Best Car Insurance in New Jersey
Last Updated on November 14, 2020
Drivers in New Jersey pay relatively high costs for car insurance. The average driver in New Jersey pays approximately $1,982 per year for full coverage car insurance, significantly higher than the nationwide average of around $1,400 per year.
Due to population density, traffic, accident rates, state insurance laws, and other factors, car insurance tends to be more expensive in New Jersey than in other states. Fortunately, by researching New Jersey car insurance prices and requesting quotes from different providers, you can get lower car insurance premiums in New Jersey.
Table of Contents
- The 10 Best Auto Insurance Companies in New Jersey
- New Jersey Auto Insurance Requirements
- Driving Without Insurance in New Jersey
- Car Insurance in New Jersey with a DUI
- Car Insurance in New Jersey with At-Fault Accidents
- Car Insurance in New Jersey with Speeding Tickets
- Car Insurance in New Jersey for Young Drivers
- Car Insurance in New Jersey with Poor Credit
- SR-22 Insurance in New Jersey
Top 10 Auto Insurance Companies in New Jersey
Car insurance is more expensive in New Jersey than in most other states, but certain companies continue to undercut the competition without compromising on customer service or claims satisfaction. Based on our model driver portfolio, here are some of the best car insurance companies in New Jersey:
NJM has been a popular car insurance company for decades. NJM recently branched out to Pennsylvania, although NJM remains one of New Jersey’s best-rated and most popular car insurance providers. The average NJM driver in New Jersey pays roughly $1,353 per year for car insurance with NJM.
|Company Address||301 Sullivan Way
West Trenton, NJ 08628
|Phone Number||1 (800) 232-6600|
2. Plymouth Rock
Plymouth Rock is another popular New Jersey car insurance company, known for offering a combination of affordable prices, good customer service, and strong claims satisfaction. Plymouth Rock’s average car insurance premiums are similar to NJM, with drivers paying approximately $1,372 per year for car insurance in New Jersey.
|Plymouth Rock Assurance|
|Company Address||581 Main St
Woodbridge, NJ 07095
GEICO tends to be one of the cheapest car insurance companies in every state in America, and New Jersey is no exception. Although GEICO is slightly more expensive than NJM and Plymouth Rock, they continue to offer competitive car insurance premiums to drivers across New Jersey, with the average policyholder paying approximately $1,432 per year for full coverage car insurance with GEICO.
|Company Address||5260 Western Avenue
Chevy Chase, MD 20815
Travelers is an effective and affordable car insurance company with millions of policies across the United States. Expect to pay approximately $1,693 per year for full coverage car insurance in New Jersey.
|Company Address||485 Lexington Ave 10th Fl
New York, NY 10017
Progressive offers low prices on car insurance across New Jersey, charging drivers approximately $1,704 per year, on average, for full coverage car insurance. Progressive is one of America’s largest insurers and has millions of policies across the United States.
|Company Address||6300 Wilson Mills Road
Mayfield Village, OH 44143
Allstate is nationwide insurance provider with millions of policies across the country. Allstate isn’t the cheapest insurance provider in most states, although the company emphasizes good claims satisfaction and customer service with plenty of available discounts. In New Jersey, drivers pay roughly $1,742 per year for full coverage car insurance with Allstate.
|Company Address||2775 Sanders Road
Northbrook, IL 60062
With catchy jingles and millions of customers across the United States, Nationwide continues to be one of the best-rated car insurance providers in most states. In New Jersey, the average Nationwide customer pays roughly $1,782 per year for car insurance.
|Company Address||One Nationwide Plaza
Columbus, OH 43215
8. State Farm
State Farm is America’s largest car insurance company, and they remain a very popular option in New Jersey. State Farm offers effective car insurance service, affordable prices, great discounts, and other advantages for drivers across New Jersey. Expect to pay approximately $1,802 per year in New Jersey with State Farm.
|Company Address||1 State Farm Plaza
Bloomington, IL 61701
MetLife isn’t the cheapest option in New Jersey for most drivers, although it may be the cheapest option for drivers in certain situations – like drivers with a teenaged child on their policy. MetLife charges roughly $2,034 per year for full coverage car insurance in New Jersey, based on our sample driver profile.
|Company Address||200 Park Avenue
New York City, NY 10166
10. The Hanover
The Hanover is best for drivers with expanded coverage needs and a higher insurance budget. It’s not a budget or low-cost provider. Instead, The Hanover charges higher rates for higher service and claims satisfaction. Expect to pay roughly $3,234 per year for full coverage car insurance in New Jersey with The Hanover.
|Company Address||440 Lincoln St
Worcester, MA 01653
|Phone Number||1 (800) 922-8427|
New Jersey Insurance Requirements
New Jersey’s Motor Vehicle Commission (MVC) requires drivers to provide proof of insurance to legally drive on roads in the state.
New Jersey has unique car insurance requirements compared to other states. New Jersey lets drivers choose between a Basic Policy and a Standard Policy. The Basic Policy is a cheaper policy with lower limits and less protection, while the Standard Policy has larger limits, higher costs, and better protection.
If you want to save costs and don’t mind added risk, then the Basic Policy is fine. If you’d prefer paying a little more for added protection, then a Standard Policy or better is the smarter option.
- $5,000 of property damage liability coverage per accident
- $15,000 of personal injury protection per person, per accident
- $10,000 of bodily injury liability coverage (optional)
- $15,0000 of bodily injury liability coverage per person and $30,000 per accident
- $5,000 of property damage liability coverage per accident
- $15,000 of personal injury protection per person or accident
On the Basic Policy and Standard Policy, you can add coverage up to $250,000 for certain injuries under personal injury protection (PIP). PIP functions similar to health insurance, covering medical bills and other costs after an accident regardless of fault.
If you choose the Standard Policy, then you can increase all of the coverage limits listed above. You can buy as much as $250,000 of bodily injury liability per person and $500,000 per accident, as much as $100,000 of property damage liability coverage per accident, and as much as $250,000 of PIP coverage. You can also add collision and comprehensive coverage on to any policy.
Any car insurance policy you buy in New Jersey will meet these minimum insurance limits. If you have assets worth protecting, then you may want to increase these limits for added protection.
Driving without Insurance in New Jersey
Like in most states, driving without insurance in New Jersey is illegal. The punishment for driving without insurance in New Jersey is relatively severe compared to other states.
If you are caught driving without insurance in New Jersey the first time, you will receive a fine between $300 and $1,000. You will also face a mandatory license suspension, community service, and other charges.
The length of the license suspension and community service varies based on the judge. Your license could be suspended for 1 to 2 years, for example.
In addition to these fines, drivers need to pay a surcharge of $250 per year for 3 years ($750 total) to the New Jersey Motor Vehicle Commission.
If you are caught driving without insurance two or more times in New Jersey, you could face even harsher punishments. Subsequent convictions can lead to fines up to $5,000.
Your first conviction carries no points. However, subsequent convictions come with 9 insurance eligibility points.
Having two or more convictions for driving without insurance in New Jersey can make it extremely difficult to acquire auto insurance. With 9 points on your license and multiple convictions for driving without insurance, you’re considered a high-risk driver.
Although you’re unlikely to face jail time for your first offense, additional offenses for driving without insurance come with a mandatory jail term of 14 days.
Overall, New Jersey has some of the harshest penalties in the country for driving without insurance.
Car Insurance in New Jersey with a DUI
New Jersey has a 10-year lookback period for driving under the influence (DUI) convictions. That means insurance companies can see all DUI offenses dating back 10 years. If you receive a second DUI within this time period, then you’ll receive harsher penalties than you did for the first DUI.
A single DUI conviction in New Jersey can come with multiple fines attached, including fines paid to the Drunk Driving Enforcement Fund ($100), the Motor Vehicle Commission restoration fee ($100), the Intoxicated Driving Program ($100), the Violent Crimes Compensation Fund ($50), and the Safe & Secure Community Program ($75). You will also pay a $1,000 per year automobile insurance surcharge, rising to $1,500 for subsequent offenses.
Fortunately, not all car insurance companies treat DUIs in a similar way. Some car insurance companies are comparatively lax towards DUI convictions than others:
- NJM: $1,702 per year
- Progressive: $2,121 per year
- Plymouth Rock: $2,339 per year
- GEICO: $2,402 per year
- Travelers: $2,683 per year
Car Insurance in New Jersey with At-Fault Accidents
If you caused an accident in New Jersey, then you’ll pay comparatively higher insurance premiums for years. Fortunately, not all insurance providers treat at-fault accidents in the same way, with some insurers ignoring the first accident or treating it relatively lightly compared to other accidents.
Request a quote from all of the following insurance companies if you have an at-fault accident in New Jersey:
- NJM: $1,379 per year
- Plymouth Rock: $1,420 per year
- GEICO: $1,503 per year
- Allstate: $1,521 per year
- State Farm: $1,522 per year
Car Insurance in New Jersey with Speeding Tickets
Citations like a speeding ticket can raise car insurance premiums in New Jersey. Some insurance companies treat speeding tickets like a serious offense, while others ignore a single minor speeding ticket on an otherwise clean record.
The following car insurance companies in New Jersey offer the cheapest premiums after a speeding ticket:
- NJM: $1,310 per year
- Plymouth Rock: $1,320 per year
- GEICO: $1,353 per year
- Allstate: $1,501 per year
- State Farm: $1,513 per year
Car Insurance in New Jersey for Young Drivers
New Jersey already has some of the costliest car insurance in the United States. As a young driver under 25, however, you’ll pay even higher rates than average. Young drivers under 25 are statistically more likely to cause an accident than any other age group, and that means higher insurance premiums.
Fortunately, by shopping around, young drivers can save thousands on car insurance in New Jersey. Some insurance companies welcome young drivers into their insurance pool, while others charge young drivers prohibitively high rates:
- NJM: $1,602 per year
- GEICO: $1,742 per year
- Travelers: $1,802 per year
- Plymouth Rock: $1,998 per year
- Allstate: $2,003 per year
Car Insurance in New Jersey with Poor Credit
New Jersey insurance companies are allowed to use credit scores to calculate insurance premiums. Drivers with bad credit are significantly riskier to insure than drivers with good credit. In many states, drivers pay 40% higher rates for having bad credit – a similar premium hike to an at-fault accident or DUI.
New Jersey car insurance companies charge higher rates to drivers with bad credit, although the hike isn’t as significant in other states:
- NJM: $1,452 per year
- GEICO: $1,502 per year
- Plymouth Rock: $1,521 per year
- Allstate: $1,674 per year
- Travelers: $1,798 per year
SR-22 Insurance in New Jersey
Most major car insurance companies in New Jersey can provide an SR-22 certificate. The certificate verifies you have valid car insurance coverage. You pay a small fee for the certificate, and you’ll pay higher car insurance rates as a higher-risk driver. However, you should have no trouble obtaining SR-22 insurance in New Jersey from ordinary providers.
The New Jersey Motor Vehicle Commission (MVC) will send you a notice if you need to obtain an SR-22 certificate.
Some of the most common reasons to obtain an SR-22 certificate in New Jersey include DUI/DWI convictions, reckless driving citations, hit-and-runs, racing, speeding, and other violations.
Some drivers also require SR-22 insurance after letting their insurance lapse. If you failed to renew your policy, or if you were caught without car insurance coverage, then you may need to submit an SR-22 certificate to the MVC.
Conclusion: How to Find the Best Auto Insurance in New Jersey
New Jersey has relatively expensive car insurance premiums, with drivers paying roughly 30% higher costs than the nationwide average.
However, by shopping around and choosing the right car insurance company, you can obtain the best possible car insurance in New Jersey regardless of your background, driving history, or credit score.