Who Has the Cheapest Car Insurance Quotes in New Jersey?

The average cost of a New Jersey minimum-coverage car insurance policy is $1,182 per year, or about $99 per month.

Cheapest car insurance companies in New Jersey

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

These three auto insurers have average car insurance rates of $714 per year, or about $60 per month—which is 40% cheaper than the New Jersey average.

The auto insurance companies with the most expensive quotes in New Jersey were:

In New Jersey, these companies had an average annual quote of $1,685, or 43% more than the state average.

How much is full-coverage auto insurance in New Jersey?

The cheapest full-coverage auto insurance companies in New Jersey were:

These three carriers were the most affordable in New Jersey for full coverage, offering quotes of $1,880 on average, or 38% less than the state average of $3,013.

The insurance companies with the most expensive auto quotes for full coverage in New Jersey are:

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

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

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 Palisades Group.

These three insurers offer average annual rates of $2,521 per year, 44% cheaper than the New Jersey average of $4,542, for full-coverage policies with a prior accident history.

NJM distinguished itself by not charging higher rates for New Jersey drivers with previous accidents.

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:

The top-rated car insurance companies in New Jersey, based on a measure of customer satisfaction known as the Complaint Index, were not always the cheapest in our analysis. Customers filed fewer complaints with these insurers than others relative to their market share.

The list above includes the top companies in the Garden State ranked by their Complaint Index, which measures how many complaints a company gets compared to the average insurer in the state. Complaint data was drawn from the New Jersey Division of Insurance.

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 the average number of complaints.

New Jersey auto insurance coverage requirements

Auto insurance is required in New Jersey. Below, we break down the minimum requirements for each policy type.

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.

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.

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:

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.

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

When looking for the best rate, we recommend 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:

Cheap car insurance in Newark, New Jersey

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 $2,822 per year on average, or 39% less than the Newark mean.

Cheap car insurance in Jersey City, New Jersey

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.

Cheap car insurance in Paterson, New Jersey

Car insurance costs in Paterson were significantly more expensive than the New Jersey state average, though motorists can still benefit from comparing rates from several companies. The cheapest insurer in our analysis, GEICO ($2,051), cost $5,178 less per year than the most expensive carrier, Allstate ($7,229).

Cheap car insurance in Elizabeth, New Jersey

Choosing a policy from the cheapest auto insurer in Elizabeth, GEICO ($1,977), could save you more than $2,435 annually relative to the city average.

Cheap car insurance in Clifton, New Jersey

We still recommend that drivers compare quotes, as the three cheapest insurers in Clifton offered a 40% discount to the city average. Further, an annual policy with the most expensive insurer in our sample cost $5,166 more than a policy with the cheapest insurer.

Average cost of car insurance in New Jersey

The cheapest cities in New Jersey for full coverage are:

The most expensive New Jersey cities for full coverage are:

Where you live is a major factor in determining auto insurance rates. New Jersey cities are ranked from those with the cheapest auto insurance rates to the most expensive per year.

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:

For a minimum-coverage policy, our sample driver had coverage equivalent to the minimum state 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.