FIND THE CHEAPEST INSURANCE IN YOUR AREA
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The ValuePenguin team conducted a study of auto insurance quotes across fifty companies and four driver types in New Jersey to find the cheapest car insurers. We discovered that car insurance rates in the state can differ widely: for example, the cheapest auto insurance quotes in New Jersey were about $4,630 or 79% lower than the most expensive company for a middle-aged married couple. That is, one company's premium could pay for almost four years of insurance at another insurer. That’s why New Jersey motorists need to compare quotes to get the best rates for themselves. Read more in detail in each section (contents to the left), or type your zip code below for a list of cheap companies insuring in your area to start comparison shopping.

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Cheap Car Insurance Companies in New Jersey

We compared quotes from fifty companies in the Garden state to identify the cheapest auto insurance companies in New Jersey. These quotes are based on the averages of four driver profiles: single young and middle-aged men, and middle-aged and senior married couples. The five cheapest companies for the general population are NJ Skylands, Farmers (Mid-Century Insurance), Norfolk & Dedham (Fitchburg Mutual), Plymouth Rock, and GEICO. Their average annual premium was $1,394, which costed 37% or $834 less than the fifty-insurer composite. AAA (Western United) and Teachers Auto Insurance of New Jersey were also low-cost companies, but they have membership requirements.

While your quotes will differ depending on where you live and your driving history, these companies are a good place to start for cheap car insurance. Not every company underwrites policyholders the same way, so drivers should always compare quotes between several companies to get good rates. Start by entering your zip code below to shop for great rates among the top insurers.

This graph shows what the cheapest auto insurance companies in New Jersey are: the top five include NJ Skylands, Farmers, Norfolk & Dedham, Plymouth Rock, and GEICO

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*A couple of notes on the auto insurance companies above and special eligibility: AAA / Western United Insurance had the best rates in most of the cities we saw, but you have to have an AAA membership ($60/y) in order to qualify. Teachers Auto Insurance of NJ only insures member of the education and school community while USAA covers only members, both active and retired, of the military and their families.

Lastly, while GEICO ranked as the 7th overall low-cost company in New Jersey, they actually had the cheapest underwriter in the state: Government Employees Insurance Company. Unfortunately, those low rates were balanced out by another vehicle, GEICO Indemnity Co, which had higher costs. Since consumers have no say in which company issues their policy, we've averaged the rates for our study.

Cheap Car Insurance in New Jersey: by City

Auto insurance costs vary based on where you live, drive, and park your car, so let's take a look at costs at the city level, and find the cheapest auto insurance companies by city.

We compared auto insurance quotes across fifty companies for four drivers. Companies in each city are ranked based on their average rates for single males (23 and 35), and married couples (30-49 and 65). We'll talk first about the biggest cities, then the cheapest cities, and then provide a complete table.

Note: Generally speaking, Western United Insurance had some of the lowest rates in each city, but drivers have to be AAA members to be eligible. Since not all drivers are AAA members, we've placed them aside in our analysis to make the information more useful to the general population.

Newark, NJ

Cheap car insurance in Newark can still be had despite its status as the most expensive city in New Jersey. Average quotes for auto insurance ranged from $1,213 to $5,646 on the high end – a range of 4.7x. The three cheapest car insurance companies in Newark were New Jersey Skylands, Farmers (Mid-Century Insurance), and Norfolk & Dedham (Fitchburg Mutual), with average rates of $1,540 a year. Compared to the Newark average of $2,756, these companies’ quotes are about 44% cheaper. Note that the second cheapest was actually AAA (underwriting as Western United Insurance), with rates of $1,543 across our four drivers – but that’s only available to AAA members.

Rates here in the "Brick City" range from $1,800 a year for a married couple in their 60s to $3,600 for married middle-aged couples on average. If you’re a single male, rates in Newark are $3,192 for a 23 year old and $2,368 for a 35 year old. Young male drivers in Newark definitely have to comparison shop around: the gap between the cheapest and the most expensive insurer can be as high as $7,281 a year. 

With 280,000 residents, Newark is the largest city in the Garden State and the second largest in the New York Metropolitan area. It is home to the Prudential Center and the New Jersey Devils hockey team. 

Jersey City, NJ

For the second largest city, Jersey City’s auto insurance costs rank it as the 11th most expensive out of the state. Annual premiums in this place known among residents as “Chilltown” and in history as “America’s Golden Door” are just 9% higher compared to the state average. 

Car insurance quotes in Jersey City can differ by almost 4x from $1,036 to $4,901 on average. This is a large range, but with some comparison shopping, we found the cheapest car insurance in Jersey City at New Jersey Skylands, Farmers (Mid-Century Insurance), and Norfolk & Dedham (Fitchburg Mutual). Among these three, rates averaged about $1,398, which represented savings of 43% compared to the overall city average of $2,439. Western United Insurance actually has the best rates in Jersey City, but it’s only available for AAA members – average rates can be as low as $1,221. Married couples in their 30s and 40s should also try their luck with Farmers (underwriting as Mid-Century Insurance Co.) as they had the cheapest quote for this demographic.

Paterson, NJ

Paterson may rank as the third most expensive city on our list, but we have some cheap auto insurance recommendations here too. We found the lowest quotes across our four drivers at New Jersey Skylands, Farmers (underwriting as Mid-Century), and Norfolk & Dedham (underwriting as Fitchburg Mutual). 43%: that is how much lower the average quote from these guys is compared to the Paterson-wide average of almost $2,704. Are you an AAA member in the “Silk City”? Through Western United Auto Insurance, AAA members can see the third lowest costs in Paterson of $1,639 a year.

How are rates by drivers in the nation’s first industrial city? Average rates for married drivers halve from $3,569 for middle-aged couples to $1,810 for senior citizens. Single male drivers in their early 20s can see rates of $3,118, while single 35 year old males can see rates of $2,319. 

Elizabeth, NJ

To find low-cost auto insurance in Elizabeth, drivers should start with New Jersey Skylands Association, AAA (underwriting as Western United), and Farmers (underwriting as Mid-Century). Because Western United is limited to members with an AAA membership, we’ll add a fourth company for Elizabeth drivers Norfolk & Dedham. The average annual premium between the three insurance companies (excluding AAA) was $1,532, which was 43% lower than the mean cost from fifty insurers. 

The fourth largest city in the Garden State, Elizabeth ranks as our sixth most expensive city for car insurance in New Jersey. Known affectionately as “Betsytown” or E-town, Elizabeth once served as the first capital of New Jersey. Rates in E-town are about 20% higher than the typical Garden State city. Rates for a single 35 year old man are $968, about $300 more than a married senior citizen couple. Married couples in their 30s and 40s can see annual premiums of $1,502, while a 23 year old guy can see rates of $1,137 in E-town.

Woodbridge, NJ

The difference between affordable car insurance in Woodbridge and the most expensive rates can be as high as $2,941 a year. The cheapest insurers in Woodbridge are Western United Insurance (AAA), NJ Skylands, and Farmers (Mid-Century). Only AAA members can get auto insurance from Western United, though, so the fourth cheapest insurer was Plymouth Rock. We saw average quotes of $1,198 a year from NJ Skylands, Farmers, and Plymouth Rock across the four driver profiles – that’s a savings of $801 on average compared to the citywide average among the fifty companies in our analysis.

Passaic, NJ

The birthplace of modern television, Zoe Saldana, and Paul Rudd, this city is also the second most expensive in New Jersey. Affordable auto insurance can still be found in Passaic, though. Mean annual premiums can cost on average $2,714, but rates among our three cheapest insurers were $1,574 (a difference of $1,140). These companies were New Jersey Skylands, Farmers (Mid-Century), and Norfolk & Dedham (Fitchburg Mutual). Note: Western United had the second best absolute numbers of $1,537 on average a year, but they’re only available to AAA members. 

Camden, NJ

Camden is home to 77,000 residents, including in the past American poet Walt Whitman. That makes it the twelfth largest city in our analysis, but the fourth most expensive for car insurance. 

So where can you find cheap auto insurance in Camden? Start with New Jersey Skylands, Farmers (Mid-Century), and Norfolk & Dedham (Fitchburg Mutual), whose mean rates are $1,572 a year for our four drivers. Otherwise, the average cost to insure an automobile in Camden is $2,688 annually, about 21% more than elsewhere in the Garden State. As an aside, AAA members can enjoy the second lowest rates in Camden at Western United through their membership (rates of $1,517 on average). 

North Bergen, NJ

Measuring about 5,600 square miles in size, North Bergen is the base of one of the longest running shows on television, Law & Order: SVU, and has been featured in the film Cinderella Man. It also rounds off the top five most expensive cities in New Jersey with annual costs for car insurance of $2,673.

Drivers can still find low-cost car insurance in North Bergen, however. Auto insurance costs can be 42% lower at $1,550 at our three cheapest companies. Those three companies are: NJ Skylands, Farmers (through Mid-Century), and Norfolk & Dedham (through Fitchburg Mutual). AAA, through Western United Insurance, can provide its members with rates as low as $1,406 a year – we just haven’t included it in our top three since not all drivers may have this membership.

Hillsborough, NJ

The best city for auto insurance in New Jersey goes to Hillsborough, a city at the base of Sourland Mountain in Somerset County. Hillsborough had the cheapest auto insurance rates in New Jersey across the four profiles surveyed with a composite average of $1,538. That’s 31% less than the overall average for New Jersey, and almost half the cost of insuring a car in Newark, NJ. It’s possible to can even more at the three cheapest companies (NJ Skylands, Farmers/Mid-Century, and Plymouth Rock), which had a mean annual premium of $933. 

Bridgewater, NJ

About 11 miles to the north of Hillsborough is the 2nd best city for auto insurance on our list: Bridgewater. In this city, where the first official flag of the U.S. was raised in the original colonies, auto insurance rates of $1,563 are an affordable 30% lower than elsewhere in the Garden State. Mean premiums from the three lowest cost insurers (NJ Skylands, Farmers/Mid-Century, and Founders Insurance Company) were $969 a year. 

Toms River, NJ

Toms River grabs the spot of the third cheapest city for auto insurance rates despite being the 8th most populous spot in our study. With miles of shoreline and frontage on the Jersey Shore to drive, motorists will be glad to learn that rates here are an affordable $1,770, about 21% less than the state average. The cheapest three companies averaged quotes of $1,082 a year, which is about 39% less than the city average. Where at? NJ Skylands, Farmers/Mid-Century, and Plymouth Rock are great places to start with. 

Long Branch, NJ

Coming in at #4 cheapest city in the Garden State is the beach resort town of Long Branch, home to 31,000 residents. Annual costs to insure a car run at $1,788 for Long Branch drivers, which is 20% below the state average. Interested in the cheapest companies in Long Branch? They’re actually NJ Skylands, Farmers/Mid-Century, and GEICO.

Cherry Hill, NJ

With yearly costs of $1,812, the city of Cherry Hill in Camden County ranks as the fifth cheapest city in New Jersey. The city is located centrally, within half an hour from Philadelphia, Camden, and Trenton. While average annual premiums are already 19% below the state average, you can save even more by considering NJ Skylands, Farmers/Mid-Century, and USAA. At these three companies, the average premium is $1,074, which is 41% lower than the Cherry Hill average. 

City Cheapest Insurance Companies Annual Premium

Atlantic City

New Jersey Skylands $1,389
  Norfolk & Dedham / Fitchburg Mutual 1,511
  Farmers / Mid-Century Insurance 1,543
  Average Cost in Atlantic City 2,626

Bayonne

New Jersey Skylands 1,156
  Farmers / Mid-Century Insurance 1,208
  Plymouth Rock 1,336
  Average Cost in Bayonne 2,177

Bloomfield

New Jersey Skylands 1,265
  Farmers / Mid-Century Insurance 1,319
  GEICO 1,365
  Average Cost in Bloomfield 2,246

Bridgewater

New Jersey Skylands 880
  Farmers / Mid-Century Insurance 942
  Founders Insurance Co 1,087
  Average Cost in Bridgewater 1,563

Camden

New Jersey Skylands 1,406
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,767
  Average Cost in Camden 2,688

Cherry Hill

New Jersey Skylands 994
  Farmers / Mid-Century Insurance 1,055
  USAA* 1,174
  Average Cost in Cherry Hill 1,812

Clifton

New Jersey Skylands 1,244
  Farmers / Mid-Century Insurance 1,356
  Plymouth Rock 1,515
  Average Cost in Clifton 2,348

East Orange

New Jersey Skylands 1,434
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,651
  Average Cost in East Orange 2,681

Elizabeth

New Jersey Skylands 1,392
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,661
  Average Cost in Elizabeth 2,670

Gloucester

New Jersey Skylands 1,026
  Farmers / Mid-Century Insurance 1,110
  Norfolk & Dedham / Fitchburg Mutual 1,212
  Average Cost in Gloucester 1,911

Gloucester Township

New Jersey Skylands 1,063
  Farmers / Mid-Century Insurance 1,110
  USAA* 1,174
  Average Cost in Gloucester Township 1,839

Hamilton

New Jersey Skylands 1,132
  Teachers Auto Insurance Co of NJ* 1,171
  Farmers / Mid-Century Insurance 1,193
  Average Cost in Hamilton 1,927

Hillsborough

New Jersey Skylands 880
  Farmers / Mid-Century Insurance 913
  Plymouth Rock 1,006
  Average Cost in Hillsborough 1,538

Jersey City

New Jersey Skylands 1,305
  Farmers / Mid-Century Insurance 1,403
  Norfolk & Dedham / Fitchburg Mutual 1,487
  Average Cost in Jersey City 2,439

Lakewood

Farmers / Mid-Century Insurance 1,156
  New Jersey Skylands 1,191
  Norfolk & Dedham / Fitchburg Mutual 1,295
  Average Cost in Lakewood 2,039

Long Branch

New Jersey Skylands 1,027
  Farmers / Mid-Century Insurance 1,038
  GEICO 1,180
  Average Cost in Long Branch 1,788

Montclair

New Jersey Skylands 1,055
  Farmers / Mid-Century Insurance 1,122
  Plymouth Rock 1,179
  Average Cost in Montclair 1,947

Newark

New Jersey Skylands 1,428
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,651
  Average Cost in Newark 2,756

North Bergen

New Jersey Skylands 1,370
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,738
  Average Cost in North Bergen 2,673

Passaic

New Jersey Skylands 1,406
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,772
  Average Cost in Passaic 2,714

Paterson

New Jersey Skylands 1,424
  Farmers / Mid-Century Insurance 1,543
  Norfolk & Dedham / Fitchburg Mutual 1,645
  Average Cost in Paterson 2,704

Pennsauken

New Jersey Skylands 1,244
  Farmers / Mid-Century Insurance 1,301
  Norfolk & Dedham / Fitchburg Mutual 1,382
  Average Cost in Pennsauken 2,162

Perth Amboy

New Jersey Skylands 1,284
  Norfolk & Dedham / Fitchburg Mutual 1,414
  Teachers Auto Insurance Co of NJ* 1,465
  Average Cost in Perth Amboy 2,475

Plainfield

New Jersey Skylands 1,268
  Norfolk & Dedham / Fitchburg Mutual 1,324
  Farmers / Mid-Century Insurance 1,384
  Average Cost in Plainfield 2,298

Teaneck

New Jersey Skylands 1,166
  Farmers / Mid-Century Insurance 1,210
  Plymouth Rock 1,344
  Average Cost in Teaneck 2,060

Toms River

New Jersey Skylands 996
  Farmers / Mid-Century Insurance 1,042
  Plymouth Rock 1,210
  Average Cost in Toms River 1,770

Trenton

Norfolk & Dedham / Fitchburg Mutual 1,351
  Farmers / Mid-Century Insurance 1,353
  New Jersey Skylands 1,369
  Average Cost in Trenton 2,397

Union City

New Jersey Skylands 1,354
  Farmers / Mid-Century Insurance 1,543
  Teachers Auto Insurance Co of NJ* 1,686
  Average Cost in Union City 2,654

Willingboro

New Jersey Skylands 1,156
  Farmers / Mid-Century Insurance 1,190
  USAA* 1,278
  Average Cost in Willingboro 2,041

Woodbridge

New Jersey Skylands 1,093
  Farmers / Mid-Century Insurance 1,209
  Plymouth Rock 1,294
  Average Cost in Woodbridge 1,999

* Company has eligibility requirements

Find The Cheapest Auto Insurance In Your Area
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Best Auto Insurance Companies in New Jersey

To find the best auto insurance companies in New Jersey, we took a look at which companies received the least complaints compared to the rest of the auto insurance companies, and then combine it with our auto insurance rate data above. Based on their low complaint index and costs, New Jersey Skylands, Farmers, and Plymouth Rock are three of the best companies in New Jersey. 

Below are the top companies in the Garden State ranked by their complaint index, which measures how many justified complaints a company gets compared to the average insurer. An index of 1 is average, while index numbers greater than 1 are worse.

Rank Insurer # of Vehicles Complaint Index
1 NJM Group 806,226 0
2 Palisades Group 153,709 0
3 Encompass 44,705 0
4 IDS Property Casualty Ins Co 31,265 0
5 NJ Skylands 30,980 0
6 Farmers Group 25,288 0
7 Founders Insurance Company 21,096 0
8 Hartford Group 19,605 0
9 Chubb Insurance Company of NJ 19,332 0
10 American National Financial Group 18,759 0
11 High Point Group 286,399 0.288
12 USAA Group 227,929 0.544
13 Esurance 64,608 0.639
14 Travelers Group 180,780 0.685
15 Progressive Group 426,714 0.871
16 Metropolitan Group 87,604 0.943
17 State Farm 500,451 0.99
18 Liberty Mutual 389,148 1.061
19 Allstate Group 627,015 1.317
20 GEICO Group 880,643 1.36

Cost of Car Insurance in New Jersey: by City

The average cost of insurance in New Jersey was $2,228 across the fifty underwriters surveyed in the largest cities in the state. This figure represents the average of rates for single 23 year old men, single 35 year old men, married middle-aged couple, and a married 65 year old couple. Generally speaking, the larger and more densely populated the city, such as Newark, the higher the average annual costs to insure a car. 

We rank the average cost of car insurance in New Jersey by city, from Hillsborough as the cheapest to Newark as the most expensive.

Auto Insurance Requirements in New Jersey

Auto insurance is required in New Jersey. New Jersey's standard policy requires liability insurance for bodily injury, property damage, and personal injury protection. Driving in New Jersey requires a motorist to be insured for $15,000 in bodily injury liability per person (up to $30,000 per accident), $5,000 for property damage, and $15,000 for personal injury protection.

Liability Minimum Liability Amounts High
Bodily Injury Liability $15,000 per person / $30,000 per accident $250,000 per person / $500,000 per accident
Property Damage Liability $5,000 per accident $100,000 per accident
Personal Injury Protection $15,000 per person or accident $250,000 or more

Limited vs. Unlimited Right to Sue for Non-Economic Losses

There’s a unique feature to New Jersey’s car insurance regulations that gives you the choice of a limited or unlimited right to sue for non-economic losses. Picking a limited right to sue usually means paying lower premiums – an unlimited right to sue can cost about 30% more than the limited option. Here’s what the average premiums look like under both options:

This graph illustrates the difference between a policy that has a limited right to sue for non-economic losses and an unlimited right.

What are non-economic losses?

Non-economic losses are typically referred to as “pain and suffering” losses that are more subjective in nature (e.g., loss of companionship / life's pleasure). This is different than suing for financial damages such as income loss from missing work, or medical payments to cover your hospital bills. 

What’s the difference between limited and unlimited right to sue?

A limited right to sue means that you agree beforehand NOT to sue for pain and suffering. You can only sue for pain and suffering if your injury results in one of these examples: a body part loss, major disfigurement or scarring, a displaced fracture, a loss of a fetus, permanent injury to a body part or organ such that it can’t heal normally, and death. 

You can still sue for economic losses, but you have to pick between a limited right to sue or an unlimited right to sue for non-economic losses.

Profile Descriptions & Study Assumptions

Sample quotes are based on New Jersey's Department of Banking and Insurance's Auto Insurance Premium Comparison. Included in the study are cities with population sizes greater than 30,000. Please note that auto insurance rates presented in the study are for informational and illustrative purposes only. Your actual rates will depend on various factors such as your own driving history, the amount of liability protection you need, where you live and garage your car, the type of car you drive, the annual mileage and usage of the car - just to give a few examples. Here are the liability limits and characteristics of the profiles (note: they've all been accident and traffic violation free in the past three years):

  • Single Male, age 23: drives a 2006 Buick LaCrosse CX, has Liability and Uninsured Motorist coverage of 15/30/5, PIP of $250k/$250, and Comprehensive and Collision deductibles of $750
  • Single Male, age 35: drives a 2012 Ford Taurus SE, has Liability and Uninsured Motorist coverage of 100/300/25, PIP of $250k/$250, and Comprehensive and Collision deductibles of $750
  • Married Couple, ages 30 - 49: drive a 2012 Ford Taurus SE and 2010 Chrysler Town & Country LX, have Liability and Uninsured Motorist coverage of 100/300/25, PIP of $250k/$250, and Comprehensive and Collision deductibles of $750
  • Married Couple, ages 65: drive a 2012 Ford Taurus SE, have Liability and Uninsured Motorist coverage of 100/300/25, PIP of $250k/$250, and Comprehensive and Collision deductibles of $750

*Limit amounts are presented in the format of "Bodily Injury Protection per Person / Bodily Injury Coverage per Accident / and Property Damage", and apply to both regular liability and Uninusred Motorist Coverage. Personal Injury Protection is presented in the format of "Limit in thousands / Deductible". Deductible amounts apply to both individual comprehensive (OTC) and collision coverage

 

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