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

If you’re moving from New Jersey to Pennsylvania or vice versa, you need to consider new car insurance requirements. While both states have similar coverage requirements, they dictate different limits for personal injury protection (PIP). New Jersey requires $15,000 in coverage, whereas Pennsylvania requires $5,000.

In this guide, MoneyGeek analyzed the cost of car insurance in New Jersey vs. Pennsylvania to find the cheapest options in each state. We also broke down the differences between each state’s car insurance laws and requirements.

New Jersey and Pennsylvania both require liability insurance with similar limits but differ in minimum coverage for PIP. New Jersey car insurance laws require at least 15/30/5 in liability limits and $15,000 for PIP. Meanwhile, car insurance laws in Pennsylvania require liability limits of 15/30/5 and $5,000 in PIP. As a result, the cost of car insurance varies in the two states.

Drivers in New Jersey pay roughly $1,018 per year for minimum coverage, whereas Pennsylvania drivers pay approximately $912 per year for the same policy. Car insurance rates in New Jersey may be more expensive due to its higher coverage limits.

Both New Jersey and Pennsylvania are no-fault states, which means drivers must have PIP coverage. This will help pay for any driver and passengers' medical bills, regardless of who was at fault in an accident.

That said, New Jersey and Pennsylvania are also “choice no-fault” states, allowing drivers to choose whether they will be held to a no-fault system.

MoneyGeek found the most affordable company for state minimum coverage in New Jersey and Pennsylvania:

• Cheapest in New Jersey: GEICO ($499 per year)
• Cheapest in Pennsylvania: GEICO ($543 per year)

For those with a military background in Pennsylvania, the cheapest insurance provider for state minimum coverage is USAA, at an average of $374 per year.

While GEICO is the cheapest option in both states, its policies are more affordable in New Jersey than in Pennsylvania. This shows that rates can vary across state lines, even with the same insurer.

The coverage level you select influences the cost of car insurance in New Jersey vs. Pennsylvania. The annual average cost ranges from $1,018 in New Jersey to $912 in Pennsylvania for minimum coverage. Meanwhile, full coverage costs an average of $1,674 per year in New Jersey and $1,818 per year in Pennsylvania.

In this case, New Jersey is cheaper for minimum coverage, while Pennsylvania is cheaper for full coverage. This shows how average car insurance rates can change depending on various factors.

Many factors affect the cost of car insurance, making it impossible to single out one reason why a state is more expensive than another. For instance, New Jersey has a higher highway density and urban population than Pennsylvania. These factors could be partly why New Jersey has more expensive rates for minimum coverage.

Your car insurance rates may also be affected by where you live within a state. On average, Jersey City is the cheapest city for minimum coverage ($960 per year) in New Jersey, whereas Paterson is the most expensive ($1,089 per year). Meanwhile, Pittsburgh is the cheapest city for the same policy ($497 per year) in Pennsylvania, whereas Philadelphia is the most expensive ($1,068 per year).

Note that car insurance requirements are the same in any given state, so it’s more likely that another factor, such as population density within the state, is influencing your car insurance rates.

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

If you do need to shop for a new insurer, MoneyGeek’s resources can help you find the best option that fits your driving profile.

By reading the answers to the following frequently asked questions, you can better understand the differences between car insurance in New Jersey vs. Pennsylvania.

To calculate average car insurance rates by company and across New Jersey and Pennsylvania, 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 like 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.