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Home to historic Asbury Park and stunning Cape May, the old world tradition and Victorian charm of New Jersey, or NJ is a treasure for residents and visitors alike. Make sure you’re ready for the road ahead with Benzinga’s guide to the best car insurance in NJ.
Compare Car Insurance in New Jersey
New Jersey Car Insurance Overview
With an average of 2 cars per household in the Garden State, it’s good to know insurance requirements. New Jersey law requires you to have 2 types of liability coverage on your insurance policy: bodily injury and property damage.
- The state minimums for auto insurance coverage are as follows:
- Personal injury protection coverage: $15,000 per person, $30,000 per accident
- Property damage liability coverage: $5,000
- You’ll pay approximately $781–$2,182 per year for state minimum car insurance in New Jersey if you have a clean driving record.
NJ Car Insurance Law Explained
- Property damage liability covers property damage due to an accident or collision. By law, you need at least $5,000 worth of property damage liability insurance to drive in New Jersey.
- Personal injury protection coverage compensates you for medical bills and occasionally lost wages after an accident. Because New Jersey is a “no-fault” state, this type of coverage is required by law to help cover medical expenses and injuries.
Car accidents in New Jersey were handled under an “at-fault” system at one time. This means that whoever is responsible for the accident is responsible for the bills. However, New Jersey and several other states have moved to a no-fault auto insurance system. This means that each driver involved in an accident files a claim with their respective auto insurance provider who then pays for medical expenses no matter who is responsible.
Outside of the minimums needed, consider more insurance to enhance your policy with the following types of coverage:
- Collision coverage: This coverage compensates you for damage to your vehicle after an accident.
- Comprehensive coverage: This coverage goes into effect to cover everything that damages your vehicle other than another vehicle, such as hail, a fallen tree, fire or vandalism.
Cheap Car Insurance Rates by Insurance Credit Score
Your credit score is a snapshot of your financial responsibility at any given time. This 3-digit number can fluctuate slightly based on your saving and spending habits.
Insurers use your insurance credit score as a way to determine how much you’ll pay for insurance. These 2 numbers run in tandem with each other. Since insurers are all about removing as much risk as possible, by taking steps to raise your credit score, such as paying bills on time, paying more than the minimum on your credit card and not keeping a lot of credit card accounts open, you can pay less for car insurance while still getting the coverage you need.
Below you’ll see approximately how much you could expect to pay for state minimum car insurance in New Jersey based on your credit score.
| Credit Score | Cheapest Provider | Rate for State Minimum Coverage |
|---|---|---|
| Poor 300–579 | GEICO | $2,355 |
| Fair 580–669 | Progressive | $1,657 |
| Good 670–739 | Allstate | $1,535 |
| Excellent 740+ | Esurance | $952 |
Insurance for Drivers with a Clean Record
Finding cheap car insurance doesn’t mean settling for less coverage than what you think you need. If you have a clean driving record, insurers view you as less risky to insure. Statistically, you’re less likely to have an accident, less likely to speed, or otherwise be a danger to yourself or others.
The chart below shows 3 different types of coverage and the average rate you’ll pay for car insurance in New Jersey:
- State minimum coverage: The minimum amount of coverage you are required to have to drive legally in New Jersey
- Standard coverage: Generally the state minimum as well as collision coverage for your vehicle
- Full coverage: A combination coverage that includes state minimums, collision and comprehensive coverage in a single plan.
Check out these top insurers and the pricing differences among coverages.
| Insurance Company | State Minimum Insurance | Standard Coverage | Full Coverage |
|---|---|---|---|
| Allstate | $686 | $1,191 | $2,157 |
| Farmers | $837 | $1,650 | $2,250 |
| Progressive | $1,107 | $1,556 | $2,517 |
| State Farm | $781 | $1,514 | $2,552 |
| Travelers | $923 | $1,780 | $2,182 |
Insurance Rates with Driving Infractions
If you have infractions on your driving record, you’ll pay more for car insurance. It’s worth noting that some driving infractions are more severe than others. Your insurance rates will typically be higher if you have a DUI on your record than a speeding violation, for example.
- At-fault accident: This is an accident or collision that you have either fully or partially caused. Insurers typically view these incidents as moderately severe.
- Speed violation: Driving too fast (or sometimes too slow) for the posted speed limit; a couple miles per hour difference is minor compared to driving much faster. Receiving a citation for 30 miles or more over the speed limit raises your insurance rates considerably.
- DUI: Driving under the influence, or also called DWI (driving while intoxicated) is one of the harshest driving infractions that you can face. It may include, but is not limited to, fines, jail time and revocation of your license.
| Insurance Company | At-Fault Accident | Speed Violation | DUI |
|---|---|---|---|
| Allstate | $3,122 | $1,771 | $6,781 |
| Farmers | $2,740 | $1,505 | $6,845 |
| Progressive | $2,128 | $1,468 | $5,139 |
| State Farm | $2,672 | $1,496 | $4,850 |
| Travelers | $3,135 | $1,335 | $5,726 |
Best Car Insurance Providers in New Jersey
There is no one-size-fits-all car insurance provider for all customers in New Jersey. When you consider your driving record and credit score, the vehicle you drive as well as any discounts you’re entitled to, you may end up saving even more than the rates posted here.
Before you get a customized quote from any car insurance companies in New Jersey, see how much you could save with our top 5 picks below.
- Rideshare drivers
1. Best Overall: State Farm
State Farm is one of the most popular choices for car insurance in New Jersey and for good reason. With solid financial stability, a fast and easy claims submission service and one of the highest customer satisfaction rates among top insurers, it’s a reliable choice for all your auto insurance needs.
You can also use State Farm’s mobile app for roadside assistance should you have a flat tire or run out of gas.
- Pay-per-mile insurance from an established company
2. Best Coverage for Multiple Cars: Allstate
Allstate provides excellent coverage if you’re looking for car insurance for a multi-car household.
With its safe driving bonus check program, easy-to-use claims and policy review app and discounts for everything from bundling insurance to going paperless, Allstate is an excellent choice when you’re looking for affordable insurance coverage for your 2nd or 3rd vehicle.
- Active military members
3. Best for Military Personnel: USAA
USAA’s strong financial backing, as well as its dedication to military personnel and their families, makes it a top choice in our New Jersey insurance comparison. Even if you didn’t serve in the military, if you have a parent, grandparent or spouse who was a USAA member, you also qualify to enroll.
Additionally, as a USAA member, your children become eligible when they are old enough.
- Drivers with consistently good driving habits
4. Best for Households with Teen Drivers: Progressive
Progressive offers affordable car insurance for teen drivers and even provides a discount if they maintain a B average or better. Your teen’s car insurance rates drop by 10% when they turn 18 and another 18% when they turn 21.
Continuing to drive safely without tickets or driving infractions can continue to lower the rate they pay for auto insurance.
Getting the Best Rates on Auto Insurance in the Garden State
When it comes to car insurance, more is always better. To make sure you have plenty of coverage for the unexpected twists and turns on the road of life, it pays to get personalized quotes from each of the insurance providers profiled here.
Every insurer calculates its rates differently, so you could save more than just a few dollars by getting quotes directly online. Plus, the process takes only a few minutes and needs very little information to get started, so why not find out more and see how much you could save?
Frequently Asked Questions
How much is my car insured for?
With a standard auto insurance policy, your vehicle is insured using actual cash value, which means that a deduction may be taken for depreciation based on age or usage. As your vehicle ages, it’s worth less money which reduces the insurable value. If you own a collectible or classic car, you’ll want to consider a specialized classic car insurance policy that insures your vehicle to its full value without a deduction for depreciation.
I drive for a rideshare company, am I covered by my auto insurance? And does it cover my auto for business use?
The standard auto insurance policy has a ‘business’ use option. However, that usage has rules as to how it can be applied. For those that work for Lyft and Uber (for example), Insurance carriers today have now added a rideshare endorsement that can be applied to the auto policy. While you are on the way to pick up your rider, your insurance carrier extends coverages. Once the rider is in your vehicle, Lyft or Uber picks up the insurance coverage until the rider is dropped off. Compare companies here for the best rideshare coverage. Get a customized quote now for the best deal.
Does auto insurance cover business use?
In most cases, the business use of your vehicle is not covered by your auto insurance policy and can lead to denied claims. However, where you’re most likely risk losing coverage is when you are transporting products or passengers, which insurers define as livery. If your job requires traveling from point A to point B or C to visit customers, attend conferences, or perform other tasks, your personal auto insurance is likely to provide coverage. Get a customized quote now for the best deal.
*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners' secure websites.