Find the Best Car Insurance Quotes & Options in New Jersey

New Jersey has some of the highest car insurance rates in the country, at an average of $1,595 per year. The state ranks 10th-highest overall for car insurance prices in the US, with the national average being just $1,311 annually. Fortunately, however, there are still ways to save on New Jersey car insurance, such as through discounts and shopping around for the carrier with the best quote.

An independent insurance agent can help you find the cheapest car insurance policy that still covers everything you need it to. But first, here's a closer look at car insurance pricing and requirements in New Jersey.

Best Car Insurance Companies in New Jersey

You could get car insurance from any number of different companies in New Jersey. However, not all car insurance companies are created equal. Here are our top picks for the best car insurance carriers in New Jersey, broken down by category for your convenience. 

A New Jersey independent insurance agent can help you look further into all of these options for car insurance.

Best New Jersey Car Isurance Company Overall: New Jersey Manufacturers

Our top pick for the best New Jersey car insurance company overall is New Jersey Manufacturers (NJM). We selected NJM as our top choice in this category thanks to its inclusion of gap coverage in their full coverage auto policies. The carrier also offers roadside assistance and rideshare insurance. With so many options, ways to customize your policy, and affordable rates, NJM is not to be overlooked as a top contender for car insurance.

NJM Insurance Group Logo

Founded in 1913, New Jersey Manufacturers Casualty Insurance Company has been in the industry for over 100 years. For five years running, the insurance company has received J.D. Power's official certification for "providing personal lines customers with exceptional Auto Claims Experience." 

Many positive customer reviews also demonstrate NJM's ability to provide reliable coverage that delivers on its promises. NJM also ranks highly in claims response surveys. You can also find a host of other insurance products through the insurance company if you're looking to bundle your auto insurance with other personal coverages.

Average Monthly Insurance Cost: Car Insurance Policy Average Annual Insurance Cost: Car Insurance Policy: 

Best New Jersey Car Insurance Company for Minimum Liability: New Jersey Manufacturers

NJM Insurance Group Logo

NJM also nabs the second spot on our list for the best New Jersey car insurance company for minimum liability coverage. The insurance company offers customers just the bare minimum auto insurance starting at rates of just $357 per year. Discounts are also available if customers bundle their coverage, are federal employees, or are members of various organizations.

Average Monthly Car Insurance Policy:  Minimum LiabilityAverage Annual Car Insurance Policy:  Minimum Liability

Best New Jersey Car Insurance Company for Full Coverage: Selective

Our top pick for the best car insurance company in New Jersey for full coverage goes to Selective. The insurance company's full coverage auto insurance premiums average well below most other carriers in New Jersey. With rates at about just $1,131 per year for full coverage, Selective is not an option to be overlooked. 

Selective Insurance Logo

Founded in 1926, giving them nearly a century of experience in the industry. The carrier's headquarters are in Branchville, New Jersey, so they're a truly local carrier. They're also highly financially sound, with AM Best placing them in the $1.5 billion or greater financial size category.

Selective is also highly rated at "A+" or "superior" in terms of financial strength overall by AM Best. Knowing the carrier first got its start when considering how to protect the population after a local carriage accident, customers can rest assured that Selective puts the public's needs first.  

Average Monthly Car Insurance Policy:  Full CoverageAverage Annual Car Insurance Policy:  Full Coverage

Best New Jersey Car Insurance Company for Young Drivers: Progressive

Our top choice for the best New Jersey car insurance company for young drivers and students is Progressive. Progressive offers many discount options for young drivers and students. The carrier is also an excellent choice for students and young drivers thanks to its reliability, solid financial strength, and high customer service ratings. 

Progressive insurance logo

Originally founded in 1937, Progressive has been around for quite a while. The insurance company was the nation's first to offer installment payments for policy premiums, which was groundbreaking at the time. Progressive's original mission was to become the Number One choice for auto insurance with both consumers and agents. 

Progressive is an excellent choice for families with young drivers and students who need auto insurance. But the carrier's extensive history and wide selection of other products have also made Progressive a top choice for many types of insurance customers, whatever their needs.

Best New Jersey Car Insurance Company for Accident History: New Jersey Manufacturers

NJM Insurance Group Logo

New Jersey Manufacturers claims a third top spot on our list of best car insurance companies in New Jersey in the category of drivers with accident histories. NJM captures this category pick thanks to offering roadside assistance, rental car reimbursement, travel reimbursement coverage, and affordable rates. Coverage for drivers with bad driving records averages just $1,229 annually from NJM.

Average Monthly Insurance Cost: Drivers with Poor RecordsAverage Annual Insurance Cost: Drivers with Poor Records

New Jersey Car Insurance Requirements

Unlike most other states, New Jersey does not require its drivers to carry bodily injury liability coverage. However, New Jersey still has its own minimum car insurance requirements that all drivers must carry before hitting the road. These are:

  • Property damage liability: In New Jersey, this coverage is required in the amount of $5,000 per accident. Coverage reimburses costs of repairs to a third party's property, including vehicles and more, after an accident you're at fault for.
  • Personal injury protection: In New Jersey, this coverage is required in the amount of $15,000. Coverage reimburses for medical treatment for yourself and your passengers after an accident you're at fault for.

Optional Car Coverage in New Jersey

  • Bodily injury liability: Coverage reimburses medical treatment costs for other drivers and their passengers after an accident you're at fault for.
  • Collision: Pays for damage to your own vehicle after an accident you're at fault for.
  • Comprehensive: Pays the costs of damage caused by incidents other than collision, including collisions with large animals, windshield breaks, storm damage, theft, vandalism, etc. 
  • Medical payments: Coverage pays medical treatment for you or your passengers after an accident you're at fault for.
  • Rental car reimbursement: Pays the costs of a rental car after a covered accident.
  • Roadside assistance: Coverage pays for towing and other roadside services if your vehicle breaks down on the road.
  • Gap coverage: Pays the difference between what your vehicle is worth and what you owe on your remaining vehicle loan after a collision.

An independent insurance agent in New Jersey can help you select the auto insurance coverages you need most in your policy.


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Average Cost of Car Insurance in New Jersey

Resident drivers in New Jersey pay an average of $1,595 annually for car insurance. The current US average auto insurance rate is $1,311 annually. So, drivers in New Jersey pay quite a bit above the national average. The insurance company and car insurance coverages you select, as well as any applicable discounts, can all impact your rates. A minimum coverage policy in New Jersey can average $357 per year, while a "full coverage" auto policy can cost about $1,131 annually.

Average New Jersey Car Insurance Costs By City

Thanks to local crime rates and traffic rates, as well as an area's risk of inclement weather, local car prices, competition, etc., car insurance costs vary by city, not just by state. In New Jersey, resident drivers in Egg Harbor pay the lowest car insurance rates, on average, or about $1,230 annually. However, resident drivers in Elizabeth pay an average of $1,815 for car insurance each year, the highest in the state.

Finding Car Insurance Discounts in New Jersey

Though New Jersey has higher average auto insurance premiums than many other states, resident drivers can still save money by earning car insurance discounts on their coverage. Discount availability varies by insurance company, but just a few common car insurance discounts you can expect to find in New Jersey include:

  • Student driver discounts: Available if there's a student driver listed on your auto insurance policy.
  • Safe driver discounts: Available to drivers who have a clean record and don't get into accidents or get tickets within a certain period.
  • Anti-theft devices: Available to drivers with alarms and other security features in their vehicles.
  • Paperless billing: Available to drivers who get their billing statements electronically.
  • Military discounts: Available to active or retired military members.
  • Other discounts: Available to teachers, union members, government workers, and other group members.

An independent insurance agent in New Jersey will help you add any car insurance discounts you qualify for to your policy automatically.

How to Find the Best Car Insurance Quote in New Jersey

There's no need to spend hours comparing different car insurance quotes from several car insurance companies in New Jersey. A New Jersey independent insurance agent can do all that hard work for you. They'll present you with the results for just the best car insurance quotes in the state together in one place.

How to File a Car Insurance Claim in New Jersey

Filing a car insurance claim in New Jersey can be easier when you know the steps to take. Though we can't eliminate the stress factor entirely, we can hopefully help simplify the process with this guide.

  1. File a police report: Especially if you've been in an accident, make sure to file a police report first, ideally from the scene or immediately once you get to safety.
  2. Tend to any injuries: Get medical help for any injured parties right away.
  3. Call your independent insurance agent: This New Jersey agent can even file a car insurance claim directly with your carrier for you and provide you with a claim number to keep track of its status.
  4. Get a rental vehicle: Arrange with your car insurance carrier to get a rental car if necessary.
  5. Schedule a visit with an adjuster: Arrange for a visit from an adjuster from your car insurance company to evaluate your vehicle's damage.

Your independent insurance agent in New Jersey can make many of these arrangements for you and keep you updated through every step of the claims process.

How does your city measure up to the national average?

National average time spent commuting 26.9 Min

National average car thefts per 1,000 2.3 Year

National average car insurance cost $1,311 Year

CityCommute time (min)Auto thefts / 1,000Annual insurance cost
Egg Harbor242.2$1,230
Fair Lawn33.30.51$1,305
Jersey City37.22.51$1,635
New Brunswick27.11.16$1,517
Toms River310.44$1,321

New Jersey Car Insurance FAQ

Car insurance premiums in New Jersey average $1,595 annually or about $133 monthly. New Jersey's average car insurance rates rank 10th highest in the nation.

What your New Jersey car insurance policy covers depends on the types of coverage you select. You'll want at least the state's minimum requirements for property damage liability and personal injury protection, but you may choose to add more coverage, such as collision, comprehensive, bodily injury liability, etc.

Drivers in New Jersey need at least this minimum car insurance required by the state:

  • $5,000 in property damage liability per accident
    $15,000 in personal injury protection

About 14.9% of New Jersey drivers are uninsured. This is higher than the national average of 13%.

Yes, New Jersey is a "no-fault" state for car insurance. So, drivers must first go through their own auto policy to receive compensation for injuries to themselves and their passengers after an accident.

Our research found that the best car insurance companies in New Jersey are New Jersey Manufacturers, Progressive, and Selective Insurance. These companies were chosen based on premium rates, customer service reviews, financial strength ratings, policy options, and more.

No, you cannot own a car without car insurance in New Jersey. The state requires all registered vehicles to be covered by at least personal injury protection and property damage liability coverage.

No, New Jersey requires drivers to show proof of state auto insurance before they're allowed to register a vehicle. So you'll need a New Jersey auto insurance policy before registering your car.

New Jersey's car insurance rates are higher than the national average by a couple hundred dollars per year. Compared to the US average of $1,311 annually, New Jersey's average auto insurance rates are quite a bit more expensive, at $1,595 annually.

Do You Know What Your New Jersey Car Insurance Covers?