Auto insurance in New Jersey averages $1,754/year, making NJ one of the most expensive states. Compare free quotes from top insurers serving Newark, Jersey City, and all of New Jersey — no personal info required to browse.
| Insurer | Avg. Annual Rate | Best For | AM Best Rating | Available in NJ |
|---|---|---|---|---|
| 🏆 GEICO Lowest Rates | ~$1,100/yr | Budget drivers | A++ | ✅ Yes |
| State Farm | ~$1,380/yr | Good drivers | A++ | ✅ Yes |
| ⭐ Progressive High-Risk/SR-22 | ~$1,520/yr | High-Risk / SR-22 | A+ | ✅ Yes |
| Allstate | ~$1,800/yr | Full coverage | A+ | ✅ Yes |
| USAA | ~$1,050/yr | Military families | A++ | ✅ Yes |
| NJM NJ Exclusive | ~$1,200/yr | NJ Local Favorite | A+ | ✅ Yes |
| City | Avg Annual Premium | vs NJ Average |
|---|---|---|
| Newark | $2,340/yr | +33% |
| Jersey City | $2,180/yr | +24% |
| Paterson | $2,290/yr | +31% |
| Elizabeth | $2,150/yr | +23% |
| Trenton | $1,980/yr | +13% |
| Camden | $2,050/yr | +17% |
| Edison | $1,620/yr | -8% |
| Cherry Hill | $1,490/yr | -15% |
| Driver Profile | Avg Annual Premium |
|---|---|
| Clean record | $1,460/yr |
| One at-fault accident | $2,210/yr |
| One speeding ticket | $1,890/yr |
| Teen driver (added) | +$1,800/yr |
| Senior (65+) | $1,650/yr |
| DUI on record | $3,100/yr |
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New Jersey raised its minimum liability to 25/50/25 effective January 1, 2024, regulated by the New Jersey Department of Banking and Insurance. The state runs a choice no-fault system, letting drivers select a Basic or Standard policy and pick between the verbal threshold (which restricts pain-and-suffering lawsuits) and the no-threshold option. A DWI conviction requires an SR-22 filing for three years. High-risk drivers can obtain coverage through the Personal Auto Insurance Plan (PAIP), and Medicaid-eligible households may qualify for the Dollar-a-Day program.
Rate drivers in New Jersey are driven heavily by population density, traffic congestion along the Turnpike and Parkway, and vehicle theft in urban counties. Newark and Paterson post the state's highest premiums, while Edison and Cherry Hill sit below the state average. Credit-based insurance scoring is restricted, so the driving record, annual mileage, and tort choice shape pricing more than in most states. Drivers can reduce premiums by taking the verbal threshold, bundling with homeowners, and enrolling in approved telematics programs.
The average cost of auto insurance in New Jersey is $1,754/year. NJ is one of the most expensive states for car insurance due to its high population density, no-fault laws, and high rates of uninsured drivers. Rates vary by city, driving record, and coverage level.
New Jersey's minimum liability was raised to 25/50/25 effective January 1, 2024, regulated by the New Jersey Department of Banking and Insurance. The state uses a choice no-fault system: drivers pick a Basic or Standard policy and select a verbal threshold that limits the right to sue. A DWI triggers a three-year SR-22 filing. High-risk drivers can access PAIP, and Medicaid recipients qualify for the Dollar-a-Day program.
You can lower your New Jersey car insurance by comparing quotes from multiple insurers, bundling home and auto policies (saves 10 to 25%), maintaining a clean driving record, raising your deductible, and taking advantage of telematics or good-driver discounts.
Yes, New Jersey is a no-fault state. PIP (Personal Injury Protection) coverage is required, meaning your own insurer covers your medical expenses after an accident regardless of who was at fault. NJ drivers choose between a "Basic" and "Standard" policy, each with different PIP and tort options.
New Jersey's minimum auto liability coverage is 25/50/25 as of January 1, 2024, up from the earlier 15/30/5 limits. Drivers still pick between Basic and Standard policies and between the verbal threshold or the no-threshold option. Credit-based insurance scoring is restricted. The Personal Auto Insurance Plan (PAIP) serves high-risk drivers and the Dollar-a-Day program serves qualifying Medicaid recipients.