The average cost of car insurance in New Jersey is $1,927 per year for full coverage and $1,108 per year for minimum coverage. These estimates are $631 more expensive for full coverage and $513 more expensive for full coverage than the national average.
Average Cost of Car Insurance in New Jersey
Updated: December 19, 2024
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Key Takeaways
The average cost of full coverage car insurance in New Jersey is $1,908 annually, which is $612 more expensive than the national average, highlighting the state's higher insurance costs due to factors like high population density and urbanization.
New Jersey's average annual cost for minimum car insurance coverage is $1,096, which is 118% more expensive than the national average of $595, reflecting significantly higher rates despite the perception of lower costs.
In New Jersey, GEICO offers the cheapest full coverage car insurance with an average annual cost of $1,049, whereas Hanover provides the most expensive option at $3,565 per year.
How Much Is Car Insurance in New Jersey?
| Full Coverage | $1,927 | $1,296 | 49% |
| State Minimum Liability Only | $1,108 | $595 | 86% |
Read More: Average Cost of Car Insurance
New Jersey Car Insurance Rates by Coverage Level
The chosen coverage level for your policy affects your car insurance rate in New Jersey. Raising your liability limits and adding full coverage increases your rate, but opting for higher deductibles can help lower your premium. Below are the average minimum coverage and full coverage rates in New Jersey for policies with varying deductibles and liability limits.
| 300/500/300 | Full Coverage | $2,145 | $500 |
| 300/500/300 | Full Coverage | $2,084 | $1,000 |
| 100/300/100 | Full Coverage | $1,988 | $0 |
| 300/500/300 | Full Coverage | $1,977 | $1,500 |
| 100/300/100 | Full Coverage | $1,927 | $1,000 |
| 100/300/100 | Full Coverage | $1,820 | $1,500 |
| State Minimum | Full Coverage | $1,706 | $500 |
| State Minimum | Full Coverage | $1,645 | $1,000 |
| State Minimum | Full Coverage | $1,539 | $1,500 |
| 300/500/300 | Liability Only | $1,492 | $0 |
| 100/300/100 | Liability Only | $1,381 | $0 |
| State Minimum | Liability Only | $1,108 | $0 |
Read More: Liability vs. Full Coverage Car Insurance
Average New Jersey Car Insurance Cost by City
Different New Jersey cities have varying levels of crime, traffic, bad weather and costs for health care or vehicle repairs, all of which impact car insurance rates. For example, annual full coverage rates in Jersey City average $1,873, but Newark averages $272 higher at $2,145. Below, we compare car insurance rates for New Jersey cities to the state average.
| Elizabeth | $2,073 | 9% | $1,133 | 3% |
| Jersey City | $1,873 | -2% | $1,012 | -8% |
| Newark | $2,145 | 12% | $1,154 | 5% |
| Paterson | $2,125 | 11% | $1,164 | 6% |
Average New Jersey Car Insurance Cost by Age
Age affects New Jersey car insurance rates, as younger drivers tend to pay the most. On average, 25-year-olds pay over 6% more for minimum liability and over 12% more for full coverage than 40-year-olds and over 9% and 15% more, respectively, than 65-year-olds.
| 25 | $2,172 | $1,178 |
| 40 | $1,927 | $1,108 |
| 65 | $1,877 | $1,074 |
Although age is a factor in car insurance costs to varying degrees in most U.S. states, Massachusetts and Hawaii do not allow age as a rating factor.
Car Insurance Costs in New Jersey for Young Drivers by Gender
New Jersey car insurance costs are higher for young drivers due to increased risk from higher accident rates. When added to a family policy, New Jersey drivers ages 18 to 25 pay an average of $2,009 per year for car insurance, 15% less than the $2,364 individual policy rate.
Gender also affects New Jersey car insurance rates for young drivers, with females aged 18 to 25 paying $2,364 per year — about 9% less than the $2,585 annual average males pay. Below are the average car insurance costs of individual and family policies for young New Jersey drivers, broken down by gender.
Car Insurance Costs in New Jersey for Young Females
For an 18-year-old female driver in New Jersey, the average annual cost for full coverage is $2,429 when added to a family policy. For an individual policy, the rate rises to $4,254.
| 18 | $4,254 | $2,429 | -43% |
| 19 | $2,828 | $2,483 | -12% |
| 20 | $2,542 | $2,237 | -12% |
| 21 | $2,081 | $1,826 | -12% |
| 22 | $1,977 | $1,895 | -4% |
| 23 | $1,832 | $1,763 | -4% |
| 24 | $1,762 | $1,702 | -3% |
| 25 | $1,638 | $1,587 | -3% |
Car Insurance Costs in New Jersey for Young Males
With average rates of $4,741 per year for an individual full coverage policy, 18-year-old males pay the highest premiums. Adding them to a family policy costs $2,825, saving 43% annually.
| 18 | $4,741 | $2,825 | -40% |
| 19 | $3,167 | $2,837 | -10% |
| 20 | $2,849 | $2,562 | -10% |
| 21 | $2,296 | $2,061 | -10% |
| 22 | $2,153 | $2,233 | 4% |
| 23 | $1,969 | $2,046 | 4% |
| 24 | $1,869 | $1,945 | 4% |
| 25 | $1,633 | $1,703 | 4% |
Average New Jersey Car Insurance Cost by Driving Record
In New Jersey, traffic offenses can lead to car insurance premiums that range from 7% to 76% higher than the state's annual average, depending on the offense. Below, we compare the average rate for New Jersey drivers across several driving offenses (at-fault accidents, speeding tickets and DUI) with the average rate for drivers in the state with a clean record.
| At-Fault Accident | $2,951 | 55% | $1,637 | 49% |
| DUI | $3,488 | 83% | $1,947 | 78% |
| Ticket | $2,120 | 11% | $1,179 | 8% |
Read More: High-Risk Car Insurance in New Jersey
Average New Jersey Car Insurance Cost by Credit Score
Your credit-based insurance score is a critical factor that insurers consider when pricing car insurance policies in New Jersey. Average full coverage annual premiums range from $1,245 for drivers with excellent credit to $2,874 for drivers with poor credit.
| Excellent | $1,245 | -35% | $550 | -50% |
| Good | $1,584 | -17% | $703 | -36% |
| Fair | $1,999 | 5% | $914 | -17% |
| Below Fair | $2,389 | 25% | $1,113 | 2% |
| Poor | $2,874 | 51% | $1,328 | 21% |
CREDIT SCORES AND YOUR PREMIUM
A good credit score — ranging from 670 to 739 — reflects financial reliability and can lead to lower insurance rates for New Jersey drivers. Insurers cannot use credit-based insurance scores as a pricing factor in Hawaii, Massachusetts, California or Michigan. In Maryland, North Carolina, Oregon, Washington, Utah and Nevada, credit can only be used as a factor in certain circumstances.
Average New Jersey Car Insurance Cost by Company
Car insurance premiums vary significantly by company, even within the same state. In New Jersey, Plymouth Rock Assurance offers the lowest average annual full coverage premium at $1,110, while Hanover has one of the highest at $3,565, 86% higher than the state average.
| Plymouth Rock Assurance | $1,110 | $549 |
| NJM | $1,115 | $678 |
| GEICO | $1,273 | $617 |
| Travelers | $1,568 | $935 |
| Allstate | $1,739 | $1,028 |
| Progressive | $1,756 | $1,098 |
| New Jersey Skylands Insurance | $1,882 | $1,058 |
| Amica Mutual | $1,983 | $1,327 |
| Mercury | $2,223 | $1,354 |
| State Farm | $2,282 | $1,505 |
| Foremost | $2,624 | $1,366 |
| Hanover | $3,565 | $1,780 |
Average New Jersey Car Insurance Cost by Vehicle Age
In New Jersey, insurance policies on newer cars tend to have higher premiums due to their greater value, repair costs and theft risks. The average annual cost of full coverage for a newer model is $1,571, 12% higher than the average cost for a 10-year-old model.
| 10-Year-Old Vehicle | $1,391 | $801 |
| New Model Vehicle | $1,571 | $693 |
ACTUAL CASH VALUE
Your vehicle's actual cash value (ACV) is the amount your insurance company determines it was worth just before the damage occurred. In the event of a comprehensive or collision claim, the insurer uses the ACV to calculate the maximum payout for your vehicle's repair or replacement minus any deductible. This ensures that the claim reflects the fair market value of the car.
Read More: Used Car Insurance
New Jersey Car Insurance Rates Explained
Below, we compare New Jersey car insurance rates to the national average, explain why average costs tend to be expensive in this state and look at several factors that determine the costs of full coverage and minimum liability premiums.
Is Car Insurance Expensive in New Jersey?
Car insurance in New Jersey is expensive, costing residents an average of $159 per month. This is 47% (or $51 per month) more expensive than the national average of $108 for a full coverage policy. Based on our analysis, New Jersey is the 45th most affordable state out of 50.
Read More: Why Car Insurance is So Expensive
Car Insurance Costs in New Jersey vs. National Average
National Average Cost
Full Coverage Car Insurance
$108
New Jersey Average Cost
Full Coverage Car Insurance
$159NJ Car Insurance Is Expensive:$51 more
This is 47% more expensive.
Why Are Car Insurance Rates Expensive in New Jersey?
In addition to New Jersey's high population density, urbanization, high living costs and stringent legal requirements, increasingly common tropical cyclones, severe winter weather and serious storms combine to increase the number of claims and cost per claim in the state.
Read More: Car Insurance Rates by State
Estimating Your Car Insurance Costs in New Jersey
Although the above rates are averages that reflect how demographic, legal and economic factors impact car insurance rates in New Jersey in the aggregate, the price you pay for car insurance will be based on factors specific to you. When estimating car insurance costs in New Jersey, it’s important to take the following into account:
Driving Record
A pristine driving record can lead to more affordable premiums, while accidents and violations may increase rates due to higher risk.
Age and Gender
Younger, less experienced drivers often face higher rates, reflecting the increased risk of accidents associated with new drivers. Although some states prohibit gender-based pricing, it can still influence rates in New Jersey, with young men often paying more due to statistical accident rates.
Credit History
Insurers consider credit scores as reliability indicators, where a higher credit score could result in lower premiums.
Vehicle Type
A car's model, age and safety features can affect insurance costs. High-performance or luxury vehicles typically cost more to insure.
Location Within New Jersey
Rates can vary by ZIP code, with urban areas seeing higher rates due to increased risks of theft, vandalism and traffic accidents.
Coverage Level
Opting for more than minimum coverage can increase rates, but it's better financial protection in the event of an accident.
Marital Status
Married individuals may see lower premiums because insurers view them as less risky than single drivers.
State Law
State laws in New Jersey impact car insurance costs by mandating coverages like personal injury protection (PIP), which raises premiums. Legal requirements also influence minimum liability limits, affecting overall rates.
Read More: New Jersey Car Insurance Calculator
Minimum Car Insurance in New Jersey
New Jersey’s average state minimum liability car insurance rate of $1,096 per year is $501 more expensive (119%) than the national average of $595 per year. One reason for this is the state’s relatively high minimum liability limits, which we break down below.
New Jersey Car Insurance Requirements
In New Jersey, the state minimum car insurance requirements include $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $25,000 in property damage liability per accident and $15,000 in personal injury protection per person.
Liability Limits | Description |
|---|---|
$25,000 bodily injury liability per person | Covers costs related to injuries to one person in an accident you're liable for |
$50,000 bodily injury liability per accident | Applies to all persons injured in a single accident, with a cap for the entire accident |
$25,000 property damage liability per accident | Covers the expenses for damage to another person's property for which you are responsible in an accident |
$15,000 personal injury protection (PIP) per person | Covers medical expenses, lost wages and other costs, regardless of who is at fault in an accident |
How to Lower Car Insurance Costs in New Jersey
To find affordable car insurance in New Jersey, compare rates, raise your deductible and take advantage of all applicable discounts to reduce premiums.
- 1
Compare Multiple Quotes
Researching multiple insurance providers can help you find the cheapest car insurance in New Jersey, potentially saving you hundreds of dollars annually.
- 2
Lower Your Risk Profile
A better credit score or clean driving record without violations or accidents can significantly lower insurance premiums because insurers view you as a lower risk.
- 3
Adjust Your Coverage
Reviewing coverage needs can help ensure you're paying only for the coverage you need. For example, drivers who can afford it can lower costs with increased deductibles, and low-mileage drivers can decrease costs with usage-based policies.
- 4
Ask for Discounts
Inquire about discounts for safe driving, good grades, anti-theft devices, completing a state-approved defensive driving course and bundling policies, as these can lead to drastically lower premiums.
- 5
Consider the Car You Drive
Driving a car that's less expensive to insure, such as one with good safety ratings, can lead to lower insurance costs in New Jersey.
Read More: How to Reduce Your Car Insurance Costs
Auto Insurance Rates in New Jersey: Bottom Line
The average cost of car insurance in New Jersey is $1,908 per year for a full coverage policy, which is higher than the national average. Various factors — including age, driving history, location and credit score — affect these rates. New Jersey is one of the most expensive states for car insurance in the U.S.
New Jersey Car Insurance Rates: FAQ
Get answers about what impacts the average cost of car insurance in New Jersey and how to find affordable rates.
What are the minimum car insurance requirements in New Jersey?
State minimum car insurance requirements in New Jersey include $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $25,000 in property damage liability per accident and $15,000 in personal injury protection (PIP) per person.
What is the average cost of full coverage and minimum coverage auto insurance in New Jersey?
New Jersey drivers pay about $1,908 per year for full coverage car insurance. If you opt for minimum coverage, the annual cost is around $1,096.
What is the average cost of car insurance for a 25-year-old in New Jersey?
The average cost of car insurance for a 25-year-old in New Jersey is $2,149 per year ($179 per month) for 100/300/100 full coverage with a $1,000 deductible and $1,165 ($97 per month) for state minimum coverage.
What are the cheapest car insurance companies in New Jersey?
Plymouth Rock Assurance offers the most affordable full coverage car insurance in New Jersey at $1,110 per year. This company also provides the cheapest option for minimum coverage at $549 per year.
New Jersey Auto Insurance Cost: How We Determine Average Rates
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates in New Jersey:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We modified this driver profile by age, vehicle, credit score and driving record to determine averages for different driver profiles and needs.
Coverage Levels and Deductibles
Unless otherwise noted, average rates on this page are for a full coverage policy with comprehensive and collision coverage, a $1,000 deductible for each and the following liability limits (100/300/100):
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
When minimum coverage is specified, we used the following minimum liability-only limits as mandated by New Jersey:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
- $15,000 in personal injury protection (PIP) per person
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.