New Jersey Car Insurance [Rates + Cheap Coverage Guide]

The average New Jersey car insurance rates for liability coverage are $72.46/mo. New Jersey car insurance minimum liability coverage requirements are 15/30/5 for bodily injury and property.

Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 13, 2021

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New Jersey Statistics SummaryDetails
Road MilesRoadway Miles: 39,065
Vehicle Miles Driven: 75.4 billion
Number of Vehicles Registered5,786,113
Population 8,960,001
Most popular vehicleHonda CR-V
Uninsured %14.9% (ranked 14th in the nation)
Total Driving Related DeathsSpeeding: 120
DUI: 125
Average Annual Premiums
(not including PIP)
Liability: $869.57
Collision: $381.86
Comprehensive: $131.35
Cheapest ProviderGeico

In the game of life, it’s nice to have options. When it comes to car insurance, New Jersey is one of the few no-fault states that provides options – 12,376 combinations to be exact. There are essentially 11 components to choosing New Jersey coverage, and each component has up to 17 options.

We understand trying to get a quote for New Jersey car insurance could, simultaneously, make your eyes cross and your head spin. And, on top of that, year after year, New Jersey vies for the number one spot against Michigan and Louisiana for having the highest rates in the country.

We are here to help you weigh your options and make the best decision for you and your family. We cover the reasons why New Jersey car insurance is so high, your options (and consequences) in decreasing your rate, and other interesting data and facts unique to New Jersey drivers.

Comparing rates may be a challenge, but it’s a great way to customize the ways you can save! Start today with just your ZIP code.

Table of Contents

New Jersey Car Insurance Coverage and Rates

Before we get into all of the colorful options, it’s important to understand a bit of New Jersey’s history as a no-fault state and how it stacks up against other no-fault states.

Despite the plethora of options, car insurance rates in New Jersey are still one of the highest in the nation.

Later on, we will explain why the rates are so high and describe the options you have as a driver in New Jersey. For now, let’s get started with the basics.

Minimum Car Insurance Requirements in New Jersey

New Jersey Mandatory Minimum Car Insurance Coverage Requirements
New Jersey Minimum Insurance Required (Basic Policy)Minimum Limits
Bodily Injury CoverageNone required, but optional starting at a minimum of $10,000 per person and $10,000 per accident
Property Damage Coverage$5,000
Personal Injury Protection (PIP)$15,000 per person, per accident
Up to $250,000 for brain and spinal cord injuries
Get Your Rates Quote Now

New Jersey is a “choice no-fault” state, which means drivers file claims to their own insurance companies rather than filing a liability claim or lawsuit against another driver as in at-fault states.

Traditionally, no-fault law is designed to keep lawsuits out of the court system and provide the medical coverage needed after a catastrophic accident.

Unlike other no-fault states, New Jersey gives drivers an opportunity to preselect their level of right to sue (also known as limited tort and full tort) in the case that they are seriously injured in an accident.

Even though it doesn’t matter who is at fault, New Jersey requires that you carry, at the minimum, the following liability amounts just in case you are sued.

Liability insurance pays anyone owed compensation when you are in an accident.

  • $15,000 – Covers injuries or death per person or per accident for yourself or anyone under your policy.
  • $250,000 – Covers brain or spinal cord injuries for yourself or anyone under your policy.
  • $5,000 – Covers property damage.

The first two amounts above are actually part of New Jersey’s required personal injury protection coverage, so no matter what combination of coverage options you choose, at the minimum, these three amounts of personal injury protection and property damage liability are all required.

You may be wondering: Why need liability coverage if it doesn’t matter who is at fault?

In New Jersey, liability insurance is beneficial if you:

  • Regularly drive in another state that is at-fault
  • Are in an accident (in New Jersey) with someone from an at-fault state
  • Wish to retain full tort rights

If one or all of the above scenarios could apply to you, it may be good to consider increasing the minimum liability limits beyond what is required by law.

Take a look at how the minimum coverages in New Jersey compare to the rest of the U.S..

View as image

So, if it’s not liability coverage causing such high rates, then what is it?

Let’s explore the three major reasons why New Jersey rates are so high. Later on, we will examine the options you have to reduce your rates.

High Rates Factor #1: Personal Injury Protection

Remember that “no-fault” doesn’t mean that no one is ever responsible for causing an accident. Officers will always collect evidence of fault at the scene, and it could be used in a personal injury case.

No-fault means that drivers must turn to their own insurance providers in the case that there are injuries, losses, and damages as a result of a car accident.

A significantly large part of your no-fault policy premium (regardless of the plan you choose) will be paid towards Personal Injury Protection (PIP) which has a maximum benefit of $250,000.

This part of your policy will cover:

  • all reasonably necessary medical expenses (after a deductible and 20 percent of the first $5,000)
  • $100 a week for 52 weeks, at a minimum, and additional options can be purchased
  • housekeeping and yard services (up to $12 per day)

However, this basic no-fault policy will not pay for repairs to your vehicle. That is additional (optional) coverage that we will cover later.

In at-fault states, personal injury protection is not included, and insurance companies charge rates that reflect only the statistical likelihood of their insureds in hitting another vehicle because they assume other drivers have insurance to cover themselves when at-fault.

New Jersey residents must pay premiums to cover, at the minimum, between $15,000-$250,000 per person, per accident, for their own personal injury protection and that of everyone in their household. The exact amount, of course, depends on the type of injury and the total number of individuals listed on your policy.

PIP provides immediate care to those covered who are injured in a car accident. After a deductible ranging between $200-$2,500 and 20 percent of the first $5,000 in medical bills is met, personal injury protection covers injuries (or loss due to injuries) year after year.

The bottom line?

Your insurance company must charge rates to provide the potential of needing medical care and lost wages if you, or a family member, are seriously injured in an accident.

Again, New Jersey does offer options in deductibles and various levels of PIP coverage to lower your premiums. We will explain those options a bit later.

High Rates Factor #2: Profits vs. Losses

All insurance companies in the state of New Jersey have what is called a loss ratio.

A loss ratio shows how much a company spends on the types of claims to how much money they take in on premiums. A loss ratio of 60 indicates the company spent $60 on claims out of every $100 earned in premiums.

So, the closer the ratio is to 100, the more claims that are paid; however, this also shows that insurance companies are losing money. Sixty to 70 loss ratio is considered to be in the safe zone.

Loss Ratio201320142015
Personal Injury Protection72.9870.9375.78
Medical Payments (Med Pay)66.7958.3080.04
Uninsured/Underinsured Motorist68.5457.2956.23

You can see in the table above that, statewide, insurance companies in New Jersey are doing well in managing their loss ratios for PIP, Med Pay, and Uninsured/Underinsured motorists coverage. We will cover loss ratios for specific companies later.

Based on the steady ratios, it seems that both insurance companies and policyholders in New Jersey are making good choices given their options. Providing these choices is what keeps your rates and insurance companies’ profits from increasing too much and too quickly.

However, it could be worse.

Looking at loss ratios for other no-fault states puts New Jersey’s high rates into a different perspective. New Jersey is one of 11 no-fault states in the US that actually provides options.

Our hearts go out to the no-fault state of Michigan which has no unlimited PIP coverage. Florida is another no-fault state with high rates, but they at least offer a minimum option of $10,000 PIP. In the table below, New Jersey is compared to Florida and Michigan.

StateTotal Cost of Incurred LossesTotal Number of Incurred Claims
Michigan$3.6 billion44,626
Florida$2.6 billion372,197
New Jersey$1.2 billion92,100

In 2015, Michigan car insurance companies had only 12 percent of the total PIP claims that Florida did; yet, insurance companies were forced to pay out one billion more in losses than Florida insurance companies.

New Jersey comes in second for the number of claims and third for the amount spent on claims. Florida requires a minimum of $10,000 PIP coverage, and Michigan includes unlimited PIP coverage.

So, again, it could be worse.

High Rates Factor #3: Increasing Cases of Auto Insurance Fraud

If 15 percent of New Jersey residents are driving around uninsured, that means that only 85 percent are willing to pay the high rates, despite the variety of options.

We figure that maybe having so many options causes a great deal of confusion and frustration, so these some 868,000 drivers are enjoying the bliss of ignorance.

But, what about the individuals who use their intelligence to commit insurance fraud?

It’s not just policyholders but also doctors, lawyers, and insurance agents that could be involved in fraud. Listen to the following case which involved the partnership of several people to take advantage of auto insurance claims.

The New Jersey Attorney General’s Office of the Insurance Prosecutor handles all reports and cases of auto insurance fraud.

And NJ does not take fraud lightly.

In fact, in 2013, the OAG launched a campaign to educate the public about insurance fraud and how to report it.

The OAG even offers a reward to those who report a new case that ends in a conviction. They attribute a 31 percent increase in electronic submissions in 2013 to their aggressive four-month advertising campaign of over 95 million impressions in the form of outdoor ads on billboards and busses as well as on radio, online, cable TV, and even in print form.

OAG published a report in 2013 showing that from 2008 to 2013, average annual prison sentences increase from just under one year to almost 4.5 years. The 2017 report includes descriptions of the most significant cases.

And they continue to crack down on fraud cases dealing with car accidents.

New Jersey is one of only five states that mandates an auto photo inspection. This means that photographic evidence must be collected at all accident scenes.

Auto accident fraud is a crime in New Jersey. Those convicted may be sentenced up to 18 months of jail time, $10,000 in fines, and 30 days of community service.

What’s the good news?

There are ways you can reduce your rates more quickly than reporting insurance fraud, but, at the end of the day, your insurance company is responsible for covering you no matter what.

It’s important to understand the good and bad consequences when considering all of your options.

Cheapest Option in NJ: the Basic Policy

The “choice” part of New Jersey’s “choice no-fault” law comes into play when you consider your family dynamics and the value of your assets.

If you have very few assets, it’s difficult to be sued for damages and losses beyond the minimum requirements established by New Jersey law. This is why New Jersey established a basic policy option in 1998.

New Jersey’s basic policy promised 20 percent in savings in hopes to reduce the number of uninsured motorists.

However, by 2002, the New Jersey Department of Banking and Insurance (DOBI) released a memo urging insurance providers to encourage the basic policy because only 0.22 percent of residents had signed up for it.

DOBI attributed the low percent of basic plans to the lack of accurate information for drivers and providers.

The department currently clarifies on their website that the basic policy is best for those with few family responsibilities and few real assets (savings, homeownership, high salary, etc.) such as younger drivers who are just beginning work.

If you do have family members and substantial assets, choosing the basic policy will still decrease your rates significantly.

But, there’s a catch.

Any individual who elects the basic policy is provided with only a limited right to sue. This means that if you are in an accident, and the other party is determined at fault, you are permitted to retain economic-only reimbursement (medical costs, loss of wages, etc.). You will not be permitted to collect for pain and suffering.

There are six exceptions to this limited right to sue as part of the basic policy: death, dismemberment; loss of a fetus; objective, significant disfigurement or scarring; displaced fractures; or permanent injury.

Basic policyholders do have the option of purchasing additional coverages such as bodily injury liability, but it is limited to a total maximum of $10,000 for all persons involved in an accident.

Other coverages basic policyholders can purchase include comprehensive and collision; however, they are not permitted to purchase uninsured or underinsured motorists coverage.

Multiple Options: The Standard Policy

The minimum coverage requirements by law can still be met with the standard policy.

In the case that you wish to carry the standard policy but still meet only the minimum requirements, there are five parts of the standard plan as shown in the table below.

Type of CoverageRequired or OptionalLow to High LevelsWhat it covers
Bodily Injury LiabilityRequiredMinimum: $15,000 per person, $30,000 per accident
Maximum: $250,000 per person, $500,000 per accident
claims and lawsuits by people injured as a result of an auto accident you cause
Property Damage LiabilityRequiredMinimum: $5,000
Maximum: $100,000 or more
claims and lawsuits by people whose property is damaged as a result of an auto accident you cause
Personal Injury ProtectionRequired - automatically included in your rateBenefit up to $15,000 per person, per accident
Benefit up to $250,000 in the case of brain or spinal injuries
Increased Benefit can be purchased in any amount
covers injuries sustained in an automobile accident for you or other persons covered under your policy
Uninsured/Underinsured Motorist CoverageRequiredMust be same as Bodily Injury and Property Damage Liability amountscovers property damage or bodily injury if you are in an accident caused by an uninsured motorist or a driver who is insured, but who has less coverage than your underinsured motorist coverage
(usually required if vehicle is leased or financed)
Any amountcovers damages to your vehicle when colliding with another car or other object
(usually required if vehicle is leased or financed)
Any amountcovers damages to your vehicle that is not a result of a collision, such as theft of your car, vandalism, flooding, fire, hitting an animal, or a broken windshield

If you wish to carry more than the minimum coverage requirements with the Standard Plan, you have MANY optional combinations to get the exact coverage fit for you or your family.

Customizing a standard policy breaks down into making four critical decisions:

  • choose your lawsuit option – limited tort or full tort
  • choose personal injury protection or health insurance as primary
  • choose full PIP benefits or medical expenses only
  • choose your PIP deductible

Each choice and the options within that choice is described further in the next few sections.

Choose your Lawsuit Option

With the Standard Policy, drivers can choose limited or full tort rights. Since the purpose of having no-fault law is to keep lawsuits out of the court system, New Jersey gives drivers lower rates if they give up part of their right to sue.

  • Choosing limited tort allows you to recover all medical and other out-of-pocket expenses (such as loss of wages while in recovery), but not for pain and suffering.
  • Choosing full tort will ensure that you and other household members can recover all medical and other out-of-pocket expenses as well as financial compensation for pain and suffering.

As you can imagine, pain and suffering would take a great deal of the court’s time to negotiate and calculate whereas medical and out-of-pocket expenses are easily documented and calculated. By giving up your right to sue for pain and suffering, you will reduce the amount of court time needed if a suit is filed.

To note, if you choose the limited tort option, you cannot sue an insurance company. However, insurers can lose this limitation on liability for failing to act in accordance with the law.

While it is unknown how many New Jersey drivers select the limited tort option, if you choose full tort, know that the bodily injury liability and the uninsured and underinsured motorists portions of your premium could increase by as much as 67 percent.

It may sound like New Jersey expects citizens to “pay for” their right to sue, but New Jersey is ahead of the curve, actually, in solving the issues that no-fault law has created over several decades of changes in the health care industry, insurance industry, and legal system.

By offering so many combinations in options, New Jersey has balanced out the burden on drivers when some states are struggling to address the issues created by no-fault law.

Case in point, Michigan, as mentioned earlier, has been working to make changes for decades while watching a socio-economic crisis snowball over many of their citizens. Michigan rates increased by 22.8 percent from 2011 to 2015 as compared to the 11 percent increase nationwide for the same time period. Searching “Michigan Car Insurance” on youtube will supply plenty of evidence of their struggle.

New Jersey’s rates increased by only six percent from 2011-2015, well below the national percent increase rate.

Worth noting here, Colorado successfully reduced its premiums by 27 percent from 2002-2004 by making the cold-turkey switch from no-fault law to at-fault law. However, Colorado rates increased by nearly 17.5 percent from 2011-2015, so cold-turkey may not solve the problem.

We are not sure if at-fault law will be considered for New Jersey to reduce rates in the future, but at least drivers currently have options.

Choose PIP or Health Insurance as Primary and a PIP Deductible

New Jersey gives the option for drivers to file medical claims from accidents to a primary provider meaning that when the primary provider benefits are exhausted, the secondary provider will cover expenses.

In the case that you choose your health insurance company as your primary benefit, you will still need to select a PIP deductible amount because PIP will provide secondary benefits.

To illustrate how rates are affected by the various options within these two choices, we pulled quotes for a 30-year-old New Jersey driver without comprehensive or collision and with limited tort. We used one of the major insurance providers in New Jersey. These premiums are for a six-month policy. Feel free to sort the table as you wish.

Health Care ProviderPolicy LimitsDeductiblePIP CostTotal Policy CostPercent PIP Cost is of Total Policy CostTotal Policy Cost if choosing medical expenses only
PIP Primary$15,000$250$140$36039%$345
Health Insurance Primary$15,000$250$82$30227%$294
PIP Primary$15,000$2,500$113$33034%$321
Health Insurance Primary$15,000$2,500$68$28724%$280
PIP Primary$75,000$250$213$43349%$419
Health Insurance Primary$75,000$250$123$34336%$335
PIP Primary$75,000$2,500$171$39244%$379
Health Insurance Primary$75,000$2,500$100$32031%$313

New Jersey rates decrease by as much as 34 percent when choosing health insurance as primary and a higher PIP deductible.

If choosing the minimum requirements and selecting medical expenses only, you are selecting the basic policy, and premiums reduce by as much as $20 over six months.

If you choose higher than minimum coverage requirements, you still have the option to choose medical expenses only.

But, it’s important to understand what you are exchanging for a lower premium.

Choosing health insurance as primary means that you will have to meet your annual deductible and co-insurance each year following injuries sustained in a car accident. Choosing PIP as primary will ensure that you pay a deductible only once for as long as you are recovering, depending on the injury.

In the case that you select coverages above the minimum requirements, you also have the option to select medical expenses only which is what the basic policy provides.

Choosing medical expenses only shaves off between $7-$20 from your premium. Selecting this option means that you will give up:

  • income continuation up to $5,200
  • essential services up to $4,380
  • death benefits up to $9,580 for income continuation and essential services
  • funeral benefits up to $1,000

If you wish to take advantage of the above options for yourself and your family, you can increase them by electing to pay higher PIP rates. You may also choose if you want PIP to cover only you, all drivers, or all members of your household.

It seems like we are finally approaching that 12,376th option.

Final Option: Drive Uninsured

In most states, it’s frowned upon to not carry car insurance; however, for the state of New Jersey, which ranks 14th in the country for the highest percentage of uninsured motorists (15 percent), it may be a necessity for some.

However, there are major consequences.

  1. If you cause an accident, you (and only you) are responsible for paying for the pain, suffering and other personal hardships and some economic damages, such as lost wages.
  2. If you are sued, the insurer has no responsibility to provide or pay for a lawyer to represent you.
  3. If a judgment is entered against you, your assets will be at risk including the risk of having money deducted from your wages.
  4. If you have no coverage at all, and someone else is at fault in a car accident, you are not permitted to sue.

These consequences are affectionately called “No Pay, No Play” laws in New Jersey as well as nine other states in the US. The play refers to playing in the court system.

Some states, such as Louisiana, don’t allow uninsured drivers to retain the first $10,000, but they are permitted to sue.

New Jersey eliminates all rights to sue if you do not maintain car insurance.

Further evidence that New Jersey doesn’t “play” around is that basic policyholders are not permitted to purchase uninsured or underinsured motorist coverage while standard policyholders are required to purchase it.

So, before you decide to join the 15 percent of residents driving without car insurance, consider saving your paycheck and preserving your right to sue.

If you simply cannot afford car insurance and you have Medicaid hospitalization benefits, go to the section about the “Special Automobile Insurance Policy.”

Required Forms of Financial Responsibility in New Jersey

With your paycheck in hand and your rights in the other, be sure to put proof of insurance in your pocket.

Proof of insurance is accepted in two formats – paper and electronic. Drivers must keep proof of insurance in the vehicle or be able to produce an electronic version on a mobile device.

New Jersey requires that a proof of insurance paper card be a specific size and on card stock. The card or electronic version must be made available before inspection, after an accident, when pulled over, and while going through checkpoints.

Penalties for Driving Without Insurance

New Jersey takes driving without insurance just as seriously as insurance fraud.

If you drive without insurance in New Jersey, you will be fined up to $300 and have your license suspended for one year.

The suspension may be reduced or eliminated if showing proof of insurance at the hearing.

And if you didn’t learn your lesson the first time, a second conviction will provide you with a nice 14-day stay in prison, and when you get out, two years of suspension of driving privileges, up to a $5,000 fine, and 30 days of community service.

Premiums as Percentage of Income in New Jersey

How exactly (un)affordable is car insurance for New Jersey residents?

Let’s find out.

In 2014, the annual per capita disposable personal income in New Jersey was $49,983.

Disposable personal income (DPI) is the total amount of money available for an individual to spend (or save) after their taxes have been paid.

New Jersey has remained in the top five highest paying states for quite some time now, but it still lags behind DC by $10,000. Some would argue this is why insurance rates are so high, but that’s not the case.

In 2014, New Jersey residents paid only 2.74 percent of their annual DPI on car insurance, which is one half a percent higher than DC.

Even though New Jersey residents make great money and pay one of the top three highest rates for car insurance, they trail behind Michigan and Louisiana (also no-fault states) by over one percent when looking at car insurance rates as a percent of income.

Also to note, from 2012 to 2014, this percentage for New Jersey maintained around the same while Michigan’s percentage continued to swell.

There’s no doubt that the multitude of options New Jersey residents enjoy helps keep this percentage lower as compared to other no-fault states.

The average New Jersey resident has $4,165 each month for living expenses. Car insurance alone will cost about $114 per month.

Remember, these amounts include only liability, collision, and comprehensive coverages. These estimates do not include personal injury protection or uninsured and underinsured motorists coverages.

Use our rate-as-percent-of-income calculator below to get your own more accurate estimate.


Why is getting the best deal on car insurance so important?

American Consumer Credit Counseling suggests saving 20 percent of every paycheck. With New Jersey’s DPI, that’s about $833 each month! How much are you tucking away to savings each month?

Average Monthly Car Insurance Rates in NJ (Liability, Collision, Comprehensive)

The National Association of Insurance Commissioners, the experts on the matter, tracks average rates for each type of coverage. Their 2015 data, the most recent that is available, is displayed in the table below.

Coverage TypeAnnual Costs in 2015Compared to National Average in 20152015 Rank in US
Collision $381.86$322.618th

The national average of all states for full coverage is $1,009.38. You can see New Jersey comes in over $370 higher than the national average.

View as image

Worth noting, the state of New Jersey comes in second place in the nation as having the highest full coverage rates.

New Jersey comes in first place for liability coverage, but residents get a break on comprehensive and collision coverage rates in comparison to other states.

Even though New Jersey has minimum requirements for liability and personal injury protection, experts recommend drivers purchase more in case you are sued or you get hurt in a serious accident.

You may be wondering: Why do I need more coverage than required by law?

The state’s minimum amounts don’t even come close to the bills to expect if you are in an accident.

More Options: Increasing your Limits

When you obtain a quote, you will see (or hear) all of your options in levels of coverage. Later on, we will explain how coverage levels affect your premium amount. But for now, let’s take a look at coverage levels.

The lowest option (the minimum) and the highest option is listed in the table below. Remember, each component has up to 17 options, so you can imagine the coverage amounts between the lowest and highest.

Coverage TypeLowest Amount (minimum required by law)Highest Amount
Bodily Injury Liability15/30500/500
Property Damage Liability$5,000$500,000
Uninsured and Underinsured Bodily Injury Liability15/30500/500
Uninsured and Underinsured Property Damage Liability$5,000$500,000
Medical Payments$1,000$10,000
Additional PIPLost Wage: $100 per week / $10,400 max
Essential Services: $12 per day / $8,670 max
Lost Wage: $700 per week / unlimited
Essential Services: $20 per day / $14,600 max
PIP Medical Expense Limit$15,000$250,000
PIP Expense Deductible (higher deductible = lower rate)$2,500$250

Some things to note is that, under no-fault law, you are essentially having to pay your insurance company in advance to cover any damage to your vehicle and property, medical expenses if injured, and lost wages while recovering. This is the case for any accident that you and/or someone else causes.

The purpose of (and opportunity to) increase your limits is to protect your assets and get the medical care you need after serious injuries. It is also available to you when you cause an accident. Some amounts you can reasonably predict; others you can’t.

For example, if you make the assumption that the majority of drivers purchase vehicles that are worth $50,000 or less, then you may choose to elect for lower property damage liability limits but still enough to cover the cost of the other driver’s vehicle if it is a total loss and you were at fault.

You can calculate any and all scenarios to get the coverage you need based on the value of your assets (vehicle, home, savings, salary), your lifestyle choices, and what you feel you and your family can live on if you or one of your family members is seriously injured in a car accident and unable to work or in need of home care.

Uninsured and Underinsured Motorist Coverage in New Jersey

Recall that almost 15 percent of New Jersey drivers are uninsured. Another (likely higher) percent of drivers are underinsured, selecting only the minimum (or slightly above the minimum) requirements to keep their premiums low.

In a no-fault state like New Jersey, it becomes even more imperative to purchase uninsured and underinsured coverage so that your insurance can help you with bodily injuries and property damage you sustain from being hit by someone with little or no coverage.

New Jersey not only provides options to those who can afford at least the minimum coverage requirements. The state also has a low-cost insurance program nicknamed “Dollar a Day” insurance. This type of insurance costs $365 a year and is available to only Medicaid recipients.

The plan is described more under the section Low-Cost Coverage, but when it comes to holding the standard policy, it is important to know about how the Dollar a Day program can affect others who purchase an insurance policy.

Watch this video to get the scoop on what the Dollar a Day program provides in the case that one of its insureds causes an accident.

So you can see how important it is to purchase enough uninsured and underinsured motorist coverage with the standard policy. This type of coverage is required for the standard policy, but the amounts of coverage you select depend on how much your assets are worth.

For example: if an uninsured motorist hits your vehicle and causes $8,000 in damages or totals your vehicle, your uninsured motorist property damage coverage you purchased through your own insurance company will cover the damages or replacement of your vehicle.

So, if you own a particularly expensive vehicle, you will want to have enough of this type of coverage to remedy such a situation.

Collision and Comprehensive Coverage in New Jersey

Much of the data we have provided up to this point did not take into consideration the value of your vehicle.

That is what collision and comprehensive coverage are for. If you recall, we explained that a New Jersey no-fault policy covers just about everything in a car accident except your vehicle.

If you are in an accident, regardless of who is at fault, you will need coverage to make needed repairs or replace your vehicle if it is totaled.

If the other driver has an insurance policy that meets only the minimum requirements, their policy will pay up to $5,000 in property damage repairs, but it doesn’t take much to run up $5,000 in repairs in a minor fender bender with today’s cost of parts and labor.

Collision coverage will apply when the cost of damage or replacement is higher than $5,000. Note that collision coverage has a deductible which is an amount you will have to pay out of pocket if you make a claim. You can reduce your collision coverage rate by selecting a higher deductible.

In New Jersey, you may choose a collision deductible ranging from $100 to $5,000. In some states, drivers have only two options: $500 or $1,000.

Comprehensive coverage, on the other hand, applies is if your car is stolen or damaged by a falling object, animal, fire, flood, or vandalism. These situations are otherwise known as “acts of God,” meaning you, as the driver, can’t control these occurrences.

If you own a financed vehicle, collision, along with liability and comprehensive (also known as full coverage), will likely be required by your lender.

In New Jersey, you may choose a comprehensive deductible ranging from $50 to $5,000. In some states, drivers have only two options: $500 or $1,000.

If you have an older car, you may not need to purchase collision and comprehensive coverage.

Add-ons, Endorsements, and Riders

Here’s a list of other useful coverage available to you in New Jersey:

Other Factors that Determine Car Insurance Rates in New Jersey

Just when you thought New Jersey car insurance rates couldn’t get any higher, there are characteristics unique to you that may increase or decrease your rate quotes.

We will first examine basic demographics such as gender, age, and marital status. A little later on, we will look at credit scores, driving record, and commute miles for individual car insurance companies.

Average Monthly Car Insurance Rates by Age & Gender in NJ

Most are under the impression that men pay higher rates than women. That’s not entirely true in New Jersey’s case. Six states, most recently California, have outlawed charging different insurance rates based on gender and/or marital status.

Our researchers found that the two most influential factors that go into rate calculations are age and the specific carrier. Take a look!

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Let’s see how these demographics factor into rates for New Jersey residents.

Demographic and Insurance Carrier

Age, gender, marital status, and many other factors go into calculating your rate. To give you an idea of how these few variables affect rates, we provide a table below showing the cheapest average rates for New Jersey’s insurance carriers. Click on the arrows for each column to sort the table.

CompanyMarried 35-year old female Annual RatesMarried 35-year old male Annual RatesMarried 60-year old female Annual RatesMarried 60-year old male Annual RatesSingle 25-year old female Annual RatesSingle 25-year old male Annual RatesSingle 17-year old female Annual RatesSingle 17-year old male Annual Rates
Allstate NJ P&C$3,436.75$3,420.45$3,335.46$3,335.46$4,043.02$4,156.11$10,796.36$13,185.02
Foremost Ins Grand Rapids$4,830.46$4,873.04$4,699.01$4,594.07$5,737.03$5,845.35$14,124.39$16,232.62
Geico Govt Employees$2,243.42$2,201.66$2,188.45$2,188.45$2,576.09$2,513.20$4,064.28$4,063.96
Liberty Mutual Fire$4,480.25$4,480.25$4,919.44$4,919.44$4,919.44$5,646.81$11,601.57$13,165.70
Prog Garden State Ins Co$2,040.52$1,885.91$1,841.28$1,894.85$2,412.68$2,305.40$9,241.04$10,160.06
State Farm Ind$4,392.28$4,392.28$3,976.24$3,976.24$5,007.86$5,593.47$14,395.61$18,483.25
St Paul Protective Ins Co$3,221.64$3,123.67$2,982.74$3,008.62$3,130.99$3,100.17$7,272.20$8,195.88

You will see that age affects rates to a great extent; after all, we do become more experienced and mature drivers as we age.

If you have a teen driver in your home, Geico may be the best option for your family.

Cheapest New Jersey Car Insurance Rates by ZIP Code

Where you live is a huge factor for car insurance rates.

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Average rates by ZIP code are shown in the two tables below. Feel free to search the table for your current ZIP code.

Cheapest ZIP Codes in New Jersey CityAverage Annual Rate by ZIP CodesMost Expensive CompanyMost Expensive Annual Rate2nd Most Expensive Company2nd Most Expensive Annual RateCheapest CompanyCheapest Annual Rate2nd Cheapest Company2nd Cheapest Annual Rate
07926BROOKSIDE$4,592.17State Farm$6,156.55Farmers$6,106.07GEICO$2,387.77Progressive$3,160.07
07046MOUNTAIN LAKES$4,600.78State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07961MORRISTOWN$4,613.10State Farm$6,156.55Farmers$6,106.07GEICO$2,543.78Progressive$3,160.07
07834DENVILLE$4,613.63State Farm$6,573.25Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07878MOUNT TABOR$4,613.63State Farm$6,573.25Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07960MORRISTOWN$4,614.46State Farm$6,156.55Farmers$6,106.07GEICO$2,543.78Progressive$3,160.07
07927CEDAR KNOLLS$4,616.88State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07950MORRIS PLAINS$4,616.88State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07981WHIPPANY$4,616.88State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07999WHIPPANY$4,616.88State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07869RANDOLPH$4,618.98State Farm$6,573.25Farmers$6,106.07GEICO$2,543.78Progressive$3,160.07
07828BUDD LAKE$4,624.77Farmers$6,413.72State Farm$6,156.55GEICO$2,427.65Progressive$3,425.84
07457RIVERDALE$4,630.08State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07837GLASSER$4,641.98Farmers$6,413.72State Farm$6,156.55GEICO$2,427.65Progressive$3,425.84
07850LANDING$4,649.92Farmers$6,413.72State Farm$6,156.55GEICO$2,427.65Progressive$3,425.84
07857NETCONG$4,649.92Farmers$6,413.72State Farm$6,156.55GEICO$2,427.65Progressive$3,425.84
07979POTTERSVILLE$4,660.24Farmers$6,764.38State Farm$6,013.78GEICO$2,387.77Progressive$3,515.56
07005BOONTON$4,660.30State Farm$6,573.25Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07405BUTLER$4,664.98State Farm$6,156.55Farmers$6,106.07GEICO$2,560.75Progressive$3,160.07
07843HOPATCONG$4,667.86Farmers$6,413.72State Farm$6,156.55GEICO$2,427.65Progressive$3,425.84
07874STANHOPE$4,667.86Farmers$6,413.72State Farm$6,156.55GEICO$2,427.65Progressive$3,425.84
07831CHANGEWATER$4,678.80Farmers$6,764.38State Farm$6,013.78GEICO$2,387.77Progressive$3,515.56
08801ANNANDALE$4,678.80Farmers$6,764.38State Farm$6,013.78GEICO$2,387.77Progressive$3,515.56
08802ASBURY$4,678.80Farmers$6,764.38State Farm$6,013.78GEICO$2,387.77Progressive$3,515.56
08803BAPTISTOWN$4,678.80Farmers$6,764.38State Farm$6,013.78GEICO$2,387.77Progressive$3,515.56

Next, the most expensive ZIP codes in New Jersey.

Most Expensive ZIP Codes in New JerseyCityAverage Annual Rate by ZIP CodeMost Expensive CompanyMost Expensive Annual Rate2nd Most Expensive Company2nd Most Expensive Annual RateCheapest CompanyCheapest Annual Rate2nd Cheapest Company2nd Cheapest Annual Rate
07102NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07103NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07104NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07105NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07106NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07107NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07108NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07111IRVINGTON$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07112NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07114NEWARK$8,512.59Farmers$12,685.99State Farm$11,875.78GEICO$4,274.79Travelers$6,159.75
07017EAST ORANGE$8,384.68Farmers$12,685.99State Farm$11,824.45GEICO$4,150.14Travelers$5,980.16
07018EAST ORANGE$8,384.68Farmers$12,685.99State Farm$11,824.45GEICO$4,150.14Travelers$5,980.16
07050ORANGE$8,384.68Farmers$12,685.99State Farm$11,824.45GEICO$4,150.14Travelers$5,980.16
07055PASSAIC$8,293.86Farmers$12,398.77State Farm$10,907.42GEICO$3,948.66Travelers$6,212.33
07201ELIZABETH$8,277.10Farmers$12,283.07State Farm$11,789.64GEICO$3,798.87Travelers$6,107.40
07202ELIZABETH$8,277.10Farmers$12,283.07State Farm$11,789.64GEICO$3,798.87Travelers$6,107.40
07206ELIZABETHPORT$8,277.10Farmers$12,283.07State Farm$11,789.64GEICO$3,798.87Travelers$6,107.40
07208ELIZABETH$8,277.10Farmers$12,283.07State Farm$11,789.64GEICO$3,798.87Travelers$6,107.40
07501PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50
07502PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50
07503PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50
07504PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50
07505PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50
07513PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50
07514PATERSON$8,254.80Farmers$12,394.50State Farm$11,353.01GEICO$3,909.34Travelers$6,120.50

Newark has a number of the most expensive ZIP codes.

Cheapest New Jersey Car Insurance Rates by City

Didn’t see your area on the tables above? Take a look at the tables below to see if your city makes the list for either the most expensive or the cheapest cities.

25 New Jersey Cities with the Least Expensive Car Insurance Rates
New Jersey Cheapest CitiesAverage Annual Rate by CityMost Expensive CompanyMost Expensive Annual Rate2nd Most Expensive Company2nd Most Expensive Annual RateCheapest CompanyCheapest Annual Rate2nd Cheapest Company2nd Cheapest Annual Rate
Brookside$4,592.17State Farm$6,156.55Farmers$6,106.07Geico$2,387.77Progressive$3,160.07
Mountain Lakes$4,600.77State Farm$6,156.55Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Convent Station$4,613.10State Farm$6,156.55Farmers$6,106.07Geico$2,543.78Progressive$3,160.07
Denville$4,613.63State Farm$6,573.25Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Mount Tabor$4,613.63State Farm$6,573.25Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Morristown$4,614.46State Farm$6,156.55Farmers$6,106.07Geico$2,543.78Progressive$3,160.07
Cedar Knolls$4,616.88State Farm$6,156.55Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Morris Plains$4,616.88State Farm$6,156.55Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Whippany$4,616.88State Farm$6,156.55Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Randolph$4,618.98State Farm$6,573.25Farmers$6,106.07Geico$2,543.78Progressive$3,160.07
Budd Lake$4,624.77Farmers$6,413.72State Farm$6,156.55Geico$2,427.65Progressive$3,425.84
Riverdale$4,630.07State Farm$6,156.55Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Glasser$4,641.98Farmers$6,413.72State Farm$6,156.55Geico$2,427.65Progressive$3,425.84
Landing$4,649.92Farmers$6,413.72State Farm$6,156.55Geico$2,427.65Progressive$3,425.84
Netcong$4,649.92Farmers$6,413.72State Farm$6,156.55Geico$2,427.65Progressive$3,425.84
Pottersville$4,660.24Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56
Boonton$4,660.30State Farm$6,573.25Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Butler$4,664.98State Farm$6,156.55Farmers$6,106.07Geico$2,560.75Progressive$3,160.07
Hopatcong$4,667.85Farmers$6,413.72State Farm$6,156.55Geico$2,427.65Progressive$3,425.84
Annandale$4,678.80Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56
Asbury$4,678.80Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56
Baptistown$4,678.80Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56
Changewater$4,678.80Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56
Glen Gardner$4,678.80Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56
Hampton$4,678.80Farmers$6,764.38State Farm$6,013.78Geico$2,387.77Progressive$3,515.56

The next table shows the most expensive cities.

25 New Jersey Cities with the Most Expensive Car Insurance Rates
New Jersey Most Expensive Cities Average Annual Rate by CityMost Expensive CompanyMost Expensive Annual Rate2nd Most Expensive Company2nd Most Expensive Annual RateCheapest CompanyCheapest Annual Rate2nd Cheapest Company2nd Cheapest Annual Rate
Irvington$8,512.59Farmers$12,685.99State Farm$11,875.78Geico$4,274.79Travelers$6,159.75
Newark$8,512.59Farmers$12,685.99State Farm$11,875.78Geico$4,274.79Travelers$6,159.75
East Orange$8,384.68Farmers$12,685.99State Farm$11,824.45Geico$4,150.14Travelers$5,980.16
Orange$8,384.68Farmers$12,685.99State Farm$11,824.45Geico$4,150.14Travelers$5,980.16
Passaic$8,293.85Farmers$12,398.77State Farm$10,907.42Geico$3,948.66Travelers$6,212.33
Elizabeth$8,277.10Farmers$12,283.07State Farm$11,789.64Geico$3,798.87Travelers$6,107.40
Elizabethport$8,277.10Farmers$12,283.07State Farm$11,789.64Geico$3,798.87Travelers$6,107.40
Paterson$8,228.41Farmers$12,394.50State Farm$11,318.82Geico$3,909.34Travelers$6,129.69
North Bergen$8,198.85Farmers$12,348.98State Farm$11,146.92Geico$3,777.25Progressive$6,021.03
Guttenberg$7,929.71Farmers$11,660.42State Farm$11,146.92Geico$3,571.92Progressive$5,657.56
Union City$7,929.71Farmers$11,660.42State Farm$11,146.92Geico$3,571.92Progressive$5,657.56
Camden$7,699.21Farmers$11,590.99State Farm$10,324.11Geico$3,635.14Travelers$5,692.37
Perth Amboy$7,587.46Farmers$11,886.13State Farm$10,195.39Geico$3,241.31Travelers$5,478.47
Atlantic City$7,564.70Farmers$11,961.16Liberty Mutual$9,785.53Geico$3,635.98Travelers$5,534.72
Linden$7,501.16State Farm$11,098.56Farmers$10,567.82Geico$3,725.10Progressive$5,175.59
Roselle$7,501.16State Farm$11,098.56Farmers$10,567.82Geico$3,725.10Progressive$5,175.59
East Newark$7,467.89State Farm$11,826.73Farmers$9,940.24Geico$3,587.95Travelers$5,258.88
Kearny$7,467.89State Farm$11,826.73Farmers$9,940.24Geico$3,587.95Travelers$5,258.88
Cliffside Park$7,392.46State Farm$11,095.37Farmers$10,213.21Geico$3,734.47Progressive$5,233.40
Palisades Park$7,392.46State Farm$11,095.37Farmers$10,213.21Geico$3,734.47Progressive$5,233.40
Ridgefield$7,392.46State Farm$11,095.37Farmers$10,213.21Geico$3,734.47Progressive$5,233.40
Hillside$7,391.94Farmers$10,700.28State Farm$10,295.93Geico$3,532.32Travelers$5,200.76
Union$7,391.94Farmers$10,700.28State Farm$10,295.93Geico$3,532.32Travelers$5,200.76
Vauxhall$7,391.94Farmers$10,700.28State Farm$10,295.93Geico$3,532.32Travelers$5,200.76
Jersey City$7,346.83Farmers$10,415.60State Farm$10,184.76Geico$3,051.71Travelers$5,214.56

New Jersey Car Insurance Companies

When the unexpected happens, which company will meet your unique needs? It can be a challenge to make a choice when there are so many options.

Property & Casualty InsuranceNumber

To help you begin to make some comparisons, our analysts compiled data for the 10 insurance companies in New Jersey with the cheapest quotes.

Let’s check out the best car insurance companies in New Jersey!

The 10 Largest Car Insurance Companies in New Jersey

Before we get to the cheapest rates, let’s take a look at the largest car insurance companies in New Jersey.

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The national market share is mostly dominated by four select companies; however, we have listed the largest ten companies in New Jersey here (as of 2017) to provide you with more options relative to your own state.

The table below displays the market share percentage, total direct premiums written, and loss ratios. The table is sorted by market share; however, you can sort as you like.

CompanyDirect Premiums WrittenLoss RatioMarket Share
New Jersey Manufacturers Group$993,94566.25%12.94%
Progressive Group$856,48459.14%11.15%
Allstate Insurance Group$839,88353.02%10.93%
State Farm Group$629,48564.66%8.19%
Palisades Group$601,85261.30%7.83%
Liberty Mutual Group$544,32164.14%7.09%
USAA Group$294,67870.79%3.84%
Travelers Group$284,19159.53%3.70%
Farmers Insurance Group$233,31479.86%3.04%

Remember, these are the loss ratios for all coverage types combined and are for the largest companies, not those with the cheapest rates.

Car Insurance Companies with the Best Ratings

A.M. Best is a third party entity that provides ratings of companies’ credibility and financial outlook, so this is a great place to start in narrowing down your options.

CompanyFinancial Rating
Allstate Insurance GroupA+
Farmers Insurance GroupA
Liberty Mutual GroupA
New Jersey Manufacturers GroupA+
Palisades GroupA-
Progressive GroupA+
State Farm GroupA++
Travelers GroupA++
USAA GroupA++

Taking into consideration customer satisfaction ratings is as important as financial stability. The JD Power Circle Ratings in the image below cover the north central region which is comprised of seven states to include New Jersey.

J.D. Power Insurance Co. Ratings

Companies with Most Complaints in New Jersey

We’ve looked at the positive ratings for financial stability and customer satisfaction. Now it is time to review the negative aspect of ratings: customer complaints.

We took the same ten companies and located their complaint ratios compared to their direct premiums written. So just because a company has the most customers in your state doesn’t necessarily mean those customers are satisfied.

New Jersey releases complaint ratios each year, and 2017 data is their most recent that is published. The table is sorted based on the company name. Feel free to sort and search the table.

A company with a complaint index lower than 1.0 has fewer complaints than average, and a company with a complaint index higher than 1.0 has more complaints than average.

Company NameValid ComplaintsNumber of VehiclesComplaint RatioComplaint Index
Allstate Group18547,5920.03290.871
Farmers Group4111,4580.03590.951
Geico Group361,180,4510.03050.808
Liberty Mutual Group24366,3890.06551.736
New Jersey Manufacturers Group1831,0260.00120.032
Palisades Group3211,9920.01420.375
Progressive Group23591,5200.03891.031
State Farm Group19484,0870.03921.04
Travelers Group3214,2200.0140.371
USAA Group24262,6420.09142.422

If you would like to submit an official complaint about auto insurance, you can submit it here.

New Jersey Car Insurance Rates by Company

We know New Jersey rates will be higher than other states on average, but some companies will have better rates than others even if it is by only $50 per year.

In this section, we cover the average annual rates for the top seven companies in New Jersey with the cheapest rates based on unique factors to you: your commute, driving record, and chosen coverage level.

But first, let’s look at the cheapest average rates by company overall, compared with the state averages.

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CompanyAverage Annual Rate+/- Compared to State Average+/- Percent Compared to State Average
Liberty Mutual$6,766.61$1,251.40+18.49%
State Farm$7,527.15$2,011.94+26.73%
St Paul$4,254.49-$1,260.72-29.63%

As you can see in the table and chart above, Geico and Progressive have the best rates compared to the state average.

Commute Rates in New Jersey

Company10 miles commute / 6,000 annual mileage25 miles commute / 12,000 annual mileage
Liberty Mutual$6,700.88$6,832.35
State Farm$7,333.03$7,721.28

Commute times are generally a fairly small factor when it comes to increasing your rates.

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If you have a long commute, getting a policy with Farmers, Progressive, or Travelers is a good option because all of these companies don’t charge more for a longer commute.

Liability Coverage Rates in New Jersey

The adage “buy in bulk” applies in most states that the higher the liability limits you select, the better deal you are getting on coverage.

Unfortunately, that is the not case for companies in New Jersey, as you can see in the table below.

companyAnnual Rate with low coverageAnnual Rate with medium coverageAnnual Rate with high coverage
Liberty Mutual$6,053.83$6,971.85$7,274.15
State Farm$6,994.15$7,625.56$7,961.75

However, Geico has the best deal when comparing low coverage to medium and high coverage.

Remember that it is personal injury protection which makes New Jersey rates so high. Increasing your liability coverage will be beneficial in only two situations:

  • if you regularly drive in another state that is at-fault
  • if you are in an accident (in New Jersey) with someone from another state

Credit History Rates in New Jersey

If you see an increase in your premium, and you did not get a ticket and you were not in an accident, your credit score may have reduced into a lower threshold.

CompanyAnnual Rate with Good CreditAnnual Rate with Fair CreditAnnual Rate with Poor Credit
Liberty Mutual$5,367.00$6,357.77$8,575.06
State Farm$5,120.55$6,568.67$10,892.25

It appears that Progressive is the most forgiving in its rates if you have poor credit; however, it is still an increase of up to $862 per year.

Driving Record Rates in New Jersey

If you receive a speeding citation, get into an accident, or get caught drinking and driving, expect your annual rates to increase. In New Jersey, some companies are more lenient than others.

CompanyClean RecordOne Speeding TicketOne AccidentOne DUI
Liberty Mutual$6,498.24$6,498.24$7,437.18$6,632.81
State Farm$4,089.25$6,597.21$7,446.84$11,975.32

In New Jersey, it looks like Geico and Liberty Mutual do not assess a penalty in rate if you get a speeding ticket. These two companies are also more lenient when it comes to getting into an accident.

When it comes to getting a DUI, all seven of the companies will increase your rate; however, Liberty Mutual and Progressive increase rates the least.

Even though New Jersey has one of the highest rates in the country, you can still get a relatively reasonable rate if you do your research.

Driving Laws in New Jersey

Car insurance laws vary from state to state, and New Jersey is no different, as we have seen already. In this section, we cover more laws associated with car insurance.

High-Risk Insurance

The state of New Jersey has established the New Jersey Personal Automobile Insurance Plan (NJPAIP) to assist those who are finding it difficult to purchase coverage from a carrier in the competitive market due to denial of coverage.

You may qualify for the program if you meet one or more of the following criteria:

  • A newly licensed driver
  • Live in high-risk areas
  • Previously covered by a high-risk auto insurance company
  • A young teen driver
  • An elderly driver (70 years or older)
  • Under SR22 filing
  • Have no prior auto insurance coverage or lapse
  • Has a history of late pays or poor credit history
  • Urban dweller – Living in a high-risk area
  • Has several recent traffic violations; speeding, DUI/DWI, etc.
  • Recent history of several crashes or car accidents

Low-Cost Insurance

As mentioned earlier, New Jersey has a program for only Medicaid recipients who have hospital benefits called the Special Automobile Insurance Policy (NJSAIP), or “Dollar a Day” insurance policy. It is called the “Dollar a Day” policy because it costs $360 a year if you pay up-front, or $365 if you pay in two installments.

This insurance policy will cover up to $250,000 in emergency treatment. It also has a death benefit of $10,000.

If you think you may qualify for this plan, read the frequently asked questions on the DOBI website.

Windshield Coverage

New Jersey law does not require insurance companies to provide windshield repair or replacement, but it is an option through purchasing comprehensive coverage with a standard repair deductible of $750.

Statute of Limitations in NJ

A statute of limitations is the limit on the amount of time you have, from the time of an accident, to bring a lawsuit to court. Most states differentiate time limits for personal injury and property damage matters.

However, New Jersey combines the two, and you have two years to file for the lawsuit for both personal injury and property damage.

Comparative Negligence

New Jersey is a “modified comparative fault” state.

This statute is used to settle cases in which the injured party is partially at fault. The amount in damages will be reduced if an injured party is found to share the blame. In this case, the plaintiff’s damages award is reduced by a percentage equal to his or her share of fault. If the injured party is found to be 50 percent or more at fault, there is no recovery for damages.

Vehicle Licensing Laws

Let’s look at what licensing requirements are in place in New Jersey for different groups of people.

Teen Driver Laws

Young Driver Licensing LawsAge RestrictionsPassenger RestrictionsTime Restrictions
Learner's Permit16 and completed driver education; 17 without driver education

the permit becomes an intermediate license after six months for drivers younger than 21 and after 3 months for drivers 21 and older. The graduated licensing law applies to adults, except that the night driving and passenger restrictions are waived for new drivers 21 and older. If the applicant has not completed driver education, the minimum permit age is 17 and the minimum intermediate license age is 17, 6 months. Learner's permit holders may not drive between 11 p.m. and 5 a.m. and may carry only one passenger in addition to the supervising driver or any parent, guardian or dependant.
one passenger in addition to the supervising driver or any parent, guardian or dependent (family members excepted); waived for new drivers 21 and older.11 p.m.-5 a.m.; waived for new drivers 21 and older.
Provisional Licenseminimum age of 17 and 6 months
6 months holding period; 3 months for drivers 21 and older
one passenger in addition to the supervising driver or any parent, guardian or dependent (family members excepted); waived for new drivers 21 and older.11 p.m.-5 a.m.
Full License17lifted after 12 months or until age 21, whichever occurs first (min. age: 18)lifted after 12 months or until age 21, whichever occurs first (min. age: 18)

Older Driver License Renewal Procedure

Renewal ProceduresGeneral PopulationOlder Population
License renewal cycle4 years2 or 4 years for people 70 and older, personal option
Mail or online renewal permittedby mail, unless new photo required (stored picture can be used, but only for a period not exceeding four additional years)by mail, unless new photo required (stored picture can be used, but only for a period not exceeding four additional years)
Proof of adequate vision required at renewalevery 10 yearsevery 10 years

New Residents

If you plan to relocate to New Jersey, there a few things you need to know to transfer your out-of-state license and register your vehicle.

Before you visit a motor vehicle location, collect forms of identification to meet a total of six identification points as shown on the 6 Points of ID Brochure.

Once you surrender your out-of-state license, you will be issued a four year New Jersey license.

If you are 21, you must complete the Graduated Driver License (GDL) program requirements.

As for your vehicle, you will have 60 days from the date you move to transfer your title and registration. Visit a motor vehicle location with ID, title, and proof of insurance. You will complete a few forms and pay a fee based on if you own or finance your vehicle.

New Jersey currently has been granted an extension until October 2019 to enforce REAL ID requirements.

Rules of the Road in New Jersey

Knowing the basic driving laws of New Jersey will ensure your safety and keeping your rates from increasing.


Keep Right and Move Over Laws

All drivers in New Jersey must keep right except to pass on the left or turn left.

Move over laws usually always apply to emergency vehicles; however, in New Jersey, this applies to any vehicle with flashing lights including tow trucks and highway maintenance vehicles. Drivers must move over completely or slow down if moving over is not possible.

Speed Limits

Maximum posted speed limits are 65 mph on rural interstates, 55 mph on urban interstates, 65 mph on limited access roads, and 55 mph on all other roads.

Carseat and Cargo Area Laws

Any child younger than two and less than 30 lbs must be in a rear-facing infant seat. From this age and weight, a child must ride in a rear-facing or forward-facing child safety seat until the age of four and 40 lbs.

From age four and 40 lbs to age eight and 57 inches tall, a child must ride in a forward-facing child safety seat or booster seat.

The state of New Jersey does have a preference for the rear seat, if available, for children under the age of 7 and less than 57 inches. If a child must ride in the front seat or in a safety seat in the front seat, the airbag must be disabled.

However, when a child reaches the age of eight and exceeds 57 inches tall, he or she may use an adult seat belt.

Some states permit those who are younger than 16 to ride in cargo areas in the case of parades, for example. New Jersey, on the other hand, permits only employees engaged in work duties to ride in the back of a pickup truck.


Rideshare services like Uber require that all their drivers maintain their own car insurance policies that meet at least the minimum coverages requirements. However, if a driver wishes to obtain special coverage for this role, Farmers and USAA offer specialized rideshare coverage.

Automation on the Road

According to the Insurance Institute for Highway Safety (IIHS), “automation is the use of a machine or technology to perform a task or function that was previously carried out by a human.

In driving, automation involves using radar, camera and other sensors to gather information about a vehicle’s surroundings, which is then used by computer programs to perform parts or all of the driving task on a sustained basis.”

New Jersey is one of ten states that have at least have laws that authorize a study, define key terms, and/or authorize funding; however, as of May 2019, no additional information is provided regarding additional regulations.

New Jersey’s Safety Laws

Two basic practices that ensure your safety and the safety of others in New Jersey is to buckle up and obey the speed limits. Other laws exist to prevent impaired or reckless driving.

DUI Laws

Drinking and driving laws in New Jersey require a blood alcohol level of 0.08 percent or higher to be cited with driving under the influence (DUI).

Unlike other states, in New Jersey, driving under the influence is considered a violation and not a crime with a lookback period of 10 years. However, New Jersey does impose infractions on drunk drivers based on their blood alcohol level for their first offense. Any offenses proceeding the first does not differentiate for blood alcohol level.

PenaltyFirst OffenseSecond OffenseThird Offense
License SuspensionBAC 0.08-0.99: 3 months
BAC 0.10-0.14: 7 months-1 year
BAC 0.15+: 7 months - 1year, IID during suspension and 6 months - 1 year following restoration
2nd in 10 years: 2 years; IID during license suspension and 1-3 years after restoration3rd in 10 years of 2nd: 10 years; IID during suspension and 1-3 years after restoration
Imprisonmentminimum 12 hrs. BAC 0.08+: up to 30 days2nd in 10 years: 48 hours-90 days3rd in 10 years of 2nd: 180 days
FineBAC 0.08-0.99: $250-$400
BAC 0.10-0.14: $300-$500
BAC 0.15+: $300-$500
BAC 0.08+ $3,505 in fees and surcharges
$500-$1,000; $3,555 in fees and surcharges3rd in 10 years of 2nd: $1,000 +$5,055 in fees and surcharges
Other12-48 hours Intoxicated Driver Resource Center (IDRC)12-48 hours IDRCup to 90 days Community Service; 12-48 hours IDRC

Marijuana-Impaired Driving Laws

As of May 2019, New Jersey does not have any specific laws regarding marijuana impairment while driving.

Distracted Driving Laws

All distracted driving laws in New Jersey are primarily enforced which means you can be pulled over for violating these laws.

Handheld devices and texting are banned for all drivers. All learner’s permit holders and all intermediate license holders are not permitted to use a cellphone.

New Jersey takes these laws seriously. In 2019, a New Jersey woman was found guilty of vehicular homicide after texting and driving. This is the first time a New Jersey resident has been charged with vehicular homicide for texting and causing a fatal accident, but it likely won’t be the last time.

New Jersey: Fascinating Facts You Need to Know

How safe is it to drive in New Jersey?

Well, the data our researchers found might surprise you.

Let’s examine the statistics of theft and fatalities from risky driving behavior.

Vehicle Theft in New Jersey

Here are the top-10 stolen cars in New Jersey:

Make/ModelNumber of Thefts
Honda Accord844
Honda Civic753
Dodge Caravan427
Nissan Sentra340
Ford Pickup (Full Size)295
Nissan Altima291
Jeep Cherokee/Grand Cherokee286
Toyota Camry232
Nissan Maxima195
Ford Econoline E350184

Listed below are the top-five cities in which the most vehicles were stolen in 2013.

City# of Stolen Cars
Jersey City

Risky/Harmful Driving Behavior

Keeping your eyes on the road and staying aware of common risky driving behaviors is the best way to stay safe while driving.

Weather and Light Condition Fatalities

Weather ConditionDaylightDark, but LightedDarkDawn or DuskOther / UnknownTotal

Traffic Fatalities

TypeNumber of Fatalities
Traffic Fatalities 624
Passenger Vehicle Occupant Fatalities (All Seat Positions)331
Motorcyclist Fatalities83
Drivers Involved in Fatal Crashes865
Pedestrian Fatalities183
Bicyclist and other Cyclist Fatalities 17

Traffic Fatalities by Person Type

Person TypeNumber
Occupants (Enclosed Vehicles)340

Fatalities by Crash Type

Crash TypeNumber
Single Vehicle380
Involving a Large Truck54
Involving Speeding120
Involving a Rollover72
Involving a Roadway Departure266
Involving an Intersection (or Intersection Related)197

Five-Year Trend for the Top 10 Counties

Ocean County4945384153
Burlington County3531485048
Middlesex County5233414647
Camden County3138343944
Gloucester County2631232644
Monmouth County2747475043
Essex County4040404640
Atlantic County4241293936
Union County1830292634
Morris County2514232129
Top Ten Counties377375368404418
All Other Counties165181193198206
All Counties542556561602624

Fatalities Involving Speeding by County

Middlesex County14341513
Gloucester County536612
Burlington County10381111
Monmouth County716101710
Atlantic County995129
Camden County791367
Cumberland County411357
Essex County122867
Mercer County75747
Bergen County40766
Ocean County89365
Union County2810105
Hudson County68664
Morris County53354
Passaic County771174
Salem County36443
Cape May County14032
Somerset County32302
Hunterdon County20021
Warren County10201
Sussex County11510

Fatalities in Crashes Involving an Alcohol-Impaired Driver by County

Middlesex County1385915
Camden County698813
Essex County121351011
Mercer County85339
Monmouth County61411149
Burlington County119998
Gloucester County107558
Union County5510137
Cumberland County44786
Ocean County128666
Passaic County1310996
Atlantic County10123124
Bergen County8123104
Morris County73434
Cape May County25153
Hudson County411343
Somerset County410553
Salem County48512
Hunterdon County33111
Sussex County22321
Warren County32211

Teen Drinking and Driving

Teens and Drunk DrivingData
Alcohol-Impaired Driving Fatalities Per 100K Population0.3
Higher/Lower Than National Average (1.2)lower
DUI Arrest (Under 18 years old)129
DUI Arrests (Under 18 years old) Total Per Million People65
US Rank of Under 18 DUI Arrests32nd

EMS Response Time

LocationTime of Crash to NotificationArrivalArrival at Scene to HospitalTime of Crash to Hospital
Rural4.14 minutes13.22 minutes36.48 minutes53.84 minutes
Urban5.14 minutes7.82 minutes31.62 minutes43.70 minutes


If you live in New Jersey, chances are you own one or two cars for your household, drive alone to work, and spend 10-34 minutes commuting.

Car Ownership

Commute Time

With an average commute time of 30.6 minutes, New Jersey ranks above the national average of 25.3 minutes.

That means 5.42 percent of New Jersey residents suffer through a “super commute” spending in excess of 90 minutes in the car!

Commuter Transportation

Most people in New Jersey drive to work alone.

Don’t waste another minute. Start comparison shopping car insurance rates today.

Average Monthly Car Insurance Rates by State
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Average Monthly Car Insurance Rates by Age & Gender in New Jersey
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Factors Affecting Car Insurance Rates in New Jersey
State Minimum Car Insurance Rates Nationwide
Average Monthly Car Insurance Rates by State
Average Monthly Car Insurance Rates by Age & Gender in New Jersey
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Factors Affecting Car Insurance Rates in New Jersey