rates, searching for the cheapest auto insurance policy is particularly important. Here are some of the lowest costs for a variety of demographics and situations:

With the high cost of car insurance in New Jersey, you’ll want to find ways to lower your premium. Keep in mind that you’ll want to weigh cost as well as your coverage needs and companies’ customer service records to find the best New Jersey auto insurance for you.

• Ask about discounts. Car insurance companies provide many ways for customers to slash their bill, including bundling homeowners and auto insurance, multi-vehicle coverage, and good student discounts.
• Increase your deductibles. The higher your deductible is, the lower your premium will be. Generally a $1,000 deductible strikes a good balance, but ensure you can comfortably afford the deductible in the event of an accident.
• Enroll in usage-based programs. Some insurance companies offer policyholders savings when they are accident-free over a particular time frame, drive fewer miles each year, maintain a clean driving record, or participate in a telematics safe driver program.
• Drop supplemental coverage. If you drive an older vehicle that is fully paid off, you may not need collision or comprehensive coverage.

New Jersey requires the following insurance:²

• Liability insurance: $5,000 per accident in property damage
• Personal injury protection (PIP): $15,000 per person or accident

The Garden State has a no-fault system, with a restriction on filing a lawsuit against an at-fault driver. You can ask for additional damages beyond PIP insurance if you select the unlimited right to sue when picking your auto insurance policy. In that case, you can seek compensation for:

• Bodily injuries
• Other out-of-pocket damages
• Pain and suffering
• Property loss

New Jersey also has modified comparative negligence laws, which mean you must be found less than 50 percent at fault in an accident to get any compensation. If you were partially at fault for the crash but less than 50 percent liable, your compensation would be lowered based on the fault degree.

You might be required to file a SR-22 certificate in New Jersey in these circumstances:

• You want to reinstate your driving privileges or license after a serious violation.
• You have more than one accident or traffic infraction on your driving record.
• You have a DUI conviction.

You will likely have to file the SR-22 for three years.

The cost of full coverage auto insurance in New Jersey is on par with the national average, but minimum coverage rates run much higher — about twice the national average. Maintaining a clean record and improving your credit are good long-term strategies for lowering your auto insurance rates. In the short-term, to find low rates, compare quotes from at least three companies. GEICO, NJM, and USAA tend to have some of the cheapest rates in New Jersey.

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, and 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