Average Cost of Car Insurance in New Jersey for 2026

New Jersey's dense population and busy highways push car insurance rates above the national average. Rates vary based on where you live, their age, driving history, your location and age. Premiums also differ depending on your coverage level, deductible amount and which insurer you choose. 

Skip to:

• State Rates vs. National Average
• Is New Jersey Car Insurance Expensive?
• Cheapest Companies in New Jersey
• Cost by City
• Cost by Age and Gender
• Cost by Driving Record
• Cost by Credit Score
• Cost by Coverage Level
• Cost by Vehicle

Car insurance costs in New Jersey run $180 per month for full coverage car insurance and $107 per month for minimum coverage. Both coverage types cost more than the national average, making New Jersey one of the pricier places to insure a vehicle.

New Jersey drivers pay $702 more per year than the national average for full coverage and $597 more for minimum coverage. Only two states have more expensive car insurance than New Jersey, ranking 49th out of 50 states and Washington, D.C., for affordability.

New Jersey's car insurance costs rank among the nation's highest, placing 49th out of 51 states for full coverage affordability. Only two states have more expensive average rates than New Jersey.

The state's high premiums stem from its no-fault insurance system, mandatory personal injury protection requirements and dense urban corridors that increase accident frequency. Newark, New Jersey's largest city, shows how metropolitan areas increase statewide costs with heavy traffic congestion and higher claim rates (see rates by city).

Vermont offers the cheapest full coverage at $75 per month, while Florida tops the list at $243 per month. New Jersey ranks below Delaware for affordability but is more affordable than Louisiana.

Plymouth Rock offers New Jersey's most affordable car insurance at $121 per month for full coverage and $66 per month for minimum coverage, coming in 33% less than the state average. Selective Insurance ranks as the second cheapest option, while NJM Insurance takes third place among New Jersey's most budget-friendly insurers.

Comparing multiple insurers is the most effective strategy for getting lower premiums. Each company applies its own pricing formula, so identical driver profiles can yield different quotes across insurers.

Read more: Cheapest and Best Car Insurance Companies in New Jersey

Your location within New Jersey affects your car insurance costs. Newark and Elizabeth represent the most expensive areas among New Jersey's 10 largest cities, with full coverage averaging $248 and $245 per month. Bayonne and Trenton offer the most affordable rates at $200 and $119 per month for full coverage.

Trenton benefits from lower population density and more controlled traffic patterns as the state capital, resulting in fewer collision claims. Newark drivers experience higher premiums due to dense urban traffic, elevated auto theft rates and the increased accident frequency that comes with over 311,000 residents packed into 26 square miles. The gap between the most and least expensive of New Jersey's 10 most populous cities reaches $57 per month, adding up to $684 per year.

At 16, male drivers in New Jersey cost $10,660 per year on a family policy compared to $9,590 for female drivers. Both figures are roughly six times the typical adult rate in New Jersey, reflecting the higher risk insurers assign to teenage drivers. Age and gender affect car insurance rates most during the teen years. Rates fall steadily through the early 20s and stabilize around age 25.

The table shows average annual premiums when a young driver joins a household policy with two 50-year-old parents. Use the dropdown to toggle between male and female rates for each age group. A 16-year-old male on an individual policy pays $14,993 per year, which means staying on the family policy saves $4,333 annually. This family policy advantage makes a difference in household budgets across New Jersey.

Use our free calculator to estimate your New Jersey car insurance cost based on your driver profile.

A DUI adds $147 per month to full coverage premiums in New Jersey, an 89% increase over a clean driving record. Even a speeding ticket raises rates by 16%, making any violation costly for New Jersey drivers.

Car insurance companies in New Jersey evaluate your driving violations to determine how riskier to insure you are compared to other drivers. They adjust your rates upward to account for the increased likelihood that you'll file a claim based on your driving history.

Drivers with bad credit pay nearly 70% more for full coverage car insurance in New Jersey compared to those with good credit. Bad credit drivers pay monthly premiums of $286 for full coverage, while good credit drivers pay $172 per month. New Jersey allows insurers to use credit-based insurance scores when calculating premiums, creating this rate gap.

Low-income New Jersey drivers with poor credit scores can reduce their car insurance premiums by working to improve their credit rating. New Jersey allows insurers to use credit-based scoring when setting rates, unlike California, Hawaii and Massachusetts, so a better credit score results in lower insurance costs.

Upgrading from minimum liability to comprehensive full coverage in New Jersey adds $85 per month to your premium. Basic state minimum liability costs $97 per month, while a high-limit 300/500/300 policy with comprehensive and collision coverage runs $182 per month.

A Tesla Model Y costs $327 per month to insure in New Jersey, which is 58% more than a Ford F-150 at $207 per month. Vehicle make and model create differences in full coverage premiums across New Jersey. These models represent some of the best-selling vehicles nationally by sales volume. Your rate will depend on your vehicle and its safety features, repair costs and theft rates.

Electric vehicles cost more to insure because specialized parts, battery replacements and complex repairs increase claim costs when accidents occur. A Tesla Model Y runs $327 per month for full coverage in New Jersey compared to $207 for a Ford F-150, creating a $120 monthly difference. Drivers who want to minimize insurance expenses can choose a Honda Civic or Toyota Camry instead, saving roughly $88 per month compared to the Model Y.

Here are the questions New Jersey residents ask most when trying to understand what drives their costs.

We used this profile to determine auto insurance costs across all available ZIP codes and cities in the state.

• 40 years old
• Clean driving record
• Good credit
• 2012 Toyota Camry LE

Sections on cost by age and driving record use rates for those driver profiles, with all other factors held constant.

Minimum coverage is a state's minimum liability coverage. Full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.