Updated: May 20, 2024
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Insurance companies generally charge more to insure high-risk drivers as they are seen as more likely to file a claim. If you have a history of driving violations and want the cheapest policy, it’s best to shop around and compare quotes from different insurers.
MoneyGeek’s analysis shows that GEICO offers the best and cheapest high-risk auto insurance in New Jersey. The policy costs roughly $1,553 per year.
Best & CheapestAuto InsuranceHigh-RiskBest Companies for High-Risk Drivers in 2023
Insurance companies will consider you a high-risk driver if you have a DUI conviction or a history of at-fault accidents or speeding tickets. Such drivers pay higher rates for a policy because they may be more likely to file a claim. You are also high-risk if you’re a young driver that has little experience.
Based on MoneyGeek’s analysis, the insurance cost in New Jersey for a high-risk driver is around 35% more than for a driver with a clean driving record.
Reckless drivers or those with a history of driving violations and dangerous driving habits are considered high-risk by insurance companies. Since such drivers are more likely to cause accidents and file claims, the insurance companies consider it risky to insure them and charge higher rates. The following is a list of various types of high-risk drivers.
MoneyGeek's analysis of different insurance companies shows that GEICO offers the cheapest high-risk car insurance quotes in New Jersey. On average, a policy costs $1,553 per year. You can read our review of GEICO's auto insurance to understand the company's pros and cons and policy details.
| GEICO | $1,553 |
| Allstate | $2,090 |
| Progressive | $2,149 |
| Travelers | $2,910 |
| Esurance | $3,308 |
| Mercury | $3,440 |
| State Farm | $4,890 |
An SR-22 form is a document filed with the state by your insurer that serves as proof of insurance after driving violations like a DUI conviction. However, New Jersey law doesn’t require drivers to file an SR-22 form.
MoneyGeek analyzed several insurance companies and found that GEICO is the best option for high-risk drivers in New Jersey. The company scored 96 out of 100 based on our rating system. MoneyGeek’s GEICO auto insurance review can help you understand its available coverage details and decide if it’s the ideal option based on your needs.
With a score of 81 out of 100, Progressive is the runner-up for high-risk auto insurance in the state. Our review of the company’s coverages, discounts and other policy details can help you make a decision.
The average cost of GEICO’s high-risk auto insurance policy in New Jersey is $1,553 annually. The company charges around 32% more to insure a high-risk driver than a driver with a clean record.
MoneyGeek’s GEICO auto insurance review shows that the company offers its policyholders many unique discounts and add-on coverages. For example, you can get mechanical breakdown insurance through GEICO, students can save with the good student discount and others can take advantage of discounts like airbags, new car and defensive driving course.
On average, Progressive charges $2,149 per year to insure a high-risk driver in New Jersey. That is roughly 28% more than the cost for a driver with a clean record.
Progressive offers various discounts, including bundling, multiple car and good student. However, it doesn’t offer standard discounts like anti-theft system, airbags and defensive driving. But policyholders can get gap insurance, accident forgiveness and custom parts coverage.
Read MoneyGeek’s review for more details about Progressive.
You may have to pay a higher cost if you want to purchase a policy from the best insurance company. MoneyGeek researched the companies offering the best high-risk auto insurance policies for low-income families and individuals to help you find the ideal policy at an affordable cost.
MoneyGeek found that New Jersey drivers looking for car insurance with a DUI on their record can benefit the most from Progressive auto insurance. The average high-risk driver policy cost is $1,789 per year. If you want more information about Progressive’s coverages and discounts, read our review of its auto insurance.
If you have a military background and a DUI conviction, USAA could also be a cheap option for you.
| Progressive | $1,789 |
| Allstate | $2,083 |
| GEICO | $2,117 |
| Esurance | $2,922 |
| Travelers | $3,031 |
| Mercury | $3,203 |
| State Farm | $7,842 |
A state’s look-back period is how long a DUI conviction stays on your driving record. Every state has a different look-back period. In New Jersey, the look-back period is 10 years. Extensive look-back periods help recognize repeat DUI offenders and impose stricter penalties.
Finding a cheap insurance provider as a young driver might be challenging. MoneyGeek’s research shows that GEICO is the most affordable option for teen drivers in New Jersey, charging an average of $2,912 per year. Our review of its pros and cons will help you evaluate if it’s the best option for your needs.
| GEICO | $2,912 |
| Allstate | $6,314 |
| State Farm | $6,506 |
| Progressive | $12,482 |
Insurers generally charge high rates to teenagers because they consider them risky due to having less experience on the road. Although finding cheap insurance for a young driver can be challenging, MoneyGeek recommends buying full coverage over minimum coverage to ensure maximum protection. Our analysis of the best insurance companies for young drivers may help you choose the ideal option.
Insurers generally consider it risky to insure drivers with bad credit because they may be more likely to file a claim. Based on MoneyGeek’s analysis, GEICO offers the most affordable high-risk auto insurance policy for drivers with bad credit in New Jersey. On average, it charges $2,310 annually.
| GEICO | 2,310 | 58% |
Finding affordable auto insurance with bad credit might seem impossible. However, shopping around and comparing quotes helps you find suitable coverage based on your needs. For more information, you can read MoneyGeek’s guide to getting car insurance with bad credit.
Your driving history and overall profile significantly impact your car insurance rate. Insurers will give you expensive quotes if you have a bad driving record or lack driving experience.
MoneyGeek found that the average insurance cost for New Jersey drivers with a clean record is $1,795 per year. However, this average cost increases to $2,906 annually if you’re a high-risk driver. On average, high-risk car insurance costs $1,111 more.
Low-Risk Driver
$1,795High-Risk Driver
$2,906This is 62% more expensive.
Using MoneyGeek’s New Jersey car insurance calculator is an easy way of estimating your monthly car insurance payment. It’s a helpful tool for drivers looking to get an idea of their insurance cost based on factors like age, driving record, coverage and other essential details.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Nov 20, 2024
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You should understand that insurance is a voluntary market, which means that car insurance companies can deny you a policy if they analyze your details and find it too risky to insure you. However, even if you get rejected by insurers, you can still get a residual market plan through the Automobile Insurance Plan Service Office (AIPSO). This organization helps high-risk drivers find coverage that fits their needs and has been operating for the past 45 years.
The Automobile Insurance Plan Service Office (AIPSO) database helps drivers find the available residual market plan based on location. New Jersey’s residual market plan is called the New Jersey Automobile Insurance Plan (NJAIP). It makes personal private passenger and commercial automobile insurance coverage available for qualified applicants. The NJAIP is overseen by a Governing Committee and a Plan of Operation approved by the Commissioner.
Office Hours
Monday–Friday, 8:15 a.m.–4:30 p.m. ET
njaip@aipso.com
Phone
(800) 652-2471
Fax
(856) 722-9382
Mailing Address
NJAIP/NJSAIP/NJLSV, P.O. Box 6530, Providence, RI 02940-6530
Buying a car insurance policy as a high-risk driver can be complicated. The following frequently asked questions will help you understand how high-risk car insurance works in New Jersey.
MoneyGeek’s analysis shows that GEICO is the best option for high-risk drivers in New Jersey. The company charges around $1,553 annually for a policy.
Following are the average car insurance rates for various types of high-risk drivers in New Jersey:
Insurance companies will consider a driver high-risk if they are young or have serious driving violations like at-fault accidents, a DUI conviction or speeding tickets on their record.
If you get rejected for an insurance policy, the ideal option is to get a residual market plan through the New Jersey Automobile Insurance Plan (NJAIP). You can contact the organization by email at njaip@aipso.com or by calling (800) 652-2471. The office is open Monday through Friday, 8:15 a.m. to 4:30 p.m. ET.
MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.
To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.
To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.
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.
