Best Car Insurance Rates in New Jersey

We conducted a study of auto insurance quotes in New Jersey across nine companies to find the cheapest car insurers. Our research found that GEICO provided the cheapest car insurance at $1,058 per year—which is 57% less than the state average. Conversely, the most expensive rates in New Jersey were from Hanover, which charged an average of $7,006 per year. Because of this wide range, we recommend you compare multiple companies by entering your ZIP code into our quote tool above.

New Jersey Auto Insurance Coverage Requirements

Auto insurance is required in New Jersey; however, drivers will have the choice of either purchasing a basic or standard policy. The minimum amount of insurance that New Jersey drivers need depends on which coverage option they choose. A basic policy will be cheaper than a standard policy. However, it will also include less coverage. Below, we break down the minimum requirements for each policy type.

Liability coverage

Basic policyStandard policy
Bodily injury liability$15,000 per person / $30,000 per accident$15,000 per person / $30,000 per accident
Property damage liability$5,000 per accident$5,000 per accident
Personal injury protection$15,000 per person / $30,000 per accident$15,000 per person / $30,000 per accident
Peronsal Injury Protection$15,000$15,0000

Limited vs Unlimited Right to Sue for Noneconomic 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 noneconomic 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 noneconomic losses and an unlimited right

What Are Noneconomic Losses?

Non-economic losses are typically referred to as “pain and suffering” losses that are more subjective in nature (e.g., loss of companionship / pleasure in life). This is different than suing for quantifiable 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 noneconomic losses.

Cheapest Auto Insurance Companies in New Jersey

We compared quotes from nine companies in the Garden State to identify the cheapest auto insurance companies in New Jersey. Our survey included both local and national insurers. The five cheapest companies for our driver profile are GEICO, Progressive, NJM, Allstate and Mercury. On average, the annual premium among these companies was $1,563, which is 36% less than the New Jersey mean.

This Graph Shows The Five Cheapest Auto Insurance Companies in New Jersey

Find the Cheapest Auto Insurance Quotes in Your Area

Currently Insured?

We've ranked the nine auto insurance providers that we included in our research from the least to the most expensive based on our benchmark driver. Your quotes will differ depending on where you live and your driving history, but 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 local carriers to get the best rates.

RankAuto insurance companyAverage annual rates
1GEICO$1,058
2Progressive$1,419
3NJM$1,541
4Allstate$1,624
5Mercury$2,172
6State Farm$2,184
7MetLife$2,462
8Encompass$2,548
9Hanover$7,006
New Jersey Average$2,446

Cheapest Car Insurance Rates: by City

Auto insurance costs vary based on where you live, drive and park your car—so naturally, the city you live in has a huge effect on your insurance rates. Even in locations such as Newark, Irvington or Passaic—which ranked as the three costliest cities overall for car insurance—we found companies with rates that were significantly cheaper than their citywide mean.

City

CompanyAnnual rate
AbseconGEICO$1,015
Progressive$1,376
NJM$1,546
Asbury ParkGEICO$925
Progressive$1,336
Allstate$1,356
Atlantic CityGEICO$1,248
Progressive$1,589
NJM$1,982
Basking RidgeGEICO$908
NJM$1,255
Allstate$1,284
BayonneGEICO$1,081
Progressive$1,494
Allstate$1,728
BellevilleGEICO$1,217
Progressive$1,531
Allstate$1,836
BergenfieldGEICO$980
Progressive$1,427
NJM$1,621
BlackwoodGEICO$1,075
NJM$1,357
Progressive$1,361
BloomfieldGEICO$1,023
Progressive$1,531
NJM$1,734
BrickGEICO$969
Progressive$1,316
NJM$1,339
BridgetonGEICO$949
Progressive$1,409
NJM$1,491
BridgewaterGEICO$908
NJM$1,255
Allstate$1,344
BurlingtonGEICO$885
Allstate$1,248
NJM$1,278
CaldwellGEICO$957
NJM$1,309
Progressive$1,347
CamdenGEICO$1,320
Progressive$1,660
NJM$2,077
Cherry HillGEICO$964
Progressive$1,323
NJM$1,355
ClementonGEICO$1,075
Progressive$1,389
NJM$1,563
CliftonGEICO$1,171
Progressive$1,478
NJM$1,832
East BrunswickGEICO$998
NJM$1,307
Progressive$1,367
East OrangeGEICO$1,377
Progressive$1,662
Allstate$2,028
EdisonGEICO$1,042
Progressive$1,385
NJM$1,387
Egg Harbor TownshipGEICO$1,015
Progressive$1,376
Allstate$1,704
ElizabethGEICO$1,261
Progressive$1,615
NJM$1,925
EnglewoodGEICO$1,118
Progressive$1,502
NJM$1,789
EnglishtownGEICO$998
NJM$1,355
Progressive$1,367
Fair LawnGEICO$1,118
Progressive$1,414
Allstate$1,524
FlemingtonGEICO$909
NJM$1,251
Allstate$1,344
Fort LeeGEICO$1,116
Progressive$1,502
NJM$1,891
FreeholdGEICO$998
NJM$1,340
Progressive$1,367
GarfieldGEICO$1,171
Progressive$1,478
NJM$1,907
HackensackGEICO$1,121
Progressive$1,478
NJM$1,777
HackettstownGEICO$915
Allstate$1,200
NJM$1,213
HightstownGEICO$946
NJM$1,287
Progressive$1,319
HillsboroughGEICO$909
NJM$1,275
Allstate$1,344
HobokenGEICO$1,108
Progressive$1,519
NJM$1,681
HowellGEICO$998
Progressive$1,367
NJM$1,367
IrvingtonGEICO$1,413
Progressive$1,664
NJM$1,970
JacksonGEICO$998
Progressive$1,367
Allstate$1,416
Jersey CityGEICO$1,108
Progressive$1,519
NJM$1,681
KearnyGEICO$1,217
Progressive$1,531
Allstate$1,704
LakewoodGEICO$1,134
Progressive$1,367
Allstate$1,416
Lawrence TownshipGEICO$946
NJM$1,300
Progressive$1,336
LindenGEICO$1,232
Progressive$1,507
NJM$1,882
Little FallsGEICO$1,171
Progressive$1,388
NJM$1,548
LivingstonGEICO$1,052
Progressive$1,388
NJM$1,437
LodiGEICO$1,171
Progressive$1,478
NJM$1,794
Long BranchGEICO$925
Allstate$1,308
Progressive$1,336
MahwahGEICO$957
NJM$1,220
Progressive$1,323
Manchester TownshipGEICO$931
Allstate$1,248
Progressive$1,316
MarltonGEICO$918
Progressive$1,323
NJM$1,342
MatawanGEICO$998
NJM$1,353
Progressive$1,367
Mays LandingGEICO$1,015
Progressive$1,376
NJM$1,531
MedfordGEICO$918
Progressive$1,319
NJM$1,319
MiddletownGEICO$925
NJM$1,207
Allstate$1,308
MillvilleGEICO$949
Progressive$1,409
NJM$1,491
Monroe TownshipGEICO$998
NJM$1,357
Progressive$1,367
MontclairGEICO$1,023
Progressive$1,388
NJM$1,498
MorristownGEICO$935
NJM$1,255
Progressive$1,307
Mount HollyGEICO$918
Allstate$1,248
NJM$1,272
Mount LaurelGEICO$918
NJM$1,327
Progressive$1,333
NeptuneGEICO$998
Allstate$1,308
Progressive$1,336
New BrunswickGEICO$1,042
Progressive$1,385
NJM$1,573
NewarkGEICO$1,413
Progressive$1,664
NJM$2,038
North BergenGEICO$1,256
Progressive$1,599
NJM$1,996
North BrunswickGEICO$1,042
Progressive$1,385
NJM$1,573
NutleyGEICO$1,023
Progressive$1,406
NJM$1,562
Old BridgeGEICO$1,048
Progressive$1,391
NJM$1,460
OrangeGEICO$1,377
Progressive$1,662
Allstate$2,028
ParamusGEICO$1,118
Progressive$1,367
NJM$1,416
ParsippanyGEICO$957
NJM$1,205
Allstate$1,260
PassaicGEICO$1,340
Progressive$1,641
NJM$2,065
PatersonGEICO$1,348
Progressive$1,647
Allstate$2,052
Perth AmboyGEICO$1,106
Progressive$1,580
Allstate$1,872
PhillipsburgGEICO$909
Allstate$1,200
NJM$1,209
PiscatawayGEICO$1,042
Progressive$1,385
NJM$1,387
PlainfieldGEICO$1,136
Progressive$1,551
NJM$1,805
Point Pleasant BeachGEICO$906
NJM$1,131
Allstate$1,236
PrincetonGEICO$946
Progressive$1,336
Allstate$1,344
RahwayGEICO$1,232
Progressive$1,507
Allstate$1,596
RandolphGEICO$935
NJM$1,150
Allstate$1,200
RiversideGEICO$885
Allstate$1,248
Progressive$1,323
SewellGEICO$995
NJM$1,330
Progressive$1,361
SicklervilleGEICO$1,075
Progressive$1,389
NJM$1,563
SomersetGEICO$1,042
NJM$1,310
Progressive$1,385
TeaneckGEICO$1,118
Progressive$1,427
NJM$1,603
Toms RiverGEICO$969
Progressive$1,316
NJM$1,337
TrentonGEICO$1,136
Allstate$1,344
Progressive$1,358
UnionGEICO$1,226
Progressive$1,521
NJM$1,825
Union CityGEICO$1,250
Progressive$1,553
NJM$2,017
VincentownGEICO$918
Allstate$1,248
NJM$1,295
VinelandGEICO$949
Progressive$1,376
Allstate$1,548
VoorheesGEICO$1,075
Progressive$1,323
NJM$1,355
WayneGEICO$1,171
NJM$1,373
Progressive$1,388
West DeptfordGEICO$939
NJM$1,295
Progressive$1,361
West New YorkGEICO$1,250
Progressive$1,553
NJM$2,017
West OrangeGEICO$1,094
Progressive$1,525
NJM$1,773
WestfieldGEICO$999
NJM$1,310
Progressive$1,366
WestwoodGEICO$988
NJM$1,282
Progressive$1,406
WilliamstownGEICO$995
Progressive$1,389
NJM$1,546
WillingboroGEICO$977
Progressive$1,372
Allstate$1,512

Car Insurance in Newark, NJ

Quotes for auto insurance in Newark ranged from $1,413 to $9,660, although the citywide average was $3,326. Cheap car insurance in the "Brick City" can be found, despite its status as the most expensive city in New Jersey. Newark residents can expect the cheapest rates with GEICO, Progressive and NJM. Our research found the average rate across these three companies was $1,705 per year, which is 49% less than the city average.

Chart of the 5 Cheapest Car Insurance Companies in Newark

Car Insurance Jersey City, NJ

Jersey City's auto insurance costs are tied for the 17th most expensive in the state. Annual premiums in "Chilltown" are 22% more expensive than the state average. Car insurance quotes in Jersey City can differ by almost 814%, depending on which insurer you choose. Given this large range, it is imperative that Jersey City residents shop around to get the cheapest rates. However, we recommend that you start with GEICO, Progressive and NJM, which offered the lowest rates in the city according to our research. Among these three companies, the average annual rate was $1,436, or about 50% less than the overall city mean of $2,988.

Chart of the Five Cheapest Car Insurance Companies in Jersey City

Car Insurance Paterson, NJ

Paterson may rank as the sixth most expensive city on our list; however, if you're careful when shopping for insurance, you can still get low rates. The lowest rates in Paterson can be found with GEICO, Progressive and Allstate. The average quote from these insurers is $1,682.

Chart of the Five Cheapest Car Insurance Companies in Paterson

Car Insurance Elizabeth, NJ

Known as "Betsytown" or "E-town," Elizabeth once served as the first capital of New Jersey. Car insurance rates in E-town are about 32% higher than the typical Garden State city, ranking as our seventh most expensive city in NJ. To find low-cost auto insurance in Elizabeth, drivers should get quotes from GEICO, Progressive and NJM. The average annual premium across these three insurance companies is $1,600, or 51% lower than the Elizabeth average.

Chart of the Five Cheapest Car Insurance Companies in Elizabeth

Car Insurance Trenton, NJ

Trenton—New Jersey's capital city—is located along the banks of the Delaware River near the midway point between New York City and Philadelphia. Car insurance costs in Trenton were almost exactly aligned with the statewide average, at $2,425 per year. Similar to the state trend, the cheapest insurer in Trenton was GEICO, which provided us with a quote of $1,136 per year. Our research found that the most expensive insurance company in the city was Hanover, with an annual cost of $7,656—over six times that of GEICO's.

Chart of the Five Cheapest Car Insurance Companies in Trenton

Car Insurance Clifton, NJ

Located just 10 miles west of New York City, the city of Clifton is one of the more expensive cities in the state for car insurance. On average, we found that car insurance was $460 more per year than the state average—equating to an extra $38 per month. To get the lowest possible rates, we suggest you look to GEICO, Progressive and NJM. These three companies provided us with the lowest quotes in the city, with an average rate of $1,494 per year.

Chart of the Five Cheapest Car Insurance Companies in Clifton

Car Insurance Camden, NJ

Camden's population consists of around 74,000 residents, and it's the former home of the American poet Walt Whitman. Car insurance in Camden is 32% more expensive than the New Jersey average, with a mean cost of $3,221. According to our analysis, the cheapest rates is this city can be found with GEICO, which provided us with an annual quote of $1,320.

Chart of the Five Cheapest Car Insurance Companies in Camden

Car Insurance Passaic, NJ

The birthplace of modern television, Zoe Saldana and Paul Rudd, this city also has the second most expensive car insurance rates in New Jersey. However, affordable auto insurance can still be found in Passaic. Mean annual premiums in this city cost, on average, $3,275. However, rates among our three cheapest insurers were $1,682 (a difference of $1,593). These companies were GEICO, Progressive and NJM.

Chart of the Five Cheapest Car Insurance Companies in Passaic

Car Insurance in Union City, NJ

Union City is part of the New York City metro area, and it's known as "Havana on the Hudson" because of its large population of Cuban residents. Our analysis showed that car insurance in this city is 31% more expensive than the average for the state of New Jersey. In fact, Hanover quoted an annual rate of $9,516—a staggering 7.6 times greater than the cheapest insurer: GEICO.

Chart of the Five Cheapest Car Insurance Companies in Union City

Car Insurance in East Orange, NJ

East Orange in Essex County is one of the most expensive cities in the state for car insurance. Our analysis found that East Orange's annual car insurance rates were $3,269 per year on average, 34% greater than the NJ average. Our study found that the nearby city of West Orange had car insurance rates that were 14% cheaper than East Orange.

Chart of the Five Cheapest Car Insurance Companies in East Orange

5 Cheapest Cities in New Jersey For Car Insurance

Rates in the five cheapest cities in NJ for car insurance were 26% cheaper than the state average. Four of these cities—Basking Ridge, Hillsborough, Morristown and Randolph—were located in counties Somerset and Morris.

Chart of the Five Cheapest Cities in New Jersey for Car Insurance

Point Pleasant Beach, NJ

The small borough of Point Pleasant Beach in Ocean County, New Jersey, has the cheapest annual car insurance rates in the state—at 27% below the statewide average. According to the data we've compiled, some Point Pleasant Beach locals can pay less than $1,000 per year if they insure their cars through GEICO.

Basking Ridge, NJ

Basking Ridge is the home to the Verizon Wireless headquarters and the second lowest car insurance rates in the state. Residents of Basking Ridge can expect to pay $638 less than the statewide average.

Randolph, NJ

The city of Randolph was one of the early mining towns in New Jersey, and it has been known as a vacation destination for Frank Sinatra. Randolph residents can get the best rates with GEICO, NJM and Allstate. These three companies had an average annual premium of $1,095.

Hillsborough, NJ

At the base of Sourland Mountain in Somerset County is the town of Hillsborough, which had the fourth cheapest auto insurance rates in New Jersey across quotes we gathered. The average annual cost of car insurance in Hillsborough was $1,838. That's 25% less than the overall average for New Jersey, and almost half the cost of insuring a car in Newark.

Morristown, NJ

Morristown has some of the cheapest car insurance rates in the state of New Jersey. According to our research, car insurance costs in Morristown were around $600 cheaper than the rest of the state. However, residents should still shop around, as the difference between the cheapest and most expensive insurer in the city is $3,649 per year.

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 other auto insurers. We also considered which companies had the lowest rates in our evaluation. Because of their low complaint index and costs, GEICO and NJM are two of the best insurance 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 in the state. An index of 1.0 is average, while index numbers greater than 1.0 indicate a greater number of complaints. An index less than 1.0 implies fewer than average complaints.

RankName of insurerNumber of vehicles insuredValid complaint index
1Mercury Indemnity Co. of America15,1570.00
2NJM Group831,0260.03
3GEICO Group1,180,4510.81
4Allstate Group547,5920.87
5Encompass Group26,0941.02
6Progressive Group591,5201.03
7State Farm Group484,0871.04
8Hanover Insurance Co.23,6181.12
9Metropolitan Group (MetLife)95,4942.78

Cost of Car Insurance in New Jersey by City

The average cost of insurance in New Jersey was $2,446 across the nine insurance companies we surveyed. This figure represents the average rate for our sample driver profile. Generally speaking, cities that are more densely populated or near large urban centers have higher average insurance costs.

RankCityAnnual rate
59Absecon$2,452
39Asbury Park$2,166
89Atlantic City$3,093
2Basking Ridge$1,808
72Bayonne$2,775
85Belleville$2,997
69Bergenfield$2,570
36Blackwood$2,152
71Bloomfield$2,750
29Brick$2,124
50Bridgeton$2,365
6Bridgewater$1,848
14Burlington$2,027
21Caldwell$2,076
92Camden$3,221
25Cherry Hill$2,117
64Clementon$2,479
80Clifton$2,906
43East Brunswick$2,224
96East Orange$3,269
46Edison$2,270
58Egg Harbor Township$2,445
94Elizabeth$3,237
75Englewood$2,838
34Englishtown$2,149
63Fair Lawn$2,479
7Flemington$1,863
86Fort Lee$3,000
30Freehold$2,125
87Garfield$3,025
74Hackensack$2,818
11Hackettstown$1,924
16Hightstown$2,041
4Hillsborough$1,838
83Hoboken$2,988
40Howell$2,168
99Irvington$3,318
49Jackson$2,357
83Jersey City$2,988
81Kearny$2,977
70Lakewood$2,573
20Lawrence Township$2,062
82Linden$2,985
61Little Falls$2,455
48Livingston$2,279
76Lodi$2,846
32Long Branch$2,137
12Mahwah$1,936
26Manchester Township$2,121
31Marlton$2,129
33Matawan$2,146
57Mays Landing$2,428
22Medford$2,092
9Middletown$1,914
50Millville$2,365
37Monroe Township$2,152
53Montclair$2,376
5Morristown$1,845
13Mount Holly$2,018
23Mount Laurel$2,104
35Neptune$2,151
54New Brunswick$2,386
100Newark$3,326
93North Bergen$3,231
54North Brunswick$2,386
62Nutley$2,477
52Old Bridge$2,372
96Orange$3,269
44Paramus$2,245
8Parsippany$1,911
98Passaic$3,275
95Paterson$3,268
88Perth Amboy$3,064
10Phillipsburg$1,917
47Piscataway$2,276
77Plainfield$2,863
1Point Pleasant Beach$1,793
17Princeton$2,051
78Rahway$2,881
3Randolph$1,824
28Riverside$2,122
24Sewell$2,110
64Sicklerville$2,479
45Somerset$2,267
66Teaneck$2,542
27Toms River$2,121
56Trenton$2,425
79Union$2,895
90Union City$3,200
18Vincentown$2,054
68Vineland$2,560
38Voorhees$2,161
41Wayne$2,177
19West Deptford$2,054
90West New York$3,200
73West Orange$2,812
42Westfield$2,199
15Westwood$2,034
60Williamstown$2,453
67Willingboro$2,553

Methodology

The auto insurance averages we list in this study are based on quotes that we have gathered. 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 keep your car, the type of car you drive, the annual mileage, and the usage of the car.

Comments and Questions