Cheap Car Insurance in New Jersey 2019
Average New Jersey premiums by company
| Company Click to see reviews | Average yearly premium in New Jersey |
|---|---|
| USAA (must have a military affiliation to buy from USAA) | $1,753 |
| MetLife | $1,873 |
| Travelers Insurance | $1,918 |
| NJM Insurance | $1,938 |
| State Farm | $1,960 |
| Allstate | $1,961 |
| AAA Insurance/Auto Club | $1,965 |
| Farmers Insurance | $1,981 |
| Esurance | $2,070 |
| Plymouth Rock | $2,090 |
| Progressive Insurance | $2,145 |
| Liberty Mutual | $2,148 |
Insurance increase after a speeding ticket
New Jersey drivers who get a speeding ticket end up paying an average insurance increase of 24%, about the same as the nationwide average increase.
| State | Clean driving record | Speeding ticket | % increase |
|---|---|---|---|
| New Jersey | $2,021/year | $2,504/year | 24% |
| Nationwide average | 26% | ||
Insurance increase after an accident
New Jersey drivers who cause an accident get an average insurance increase of 32%, less than the national average increase.
| State | Clean driving record | Chargeable accident, no injury | % increase |
|---|---|---|---|
| New Jersey | $2,021/year | $2,659/year | 32% |
| Nationwide average | 36% | ||
Average premiums in New Jersey cities
Car owners in Irvington pay the most for auto insurance among the New Jersey cities we examined.
| City | Average annual premium |
|---|---|
| Asbury Park | $1,796 |
| Atlantic City | $2,126 |
| Bayonne | $2,072 |
| Belleville | $2,019 |
| Bloomfield | $2,186 |
| Brick | $1,894 |
| Camden | $2,363 |
| Cherry Hill | $1,869 |
| Clementon | $2,023 |
| Clifton | $2,134 |
| East Orange | $2,459 |
| Edison | $1,959 |
| Egg Harbor Township | $1,860 |
| Elizabeth | $2,471 |
| Hackensack | $1,906 |
| Irvington | $2,502 |
| Jersey City | $2,081 |
| Lakewood | $1,886 |
| Linden | $2,192 |
| Manchester Township | $1,664 |
| Mays Landing | $1,771 |
| Mount Laurel | $1,670 |
| Neptune | $2,049 |
| Newark | $2,436 |
| North Bergen | $2,095 |
| Orange | $2,254 |
| Paterson | $2,449 |
| Perth Amboy | $2,292 |
| Piscataway | $2,042 |
| Plainfield | $2,154 |
| Sicklerville | $2,119 |
| Somerset | $1,898 |
| Toms River | $1,800 |
| Trenton | $2,073 |
| Union | $2,239 |
| Union City | $1,933 |
| Vineland | $2,068 |
| Williamstown | $1,929 |
| Willingboro | $2,191 |
Required car insurance in New Jersey
New Jersey has three types of car insurance policies: Standard, basic and special. The "standard" policy is similar to coverage in other states. The "basic" policy has much less coverage and will be cheaper. It was created in an effort to get more New Jersey drivers to buy car insurance.
The trade-off with a "basic" policy: You may save money but you can be sued for car accident costs you're responsible for that your policy doesn't cover. The New Jersey Department of Banking and Insurance says the "basic" policy "should be considered by those with few family responsibilities and few real assets," such as young drivers who are getting their first jobs.
The "special policy" is only available to New Jersey drivers who have federal Medicaid with hospitalization benefits.
"Basic" policy insurance:
- No liability coverage is included, but there's an option for $10,000 bodily injury liability per accident.
- $5,000 property damage liability per accident.
- $15,000 in personal injury protection (PIP).
- Uninsured motorist (UM) coverage not required.
- You have a limited right to sue if you buy a New Jersey "basic" policy. You can sue an at-fault driver for medical bills and pain and suffering only under certain circumstances, such as permanent injury, loss of a body part or serious disfigurement.
You can buy a "basic" policy from any New Jersey auto insurance agent.
"Special Automobile Insurance Policy" (SAIP):
- Also called dollar-a-day car insurance in New Jersey.
- Available only to people who are on federal Medicaid with hospitalization benefits.
- An insurance agent can tell you if you're eligible by looking at your Medicaid card number.
- This is medical-only insurance with limited benefits: It covers your emergency treatment after a car accident and treatment of serious brain and spinal cord injuries up to $250,000. It also has a $10,000 death benefit.
- It costs $360 a year if you pay up-front, or $365 if you pay in two installments.
You must show an insurance ID card (or other proof of financial responsibility) in New Jersey when:
- Law enforcement requests it.
- You renew vehicle registration.
- Your vehicle is involved in a car accident.
Penalties for not having auto insurance in New Jersey
- First offense: $100-$300 fine, plus community service; license suspended for one year, but may be reduced or eliminated with satisfactory proof of motor vehicle liability insurance to the court at the time of the hearing.
- Subsequent conviction results in 14 days imprisonment and forfeiture of rights to operate a motor vehicle for two years, up to a $5,000 fine and 30 days community service
Source: Property Casualty Insurers Association of America
Rates methodology: EverQuote analyzed premiums reported by our users. Premiums are based on policies with liability of 100/300/50 ($100,000 bodily injury per person, $300,000 bodily injury per accident, $50,000 property damage) and uninsured motorist coverage of 100/300 ($100,000 per person, $300,000 per accident). We used premiums collected between Jan. 1, 2017, and Dec. 31, 2018. Your own rates will be different.
Updated Aug. 27, 2019