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Last updated: April 11, 2024

Average Cost of Car Insurance in New Jersey in 2024

How much is car insurance in the Garden State?

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New Jersey has one of the highest percentages (104 percent) of licensed drivers in its population, meaning many residents drive. The state also ranks among the top 10 highest states for auto insurance costs. But don’t worry. We’ll tell you how to save on your premium and provide the averages you would pay for auto insurance.

Average Cost of Car Insurance in New Jersey

At $1,334 per year for full coverage, New Jersey’s average cost of car insurance is around 27 percent higher than the national average, according to 2020 data published by the National Association of Insurance Commissioners. This puts the state at No. 7 in the U.S. for the highest average cost of auto insurance. 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 10 New Jersey cities.

City Average annual rate for car insurance
Newark $3,568
East Orange $3,120
Jersey City $2,502
Paterson $2,125
Elizabeth $2,073
Trenton $2,064
Toms River $1,916
Edison $1,796
Jackson $1,751
Cherry Hill $1,661

By Age

Insuring a teenager is always pricier than insuring a young adult. In New Jersey, teens on average pay $5,612 annually for car insurance, while those in their 20s and older have yearly premiums of $1,913 on average. Regardless of age, many carriers have discounts to help you lower your premium.

Age Average annual cost of car insurance
16 $5,376
17 $6,940
18 $6,146
19 $3,987
20s $2,659
30s $2,042
40s $1,988
50s $1,856
60s $1,156
70s $1,782

By Gender

In New Jersey, on average, men pay slightly less than women for auto insurance.

Gender Average annual cost of car insurance
Male $2,056
Female $2,068

By Marital Status

Married drivers have a slight advantage when it comes to car insurance, paying on average $1,565 annually, compared to single or divorced drivers, whose premiums average $1,600 per year.

Marital status Average annual cost of car insurance
Single $1,600
Married $1,565
Divorced $1,600
Widowed $1,587

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.

Coverage level Average annual rate of car insurance
Full $1,840
Minimum $843

By Violation

Cleaning up 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 preapproved defensive driving courses.1

Driving record Average annual cost of car insurance
At-fault accident $2,485
Clean driving record $1,724
DUI conviction $2,946
Speeding ticket $1,930

By Company

Each issuer has its way of calculating rates, which is why you’ll see such variances in cost. In New Jersey, Travelers has the lowest-cost full coverage auto insurance on average at $1,222 per year.

Company Average annual cost of car insurance
Allstate $2,979
GEICO $1,406
Progressive $2,927
Mercury $1,931
State Farm $2,384
Travelers $1,222

By Credit Score

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

Credit score Average annual cost of car insurance
Excellent $1,766
Good $2,198
Fair $2,561
Poor $3,788

TIP:

To raise your credit score, pay your bills on time and reduce your overall debt-to-income ratio.

By Car

The type of car you drive influences your premium. If you drive a sports car or luxury vehicle, you’ll pay more for insurance because of the higher costs to repair such vehicles. Here are five popular models and the average cost to insure them in New Jersey.

Vehicle type Average annual cost of car insurance
BMW 330i $2,098
Toyota Prius $1,872
Toyota Camry $1,754
Ford F-150 $1,621
Honda Odyssey $1,581

Cheapest Car Insurance in New Jersey

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

Demographic Cheapest Insurance company Annual rate
Male Metromile $1,200
Female Metromile $1,356
Minimum coverage New Jersey Manufacturers $370
Full coverage GEICO $1,035
Excellent credit GEICO $1,058
Poor credit Selective $2,114
Speeding ticket GEICO $1,164
Accident GEICO $1,620
DUI New Jersey Manufacturers $2,256
16 years old GEICO $2,235
17 years old GEICO $2,203
18 years old GEICO $2,158
20s GEICO $539
30s GEICO $516
40s GEICO $532
50s Amica $516
60s GEICO $532
70s GEICO $1,002

How to Save on Car Insurance in New Jersey

With the high cost of car insurance in New Jersey, you’ll want to find ways to lower your premium.

  • 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.
  • 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, you probably don’t need collision or comprehensive coverage. Other optional coverages include rental reimbursement.

Minimum Car Insurance in New Jersey

New Jersey requires the following insurance:2

  • Liability insurance
    • $25,000 per person in bodily injury
    • $50,000 per accident in bodily injury
    • $25,000 per accident in property damage
  • Personal injury protection (PIP)
    • $15,000 per person or accident
  • Uninsured motorist
    • No mandatory coverage limits

NOTE:

Having more coverage than the minimum reduces your chances of paying out-of-pocket expenses related to an accident.

Fault Law in New Jersey

The Garden State has a no-fault system, with a restriction on filing a lawsuit against an at-fault driver.3 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.

FYI:

New Jersey law mandates the immediate reporting of any car accident resulting in injury, death, or property damage worth more than $500. Those who don’t could be fined $30 to $100 and face a license suspension.

SR-22s in New Jersey

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.
  • 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.

Recap

If you reside in the Garden State, you should get more than the minimum car insurance for better protection for you and your vehicles. At AutoInsurance.com, we’re ready to help you find the best coverage for you.

Methodology

More than two decades of experience in the auto insurance industry means AutoInsurance.com knows the industry. We have proprietary data about insurance carriers and customers, including state-specific info, that translates into the best overview of how much insurance will cost you in this state.

Frequently Asked Questions

Why is car insurance so expensive in New Jersey?

While it doesn’t boast the most expensive car insurance rates in the U.S, New Jersey does have some of the highest premiums. That’s likely because of heavier traffic patterns in its urban areas and a higher auto claim average, as well as proximity to other major cities like New York City.

Can you be denied car insurance in New Jersey?

Yes, you can be denied auto insurance. However, the carrier must provide a reason for the denial, such as you don’t meet the company’s criteria for acceptance.

What happens if you drive without insurance in New Jersey?

If you receive a conviction for driving without auto insurance in New Jersey, you will lose your license for 12 months, plus pay more than $1,000 in fines, court costs, and surcharges. In addition, you could be sentenced to perform community service.

Can someone else drive my car in New Jersey?

Usually, all the drivers listed on your household’s policy may drive your vehicles and be covered under your liability insurance. In addition, drivers who have your permission to operate your vehicle temporarily are also covered under your policy.

Do I need a New Jersey driver's license to register a car in the state?

No, you do not need a state-issued driver’s license to register a vehicle in New Jersey. However, it does make it easier to fill out the paperwork if you do have a New Jersey driver’s license.

Citations

  1. Driver Programs. New Jersey Motor Vehicle Commission. (2024).
    https://www.nj.gov/mvc/license/driverprograms.htm

  2. Insurance Requirements. New Jersey Motor Vehicle Commission. (2024).
    https://www.nj.gov/mvc/vehicles/insurancerequirements.htm

  3. Is New Jersey a No-Fault State? Morelli Law Firm. (2024).
    https://www.morellilaw.com/faqs/is-new-jersey-a-no-fault-state/