What’s The Cheapest Car Insurance In New Jersey
Palisades offers the cheapest car insurance in New Jersey for a full coverage policy, starting at $86 per month, but Geico, NJ Manufacturers, State Farm and Allstate also offer great rates.
With the gas prices in the United States at more than $4, according to AAA data, drivers looking to save a few bucks could opt for cheaper car insurance.
The cheapest car insurance in New Jersey costs $86 per month for a full coverage policy. Thats a $74 savings from the average cost of insurance in the state, which is $160 a month.
To help you find the cheapest rates, CarInsurance.com analyzed rates from multiple auto insurance companies in New Jersey including Geico, Progressive, Mercury, and many others, so that you can easily compare car insurance rates.
Granted, you probably dont just want a good rate, you want good coverage as well. Thats why we have prepared this comprehensive guide for you. It will help you find cheap car insurance in New Jersey for your needs without sacrificing essential coverage and ensuring your financial security.
What Are New Jersey’s Auto Insurance Requirements
Residents of the Garden State are required to have car insurance. Standard policy holders specifically are required to carry liability coverage limits of at least:
- $15,000 in bodily injury per person
- $30,000 in total bodily injury per accident
- $5,000 in property damage per accident
Consider increasing your car insurance coverage beyond New Jersey’s auto insurance requirements to fully protect your assets and your family. Discover more about auto liability insurance.
New Jersey also requires personal injury protection , uninsured/underinsured motorist coverage for bodily injury , and uninsured/underinsured motorist property damage for a standard policy with the following minimum limits:
- PIP: $15,000 minimum
- UM/UIM BI: $15,000 per person, $30,000 per accident
- UM/UIM PD: $5,000 with a $500 deductible
PIP covers your medical costs, as well as lost wages and death benefits, and pays out even if you’re at fault. UM/UIM BI pays for medical expenses for you and your passengers if you’re hit by a driver with little or no insurance. UM/UIM PD covers damage caused to your vehicle from an uninsured or underinsured driver.
As with liability coverage, it may be necessary to choose higher limits for these coverages to better protect your financial well-being.
Ready to make the switch? Drivers nationwide who switch and save with Progressive save over $650 on average.* Get an auto insurance quote today.
Minimum Liability Insurance Requirements In New Jersey
New Jersey law has some of the lowest liability insurance requirements in the country, but it also requires personal injury protection. Drivers can select a basic policy that offers very little liability protection and a standard policy that offers more. The state says this option should only be considered by those with few family responsibilities and few real assets, but it is available to all drivers.
A basic policy provides the bare minimum auto insurance coverage mandated by the state:
- No bodily injury liability coverage included
- $5,000 property damage liability per accident
- $15,000 of personal injury protection per person or accident
With a standard policy, you get a minimum of:
- $15,000 of bodily injury liability insurance per person $30,000 per accident
- $5,000 of property damage liability per accident
- $15,000 of personal injury protection per person or accident
If you choose the standard policy, you also have to check a box choosing between an unlimited or limited right to sue. If you do not make a choice, the state insurance department warns that you may have only a limited right to sue following a car accident. As for the basic policy, only the limited right to sue option is available.
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Ology For Selecting The Cheapest Auto Insurance In Nj
| Category | ||
| 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 35, 45, 55, 65 | 45 | |
| Teenage Driver Included on Policy | No, Yes | No |
| Driving Record | Clean, One Speeding Ticket, One At-Fault Accident, One DUI, Suspended License, Open Container, Red Light Infraction, Reckless Driving, One Not At-Fault Accident | Clean |
| 7,500 Miles, 15,000 Miles, 20,000 Miles | 15,000 Miles | |
| Sedan, Minivan, SUV, Coupe, Truck | Sedan |
- Minimum Coverage: Coverage requirements of $5,000 in property damage liability per accident, and $15,000 in personal injury protection, as required by New Jersey’s minimum coverage requirements.
- Standard Coverage: Coverage levels of 50k/100k/25k of liability coverage, 50k/100k/25k of uninsured motorist coverage and $15,000 of personal injury protection.
- Full Coverage: Coverage levels of 100k/300k/50k of liability coverage, 100k/300k/50k of uninsured motorist coverage, collision and comprehensive coverage with a $500 deductible and $15,000 of personal injury protection.
- Sedan: 2018 Toyota Camry.
- Minivan: 2018 Dodge Grand Caravan.
- SUV: 2018 Toyota RAV4.
- Coupe: 2018 Ford Mustang.
- Truck: 2018 Ford F-150.
New Jerseys Government Assistance Program For Low
SAIP, also called dollar-a-day insurance, is the New Jersey government car insurance program for low-income individuals. As its name suggests, the policy costs $365 per year. Its available for people enrolled in the Federal Medicaid with Hospitalization program.
SAIP covers expenses following a car accident, including:
- Emergency medical treatment
- Treatment of serious brain and spinal cord injuries resulting from the car accident for up to $250,000
- Death benefit of $10,000
Although SAIP pays for medical costs, it doesnt cover liability costs and damages to the drivers vehicle.
Low-income individuals in New Jersey need to meet the following requirements to qualify for the SAIP:
- Current enrollment in an eligible Federal Medicaid with Hospitalization program.
- A valid drivers license and vehicle registration.
- No existing car insurance policy
SAIP follows a one car per policy rule. However, if the household only has one car and multiple people are enrolled in an eligible Medicaid program, qualified household members can all be covered under the same insurance policy.
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The Average Cost Of Car Insurance In New Jersey
The average car insurance cost in the state of NJ is $1710 each year for full auto insurance coverage and $735 each year for minimum car insurance coverage. This is similar to the national average of $1752 a year for full coverage. However, the total amount you pay for automobile insurance in New Jersey depends on various factors, such as age, zip code, car model, and car safety features. Some of the cheapest auto insurance in New Jersey are NJM, Amica, and THE GENERAL.
Cheapest Minimum Coverage Car Insurance In New Jersey For 60
Drivers in New Jersey who want just the state minimum coverage may want to check with these insurers, which had the lowest average rates:
Geico: $532 per year, or about $44 per month.
Amica: $534 per year, or about $44 per month.
NJM: $560 per year, or about $47 per month.
Selective: $602 per year, or about $50 per month.
Plymouth Rock: $603 per year, or about $50 per month.
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Does Income Affect Car Insurance Rates In New Jersey
When determining car insurance rates, companies in New Jersey cant use income as a factor. However, income-related factors can affect the price of insurance premiums.
For example, insurance providers consider younger drivers riskier to insure due to their driving inexperience, so they are charged more. Coincidentally, younger drivers tend to have lower incomes since theyre still studying or just starting their careers. However, they arent paying higher insurance rates due to their low income.
MoneyGeek studied income-related factors and their effect on car insurance rates in New Jersey. Based on our research, the following have the most impact:
- Adding a teen driver to their car insurance policy.
Other factors, such as driving record and car model, also influence how car insurance companies price their policies.
-
A drivers car model can make their insurance twice as expensive in New Jersey.
-
In New Jersey, people with poor credit scores may pay 2.6x more compared to folks with excellent scores.
Cheapest Full Coverage Car Insurance In New Jersey For 30
Drivers in New Jersey with clean driving records may get the lowest rates from these companies:
Plymouth Rock: $1,063 per year, or about $89 per month.
Geico: $1,274 per year, or about $106 per month.
Selective: $1,379 per year, or about $115 per month.
NJM: $1,416 per year, or about $118 per month.
State Farm: $1,442 per year, or about $120 per month.
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How Much Do New Jersey Drivers Pay For Car Insurance
The Zebra reports that New Jersey drivers pay, on average, $133 a month for car insurance. That’s three percent more than the national average. According to Wallethub, New Jersey is the most densely populated no-fault state in the country. With so many drivers on the road, there’s a higher chance for New Jersey drivers to get into accidents. That’s one reason why New Jersey drivers pay higher rates than drivers in other areas of the country.
Is New Jersey A No
Yes, New Jersey is a no-fault state. When you are in an accident, the insurance provider must pay for damages and medical costs, regardless of who caused the accident. There are advantages of living in a no-fault jurisdiction. However, all drivers in New Jersey are allowed to bring personal injury insurance, referred to as no-fault coverage, which helps pay for medical costs if you get involved in an accident.
When looking for auto insurance, note that personal injury cover is likely to be applied to the basic car insurance policy.
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Cheapest Car Insurance In New Jersey For Minimum Required Coverage
You will not get cheap car insurance quotes by simply putting in the query ‘car insurance near me‘ in your search browser. You will have to go through the hard work of comparing car insurance quotes from various car insurance companies. You can also get in touch with your insurance agent to get a lowdown on cheap car insurance quotes.
State Farm has the cheapest minimum coverage car insurance quotes in New Jersey, charging an average of $432 per year. State Farm’s minimum coverage policies are half the statewide average price.
Drivers can also get cheap auto insurance in New Jersey with THE GENERAL. Its average annual car insurance premium is $486, or around $40 per month.
How To Find The Best Car Insurance In New Jersey
Although New Jersey is a small state, it has the highest population density. With so many people on the road, it’s no surprise that car insurance prices in New Jersey are higher than average. It would be best if you didn’t have to do much digging to find a good bargain on car insurance in the Garden State.
To assist you in finding the best rates, we compared 13 car insurance companies in New Jersey.
Our top recommendation for car insurance in New Jersey is THE GENERAL, which has some of the lowest prices in the state. Progressive, State Farm, and NJM are also solid choices for most drivers.
Remember that your situation will heavily influence your auto insurance prices in New Jersey and how a business evaluates certain aspects. Comparing car insurance quotes from different car insurance companies is the easiest approach to obtain the best rates.
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Is It Illegal To Not Have Car Insurance In New Jersey
It is illegal to operate a car in New Jersey without the minimum required insurance coverage under the states Basic Auto Insurance Policy.
If you are found guilty of driving without insurance, you can be fined up to $1,000, lose your license for up to a year, and be assigned community service on your first offense.
On your second and subsequent offenses, you can be fined up to $5,000, lose your license for up to two years with reinstatement up to the DMV director, be assigned up to 180 hours of community service, and spend up to 14 days in jail.
Your car can also be impounded by the state if you are caught driving without insurance in New Jersey.
The Cheapest Car Insurance In New Jersey
The cheapest car insurance companies in New Jersey: Plymouth Rock: $84, State Farm: $94 and NJM: $98
Friday, April 22 2022By Aaron Besson
Plymouth Rock and State Farm have the cheapest car insurance rates for New Jersey drivers, according to a QuoteWizard survey of the state’s providers. Plymouth Rock offers an average rate of $84 a month for minimum-coverage car insurance, while State Farm is the next cheapest, at $94 a month. State Farm has the cheapest full-coverage car insurance in New Jersey, at $168 a month.
The main reasons for New Jersey’s high car insurance rates in comparison to other states are its extreme weather and its status as a no-fault state. Because of this, it’s important to compare the costs and coverage offerings of multiple car insurance providers to get the best policy at the cheapest rate.
In this article
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New Jersey Vehicle Registration Fees And Other Costs
If youre in the market for a new or used car, youll need to budget for more than just the vehicles sticker price. Youll also be on the hook for basic DMV fees like title, license plate, registration fees, as well as buying a new car insurance policy for your vehicle. Some buyers will also find themselves with additional fees such as sales tax, documentation fees, personal property tax, emissions and inspection fees, hybrid and electric vehicle fees, lien recording fees, and a slew of other costs.
Check out Compare.coms comprehensive vehicle costs breakdown to make sure you account for all the added fees you might be on the hook for when buying a car in New Jersey.
Paying For Car Accident Injuries In New Jersey
New Jersey is a no-fault insurance state where you make most injury claims on your own insurance, no matter who caused the auto accident. For this purpose, you need personal injury protection .
PIP insurance has two parts:
1. Basic benefits. Payments for medical bills such as doctors and medical equipment.
2. Additional PIP benefits.Reimbursement for lost wages if you cant work because of the accident, and reimbursement for essential services for tasks you cant do. This could include house cleaning, child care and transportation. This part also includes death benefits and funeral expenses.
In New Jersey you can purchase both parts of PIP or just basic benefits .
If you purchase additional PIP benefits, prepare yourself for a long list of choices for coverage amounts for lost wages, essential services, and death and funeral benefits.
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The Bottom Line On Cheap Car Insurance In New Jersey
Based on our research, if you are a good driver, then Palisades is the cheapest in New Jersey for a full coverage policy.
We know that finding the best and cheapest auto insurance coverage is essential, but so is getting the right amount of protection.
The best way to find affordable car insurance in New Jersey is to know and understand the coverage you need, compare quotes, apply for discounts, and maintain a clean driving record. Even if you have tickets or accidents, it’s still possible that the company will offer you a policy at affordable rates.
New Jersey Penalties For Driving Without Car Insurance
In the state of New Jersey, it is illegal to drive any motor vehicle without proof of insurance or financial responsibility. The driver must maintain proof of continuous insurance throughout the registration period. The penalties for driving without car insurance in New Jersey include fines of $300-$1,000 for the first offense, up to a year suspension of license, and community service.
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New Jerseys Basic And Special Policies
For drivers seeking even less coverage than a Standard policy, New Jersey allows two other choices:
- The Basic Auto Insurance policy has less coverage than a Standard policy but still provides enough to meet legal requirements.
- The Special Auto Insurance Policy has extremely low coverage and is available only to drivers who are eligible for federal Medicaid with hospitalization.
We dont recommend either of these because of the potential for unpaid car accident bills and large lawsuits against you.
Cheapest Minimum Coverage Car Insurance In New Jersey For 20
Drivers in New Jersey who want just the state minimum coverage may want to check with these companies, which had the lowest average rates:
Geico: $897 per year, or about $75 per month.
NJM: $963 per year, or about $80 per month.
Amica: $1,029 per year, or about $86 per month.
Plymouth Rock: $1,277 per year, or about $106 per month.
Allstate: $1,324 per year, or about $110 per month.
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Summary: Required New Jersey Car Insurance
| Coverage in a Standard NJ policy | Required minimum |
|---|---|
|
Right to sue |
Limited |
The New Jersey Department of Banking and Insurance has an auto insurance worksheet that walks you through the many auto insurance options in the state, including coverage and deductible choices. We recommend using this worksheet before you get auto insurance quotes, so you have a good idea of what youll want.
Cheapest Car Insurance For Young Drivers Under 25
Until you reach 25 years of age, dont expect to see any significant decreases in auto insurance rates. This is because insurers feel that drivers between the ages of 18-24 are more likely to get into accidents and file insurance claims. But some companies will help you save money. For young drivers in New Jersey, we found five companies that provide the cheapest car insurance for drivers in this age range.
| Auto Insurance Company | |
|---|---|
| Liberty Mutual | $294/mo |
As you can see, Metromile is number one again when it comes to the most affordable auto insurer, this time for young drivers in New Jersey with premiums for liability insurance $178/mo. Mercury , Plymouth Rock Assurance , Good2Go , and Liberty Mutual also provide affordable liability coverage if you fall in this age range.
When comparing rates of young drivers to teen drivers, youll find that young drivers tend to pay less for auto insurance than teen drivers. A young driver insured by Plymouth Rock Assurance will pay a monthly rate of $220/mo, while a teen driver has to pay a premium of $294. While none of the quotes for young drivers cross the $300 threshold, half of the options for teen drivers surpass it entirely.
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