Best Car Insurance in New Jersey for 2024

Although New Jersey isn’t generally considered as expensive as its neighbor, New York, the cost of living, including auto insurance, can be higher than expected. The average annual cost of car insurance in the Garden State is $2,080 for full coverage and $941 a year for the state’s minimum coverage, compared to the national average of $1,582.

Key takeaways

• The best car insurance in New Jersey is State Farm by customer satisfaction ranking, which costs $1,700 per year for comprehensive coverage.
• Drivers in New Jersey with a clean driving record pay an average of $173 per month.
• The average insurance cost for high-risk drivers in New Jersey is $2,684 a year.

Best car insurance companies in New Jersey

The best car insurance in New Jersey varies based on the type of coverage you need. State Farm is the highest-rated insurance company in New Jersey, but it’s not the cheapest. GEICO has the lowest cost, but it also has one of the lowest customer service scores.

Provider	J.D. Power customer satisfaction rating	Estimated annual full coverage	Estimated annual minimum liability coverage
State Farm	843/1,000	$1,700/year	$1,032/year
Allstate	825/1,000	$1,903/year	$903/year
GEICO	818/1,000	$1,175/year	$514/year
Progressive	814/1,000	$2,269/year	$1,178/year
Plymouth Rock	807/1,000	$1,932/year	$804/year
Farmers	803/1,000	$2,508/year	$1,560/year

State Farm: Highest customer satisfaction

State Farm earned the highest customer satisfaction rating in New Jersey, earning 843 out of 1,000. While State Farm’s average cost of $1,700 per year for full coverage insurance is lower than New Jersey’s average of $2,080, you may still pay more based on your driving record and other factors.

Get a quote now | State Farm review

Allstate: Best for lowest deductible

Although Allstate has some of the most expensive coverage in New Jersey, its vanishing deductible program and other discount options may help you save some money on your car insurance. Drivers can save $100 a year up to $500 on their deductible for every year they don’t have an accident.

Get a quote now | Allstate review

GEICO: Most affordable coverage

GEICO is the lowest-cost option for full and minimum insurance coverage in New Jersey. Drivers who use GEICO will pay an average of $1,175 yearly for full coverage and $514 for minimum coverage, well below the state average. It has a good mix of coverage and discounts but limited access to agents in New Jersey.

Get a quote now | GEICO review

Progressive: Best for senior discounts

Senior drivers in New Jersey pay an average of $2,000 annually and may see their costs increase as they age. Although Progressive is the second most expensive carrier in the Garden State, it can be helpful for senior drivers because of the discounts offered. It may provide lower rates than some competitors.

Get a quote now | Progressive review

Plymouth Rock: Best for coverage options

Plymouth Rock is the only regional insurance option on our list, but it has coverage options that even some national competitors don’t offer. Plymouth Rock is more expensive than some competitors, averaging $1,932 a year for full coverage and $804 for minimum coverage. However, access to optional policies like accident forgiveness and gap coverage could be worth it in the right circumstances.

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New Jersey auto insurance requirements

Nearly all states require drivers to maintain a basic amount of coverage. In New Jersey, the minimum requirements are:

• $5,000 property damage liability per accident
• $15,000 Personal Injury Protection (PIP) per accident minimum (up to $250,000 for permanent or significant brain or spinal cord injuries)

How to choose a car insurance provider in New Jersey

Finding the right insurance in New Jersey depends on your insurance provider. To find the best provider with the best pricing, consider the following:

• Check financial stability: Before starting a policy with any insurance company, check its overall financial stability on a website like Standard & Poor’s or AM Best. It’s also wise to check with the New Jersey Department of Banking & Insurance to confirm a company is licensed.
• Ask for reviews: Ask people you trust for recommendations and read online reviews to get a feel for how a company handles claims. Check with the Better Business Bureau and Trustpilot to see what existing customers say.
• Check pricing and discounts: Get quotes from at least three companies to compare pricing and discount structures. Ensure the policy amounts and coverage options are similar to compare.

How much does car insurance cost in New Jersey?

New Jersey generally has higher costs than other parts of the country. The average cost of car insurance in New Jersey is $2,080 for annual full coverage or $941 for minimum coverage.

Drivers in Union City generally pay a lot more, averaging $3,107 a year. Jersey City residents spend only $2,492 annually, well over the state and national averages.

New Jersey car insurance rates by city

People who live in dense urban areas with higher crime rates are more likely to pay more for their auto insurance. Newark, the city with the largest population in New Jersey, earned a low 24 out of 100 on NeighborhoodScout’s crime index, and residents pay an average of $2,993 a year for car insurance. Nearby Union City has similar crime ratings but pays even more, an average of $3,107 annually.

City	Avg. annual full-coverage premium
Elizabeth	$2,886/year
Jersey City	$2,492/year
Newark	$2,993/year
Paterson	$2,975/year
Union City	$3,107/year
Woodbridge	$2,550/year

Methodology

FAQs about car insurance costs in New Jersey