Cheapest Car Insurance for Low-Income Drivers in New Jersey (October 2024)

Plymouth Rock Assurance offers the cheapest rate for individual drivers with low income and poor credit at $88 per month. For families with low income, GEICO provides the most affordable rate at $73 per month.

New Jersey does not offer state-backed car insurance programs for low-income drivers. Finding the provider with the most affordable rate is one option to manage costs, and there are also ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides. For example, if you are in an at-fault accident, minimum coverage may not cover all the damages, leaving you to pay out of pocket.

Car insurance companies in New Jersey do not consider income when calculating your rates. Instead, they look at factors like age, driving record, credit history, and type of car. At-fault accidents and moving violations can also increase your rates. To find the cheapest rates, it's best to compare quotes from several insurance companies.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, New Jersey offers pay-per-mile insurance, which is a great option for drivers who rarely drive. MoneyGeek rounded up the cheapest insurers for low-income drivers in New Jersey to help you save.

To legally operate a vehicle in the Garden State, you're required to carry minimum car insurance requirements that include the following coverages:

• $25,000 for bodily injury liability per person.
• $50,000 for bodily injury liability per accident.
• $25,000 for property damage liability per accident.
• $15,000 personal injury protection (PIP) per person.

Choosing a liability-only car insurance policy in New Jersey helps cover expenses for the other driver if you're at fault in an accident but doesn't cover your own vehicle's damages. For broader protection, including your vehicle, you'll need full coverage car insurance, which encompasses both collision and comprehensive coverages. These safeguard against a range of incidents, from accidents to theft and natural disasters.

In scenarios such as frequent driving in areas with high traffic or theft rates, opting for full coverage can be particularly wise. For instance, residents of urban New Jersey locales may find full coverage beneficial due to increased risks. Understanding the risks and benefits of different coverages is crucial to choosing the right policy for your circumstances.

Credit history is crucial for low-income drivers as it can significantly impact car insurance premiums in New Jersey. Insurers view a poor credit history as a higher risk, leading to increased premiums. This makes it essential to understand how your credit-based insurance score affects your rates. The cheapest car insurance companies for drivers with low-income and poor credit record in New Jersey are:

• Plymouth Rock Assurance: $1,061 per year, $88 per month
• GEICO: $1,069 per year, $89 per month

Drivers with good insurance credit, you can get the cheapest car insurance in New Jersey from:

• GEICO: $478 per year, $40 per month
• Plymouth Rock Assurance: $549 per year, $46 per month

Driving without insurance in New Jersey is considered a misdemeanor and can lead to suspension of your driver’s license, vehicle registration, fines ranging from $175 to $1,000 and other penalties.

While your income doesn't directly change car insurance rates, your family situation does. In New Jersey, single parents face an annual premium that's $464 higher than what married couples with a teen pay. For couples, the rate is more affordable by $464 per year.

The cheapest car insurance companies for married couples with a teen in The Garden State are:

• GEICO: $880 per year; $73 per month
• Travelers: $1,229 per year; $102 per month

For single parents with a teen, the most budget-friendly options are:

• GEICO: $1,344 per year; $112 per month
• Allstate: $2,406 per year; $201 per month

These rates show that married couples with a teen can secure minimum coverage auto insurance for less money compared to single parents. This difference highlights the importance of a good credit score, which can help any family type access more affordable car insurance premiums.

Car insurance premiums generally decrease as you reach your early senior years (typically around age 55 to 65), especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low income and poor credit history are:

• NJM: $989 per year; $82 per month
• GEICO: $1,048 per year; $87 per month

After the age of 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In New Jersey, there are specific laws and guidelines for seniors getting car insurance.

Many factors influence car insurance rates. Although your income doesn't affect the price directly, you might pay more if a low income leads to a poor credit record. Understanding these factors can help you find the best car insurance for your needs.

There are several ways to find affordable car insurance in New Jersey. You can find good deals. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance for low-income drivers in New Jersey can be difficult. Get answers to common questions about low-income car insurance options in the state.