Average Cost of Car Insurance in New Jersey in 2024

At $1,334 per year for full coverage, New Jersey’s average cost of car insurance is around 27 percent higher than the national average, according to 2020 data published by the National Association of Insurance Commissioners. This puts the state at No. 7 in the U.S. for the highest average cost of auto insurance. Let’s examine how much you might pay on average for various demographics and locations in New Jersey.

By City

If you live in a large or heavily populated city, you’ll pay more for car insurance because of the increased risk of vandalism, stolen vehicles, or accidents. Here’s the yearly average cost for full coverage auto insurance in 10 New Jersey cities.

By Age

Insuring a teenager is always pricier than insuring a young adult. In New Jersey, teens on average pay $5,612 annually for car insurance, while those in their 20s and older have yearly premiums of $1,913 on average. Regardless of age, many carriers have discounts to help you lower your premium.

By Gender

In New Jersey, on average, men pay slightly less than women for auto insurance.

By Marital Status

Married drivers have a slight advantage when it comes to car insurance, paying on average $1,565 annually, compared to single or divorced drivers, whose premiums average $1,600 per year.

By Coverage Level

Buying more than the minimum car insurance will keep you, your passengers, and your vehicles better covered in case of an accident.

By Violation

Cleaning up your driving record will net you significant savings on your auto insurance premium in New Jersey. To deduct points from your driving record, you can take one of the preapproved defensive driving courses.¹

By Company

Each issuer has its way of calculating rates, which is why you’ll see such variances in cost. In New Jersey, Travelers has the lowest-cost full coverage auto insurance on average at $1,222 per year.

By Credit Score

New Jersey residents may have their credit score considered by insurance companies when writing policies. The less robust your score is, the higher your insurance costs will be.

Because New Jersey has some of the country’s highest insurance rates, searching for the cheapest auto insurance policy is smart. Here are some of the lowest costs for a variety of demographics and situations:

With the high cost of car insurance in New Jersey, you’ll want to find ways to lower your premium.

• Ask about discounts. Car insurance companies provide many ways for customers to slash their bill, including bundling homeowners and auto insurance, multi-vehicle coverage, and good student discounts.
• Increase your deductibles. The higher your deductible is, the lower your premium will be.
• Enroll in usage-based programs. Some insurance companies offer policyholders savings when they are accident-free over a particular time frame, drive fewer miles each year, maintain a clean driving record, or participate in a telematics safe driver program.
• Drop supplemental coverage. If you drive an older vehicle, you probably don’t need collision or comprehensive coverage. Other optional coverages include rental reimbursement.

New Jersey requires the following insurance:²

• Liability insurance
  • $25,000 per person in bodily injury
  • $50,000 per accident in bodily injury
  • $25,000 per accident in property damage
• Personal injury protection (PIP)
  • $15,000 per person or accident
• Uninsured motorist
  • No mandatory coverage limits

The Garden State has a no-fault system, with a restriction on filing a lawsuit against an at-fault driver.³ You can ask for additional damages beyond PIP insurance if you select the unlimited right to sue when picking your auto insurance policy. In that case, you can seek compensation for:

• Bodily injuries
• Other out-of-pocket damages
• Pain and suffering
• Property loss

New Jersey also has modified comparative negligence laws, which mean you must be found less than 50 percent at fault in an accident to get any compensation. If you were partially at fault for the crash but less than 50 percent liable, your compensation would be lowered based on the fault degree.

You might be required to file a SR-22 certificate in New Jersey in these circumstances:

• You want to reinstate your driving privileges or license.
• You have more than one accident or traffic infraction on your driving record.
• You have a DUI conviction.

You will likely have to file the SR-22 for three years.

If you reside in the Garden State, you should get more than the minimum car insurance for better protection for you and your vehicles. At AutoInsurance.com, we’re ready to help you find the best coverage for you.

More than two decades of experience in the auto insurance industry means AutoInsurance.com knows the industry. We have proprietary data about insurance carriers and customers, including state-specific info, that translates into the best overview of how much insurance will cost you in this state.