Cheapest Car Insurance in New Jersey: Your 2025 Guide

Find cheap car insurance in New Jersey (NJ) with this detailed guide. Learn about the most affordable providers, insurance rates, and strategies to lower your premiums. Perfect for different drivers, high-risk individuals, and anyone looking to save hundreds of bucks.

Car insurance in New Jersey is notoriously expensive, with rates significantly higher than the national average. However, by carefully selecting coverage and shopping around for the cheapest rates, New Jersey drivers can still find affordable car insurance.

This article provides a detailed overview of the cheapest New Jersey car insurance rates, covering various driver profiles, coverage types, and specific insurers.

Average Car Insurance Costs in New Jersey

The average annual premium of car insurance in New Jersey in 2025 is notably higher than the national average. For full coverage policies, New Jersey drivers pay approximately $2,432 to $3,060 annually on average, positioning NJ near or slightly above the U.S. average of around $2,399 to $2,900. For minimum coverage, New Jersey drivers pay around $1,266 annually, which is about double the national average of $635.

This means New Jersey drivers pay, on average $203 to $255 per month for full coverage car insurance, and approximately $106 for minimum coverage.Note: Your auto insurance rates will vary based on factors like your age and experience, driving record, credit score, vehicle type, location, coverage level, and annual mileage.

Top Cheapest Car Insurance Companies in New Jersey

New Jersey costs for auto insurance vary throughout the state. The cheapest insurers include Geico, Plymouth, and NJM. Geico is the cheapest, offering $896 for minimum coverage and $2,367 for full coverage car insurance.

Other insurance companies offer affordable car insurance as follows:

Source: Cheapest Car Insurance in New Jersey for 2025 (USNews)

Cheapest Car Insurance, New Jersey: Based on Driver Profiles

1. Teen Drivers

New Jersey teen drivers have some of the highest auto insurance premiums due to a lack of driving experience. 17-year-old female teens pay $9,703 on average per year, and $10,874 per year for males.

These averages are expensive because car insurance companies in New Jersey offer extremely high premiums. Only Geico and NJM offer coverage limits less than $5,000. Other insurance companies provide affordable options as follows:

2. Young Adult Drivers

Young drivers also face high insurance premiums due to their limited experience. However, their rates are lower than those for teen drivers. In 2025, Geico is the cheapest car insurance company for young adult drivers.

Other top insurance providers that offer cheap auto insurance in New Jersey include:

3. Adult Drivers

Adults have even lower auto insurance rates compared to younger drivers. The cheapest New Jersey insurers for this age group include NJM, Geico, and Selective. These companies offer the following approximate auto insurance rates for 40-year-old drivers:

4. Senior Drivers

Senior drivers in New Jersey have some of the lowest average annual premiums due to cleaner driving records. Our analysis reveals that NJM offers cheap auto insurance rates for seniors, at an average of $1,447 for females and $1,463 for males, per year. Other insurers follow closely behind, as noted below:

Cheapest Auto Insurance, New Jersey: Based on Driving History

1. Drivers With a Clean Record

if you have a clean driving record, you can find cheap auto insurance from NJM and Geico. However, make sure to shop around and compare quotes to find even cheaper car coverage insurance. You might even find Good Drivers discounts that lower your premiums further. Expect the following sample rates while shopping around:

Source: Cheapest Car Insurance in New Jersey for 2025 (USNews)

2. High-Risk Drivers (DUI, Speeding Ticket, Accident)

High-risk drivers in New Jersey are motorists with at-fault accidents, multiple driving violations, or a DUI conviction. Based on this driving history, insurers establish that they pose a higher financial risk for insurance. As such, auto insurance policies offer very high premiums. Make sure to shop around and compare car insurance quotes to find the cheapest rates.

Drivers With a Speeding Violation

According to our analysis, having one speeding ticket on your record can spike your premiums by an estimated 18%. The cheapest insurers for drivers with at least one speeding ticket include Geico and Selective. Here are the most affordable premiums for drivers who violate NJ's speed limits:

Drivers Involved in a Car Accident

Drivers with a history of at-fault accidents, whether one or multiple, also face higher auto insurance premiums. The cheapest companies for these drivers include NJM and Geico. When comparing car insurance quotes, expect the following rates:

Drivers With a DUI

A DUI conviction results in even higher premiums. Drivers with a prior DUI need to shop around and compare quotes to find cheap auto insurance in New Jersey. As per our research, the cheapest company for these drivers is NJM, with an average annual rate of $2,168. Other insurers with affordable rates include:

Source: Cheapest Car Insurance in New Jersey for 2025 (USNews)

Cheap Auto Insurance, New Jersey: Based on Credit History

Credit history significantly affects car insurance rates in New Jersey. Insurers often use a credit-based insurance score to determine your premiums. Drivers with good credit pay less, while those who have a poor score pay more. NJM has some of the most affordable sample rates, offering a price of $2,970 for drivers with poor credit and $1,745 for those with a good score.

Here are some of the cheapest auto insurance premiums based on available data:

Source: Cheapest Car Insurance in New Jersey for 2025 (USNews)

Cheap Auto Insurance, New Jersey: Based on Location

Note that New Jersey costs also vary by state and zip code. Urban areas like Jersey City and Paterson tend to have some of the highest auto insurance premiums due to high car accident and claim rates. Rural areas often have lower premiums because of the reduced incidence rates. If you live in denser, highly populated cities, expect premiums that are 10-20% higher than the state average.

Here are sample rates for different locations in NJ:

Source: The cheapest car insurance companies in New Jersey (Bank Rate)

New Jersey Auto Insurance Laws and Minimum Requirements

New Jersey requires drivers to carry the mandatory auto insurance coverage, based on state laws. The mandatory coverage includes liability insurance (Bodily Injury Liability & Property Damage Liability), Personal Injury Protection, and Uninsured/Underinsured Motorist (UM/UIM) coverage.

Note: New Jersey is a "choice no-fault state," which implies that drivers can choose between two types of car insurance systems, the no-fault or the at-fault-based policy.

Here's What It Means:

• No-Fault Insurance: If you choose this option, your insurer pays for your injuries and medical bills, regardless of who caused the accident. This prevents lengthy legal battles over who is at fault.
• At-Fault Insurance: If you fail to choose the no-fault option, your insurer will operate under the traditional fault-based policy. Thus, the driver responsible for the accident is liable for the costs of injuries and damages to others. Their insurance pays for any damages or medical bills.

Minimum Coverage Car Insurance Requirements in New Jersey

New Jersey offers two main policy options:

Basic Policy: This is a low-cost option that provides the minimum level of coverage. We do not recommend the basic policy for drivers with significant assets to protect. Its limitations include:

• Extremely low Property Damage Liability coverage, about $5,000
• No Uninsured/Underinsured Motorist (UM/UIM) coverage
• It doesn't automatically include Bodily Injury Liability coverage, although insurers can add an optional $10,000 for all persons per accident
• Mandatory limited right-to-sue option

Standard Policy: This offers higher coverage limits and more options for PIP, as well as the right to sue. It's the most preferred option for a majority of drivers due to its extensive financial protection.

The minimum requirements for the standard policy, as mandated by State laws, include:

• Bodily Injury Liability Coverage: $25,000 per person and $50,000 total per accident
• Property Damage Liability: $25,000 per accident
• Personal Injury Protection (PIP): A minimum of $15,000 per person, per accident, with the option to increase limits up to $250,000
• Uninsured/Underinsured Motorist (UM/UIM): A minimum of $25,000 per person and $50,000 per accident for bodily injury, and $5,000 for property damage

Optional But Recommended Coverages

1. Vehicle Protection (Physical Damage)

• Collision Coverage: Pays for damage to your car from a collision with another vehicle or object.
• Comprehensive Coverage: Covers damage to your car from incidents like theft, vandalism, fire, or hitting an animal.

2. Financial/Specialty Coverages (Endorsements)

• Gap Insurance: Pays the difference between your car's value and what you owe if your car is totaled.
• Rental Car Reimbursement: Covers the cost of a rental vehicle while your car is being repaired.
• Roadside Assistance: Covers expenses for towing and minor mechanical help if your car breaks down.
• New Car Replacement: Replaces your totaled new car with the same make and model.
• Custom Equipment Coverage: Covers custom parts you add to your car, like rims or a stereo.
• Full Glass Coverage: Waives the deductible for glass repair or replacement (e.g., windshield).

3. Injury and Legal Protection

• Medical Payments Coverage (MedPay): Covers medical and funeral expenses, including emergency treatment, for you and your passengers after an accident. If you're eligible for federal Medicaid, your medical expenses may be covered under that plan, but MedPay can act as supplemental insurance for additional costs.
• Accident Forgiveness: Prevents your premium from increasing after your first at-fault accident.
• High Liability/Umbrella Policy: Provides extra liability coverage for personal and property damage beyond your standard policy.
• Rideshare Coverage: Fills the coverage gap when using rideshare services like Uber or Lyft.

Factors Affecting Insurance Rates in New Jersey

Several factors can influence your car insurance costs in New Jersey, including:

• Driving Record: A clean driving record suggests responsible driving habits and often results in lower premiums, while driving violations like speeding tickets, DUIs, and car accidents can lead to higher rates.
• Credit Score: A good credit score can result in lower premiums. However, a poor credit history leads to much higher rates. Note that New Jersey's state regulations limit the impact of credit history on insurance rates.
• Vehicle Type: Expensive, luxury, and high-performance cars generally cost more to insure due to their higher repair and replacement costs.
• Location: Urban areas such as Newark or Jersey City have expensive premiums due to higher traffic volumes and a greater risk of accidents and theft, while rural areas tend to have lower premiums.
• Age and Experience: Younger and less experienced drivers typically face higher rates, while older drivers with more experience may benefit from lower premiums.
• Coverage Level: Full coverage insurance policies generally cost more than liability-only policies. The level of coverage you choose directly affects your premium.
• Marital Status: The state permits New Jersey insurers to use marital status as a rating factor when determining your premiums. Married drivers are often seen as lower risk, leading to lower car insurance premiums compared to single drivers.
• Claims History: A history of frequent claims can increase your premiums or lead to policy cancellation, while a claim-free history might earn you discounts.

Tips to Lower Your New Jersey Car Insurance Rates

1. Know New Jersey’s Minimum Coverages to Avoid Overpaying: New Jersey has specific minimum car insurance requirements, including liability insurance, personal injury protection (PIP), and uninsured motorist coverage. Familiarize yourself with the state’s requirements to avoid purchasing unnecessary coverage that could raise your premium.
2. Shop Around Using Multiple Quotes: Insurance rates can vary widely between multiple companies. Make sure to get quotes from different companies to compare and find the best price for the coverage you need. Get your cheap car insurance New Jersey quote now to start saving on your premiums.
3. Increase Deductibles Cautiously: Raising your deductible (the amount you pay out of pocket before insurance kicks in) can lower your premium. However, make sure the deductible is an amount you can afford to pay in case of an accident. Find a balance between saving on premiums and being able to cover the deductible in the event of a claim.
4. Bundle Auto Insurance with Home or Renters Insurance: Many insurance companies offer discounts when you bundle your auto insurance with your home or renters insurance. This can help you save money on both policies.
5. Use Discounts for Safe Driving, Good Students, and Anti-Theft Devices: Many insurers offer discounts for safe driving habits, such as having a clean driving record or taking a defensive driving course. If you’re a student, maintaining good grades can also lead to discounts. Additionally, installing anti-theft devices or safety features in your car may reduce your premiums.
6. Review Your Insurance Policy Regularly: Your needs change over time; thus, it's important to review your policy periodically. For instance, if you’ve paid off your car loan or your car’s value has decreased, you may no longer need certain types of coverage, such as comprehensive or collision coverage. Updating your policy can help you save money.

Frequently Asked Questions

What is the Average Cost of Car Insurance in New Jersey?

The average cost in New Jersey, in 2025, is approximately $2,432 to $3,060 per year for full coverage car insurance. Rates vary depending on your location, age, credit score, driving history, vehicle type, and more.

Who Has the Cheapest Auto Insurance in NJ?

The cheapest auto insurance in New Jersey is from NJM, Plymouth Rock, Geico, and Selective. NJM provides the lowest average annual full coverage premium at $2,039, while Plymouth Rock, Geico, and Selective follow with average premiums of $2,296, $2,367, and $2,416, respectively.​

What is the Minimum Car Insurance in NJ?

NJ offers standard and basic policy options. Note that the basic policy offers minimal financial protection. As such, we recommend the standard policy, where New Jersey requires drivers to have the following minimum coverages:

• Bodily Injury liability (BIL): BIL pays $25,000 per person and $50,000 per accident
• Property Damage Liability (PDL): PDL pays $25,000 per accident
• Personal Injury Protection (PIP): PIP coverage pays $15,000 per person
• Uninsured Motorist Bodily Injury: $25,000 per person or $50,000 per accident.

Minimum coverage policies cost on average $1,266 per year in NJ and meet legal requirements, but more coverage is advisable for adequate financial protection.​

Is Car Insurance Cheaper in NJ?

Auto insurance in New Jersey is generally not cheaper than the national average. The full coverage auto insurance cost is about the same as the U.S. national average, but the minimum limits in NJ are notably higher. This reflects New Jersey’s choice No-Fault system and optional limited tort policies, which tend to raise auto insurance premiums.​

Why is Car Insurance So High in NJ?

Insurance costs are high in New Jersey due to its choice no-fault insurance system, which requires Personal Injury Protection (PIP) coverage, and the availability of limited tort and standard tort policies. No-fault systems typically increase premiums statewide because drivers pay more to guarantee quicker medical claims processing without lawsuits for minor injuries. High population density, traffic congestion, and higher claims frequency also contribute to elevated rates.​

What Car is Cheapest to Insure in NJ?

The cheapest cars to insure in New Jersey tend to be low-risk models with high safety ratings and low repair costs. According to 2025 data, small to mid-size cars such as Subaru Outback, Honda CR-V, Toyota Prius, and Mazda CX-5 are among the most affordable to insure in NJ. Vehicles with good safety records and lower theft rates generally have the cheapest New Jersey car insurance premiums.