Car Insurance in New Jersey vs. New York: Costs, Laws and Resources

If you’re planning to move from New Jersey to New York or vice versa, you need to consider the state’s minimum car insurance coverage requirements. Both New Jersey and New York additionally require liability and personal injury protection (PIP), but only New York mandates the addition of uninsured motorist coverage for bodily injury.

MoneyGeek created this guide to show you the differences between car insurance laws and requirements in New Jersey vs. New York. We also analyzed insurance costs to find the cheapest insurers for your needs.

New Jersey and New York require different coverages and limits. New Jersey’s car insurance laws mandate 15/30/5 in liability limits and PIP, whereas car insurance laws in New York dictate 25/50/10 in liability limits along with PIP and uninsured motorist coverage. Thus, the cost of insurance in the two states varies greatly.

Drivers in New Jersey pay around $1,018 per year for state minimum coverage, while those in New York spend roughly $2,278 per year for the same coverage. New York’s requirements for additional coverage and higher limits could be a reason for the state’s more expensive rates.

Both New Jersey and New York are no-fault states, which means drivers are required to file a claim with their own insurance company, regardless of who was at fault. They are also required to have PIP coverage as part of their auto insurance policies.

However, New Jersey is a “choice no-fault” state. Drivers in this state can choose whether they will be held to a no-fault system.

On average, the most affordable company for minimum coverage insurance in New Jersey and New York is GEICO.

• Cheapest in New Jersey: GEICO ($499 per year)
• Cheapest in New York: GEICO ($1,092 per year)

For military members and their families in New York, the cheapest insurer for minimum coverage is USAA, with an average annual rate of $902.

While GEICO offers the lowest rates in both states, its policies in New York are significantly more expensive. This shows that rates can differ even with the same insurance provider across state lines.

Coverage level plays a role in the cost of your auto insurance premiums. For example, drivers carrying a minimum coverage policy pay approximately $1,018 per year in New Jersey and $2,278 in New York. Meanwhile, those with a full coverage policy pay roughly $1,674 yearly in New Jersey and $3,433 in New York.

It’s impossible to pinpoint why one state has more expensive car insurance rates than another. While New Jersey has a higher highway density than New York, the two states have similar uninsured driver rates, population density and theft rates. That said, New York has more expensive rates for minimum and full coverage car insurance according to state averages.

How much you’ll pay for car insurance also depends on where you live within a state. MoneyGeek found that the cheapest and most expensive cities for state minimum insurance in New Jersey and New York are:

New Jersey

• Most affordable city: Jersey City ($960 per year)
• Most expensive city: Paterson ($1,089 per year)

New York

• Most affordable city: Rochester ($715 per year)
• Most expensive city: New York City ($2,732 per year)

Keep in mind that car insurance requirements are the same across a state, so your insurance rates are most likely influenced by other factors like population density.

After moving from New Jersey to New York or vice versa, you’ll need to update your driver’s license and registration. You may stay with your current insurer if it’s available in the state you moved to, but expect your rates to change to reflect any risks and coverage requirements in your new state.

On the other hand, if you need to shop for a new provider, you can use the following resources to find the best option for your driving profile.

Car insurance requirements and premiums vary from state to state. You can better understand the differences between auto insurance in New Jersey vs. New York by reading the answers to the following frequently asked questions.

To calculate average car insurance rates by company and across New Jersey and New York, MoneyGeek collaborated with Quadrant Information Services to collect auto insurance quotes from both locations. We used a sample profile for a 40-year-old driver with a clean driving record and minimum coverage unless modified by criteria such as coverage level, age, driving offenses and credit score. Learn more about how costs are calculated in our MoneyGeek car insurance methodology.

Minimum car insurance requirements by state were sourced from the Department of Motor Vehicles (DMV) of the respective state.