Gianetta Palmer is a writer, copywriter, and essayist. Her work has appeared in, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florid...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: May 31, 2021

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Compare RatesStart Now → licensed agents did a comparison shopping study of New Jersey car insurance companies and found State Farm at $417 per year provides the cheapest auto insurance for minimum coverage policies

Travelers at $1,277 per year provide the most affordable car insurance for drivers in New Jersey who prefer a full coverage policy.

Cheapest Car Insurance in New Jersey

Drivers have several options to choose from when purchasing a new auto insurance policy in New Jersey to find the best rates.  

Cheapest Car Insurance in New Jersey - Quick Hits
AutoInsureSavings.orgThe cheapest New Jersey car insurance options are:

Cheapest for minimum coverage: State Farm
Cheapest for full coverage: Travelers Insurance
Cheapest after an at-fault accident: NJM Insurance
Cheapest after a speeding ticket: Travelers
Cheapest after a DUI: Progressive
Cheapest for poor credit history: GEICO
Cheapest for young drivers: GEICO
For young drivers with a speeding violation: NJM Insurance
For young drivers with an at-fault accident: GEICO
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In this New Jersey car insurance guide, you will find comparisons between some of the industry’s best car insurance companies and their best rates to help you save money.

Cheapest auto insurance in New Jersey from State Farm, New Jersey Manufacturers Insurance, and USAA compared to average rates.

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Cheapest Car Insurance for Minimum Coverage in New Jersey

The car insurance company offering the cheapest annual average rates for minimum coverage is State Farm, which provided us a quote at $417 per year or a $34 monthly rate. State Farm’s rate is 47% less expensive than New Jersey’s average of $783 per year.

The next best insurance option for coverage in New Jersey is NJM which provided our agents a cheap rate at $489 per year or $294 less per year than average rates. 

InsurerAnnual costMonthly cost
State Farm$417$34
New Jersey Manufacturers (NJM)$489$41
Plymouth Rock$899$75
New Jersey average$783$65
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*USAA is for qualified military members, their spouses, and direct family members. Your auto insurance rates may vary based on the driver’s profile.

Many New Jersey drivers choose state minimum coverage to stay legal on the road and pay the lowest rates. The difference between the cost of minimum and full coverage policies in New Jersey is $1,096 per year.

Although minimum coverage offers savings and helps many New Jersey drivers stay within their budget, there is always the risk of insufficient protection while driving.

If a crash occurs while driving in New Jersey and you only have state minimum coverage and the damages you caused exceed your policy limits. In that case, you will be responsible for paying for the remaining damage out of pocket.

Cheapest Full Coverage Car Insurance in New Jersey

The insurance company offering the lowest rates for full coverage auto insurance in New Jersey is Travelers, which provided our agents a $1,277 yearly rate. Traveler’s insurance rate is 33% cheaper than the average $1,879 quote in New Jersey. 

InsurerAnnual costMonthly cost
State Farm$1,414$117
New Jersey average$1,879$156
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While full coverage may not be required, it is an excellent insurance option to ensure you will not have to pay for damages out of pocket.

Full coverage includes comprehensive and collision coverage, while state minimum coverage doesn’t.

According to the Insurance Information Institute (, collision and comprehensive coverage will pay for property damage to your motor vehicle no matter who is at fault and from cases of inclement weather or accidentally hitting a street sign.

Cheapest Car Insurance with a Speeding Ticket in New Jersey

For drivers with a speeding violation in New Jersey, the cheapest auto insurance is with Travelers, which offered us a quote of $1,355 per year or $112 a month. Traveler’s rate is $964 less expensive than average. 

InsurerAnnual costMonthly cost
State Farm$1,580$121
New Jersey average$2,319$178
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The amount your auto insurance rates will increase after you receive a speeding ticket will vary based on how fast you were going above the speed limit and how many tickets you have on your driving record.

Our research found the average rate increase after traffic tickets in New Jersey is 19%.

Cheapest Car Insurance in New Jersey with an At-Fault Accident

The cheapest full coverage auto quote for drivers in New Jersey with one at-fault accident is NJM. They provided us a quote at $2,067 annually or 34% cheaper than the average $3,123 rate. Your next best option is State Farm, with a 25% less expensive rate at $2,361 per year. 

InsurerAnnual costMonthly cost
State Farm$2,361$196
New Jersey average$3,123$260
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Keep in mind the insurance company that offers the cheapest auto insurance rates after a car accident will vary from one driver to the next. Insurance providers determine your premium cost based on your age, driving history, credit rating, and several other factors.

While many drivers can save more by choosing New Jersey Manufacturers (NJM), other drivers in New Jersey who have one or more auto accidents on their driving records may save more money by choosing a different company such as State Farm or GEICO.

Cheapest Car Insurance with a DUI in New Jersey

The auto insurer with the cheapest auto insurance for drivers in New Jersey with a DUI conviction is Progressive, which provided agents a $2,498 quote for full coverage.

Progressive’s rate is 37% less expensive than New Jersey’s average of $3,912 per year for a DUI

InsurerAnnual costMonthly cost
New Jersey average$3,912$326
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According to the Department of Law and Public Safety in New Jersey, drivers will pay a $1,000 surcharge for car insurance for three years, and you can expect car insurance rates to increase as much as 52% after being convicted of a DUI.

You will also have a driver’s license forfeiture (loss of driving privileges) until an ignition interlock device (BAIID) is installed in your motor vehicle and a minimum of six hours at the Intoxicated Driver Resource Center in New Jersey. 

Cheapest Car Insurance with Poor Credit in New Jersey

The insurance provider with the cheapest car insurance for drivers in New Jersey with a poor credit score is GEICO, with a $1,855 annual rate or $154 per month for our sample 30-year-old male.

NJM is your next cheapest option with a $175 monthly rate or 37% less expensive than the average cost of car insurance in New Jersey for drivers with bad credit. 

InsurerAnnual costMonthly cost
State Farm$2,568$214
New Jersey average$3,313$276
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Drivers who have a poor or bad credit score are more likely to be at increased risk for car insurance companies in New Jersey, and therefore these providers will increase rates based on these risks. Make sure to pay your credit cards and bills on time to keep your auto insurance rates low with good credit.

Cheapest Car Insurance for Young Drivers in New Jersey

If you are a young driver looking to save money on car insurance, compare quotes with GEICO Insurance. They provided our insurance agents a $3,613 quote for those with a clean driving record. Travelers Insurance is 37% cheaper than New Jersey’s young driver rate of $5,102 per year.

State Farm offers the most affordable coverage rate for young drivers’ minimum coverage insurance policies at $1,588 per year or a $102 monthly rate.

Other auto insurers to compare multiple auto insurance quotes for state minimums are GEICO and Travelers for young or teen drivers. Both car insurance companies in New Jersey are 31% cheaper than the statewide average rate. 

InsurerFull coverageMinimum coverage
State Farm$4,445$1,588
Liberty Mutual$5,577$2,019
Plymouth Rock$8,218$2,770
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*USAA is for qualified service members, their spouses, and direct family members. Your auto insurance rates may vary based on the driver’s profile.

Our insurance agents recommend younger drivers go on their parent’s policy to find the most car insurance savings per year. The cost of auto insurance in New Jersey for younger drivers is $5,102 for a standalone policy. Adding the driver to their parent’s policy is more affordable, lowering car insurance costs by $1,200 per year.

Cheapest Car Insurance for Young Drivers with a Speeding Ticket

If you are a teen driver with a speeding violation in your driving history, the cheapest insurance premium is NJM at $4,038 per year or a $336 monthly rate.

NJM’s rate is $1,622 cheaper than New Jersey’s average for young drivers with a speeding violation, or 29% less expensive.

InsurerAnnual costMonthly cost
State Farm$4,466$372
New Jersey average$5,660$471
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Cheapest Car Insurance for Young Drivers with a Car Accident

According to agent’s study, young New Jersey drivers with one at-fault accident can find the best auto insurance coverage with GEICO.

GEICO’s rate at $4,413 per year is $3,707 less expensive than the New Jersey average at-fault accident rate of $8,120 for younger drivers. 

InsurerAnnual costMonthly cost
State Farm$5,911$492
New Jersey average$8,120$676
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Best Car Insurance Companies in New Jersey

According to our recent customer survey and the best rates shown in this guide, Allstate, Travelers, and State Farm are three of the best car insurance options if your primary concern is customer service and claims satisfaction.

ValuePeguin had similar results with Allstate as the best for customer service and State Farm as the best auto insurer in New Jersey for claims satisfaction.  

Auto insurer% of respondents extremely satisfied with recent claim% of respondents rated customer service as excellent
State Farm74%41%
Plymouth Rock67%48%
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It is important to remember that one driver’s best auto insurance company may not be the best option for another. Many factors help determine how much your auto insurance premium will be. licensed agents also looked at each insurer’s complaint index from the National Association of Insurance Commissioners (NAIC), J.D. Power claims satisfaction score and their A.M. Best financial strength ratings.

Plymouth Rock has the lowest complaint index with NAIC at 0.06, meaning Plymouth Rock received 6% of complaints compared to other auto insurers of equal market share. 

Plymouth Rock lacked a J.D. Power claims satisfaction score but had an “A” financial strength rating with A.M. Best. 

NJM Insurance has a 0.08 NAIC’s complaint index rating, with J.D. Power claims score of 909, with an “A+” financial strength rating with A.M. Best. If a low price and excellent customer service is a priority, our insurance agents recommend NJM Insurance. 

InsurerNAIC complaint indexJ.D. Power Claims SatisfactionAM Best Rating
Plymouth Rock0.06n/aA
NJM Insurance0.08909A+
State Farm0.30881A++
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All New Jersey car insurance companies had financial strength ratings of “A” or better from AM Best, which means each company had “excellent” or “superior” financial strength to cover insurance claims.

Average Car Insurance Cost by City in New Jersey

Your zip code is a factor car insurance companies in New Jersey use to determine your rate, as well as credit scores, coverage levels, driving records, and type of motor vehicle.

Depending on driver profiles and zip code, full coverage car insurance rates can vary by $826 per year in New Jersey. Auto insurers will charge more for coverage in large urban cities with more car accidents and higher auto theft rates. 

Cheapest Auto Insurance in Newark, NJ

Newark drivers can find the cheapest car insurance coverage for their motor vehicle with Travelers, which provided our agents a $1,618 annual quote or $134 per month for a full coverage policy.

Travelers’ quote is 40% less expensive than the $2,614 citywide average rate.

Newark CompanyAverage Premium
State Farm$1,825
NJM Insurance$1,941
Newark average$2,614
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Cheapest Auto Insurance in Jersey City, NJ

Jersey City drivers can look to NJM Insurance for the cheapest coverage rates, with a quote at $1,567 per year with full coverage insurance. NJM’s rate is 40% cheaper than Jersey City’s $2,583 average rates for similar driver profiles.

Jersey City CompanyAverage Premium
NJM Insurance$1,567
State Farm$1,712
Jersey City average$2,583
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Cheapest Auto Insurance in Paterson, NJ licensed agents found auto insurance premiums are cheaper with State Farm for Paterson, New Jersey residents at $1,437 per year or $119 per month. State Farm’s rate is 37% less expensive than Paterson’s average rate of $2,248 annually.

Paterson CompanyAverage Premium
State Farm$1,437
NJM Insurance$1,511
Paterson average$2,248
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Cheapest Auto Insurance in Elizabeth, NJ

Drivers in Elizabeth can get cheap auto insurance with Travelers Insurance, which provided our licensed agents a $1,533 annual rate for a full coverage policy with $100,000 in liability insurance. Travelers’ quote is 34% less expensive than the average $2,294 yearly rate in Elizabeth. 

Elizabeth CompanyAverage Premium
Travelers Insurance$1,533
NJM $1,580
Elizabeth average$2,294
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Cheapest Auto Insurance in Lakewood, NJ

Lakewood drivers can find the cheapest auto insurance coverage policy with GEICO, which offered us a $1,597 annual rate for our sample 30-year-old male driver. GEICO’s car insurance rate is $722 less annually than Lakewood’s average of $2,319 per year. 

Lakewood CompanyAverage Premium
Liberty Mutual$1,714
NJM Insurance$1,766
Lakewood average$2,319
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Cheapest Auto Insurance in Woodbridge, NJ

In Woodbridge, drivers will find the cheapest insurance rates with NJM Insurance, which provided our agents a $1,317 annual quote for a 30-year-old driver with full coverage. NJM’s $109 monthly rate is 42% less expensive than Woodbridge’s $2,259 average.

Woodbridge CompanyAverage Premium
NJM Insurance$1,317
Plymouth Rock$1,715
Woodbridge average$2,259
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Average Car Insurance Cost for All Cities

CityAnnual Premium CostCityAnnual Premium Cost
Jersey City$2,583Phillipsburg$1,788
Toms River$2,300Highland Park$2,314
Hamilton township$1,788Saddle Brook$1,814
Trenton$2,318Roselle Park$1,915
Camden$2,316Berkeley Heights$2,308
Cherry Hill$1,847New Providence$1,788
Union City$2,222Oakland$2,076
Old Bridge$1,927Ridgefield Park$2,300
Franklin township$2,184Clinton$2,165
East Orange$1,814Woolwich$2,030
Gloucester$2,228Woodland Park$1,915
North Bergen$1,830Cedar Grove$1,927
Union township$1,948Ringwood$2,306
New Brunswick$2,155Somerville$2,184
Irvington$2,184Hasbrouck Heights$1,847
Wayne$2,303Red Bank$2,030
West New York$2,267Upper$1,915
Parsippany-Troy Hills$1,814Freehold borough$1,830
Howell$1,891Glen Rock$1,788
Perth Amboy$2,313Wanaque$2,076
Plainfield$2,306Florham Park$2,304
Washington township$2,165River Edge$2,323
East Brunswick$1,830Bellmawr$2,306
West Orange$1,847Haddonfield$2,184
South Brunswick$1,897Guttenberg$2,030
Evesham$1,927Gloucester City$1,814
Monroe township$2,323Ocean City$1,847
Manchester$2,311East Hanover$1,788
Egg Harbor$1,814Pompton Lakes$2,183
Linden$2,311Franklin Lakes$2,165
North Brunswick$2,308West Caldwell$1,830
Mount Laurel$2,317Totowa$1,897
Kearny$1,847Little Ferry$2,030
Marlboro$2,326East Greenwich$1,814
Hillsborough$1,847Pine Hill$2,184
Montclair$2,317Somers Point$2,323
Atlantic City$1,897Chatham$2,165
Fort Lee$1,788Bound Brook$1,915
Monroe$2,323Lincoln Park$2,300
Ewing$1,814Ventnor City$1,847
Freehold$2,184River Vale$1,915
Fair Lawn$2,315Waldwick$2,030
Lawrence township$1,847Colts Neck$1,788
Garfield$2,249Burlington city$2,076
Long Branch$1,814Maywood$2,244
City of Orange$1,897East Rutherford$2,165
Deptford$1,927Mount Holly$2,215
Voorhees$2,317Ocean township$1,915
Mount Olive$1,830Pittsgrove$2,184
Nutley$1,847Chatham borough$1,788
West Windsor$2,337South Amboy$1,927
Neptune$1,915Park Ridge$2,030
East Windsor$1,788Edgewater Park$2,323
Paramus$1,830Long Hill$1,897
West Milford$2,323Closter$2,184
Randolph$1,788North Haledon$1,911
Ridgewood$1,927Boonton town$2,317
Cliffside Park$1,847Absecon$1,788
Scotch Plains$1,788Spotswood$2,165
Cranford$2,184Upper Saddle River$1,830
South Plainfield$1,911Kenilworth$1,814
Lyndhurst$2,322West Long Branch$2,127
Morris$1,830Raritan borough$1,788
Summit$2,184Carneys Point$1,814
North Plainfield$2,127Fanwood$2,030
West Deptford$1,949Glen Ridge$1,788
Little Egg Harbor$1,927New Hanover$1,847
Jefferson$2,338Berlin borough$1,830
Palisades Park$2,348North Hanover$2,127
Moorestown$1,911Haddon Heights$1,949
Millburn$2,127Fairfield $2,184
Secaucus$2,076Maurice River$1,814
Elmwood Park$1,830Mansfield township$1,911
Hazlet$1,949Upper Deerfield$1,897
Glassboro$1,847Buena Vista$2,127
Hawthorne$2,188Midland Park$1,830
Maple Shade$1,830Green Brook$1,788
Point Pleasant$2,183Keyport$2,314
Washington township$2,184Stratford$1,949
Rutherford$1,911Upper Freehold$1,814
Hopewell township$1,927Mountainside$2,317
Tinton Falls$2,173Allendale$2,205
Springfield township$1,830Barrington$1,814
Lindenwold$1,897North Caldwell$1,847
Harrison town$2,205Washington borough$2,127
Denville$1,903Washington township$2,184
Delran$2,076Rockaway borough$1,927
New Milford$2,183Dennis$1,911
South Orange $1,847Carlstadt$2,317
South River$2,205Hainesport$1,903
Readington$1,788Margate City$1,847
North Arlington$1,911Mullica$1,788
Asbury Park$1,949Logan$1,903
Mantua$2,076Old Tappan$1,967
Tenafly$2,184Fair Haven$1,814
Weehawken$1,788Prospect Park$2,089
Haddon$1,949Little Silver$1,911
Little Falls$2,089Roseland$1,927
Branchburg$1,903Woodcliff Lake$2,089
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Minimum Auto Insurance Requirements in New Jersey

People who buy a basic policy in New Jersey must maintain financial responsibility with the minimum liability requirements with bodily injury liability and property damage liability, including personal injury protection (PIP).

Liability coverageMinimum requirements
Bodily injury liability$15,000 per person and $30,000 per accident
Property damage liability$5,000 per accident
Personal injury protection (PIP)$15,000 per person and $30,000 per accident
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While you may have a car insurance policy with minimum coverage limits, licensed agents recommend getting higher liability limits for more liability protection with a full coverage policy. According to the Department of Banking and Insurance in New Jersey, we recommend getting uninsured motorist coverage since the uninsured motorist rate is 14.9%. 

Full coverage includes collision and comprehensive insurance for more protection for property damage to your vehicle. 

Frequently Asked Questions

Who has the Cheapest Car Insurance in New Jersey?

Travelers Insurance offers some of the most affordable rates, $1,277 per year for full coverage in New Jersey. An excellent alternative option is GEICO, with $1,354 per year insurance rates. While they are affordable, Travelers and GEICO are also top-rated regarding overall customer service and satisfaction.

Travelers have a claims satisfaction score of 861 from J.D. Power and an A++ rating from A.M. Best, while GEICO has a score of 871 and an A++ rating.

How Much is Car Insurance in New Jersey per Month?

Our research found the average rate of car insurance in New Jersey per month is $65 for state minimum and $1,879 per year for full coverage. State Farm offers drivers in New Jersey a potential savings of around $31 for minimum coverage, and Travelers offers potential savings of $50 monthly for policies with comprehensive and collision coverage.

How Much Will my Car Insurance Rise With a Speeding Violation in New Jersey?

In New Jersey, drivers can expect a rate increase by as much as $440 per year or 19% after receiving a traffic ticket. That is an annual average of $2,319.

The national average rate drivers pay after they receive a speeding violation is $1,727. Drivers in New Jersey pay around $592 more than that.

How Much Is Full Coverage Car Insurance in New Jersey?

The average rate for full coverage auto insurance in New Jersey is $156 per month or $1,879 annually. The cheapest provider we found for full coverage insurance in the state is Travelers. Their average rate for this type of coverage is $106 per month or $1,277 annually.

How do I Save on Car Insurance in New Jersey?

There are many different ways to save on New Jersey auto insurance. The first is to compare auto insurance rates from top car insurance companies in the area. Finding out about a money-saving driver discount you are eligible for is another way. Being a safe driver with a clean driving record, keeping track of your credit report, and taking out multiple life policies or homeowners’ insurance from companies that offer them.

To help you save or learn more about cheaper car insurance companies in New Jersey, contact the car insurance experts at Our licensed insurance professionals will be happy to answer any questions you have.

Methodology comparison shopping study collected insurance rates for various zip codes in New Jersey. We used a full-coverage auto policy with personal injury protection for a 30-year-old driving a 2018 Honda Accord with the following coverage limits:

Coverage typeStudy limits
Bodily injury liability$50,000 per person / $100,000 per accident
Property damage liability$25,000 per accident
Personal injury protection$10,000
Uninsured / underinsured motorist bodily injury$50,000 per person / $100,000 per accident
Comprehensive and collision coverage$500 deductible
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Compare RatesStart Now → used state minimum coverage policies comparing New Jersey car insurance for collecting quotes. We used average rates for other driver profiles in New Jersey with an accident history, credit score, and marital status for other New Jersey rate analyses. We used insurance rate data from Quadrant Information Services, which are publicly available for comparative purposes only. Your rates may vary when you get quotes.


– Office of Attorney General Highway Safety. “Dui Car Insurance & Penalties.”
– New Jersey Department of Banking and Insurance. “Uninsured Motorist Coverage.”
– National Association of Insurance Commissioners. “Market Share Reports for Property/Casualty Groups and Insurance Companies.”
– National Highway Traffic Safety Administration. “Traffic Safety Facts.”
– “General Auto Insurance Information.”
– “New Jersey No-Fault Car Insurance.”