If you’re searching for the cheapest car insurance in New Jersey, we’ve got you covered. In this review, we’ll share our research on the Garden State’s top providers for affordable auto insurance and fill you in on coverage requirements and average premiums.

Based on our reviews of the best car insurance companies in the country, we found that Progressive, Geico, and New Jersey Manufacturers Insurance (NJM) tend to offer the cheapest car insurance in New Jersey. It’s still important to shop around, as you’ll find the cheapest rate possible by getting car insurance quotes from multiple providers.

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In This Review:

    Cheapest Car Insurance In New Jersey

    Progressive typically offers the cheapest car insurance in New Jersey, with an average cost of $1,326 per year for full coverage. This estimate is for a 35-year-old driver in New Jersey with good credit and a clean driving record.

    Car Insurance Providers in New Jersey

    Estimated Annual Cost

    Progressive

    $1,326

    Geico

    $1,407

    NJM Insurance

    $1,642

    State Farm

    $1,988

    Selective

    $2,220

    Allstate

    $2,280

    Travelers

    $2,376

    How Much Is Auto Insurance In New Jersey?

    According to rate estimates, the average cost for full coverage car insurance in New Jersey is $2,132 per year. This means Garden State drivers pay about 23 percent more than the national average of $1,732 per year.

    Between the state’s busy streets and its proximity to New York City and Philadelphia, it’s not too surprising that New Jersey drivers pay high rates for coverage. You can save by using discounts and having a clean driving record, but your rates will vary based on these factors:

    • Age: Because young drivers have less experience on the road, they are considered high-risk motorists and pay higher rates for New Jersey auto insurance.
    • Gender: In most states, men receive higher premiums for car insurance than women.
    • Marital status: Married drivers usually pay less for coverage than single drivers, and they’re often eligible for family discounts.
    • Driving record: Violations such as speeding tickets, recent accidents, and DUIs can increase rates for car insurance in New Jersey.
    • Credit score: New Jersey drivers with poor credit scores pay higher rates for auto coverage than those with strong credit.
    • Coverage level: Full coverage policies almost always cost more than state minimum liability policies, though they also provide extra protection after an accident.

    The best way to determine your potential rates for car insurance in New Jersey is by getting quotes from providers. That way, you’ll be able to compare car insurance rates to discover which policy best fits your cost and coverage needs.

    Cheapest Car Insurance In New Jersey: Young Drivers

    The cost of car insurance in New Jersey can be quite costly for 20-somethings. We found that Geico offers the best rates for teen drivers and other young motorists, with Progessive coming in second.

    Car Insurance Providers in New Jersey

    Estimated Annual Cost

    Geico

    $1,726

    Progressive

    $1,906

    NJM Insurance

    $2,135

    Travelers

    $2,543

    State Farm

    $2,734

    Cheapest Car Insurance In New Jersey: Speeding Tickets

    Geico is the top option for New Jersey drivers with recent speeding tickets on their records, with an estimated cost of around $1,407 per year for full coverage car insurance.

    Car Insurance Providers in New Jersey

    Estimated Annual Cost

    Geico

    $1,407

    Progressive

    $1,666

    NJM Insurance

    $2,008

    Allstate

    $2,739

    Travelers

    $3,082

    Cheapest Car Insurance In New Jersey: Recent Accidents

    For New Jersey drivers with recent accidents on their driving records, NJM Insurance and Geico tend to offer the state’s lowest average rates.

    Car Insurance Providers in New Jersey

    Estimated Annual Cost

    NJM Insurance

    $1,642

    Geico

    $1,987

    Progressive

    $2,133

    Selective

    $2,529

    Plymouth Rock

    $2,671

    Cheapest Car Insurance In New Jersey: Bad Credit

    Drivers with poor credit may want to consider Progressive for car insurance in New Jersey, as its rate of $2,163 per year is the state’s lowest. Selective and NJM Insurance also offer somewhat affordable auto insurance in the Garden State.

    Car Insurance Providers in New Jersey

    Estimated Annual Cost

    Progressive

    $2,163

    Selective

    $2,506

    NJM Insurance

    $2,701

    Geico

    $3,312

    Farmers

    $3,971

    Top 5 Auto Insurance Companies In New Jersey

    In our extensive auto insurance ratings, we look at factors such as pricing, coverage options, customer satisfaction, availability, and claims service. Below is our final scoring for the providers with the best car insurance in New Jersey.

    Best Car Insurance In New Jersey

    Overall Rating

    Cost Rating

    Coverage Rating

    1. Geico

    5.0

    4.5

    5.0

    2. Progressive

    4.5

    4.5

    4.5

    3. State Farm

    4.5

    4.5

    4.0

    4. NJM Insurance

    4.0

    3.5

    3.5

    5. Travelers

    4.0

    4.0

    4.5

    *Our research team scores car insurance companies by taking nationwide factors into account. The order of insurers in this table is specific to car insurance in New Jersey.

    #1 Geico: Best Overall Provider

    Geico is our top pick for cheap car insurance in New Jersey, as it combines some of the state’s lowest prices with a strong industry reputation that’s shown through its A++ financial strength rating from AM Best and A+ score from the Better Business Bureau (BBB). J.D. Power also gave Geico an above-average score in the 2021 U.S. Auto Claims Satisfaction Study℠.

    With Geico, you’ll gain access to standard coverage options, along with offerings such as rental car reimbursement, mechanical breakdown insurance, and 24/7 roadside assistance. You could also qualify for discounts for driving safely and bundling insurance policies.

    For more information about this provider, read our Geico insurance review.

    Geico Pros

    Geico Cons

    A++ AM Best rating and A+ score from the BBB

    Claims process satisfaction can vary

    Affordable rates for New Jersey drivers

    Doesn’t offer gap insurance

    Wide range of discounts available

    #2 Progressive: Best Usage-Based Insurance

    In our search for the best car insurance in New Jersey, we found Progressive to be a strong choice based on its cost, coverage options, and car insurance discounts. The insurer also holds an A+ rating from the BBB and an A+ for financial strength from AM Best.

    The provider‘s usage-based Snapshot® program can help drivers save more than $100 per year by monitoring their driving habits. Progressive is also a great choice for those with multiple policies, as the provider also offers homeowners and renters insurance. The company offers additional insurance products such as gap insurance, rideshare coverage and custom parts and equipment coverage.

    Learn more in our complete Progressive insurance review.

    Progressive Pros

    Progressive Cons

    A+ BBB rating and A+ AM Best rating

    Slightly below-average J.D. Power ratings

    Offers Snapshot® discount program

    Large selection of coverage options

    #3 State Farm: Best For Student Drivers

    State Farm, our third pick for car insurance in New Jersey, holds an A++ financial strength rating from AM Best and placed third in the J.D. Power 2021 U.S. Auto Insurance Study℠ for the mid-Atlantic region.

    In addition to standard auto insurance coverage, State Farm offers rental car reimbursement, rideshare coverage, and emergency road service as add-ons. The provider also offers savings for young drivers through its Steer Clear® program and additional discounts through Drive Safe and Save™ usage-based insurance.

    For more information on this provider, read our State Farm insurance review.

    State Farm Pros

    State Farm Cons

    Offers great discounts for students

    Rarely the cheapest option

    A++ financial strength rating from AM Best

    Gap insurance not available

    Offers usage-based insurance

    #4 NJM Insurance

    NJM Insurance offers auto insurance products in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. The provider has an A+ financial strength rating from AM Best and a 4.8-star rating out of 5.0 on Trustpilot.

    NJM provides exceptional customer service, scoring the highest for customer satisfaction in the mid-Atlantic in the latest J.D. Power Auto Insurance Study. The company offers standard plan options along with gap insurance, transportation expenses coverage, and roadside assistance.

    NJM Insurance Pros

    NJM Insurance Cons

    4.8-star customer rating on Trustpilot

    B rating from the BBB

    A+ financial strength rating from AM Best

    Wide range of discounts available

    #5 Travelers

    Travelers carries a great reputation and stands as a top option for car insurance in New Jersey. With more than 13,000 independent representatives, Travelers allows drivers to work with local agents to find the best auto insurance policies available.

    Travelers offers New Jersey drivers coverage options such as gap insurance, new car replacement, accident forgiveness, and rideshare coverage. Travelers agents can help motorists bundle car insurance policies with home, business, and life insurance as well.

    Learn more in our complete Travelers insurance review.

    Travelers Pros

    Travelers Cons

    A++ financial strength rating from AM Best

    Below-average satisfaction with claims process

    Local agents in most communities

    Rated A by the BBB

    Requirements For Car Insurance In New Jersey

    Auto insurance rates and requirements vary by state, so it’s essential to understand the laws specific to New Jersey. In the Garden State, there are two policy types that meet minimum coverage requirements:

    • Standard policy: Pricier than a basic policy but provides far more benefits, along with liability insurance coverage
    • Basic policy: Offers less protection than the standard policy but is more affordable

    Coverage Types Available

    Standard Policy Minimum

    Basic Policy Minimum

    Bodily injury liability coverage

    $15,000 per person,

    $30,000 per accident

    Not included, but $10,000 per accident

    can be added as an option

    Property damage liability coverage

    $5,000 per accident

    $5,000 per accident

    Personal injury protection (PIP)

    $15,000 per person or accident

    $15,000 per person or accident

    Optional Coverage

    If you’re looking for full coverage New Jersey car insurance, the following can be added to your plan:

    • Comprehensive coverage
    • Collision coverage
    • Uninsured motorist coverage/underinsured motorist coverage

    How To Get Car Insurance In New Jersey

    When looking for cheap car insurance in New Jersey, compare rates from several top-rated providers. It’s easy to learn how much car insurance is for you by either getting quotes online or reaching out to an insurance agent.

    According to our research, New Jersey drivers find the cheapest car insurance coverage from Progressive, Geico, NJM Insurance, and State Farm. Remember that your rates will depend on factors such as vehicle type and your driving record, age, and credit history, so compare car insurance quotes to find the best coverage.

    Compare car insurance rates
    Answer a few simple questions to save money on your policy

    FAQ: Car Insurance In New Jersey

    • Why is car insurance so high in New Jersey?

      Since New Jersey is a no-fault state with high population density, the cost of car insurance premiums is consistently above the national average. The state’s proximity to New York City and Philadelphia also causes car insurance rates to stay on the higher end.

    • How much is full coverage insurance?

      According to our rate estimates, the average annual cost of full coverage car insurance in New Jersey can be as low as about $1,300. Your rate will likely increase considerably if you have poor credit or speeding tickets, accidents, and DUIs on your driving record.

    • How can I lower my car insurance in New Jersey?

      Safe drivers in New Jersey can save hundreds on car insurance, as can individuals who maintain good credit. Check with your insurer to see if you qualify for any discounts, as many are available for safe drivers, students, and multi-policy holders. It’s also smart to compare rates from other car insurance providers in New Jersey.

    • Why is New Jersey a no-fault state?

      New Jersey became a no-fault state in 1972 in an attempt to reduce the amount of litigation caused by car accidents. While about half of the country put no-fault laws in place during the 1970s, New Jersey is one of only 12 states that hasn’t repealed the law.

    How We Rate Insurers

    Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

    • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
    • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
    • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
    • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

    *Data accurate at time of publication.