Cheapest Car Insurance Rates for January 2021
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Cheap Auto Insurance in New Jersey: Best Companies & Quotes
Best Car Insurance Companies in New Jersey
- State Farm
- Palisades Group
|State Farm||Geico||Progressive||Allstate||Travelers||Palisades Group|
|AM Best Financial Strength Rating||A++||A++||A+||A+||A+||B++|
|JD Power 2019 Overall Customer Satisfaction score||3/5||3/5||3/5||3/5||4.5/5||N/A|
|Avg Annual Premium||$596||$629||$1,075||$1,131||$2,580||$1,344|
|Consumer Reports Reader Score||78||78||75||72||N/A||87|
Auto Insurance Statistics in New Jersey
Auto insurance rates in New Jersey have been significantly higher than the national average for many years.
Top 10 Cheapest Car Insurance Companies in New Jersey
|Rank||Company Name||Avg. Annual Premium|
|4||New Jersey Manufacturers||$1,558|
Drunk Driving Fatalities
Drinking and driving is very dangerous and often results in fatalities. When determining the level of risk drivers face, it helps to examine the rate of drunk driving fatalities which occur. The National Highway Traffic Safety Administration has done a tally of the number of drunk driving fatalities in New Jersey vs. nationwide.
Drunk driving fatalities in New Jersey from 2013 to 2017
Teen Drinking and Driving
Teen drinking and driving in New Jersey has remained lower than the national average and lower than the average of adults drinking and driving in the state. The below statistics compare the percentage of New Jersey drivers that are teenagers who are drinking and driving related to national averages.
Teen Drinking & Driving in New Jersey vs. Nationwide (2017)
Source: Center For Disease Control
SR-22 Insurance in New Jersey
If you live in New Jersey, you will need SR-22 insurance if you’re mandated to prove minimum insurance coverage by the state. This being said, New Jersey residents benefit from living in a state that has lower requirements than many other neighboring jurisdictions.
Firstly, you only need $5,000 of property damage cover on your SR-22 policy. You will also need $15,000 for liability coverage for one person, and $30,000 of liability coverage for multiple people. This is one of the lowest thresholds you’ll find in the country. Still, it’s worth shopping around for the best rates if you want to save money.
Car Theft in New Jersey
Car theft in New Jersey has remained under the national average for the past few years. By finding out about the rate of car theft in New Jersey, drivers will have a better idea of the level of risk they take while driving and owning a car in the state.
Vehicle thefts by rank nationwide vs. New Jersey
Uninsured Motorists in New Jersey
Driving in New Jersey without insurance can result in not having sufficient funds to cover losses incurred by an accident. In the event that you get into an accident with an uninsured or underinsured driver, it will be necessary to pay out of pocket for the accident related expenses. Having uninsured and underinsured motorist coverage can protect you in this situation.
Percentage of uninsured drivers (Top 20 States 2015)
Source: Insurance Information Institute
Having insurance is a fundamental requirement for everyone with a vehicle in New Jersey. Before you can go shopping for auto insurance in New Jersey, it is important to know the law. New Jersey law requires individuals to have the following minimum insurance coverage.
According to the law, anyone with a registered car should be able to present proof of liability insurance coverage at all times. The liability coverage should meet the following minimum requirements:
- $30,000 for any one accident
- $15,000 for bodily injury to or death of one individual
- $5,000 for injury to the property of others in any one accident.
- $15,000 for personal injury protection.
Before acquiring insurance coverage, you should make sure it meets those minimum requirements. This is what the law states. However, even though you can legally drive with those minimum requirements it is important to consider getting bigger coverage. Enough coverage helps you in case an accident happens. Your property and assets are protected if you insure yourself adequately. You should consider buying a standard coverage that offers extra cover.
Cheap auto insurance companies in New Jersey
Auto Insurance Company Average Annual Rates
- AAA / Western United Insurance* $1,187
- New Jersey Skylands $1,213
- Farmers / Mid-Century Insurance $1,301
- Norfolk & Dedham / Fitchburg Mutual $1,443
- Plymouth Rock $1,488
- Teachers Auto Insurance Co of NJ* $1,516
- GEICO $1,525
- USAA* $1,576
- Encompass P&C Insurance Co of NJ $1,850
- Founders Insurance Co $1,869
- Amica Property and Casualty INS Co $1,877
- United Farm Family INS Co* $1,881
- California Casualty & Fire Insurance* $1,916
These are among the top rated cheapest auto insurance in New Jersey. To further break it down according to customers.
Cheapest auto insurance for young drivers
Young drivers are anyone in their early 20s. At this age, many people don’t have much to protect. They don’t own a lot of assets, therefore, they can get away with less insurance coverage keeping in mind the required minimum. At this stage, people don’t require much coverage, therefore, they get good deals from auto insurance companies.
In New Jersey, the cheapest auto insurance for young drivers is New Jersey Manufacturers Insurance with an average annual rate of $845/year followed by travelers insurance at $960/year then Allstate insurance company at $1,188 per year.
Cheapest auto insurance for good drivers
A good driver is anyone without any traffic violations and minimum at-fault accidents. This group of people tends to get good deals from auto insurance companies because they are trustworthy.
Travelers Insurance is the cheapest option for this drivers. It offers a rate of $1,258 per year followed by New Jersey Manufacturers Insurance at a rate of $1,396 per year. Lastly, the third option is Allstate insurance at a rate of $1,896/year.
Cheapest auto insurance for drivers with bad credit
A driver with bad credit may have a hard time looking for a cheap auto insurance. However, there are still insurance companies willing to give you a good deal regardless of your credit history.
Drivers with poor credit should consider New Jersey Manufacturers Insurance that offers them coverage at $1,960/year. The second option is Travelers insurance at a rate of $2,966/year.
These includes drivers who are in their mid to late 60s. Drivers at this age have an advantage of scoring better insurance deals due to their reduced time behind the wheel. They can further get more discounts by taking driving improvement courses that are certified by the New Jersey Motor Vehicle Commission.
The best insurance for retired drivers in New Jersey is New Jersey Manufacturers Insurance. It offers them coverage at a rate of $939/year followed by Travelers insurance at a rate of $1,255/year. Lastly, there is Statefarm that provides the senior drivers’ cover at $1,311 per year.
It is always advisable to do shopping while looking for insurance. Don’t settle for the first quote you get. There are many companies out there offering better deals. Doing research comes in handy at this time. Get quotes from various companies then compare and contrast. This will help you to identify the best deal then you can take it.
Types of Auto Insurance Coverage in New Jersey:
- Comprehensive Insurance Coverage
- Bodily Injury Liability Insurance
- Uninsured/Underinsured Motorist Bodily Injury Insurance
- Uninsured Motorist Property Damage Insurance
- Property Damage Liability Insurance
Minimum Requirements For Car Insurance in New Jersey
There are minimum requirements for car insurance in the state of New Jersey. According to The New Jersey Department of Insurance, it is mandatory to have liability coverage for every registered driver who is operating a vehicle in the state. It is also necessary to carry Personal Injury Protection, and Uninsured/Underinsured motorist coverage.
Liability coverage minimums for the state of New Jersey:
- $5,000 for property damage
- $15,000 per individual to cover bodily injury or death
- $30,000 per accident involving bodily injuries or deaths
Cheap Auto Insurance Discounts
At CheapAutoInsurance.co, we want to help you get cheap car insurance quotes. This is why we have put together a list of the most commonly used types of auto insurance discounts available. Browse the list below to see which discounts you can use to help you save on the auto insurance coverage you need.
- Anti-theft discount
- Bundling insurance policies discount
- Car safety features discount
- Defensive driving discount
- Mature driver discount
- Military or Veteran discount
- Senior citizen discount
- Good student discount
- Low-mileage discount
- Multi-car auto insurance discount
- Infrequent usage discount
General Auto Insurance
In this section, you will find frequently asked questions pertaining to general auto insurance and coverage in NJ.
How to get licensed to sell auto insurance in NJ?
In order to get licensed to see auto insurance in NJ, you will need to take a state approved pre-licensing course. Then you will need to pass the NJ state licensing exam before being allowed to apply for a auto insurance seller license.
What happens in NJ when the insurance company totals my car?
In NJ, when the insurance company totals my car, the insurance company will pay you the actual cash value of the car, minus the deductible. Once paid, the car will be sent off to be auctioned to the highest bidder.
What do I need in NJ for car insurance?
In NJ, you will need specific car insurance as specified by state law. The minimum insurance required by NJ state law is liability insurance with a property damage coverage minimum of $5,000. We can help you buy the best online car insurance when you’re ready.
When to transfer vehicle insurance after buying used car in NJ?
You will want to transfer your NJ vehicle insurance the moment you pay for the used car. Most dealerships in NJ will not allow you to leave their parking lot with a car unless it has insurance first. Some people will opt for 1 day car insurance temp cover until they get a permanent policy in place.
What is needed to drop car insurance on a vehicle in New Jersey?
There is not much that is needed to drop car insurance on a vehicle in New Jersey. All that is needed is that the premium is paid up to the agreed upon date prior to cancelling the policy.
Car insurance quotes in NJ when there is a lapse in coverage?
A car insurance quote in NJ will remain the same regardless if there is a lapse in coverage. This can depend on how long the car lapse has occurred or if any penalties occurred due to the lapse in coverage. Compare online car insurance quotes to get the best rates.
New Jersey auto insurance rules: why ask for wife’s name who doesn’t drive?
In New Jersey, when an auto insurance company asks for the name of your spouse even if they do not drive is because most insurance companies will require policyholders to list all people in the home who have valid driver’s licenses and who have access to your vehicles.
What is NJ state law in regards to having car insurance?
NJ state law in regards to having car insurance, is that it is a legal requirement in order to have a vehicle on the road. Vehicle owners will need to have the state required minimum coverage for car insurance.
How does car insurance work in NJ for new drivers?
For new drivers in NJ, car insurance works the same as it would for any other driver. New drivers will have to insure their car with the required state minimum and pay the premium monthly, bi-yearly or yearly.
How to report car insurance fraud in NJ?
To report car insurance fraud in NJ, you will need to contact the New Jersey Office of the Insurance Fraud Prosecutor directly by email or by calling the toll-free number 1-877-55-FRAUD.
What violations are reported to insurance companies in NJ?
The type of violations that are reported to insurance companies in NJ are violations such as:
- DUI’s or impaired driving violations
- Reckless driving violations
- Failure to stop after an accident
- Running from the police
- Illegal racing
- Speeding violations over 1 to 30 miles per hour over the limit
- Talking on a phone while driving
- Driving without insurance
- Driving without a seatbelt
- Improper turn violations
- Following too closely
- Illegal pass violations
How to cancel an auto insurance policy in NJ?
The best way to cancel an auto insurance policy in NJ is to contact the insurance company directly and cancel via phone. Another option that you have is to pay out the premium completely and don’t renew your policy.
Why does my employer want my car insurance info in NJ?
Your employer may want your car insurance info in NJ for several reasons such as the type of job you are being hired for such as a delivery job or a job that requires you to drive. If you currently have insurance, it can help protect the employer from any damages in the case of an accident.
Who can drive my car under my insurance in NJ?
Anybody can drive your car as long as it is insured in NJ. However, keep in mind that while another person can drive your car, you may not be completely covered for damages in the case of an accident.
How old do you have to be to have car insurance in NJ?
In NJ, you will have to be at least 17 years of age in order to have car insurance. However, a parent or guardian will be required to sign on the insurance policy along with the teen.
What county in NJ has the best car insurance rates?
The best county in NJ with the best car insurance rates is Hudson County followed by Somerset County and Atlantic County. This is due to low crime rates and low insurance claims reported. Get low cost auto insurance quotes in order to find the best rates in your area.
What happens if I’m not under my parent’s car insurance in New Jersey?
If you are not under your parent’s car insurance in New Jersey, you will need to have your own insurance if you plan to drive a vehicle in the state.
What does tier 15 premium auto insurance in NJ mean?
Tier 15 premium auto insurance in NJ is a specific tier system that most insurance companies use in order to calculate what to charge a driver for car insurance. It is used as an accurate risk assessment that can help find the right policy for every driver.
In NJ, how long does a car accident take to come off insurance record?
A car accident in NJ can stay on insurance record for as long as three years. How fast it can come off will depend on the severity of the traffic violation involved and which insurance company you have a policy with.
How many days grace do you get in NJ with auto insurance due?
Generally, most insurance companies in NJ will offer a maximum of 3 days grace on auto insurance policy. However, this grace period can vary based on county and insurance company.
What is the rule in NJ for sharing cost of auto insurance in a divorce?
In NJ, the rule for sharing the cost of auto insurance in a divorce is that it is best to remove whoever no longer lives at the residence or drives the main vehicle from the policy altogether.
How do I locate what insurance a new jersey car has?
The best way to locate what insurance a new jersey car has is either check the proof of insurance from the owner of the vehicle itself or have the driver’s license plate number on hand and contact State of New Jersey Division of Insurance by phone.
How to get car insurance in NJ with a foreign driver’s license?
The best way to get car insurance in NJ with a foreign driver’s license is to get insurance through a rental car company if you are visiting or by contacting insurance companies directly if you plan on staying for a few months. Read more about getting auto insurance without drivers license privileges.
In NJ, whose insurance pays in a car accident?
Typically, in NJ, the person whose insurance pays for an accident is the insurance of the person who is at fault for the accident. This insurance will cover the person who was injured in the accident, as well as damages to a vehicle
How to get insurance for a classic car in NJ?
There are a number of companies that will cover classic cars at a lower rate. Some companies specialize in only that type of insurance. Its best to get a classic car insurance quote and compare rates.
Where can I get cheap motorcycle insurance in NJ?
You can get cheap motorcycle insurance using an online comparison tool to see what rate different companies will offer you. If you prefer a local agent for this then you can simply search in motorcycle insurance near me in any search engine to find results.
Auto Insurance Price
In this section, you will find frequently asked questions pertaining to the expected price of auto insurance in NJ.
How much is car insurance in NJ?
The average cost of car insurance in NJ is around $1,300 for a yearly premium for the state mandatory liability coverage. This price can range based on individual driver rating factors. Some people opt for higher deductible lower premium car insurance but you should definitely talk to your insurer about this.
How much is car insurance in NJ per month?
Car insurance in NJ can cost around $120 per month for standard liability coverage. This price includes collision coverage and comprehensive coverage, both of which hold a cost of $500 for the year. To find the cheapest car insurance start by filling out our form above.
Why is NJ car insurance so expensive?
Car insurance in NJ is so expensive for a variety of reasons such as individual driver ratings, driving history, if driver’s live in high-crime areas or the type of coverage driver’s get for their car. Cheap high risk car insurance can be a challenge to find but it is possible to find companies willing to work with you.
How much is car insurance in NJ for a new driver?
The average cost for car insurance in NJ for a new driver can exceed a cost of $6,200 a year which can equate to $500 a month. This price will drop slightly as soon as the new driver reaches the age of 21. If you’re looking for teen car insurance then the best way to get the best price is to compare quotes.
How much does car insurance cost per month in NJ?
The cost of insurance on a monthly basis in NJ can cost around $120 a month for the standard liability coverage. For full coverage, the monthly cost of insurance can go as high as $300 a month.
What is the average monthly auto insurance payment in NJ?
The average monthly auto insurance payment in NJ is approximately $110 to $120 a month. This price can differ based on driver history, personal driver profiles and areas of where drivers live. If you’re looking for cheap month to month car insurance then start by filling out our form above.
How much is car insurance in NJ for a driver over 30 years married with 1 child?
Car insurance in NJ for a driver that is over the age of 30 and is married with 1 child will be approximately $150 per month for the state mandatory liability insurance with collision and comprehensive coverage.
How much would 2 points on a license increase car insurance in New Jersey?
2 points on your license won’t necessarily impact your car insurance rates. However, it will impact what is recorded on your insurance record and any more points added to your license will increase your insurance rates.
How much will my auto insurance increase if I become an Uber driver in NJ?
Your auto insurance will increase by at least $50 a month if you become an Uber driver in NJ. As an Uber driver, Uber grants you additional liability insurance coverage once the app is switched on, meaning your insurance is less likely to cover the cost in the case of an accident. As an Uber driver, it is recommended that you purchase supplemental insurance or the best rideshare insurance to cover you while you are working as a driver.
Is NJ, car insurance cheaper under 25 when parent owns the car?
Yes. In most cases, it is cheaper to have your car insurance policy under your parents if you are under the age of 25. Of course, this depends on your parents driving record. As an example take a look at the average car insurance for 21 year old drivers. Also read: How much is car insurance for a 20 year old male?
Auto Insurance Coverage
In this frequently asked question section, you will find answers to basic New Jersey auto insurance coverage questions.
What is full coverage auto insurance in NJ?
Full coverage auto insurance in NJ is an insurance policy that includes the state minimum liability coverage on top of collision coverage and comprehensive coverage with a higher amount that is covered. Learn more: How much does full coverage car insurance cost?
What is the minimum auto insurance coverage in New Jersey?
The minimum auto insurance coverage that is mandatory in New Jersey in a basic liability policy that includes $5,000 per accident and personal injury protection with a minimum of $15,000 per person.
Who is covered under New Jersey liability car insurance?
The person or people who are covered under New Jersey liability car insurance is the person who owns the policy, any person listed on the policy and the person who is injured in the case of an accident. Get multiple quotes to get the cheapest liability insurance coverage.
What coverage should I choose for NJ car insurance?
The best type of coverage you should choose for NJ car insurance will depend on your budget and whether or not you live in high risk areas. For those who are on a budget, the liability limited coverage is best while those who live in high risk areas should consider full coverage insurance. We consider ourselves one of the best auto insurance comparison sites to help you make decisions like this. Start by filling in your zip code above.
In NJ, with a car that is 15 years old, what type of insurance do you need?
The best type of insurance to consider for a 15 year old car is liability insurance. Unfortunately, in NJ, a 15 year old car does not qualify for antique car insurance which includes lower rates.
What is personal injury protection on auto insurance in NJ?
Personal injury protection on auto insurance in NJ is a type of coverage that protects the person who owns the policy in the case of an accident where they are injured for up to a certain amount.
General Auto Insurance Companies
In this section, you will find frequently asked questions pertaining to general auto insurance companies in New Jersey.
What is the cheapest car insurance in NJ?
The best type of insurance in New Jersey depends on your driving history and financial status. For drivers with a good driving history, the best company that offers the lowest rates is Traveler’s Auto Insurance. For drivers on a budget, the best insurance company with the lowest rates is NJM Insurance Group. See if they have cheap auto insurance no down payment options.
Who has the cheapest auto insurance in NJ?
The company that has the cheapest auto insurance NJ is NJM Insurance Group. They offer the state mandatory minimum coverage at a rate of $645 for a yearly premium and a monthly premium of $55. Read more: What are the cheapest car insurance companies?
What is the best car insurance in NJ?
The best car insurance in NJ is Traveler’s Auto Insurance. Traveler’s Insurance offers liability coverage at a yearly price of $1,275 which a monthly premium of just $106 a month. You may also want to compare a AAA car insurance quote.
Auto insurance companies who can sell in NJ?
Which car insurance companies in NJ have accident forgiveness?
It is important to note that while some companies offer accident forgiveness, their regulations on this policy will vary from state to state. The car insurance companies in NJ that offer accident forgiveness as part of their insurance policies are:
- Allstate Insurance
- Farmer’s Insurance
- GEICO Insurance
- Nationwide Insurance
- Liberty Mutual Insurance
- Progressive Insurance
- Traveler’s Insurance
- State Farm Insurance
What insurance company’s cover used car dealerships in NJ?
The insurance company’s that cover used car dealerships in NJ, are the same insurance companies that will cover any car. These companies include:
- Allstate Insurance
- State Farm Insurance
- NJM Insurance Group
- Progressive Insurance
- GEICO Insurance
Who governs auto insurance companies in New Jersey?
The official body that governs auto insurance companies in New Jersey is the State of New Jersey Division of Insurance Consumer Protection Services. This body ensures that insurance companies that sell auto insurance in New Jersey follow state law with mandatory minimums. If you are shopping around and want to change car insurance companies then we can help with that.
How to find cheap sr22 car insurance in New Jersey and how does it compare to other states?
Uninsured in NJ
In this section, you will find frequently asked questions regarding being uninsured in New Jersey.
What would happen when you yourself have a car insurance for another car, but uninsured car in NJ?
If you risk driving a car that is uninsured in New Jersey, but still have car insurance on another car, you are still at risk to facing serious penalties and fines. The uninsured car is still considered to be illegal and thus you can face serious consequences if you drive it on New Jersey roads.
In NJ, what is uninsured/ underinsured auto insurance mean?
In NJ, the term uninsured means that a car is not protected by insurance coverage. Underinsured means that you have a car that does not meet the state required minimums of insurance.
How much is the fine for not having an insurance document in the car in NJ?
If you fail to show a proof of insurance document in your car in NJ as requested by NJ state law, you can risk a fine from a minimum of $300 and a maximum limit of $1,000.