insurance car insurance

Average Cost of Car Insurance in New Jersey for 2026

New Jersey residents typically pay over the national average for car insurance.

By Kat Tretina , Edited by Kristen Cervellini

Updated June 18, 2026

Save up to$600/year

Compare car insurance rates in Ohio

See if lower rates are available

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

New Jersey can be a fantastic place to live. It's a short distance to major cities like New York and Philadelphia, has numerous beaches and casinos, and is well-known for its multitude of diners. The downside? New Jersey can be expensive to live in.

It has a higher cost of living than most states, which means its car insurance premiums are also more expensive. The average cost of full coverage car insurance in New Jersey is $255 per month, compared to the national average of $186. Let's break down how much car insurance in New Jersey costs and what you can do to lower your premiums.

Key takeaways

The average cost of car insurance in New Jersey is $255 per month for full coverage.
In New Jersey, you could save up to 10% for three years on your premiums by completing a defensive driving course.
Teen drivers pay an average of $415 per month for full coverage.

How much does car insurance cost in New Jersey?

It's no surprise that car insurance is pricey, but it's especially expensive in New Jersey. Not only does New Jersey have a higher cost of living, but it also has a high incidence rate for accidents. In fact, according to the New Jersey Department of Transportation, there are around 275,000 accidents every year.

Combined, those factors drive up car insurance premiums. The average cost of full coverage insurance is $255 per month. For state-minimum coverage, the average price is $182 per month.

Avg. monthly cost for full coverage	Avg. monthly cost for minimum coverage
$255	$182

Avg. full coverage monthly premium for teens	Avg. full coverage monthly premium for seniors (70s)	Avg. full coverage monthly premium for drivers with a DUI
$415	$201	$411

Average cost of car insurance in New Jersey by provider

Numerous insurance companies are licensed to provide auto coverage in New Jersey. National insurers such as Allstate and State Farm are widely recognized and serve customers throughout NJ. However, New Jersey is also home to regional insurers like NJM, which focus their services on a smaller number of states.

Shopping around is a smart way to save money on your policy by finding lower rates for the same coverage. Since insurers evaluate risk differently, comparing quotes from multiple companies can help you identify the best value and avoid overpaying. Below is a snapshot of average rates from a selection of providers serving NJ to give you a general sense of current pricing.

Provider	Avg. full coverage	Avg. minimum liability coverage
CSAA	$195/month	$126/month
GEICO	$294/month	$227/month
State Farm	$373/month	$296/month
Progressive	$258/month	$187/month

Get Custom Quotes Today

Safe Drivers Save with Allstate®

Average Rate:

$ $$ /mo

Get rewarded with savings for having a clean driving record.

Paying too much for car insurance?

Average Rate:

$ $$ /mo

Car insurance can be so simple. And so affordable.

GEICO

The insurance savings you expect.

Average Rate:

$ $$ /mo

Enjoy personalized policies, comprehensive coverage & more.

See how much you could save today!

Average Rate:

$ $$ /mo

Drivers who switch their auto insurance and save with State Farm save $764 on average!

How does credit score affect car insurance rates in New Jersey?

Unlike some states, New Jersey doesn't restrict insurance companies from using customer credit scores. Insurers can use your credit history and credit scores to determine your premiums. Generally, the better your credit, the lower your premiums will be.

Credit health	Avg. full coverage premium
Poor (550-649)	$295/month
Average (650-699)	$280/month
Good (700-749)	$247/month
Excellent (750+)	$212/month

Average car insurance rates for high-risk drivers in New Jersey

As mentioned above, accidents in New Jersey are common. Accidents, speeding tickets, and driving under the influence (DUI) convictions will cost you.

Violation	Avg. full coverage premium
At-fault accident	$289/month
DUI	$411/month
Speeding ticket	$342/month

How does age affect car insurance rates in New Jersey?

In New Jersey, as in most states, insurance costs are highest for drivers with the least experience. Teen drivers typically face the steepest premiums due to their higher risk of accidents.

Age	Avg. full coverage premium
Teens	$415/month
20s	$295/month
30s	$264/month
40s	$272/month
50s	$253/month
60s	$216/month
70s	$201/month

New Jersey car insurance rates by city

Insurance companies look at several factors when reviewing your information and calculating your premiums. One of the most significant factors is your location. For example, if you live in a busy city with a high rate of crime or accidents, you'll pay more than someone who lives in a quiet suburb.

City	Avg. full coverage premium
Camden	$357/month
Jersey City	$283/month
Newark	$376/month
East Orange	$354/month
Irvington	$356/month
Trenton	$302/month

NJ's minimum car insurance requirements

In New Jersey, there are two types of auto insurance policies: a Basic Policy and a Standard Policy. The Basic Policy is designed for drivers with few assets and provides only minimum required coverage, while the Standard Policy offers broader protection and is the option chosen by most drivers.

Basic Policy:

Property Damage Liability: $5,000 per accident
Personal Injury Protection (PIP): $15,000 per person, per accident
Severe Injury PIP: Up to $250,000 for certain catastrophic injuries
Bodily Injury Liability: $0 (optional $10,000 add-on available)

Standard Policy:

Bodily Injury Liability: $35,000 per person / $70,000 per accident
Property Damage Liability: $25,000 per accident
Personal Injury Protection (PIP): $15,000 per person (can be increased up to $250,000)

How to save money on car insurance in New Jersey

If your auto insurance premiums are too expensive, you may be able to lower the cost with the following tips:

Increase your deductible: The lower your deductible is — how much you have to pay for injuries or damages before your insurance pays — the higher your premiums will be. You can reduce your premiums by increasing your deductible.
Ask your agent about discounts: You may be eligible for discounts on an existing policy. For example, you may qualify for a multi-policy discount if you have homeowners or renters insurance, or you may qualify for a good student discount if you're in school.
Complete a defensive driving course: By completing an approved defensive driving course, you could reduce your premiums by as much as 10%.
Get quotes from other companies: It's wise to request quotes from several insurers at least once a year. You may be surprised by how much prices can vary between companies. If you aren't sure where to start, check out our picks for the best car insurance companies.
Consider New Jersey's Special Automobile Insurance Policy (SAIP): Some New Jersey residents who struggle to afford their premiums qualify for SAIP. The program provides limited coverage to low-income drivers eligible for federal Medicaid with hospitalization. Qualifying drivers can get coverage for just $365 per year.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different. Learn more about how FinanceBuzz evaluates car insurance carriers based on factors like pricing, customer experience, financial stability, and overall value.

FAQs

Is car insurance expensive in NJ?

Yes, the average monthly full coverage premium in New Jersey is $255, compared to the national average of $186.

What types of auto insurance policies are available in New Jersey?

New Jersey offers a Basic Policy and a Standard Policy. The Basic Policy provides minimum required coverage, while the Standard Policy offers broader protection and is chosen by most drivers. Here are the differences:

Basic: