Who Has the Cheapest Car Insurance Quotes in New Jersey?

Who Has the Cheapest Car Insurance Quotes in New Jersey?

Find Cheap Auto Insurance Quotes in New Jersey

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The average cost of a New Jersey minimum coverage car insurance policy is $1,198 per year, or about $100 per month. As prices will differ greatly by company depending on the driver's personal details, such as their prior accidents, citations, credit history, marital status and age, we've analyzed which insurers are the most affordable in different situations.


Cheapest for minimum liability

GEICO
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Cheapest for full coverage

GEICO logo
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Cheapest for drivers with a traffic incident

NJM logo
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Cheapest for young drivers

GEICO logo
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Read on for our analysis of the cheapest insurers in the state, or enter your ZIP code above to compare rates. And if you're not shopping based on cost, we also rated the best companies in the state based on customer service quality.

Cheapest car insurance companies in New Jersey

The cheapest minimum coverage car insurance quotes in New Jersey are offered by:

  • GEICO
  • Travelers
  • Progressive

These three auto insurers have average car insurance rates of $735 per year, or about $61 per month — which is 39% cheaper than the New Jersey average.

The auto insurance companies with the most expensive quotes in New Jersey were Palisades and Allstate. In New Jersey, these companies had an average annual quote of $2,226, or nearly double the state average.

A bar graph showing the cheapest car insurance in New Jersey
A bar graph showing the cheapest car insurance in New Jersey

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RankInsurerCar insurance quote
1GEICO$596
2Travelers$790
3Progressive$820
4State Farm$950
5NJM$976
6Palisades$1,465
7Allstate$2,788

Learn how we conducted this analysis in our methodology

Minimum coverage auto insurance policies meet New Jersey's minimum state legal requirements. Unlike full coverage policies, minimum coverage doesn't include comprehensive and collision insurance.

Collision and comprehensive insurance protects your car from damage as a result of a collision, theft, vandalism or natural disaster — regardless of who's at fault.

Although minimum coverage costs less, you might not have enough protection after an accident because you have less liability coverage and you forgo comprehensive and collision coverage.

Cheapest full coverage auto insurance in New Jersey

The average difference in cost between full and minimum coverage car insurance in New Jersey is $1,812 per year, or $176 per month.

The cheapest full coverage auto insurance companies in New Jersey were GEICO, NJM and State Farm. These insurers offered quotes of $1,734 on average, or 42% less than the state average of $3,010.

RankInsurerCar insurance quote
1GEICO$1,349
2NJM$1,898
3State Farm$1,955
4Progressive$2,267
5Palisades$2,970
6New Jersey average$3,010
7Travelers$4,479
8Allstate$6,151

Comprehensive and collision coverages are included in full coverage policies and reimburse damage to your car following most accidents, thefts, natural disasters and vandalism.

Cheap car insurance for drivers with prior incidents

In most cases, the average cost of car insurance in New Jersey increases for drivers who have one prior incident on their records. Drivers who have been in an at-fault accident or who have received a citation for speeding or a DUI will likely see higher rates than those who haven't.

We found the cheapest car insurance for drivers who:

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Cheapest full coverage auto insurance in New Jersey with a prior accident

Having just one accident on your driving record can increase your auto insurance quotes substantially.

New Jersey drivers with an accident on their driving record may be able to find cheap full coverage car insurance quotes at NJM , GEICO and State Farm. Notably, NJM was the only insurer not to raise its premiums after one accident.

RankInsurerQuote before accidentQuote after accidentDifference
1NJM$1,898$1,898$0
2GEICO$1,349$1,906$557
3State Farm$$1,955$3,216$1,261
4Palisades$2,970$3,248$278
5Progressive$2,267$3,486$1,219
6New Jersey average$3,0104,100$1,090
7Travelers$4,479$6,570$2,091
8Allstate$6,151$8,379$2,228
Quotes are for an at-fault accident where the injured driver makes a liability claim.

Cheapest car insurance for people with a speeding ticket

The average cost of car insurance in New Jersey can increase by $266 to an annual rate of $3,276 after a speeding ticket.

New Jersey drivers who have one speeding ticket on their records may be able to find the cheapest full coverage car insurance quotes with GEICO, State Farm and NJM. While NJM didn't increase its rates after one at-fault accident, it's important to note that it did raise its premiums after a speeding ticket.

RankInsurerQuote after speeding ticket
1GEICO$1,349
2State Farm$1,955
3NJM$2,335
4Progressive$2,876
5Palisades$2,970
6New Jersey average$3,276
7Travelers$5,012
8Allstate$6,434

Cheapest car insurance for drivers with a DUI

After a DUI, the cost of car insurance in New Jersey can sharply increase by nearly $2,000 per year.

Drivers who have been cited for a DUI might still find cheap car insurance in New Jersey from NJM, Progressive and GEICO. While State Farm is often one of the cheapest options for most drivers, the insurer's rates actually skyrocket to over $7,600 per year after a DUI.

RankInsurerQuote after DUI
1NJM$2,335
2Progressive$2,607
3GEICO$2,762
4Palisades$4,011
5New Jersey average$4,988
6Travelers$6,057
7State Farm$7,649
8Allstate$9,498

Cheapest car insurance for drivers with bad credit

Having poor credit can heavily increase the amount you pay for car insurance in New Jersey, where rates rose by $555 per year on average.

The cost of car insurance in New Jersey can increase by a significant amount for drivers that have bad credit. GEICO, NJM and Progressive offer the best rates for drivers with poor credit. Still, the average surcharge among these three insurers is $711 per year.

RankInsurerGood creditPoor creditChange
1GEICO$2,182$1,349$833
2NJM$2,608$1,898$711
3Progressive$2,855$2,267$589
4State Farm$3,100$1,955$1,1466
5New Jersey average$3,565$3,010$555
6Palisades$3,989$2,970$1,018
7Travelers$4,513$4,479$33
8Allstate$5,711$6,151-$440

Allstate is the only company we found that lowers its rates to attract drivers with a poor credit history. However, since the cost of Allstate is much higher than its competitors already, drivers with bad credit can still find much cheaper car insurance elsewhere.

Cheapest car insurance for married drivers

Married drivers are likely to find rates that are slightly cheaper than those offered to single drivers, with average rates in New Jersey dropping from $3,010 to $2,915.

Most insurers offer a discount to married drivers. We found that married drivers in New Jersey could see the best reductions from Progressive, Allstate and Palisades — though Allstate's rates remain more expensive than the average cost in New Jersey. Two companies charged slightly higher rates to married drivers than singles: GEICO and Travelers.

RankInsurerQuote for a married driverQuote for an unmarried driverDifference
1GEICO$1,474$1,349-$124
2NJM$1,792$1,898$106
3Progressive$1,992$2,267$274
4State Farm$1,955$1,955$0
5Palisades$2,793$2,970$177
6New Jersey average$2,915$3,010$95
7Travelers$4,504$4,479-$24
8Allstate$5,895$6,151$256

Cheapest car insurance for young drivers

No matter the coverage level, in New Jersey car insurance is more expensive for young drivers than for older policyholders.

For minimum coverage, the average cost of car insurance for 18-year-old drivers in New Jersey is $3,304, which is $2,106 more per year on average than it is for older drivers with the same insurer. For full coverage, the average cost is $8,589 per year for young drivers — $5,579 more than it is for older drivers.

Young drivers could get the cheapest minimum coverage with GEICO, Travelers or NJM. GEICO also offers the best rates for full coverage car insurance for young drivers in New Jersey. Following GEICO are NJM and State Farm, but the average cost of these insurers is more than $4,300 per year.

RankInsurerMinimum coverageFull coverageDifference
1GEICO$1,173$2,972$1,799
2Travelers$1,619$9,863$8,244
3NJM$1,902$3,807$1,905
4State Farm$3,146$6,360$3,214
5Progressive$3,999$9,291$5,292
6Palisades$5,619$12,819$7,200
7Allstate$5,670$15,014$9,344
Rates are for an 18-year-old driver, and are ordered by minimum coverage.

If their situation allows it, young people should try to stay on their parents' policy. The cost of adding an 18-year-old driver to an existing policy is much more affordable than the cost of a standalone policy.

Find Cheap Auto Insurance Quotes in New Jersey

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Cheapest car insurance for young drivers with an accident

One accident can cause the cost of car insurance for young drivers in New Jersey to increase substantially, by $2,524 on average.

The cheapest car insurance for young drivers with one prior accident comes from GEICO and NJM, which are the only insurers that quoted rates of less than $10,000 per year. NJM increased its rates the least after an insured driver was in an at-fault accident, by just over $500 per year.

RankInsurerQuote after accidentBefore accidentIncrease
1GEICO$3,424$2,972$451
2NJM$3,807$3,807$0
3State Farm$10,635$6,360$4,275
4Progressive$10,761$9,291$1,470
5New Jersey average$11,113$8,589$2,524
6Travelers$13,680$9,863$3,817
7Allstate$16,655$15,014$1,641
8Palisades$18,828$12,819$6,009

Cheapest car insurance for young drivers with a speeding ticket

The average cost of car insurance for young drivers with a speeding ticket is $9,164 per year, an increase of $48 per month compared to the cost for most young people.

GEICO, NJM and State Farm offer the best rates for drivers with one speeding ticket on their records. These insurers are also the only ones that charge less than the average rate after a ticket. Typically, a car insurance premium increases by $575 after a ticket, but neither GEICO nor State Farm raise rates after a ticket.

RankInsurerQuote after a ticketBefore ticketDifference
1GEICO$2,972$2,972$0
2NJM$4,759$3,807$952
3State Farm$6,360$6,360$0
4New Jersey average$9,164$8,589$575
5Progressive$9,978$9,291$688
6Travelers$10,606$9,863$743
7Palisades$12,819$12,819$0
8Allstate$16,655$15,014$1,641

Best car insurance companies in New Jersey

Customer service and reviews are an important part of evaluating the quality of a car insurance policy. The best auto insurance companies in New Jersey from our study are NJM, Travelers and GEICO, though these weren't necessarily the cheapest providers in the state.

InsurerComplaint Index
Palisades0.07
NJM0.10
Allstate0.31
Travelers0.31
State Farm0.35
Progressive0.47
GEICO0.74

The list above includes the top companies in the Garden State ranked by their Complaint Index, which was sourced from the National Association of Insurance Commissioners (NAIC). The Complaint Index measures how many complaints a company gets compared to the average insurer in the state. An index of 1.0 is average, while one that's less than 1.0 signifies fewer than the average number of complaints.

Jump ahead to learn about:

New Jersey auto insurance coverage requirements

Auto insurance is required in New Jersey. Below, we break down the minimum requirements for each policy type, as well as other key information about New Jersey car insurance regulations:

Required coverages and limits in New Jersey

Of note, New Jersey drivers have the option of choosing between two types of policies: standard or basic. Uninsured/underinsured motorist coverage is available under a standard policy but not a basic policy. Additionally, some basic policies do not include comprehensive and collision insurance, though availability differs by insurers.

Liability coverageMinimum requirements
Bodily injury liability$15,000 per person/$30,000 per accident
Property damage liability$5,000 per accident
Personal injury protection (PIP)$15,000 per person/$30,000 per accident

The minimum coverage limits in the table above apply to both standard and basic auto insurance policies.

With minimum coverage, drivers can reduce the cost of their policies. However, full coverage auto insurance may be more appropriate for some drivers.

We recommend New Jersey drivers consider higher liability limits as well as comprehensive and collision coverage. Minimum coverage plans may not be enough to fully cover the cost of damage in an expensive accident.

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.

What are noneconomic losses?

Noneconomic 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 from 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 you agree beforehand not to sue for pain and suffering. You can only sue for pain and suffering if your injury results in 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.

Cheap car insurance in New Jersey, by city

Your best car insurance quotes in New Jersey differ depending on where you live. Typically, however, the cheapest auto insurers in New Jersey cities for a full coverage policy are GEICO, NJM and State Farm.

Your actual rates will differ based on factors such as past driving history, your vehicle, discount eligibility and the amount of liability coverage you need.

Cheapest car insurance companies in New Jersey, by city

Below is a list of cheap car insurance companies in New Jersey's largest cities with their annual quotes for a full coverage policy.

CityInsurerCar insurance quote
BayonneGEICO$1,477
NJM$2,182
State Farm$2,600
BerkeleyGEICO$1,227
State Farm$1,689
NJM$1,719
BloomfieldGEICO$1,380
NJM$2,244
State Farm$2,323
BrickGEICO$1,307
State Farm$1,717
NJM$1,820
BridgewaterGEICO$1,227
State Farm$1,689
NJM$1,719
CamdenGEICO$1,710
NJM$2,339
State Farm$2,737
Cherry HillGEICO$1,329
NJM$1,797
State Farm$1,907
CliftonGEICO$1,745
NJM$2,181
State Farm$2,814
East BrunswickGEICO$1,431
NJM$1,750
State Farm$1,970
East OrangeGEICO$1,922
NJM$2,500
State Farm$3,056
EdisonGEICO$1,443
NJM$1,923
State Farm$2,039
Egg HarborGEICO$1,428
State Farm$1,980
NJM$2,195
ElizabethGEICO$1,833
NJM$2,537
State Farm$3,073
FranklinGEICO$1,322
State Farm$1,621
NJM$1,746
GloucesterGEICO$1,299
NJM$1,797
State Farm$1,912
HackensackGEICO$1,584
NJM$2,127
State Farm$2,832
HamiltonGEICO$1,283
State Farm$1,772
NJM$1,778
HobokenGEICO$1,489
NJM$2,182
State Farm$2,456
HowellGEICO$1,431
State Farm$1,980
NJM$1,994
IrvingtonGEICO$2,079
NJM$2,761
State Farm$3,110
JacksonGEICO$1,431
State Farm$1,980
NJM$1,991
Jersey CityGEICO$1,489
NJM$2,182
State Farm$2,672
LakewoodGEICO$1,734
NJM$2,224
Progressive$2,339
LindenGEICO$1,854
NJM$2,151
State Farm$2,911
ManchesterGEICO$1,212
NJM$1,820
State Farm$1,980
MonroeGEICO$1,431
State Farm$1,900
NJM$1,975
New BrunswickGEICO$1,443
NJM$2,143
State Farm$2,244
NewarkGEICO$2,079
NJM$2,761
State Farm$3,110
North BergenGEICO$1,866
NJM$2,523
State Farm$2,892
North BrunswickGEICO$1,443
NJM$2,143
State Farm$2,244
Old BridgeGEICO$1,430
State Farm$1,970
NJM$1,975
ParsippanyGEICO$1,258
State Farm$1,621
NJM$1,671
PassaicGEICO$1,951
NJM$2,724
State Farm$2,885
PatersonGEICO$1,971
NJM$2,687
State Farm$2,950
Perth AmboyGEICO$1,623
NJM$2,566
State Farm$2,718
PiscatawayGEICO$1,443
NJM$1,923
State Farm$2,244
PlainfieldGEICO$1,677
NJM$2,261
State Farm$2,594
SayrevilleGEICO$1,353
NJM$1,975
State Farm$2,064
Toms RiverGEICO$1,307
State Farm$1,805
NJM$1,820
TrentonGEICO$1,556
NJM$2,065
State Farm$2,388
UnionGEICO$1,700
NJM$2,087
State Farm$2,819
Union CityGEICO$1,680
NJM$2,512
State Farm$2,840
VinelandGEICO$1,327
State Farm$2,006
NJM$2,074
WashingtonGEICO$1,190
State Farm$1,579
NJM$1,746
West New YorkGEICO$1,680
NJM$2,512
State Farm$2,840
West OrangeGEICO$1,468
NJM$2,160
State Farm$2,323
WoodbridgeGEICO$1,430
NJM$1,898
State Farm$2,059

When looking for your best rate, we recommend that New Jersey drivers compare at least three quotes online from multiple insurance companies. To help you find good auto rates in New Jersey, we identified the cheapest insurers for a full coverage policy in the state's largest cities.

Cost of car insurance in New Jersey's five most populous cities

Cheap car insurance in Newark, New Jersey

  • Average annual auto insurance quote in Newark = $4,577
  • 52% more expensive than the New Jersey average

A year's worth of full coverage car insurance in Newark was the most expensive in the state of New Jersey. For cheap auto insurance quotes in Newark, we recommend GEICO, NJM and State Farm, which quoted $2,650 per year on average.

Cheap car insurance in Jersey City, New Jersey

  • Average annual auto insurance quote in Jersey City = $3,903
  • 30% more costly than the New Jersey average

Jersey City's rates were substantially more expensive than the New Jersey average. However, drivers should still compare quotes, as a premium with the most expensive insurer was five times the cost of a premium with the cheapest insurer, GEICO.

Cheap car insurance in Paterson, New Jersey

  • Average annual auto insurance quote in Paterson = $4,494
  • 49% more costly than the New Jersey average

Car insurance costs in Paterson were significantly higher than the New Jersey state average, though motorists can still benefit from comparing rates from several companies. The cheapest insurer in our analysis, GEICO, was $6,496 more affordable than the most expensive insurer in the city.

Cheap car insurance in Elizabeth, New Jersey

  • Average annual auto insurance quote in Elizabeth = $4,414
  • 32% more expensive than the New Jersey average

Choosing a policy from the cheapest auto insurer in Elizabeth, GEICO, could save you more than $6,800 annually relative to the most expensive provider.

Cheap car insurance in Lakewood, New Jersey

  • Average annual auto insurance quote in Lakewood = $3,291
  • 9% more expensive than the New Jersey average

Though the average cost of car insurance in Lakewood is only 9% more expensive than the statewide mean, we still recommend that drivers compare quotes. The cheapest insurer in Lakewood is $4,254 more affordable than the most expensive.

Average cost of car insurance in New Jersey, by city

The average cost of full coverage car insurance in New Jersey is $3,010 per year, or $251 per month.

The cheapest cities in New Jersey for full coverage are:

  • Parsippany
  • Washington
  • Hamilton

The most expensive New Jersey cities for full coverage are:

  • Newark
  • Irvington
  • Passaic

Where you live is a major factor in determining auto insurance rates. The following table of is ordered from the least to most expensive cities for car insurance, on average.

CityAnnual costDifference from average
Parsippany$2,667-11%
Washington$2,685-11%
Hamilton square$2,692-11%
Bridgewater$2,737-9%
Franklin$2,741-9%
Berkeley Heights$2,752-9%
Manchester township$2,845-5%
Toms River$2,855-5%
Gloucester city$2,872-5%
Brick$2,892-4%
Cherry Hill$2,928-3%
East Brunswick$3,0281%
Piscataway$3,0481%
Monroe township$3,0501%
Jackson$3,0551%
Howell$3,0602%
Old Bridge$3,1394%
Edison$3,1404%
Sayreville$3,1565%
Vineland$3,1755%
Woodbridge$3,2438%
Lakewood$3,2919%
Trenton$3,30510%
Egg Harbor City$3,31510%
North Brunswick$3,32010%
New Brunswick$3,34411%
West Orange$3,58619%
Bloomfield$3,63421%
Bayonne$3,65922%
Hackensack$3,77125%
Plainfield$3,81527%
Hoboken$3,87729%
Clifton$3,89629%
Union$3,89930%
Jersey City$3,90330%
Perth Amboy$3,98933%
Linden$4,01033%
Camden$4,19139%
Union City$4,25441%
West New York$4,25441%
Elizabeth$4,41447%
North Bergen$4,44848%
East Orange$4,46448%
Paterson$4,49449%
Passaic$4,49649%
Irvington$4,57752%
Newark$4,57752%

Methodology

We collected auto insurance quotes for New Jersey cities from seven auto insurance companies.

Our sample driver was a 30-year-old man who drives a 2015 Honda Civic EX. He had no credit history, which makes him comparable to drivers with below-average credit, according to our data source, Quadrant Information Services.

Unless otherwise noted, our sample driver held full coverage car insurance with the following limits:

Coverage typeStudy limits
Bodily liability$50,000 per person/$100,000 per accident
Property damage$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible

For a minimum coverage policy, our sample driver had coverage equivalent to the minimum legal requirements in New Jersey.

Average premiums are for illustrative purposes, as individual quotes will differ based on driving history, ZIP code, vehicle type, coverage limits and other factors.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.