Cheapest Car Insurance in New Jersey for 2024 | Bankrate (2024)

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Updated Sep 11, 2024

Navigating the car insurance landscape can be a challenge, but when equipped with the right knowledge, securing cheap car insurance in New Jersey without skimping on coverage is possible. Through an analysis of up-to-date quoted premiums from Quadrant Information Services, Bankrate has highlighted the top budget-friendly insurance carriers in the state. For reference, the average cost of full coverage car insurance in New Jersey is $2,412 per year, while minimum coverage averages $984. These rates are in line with the national averages of $2,348 and $639, respectively.

Thankfully, in New Jersey, cost-effective insurance doesn’t have to equate to cutting corners. Many insurers offer coverage at competitive rates to cater to the diverse needs of Garden State drivers.

Key takeaways

• Cheapest company for minimum coverage: Selective
• Cheapest company for full coverage: Travelers
• Cheapest company for drivers with prior incidents: Selective
• Cheapest company for young drivers: Geico

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Minimum coverage requirements for New Jersey drivers

New Jersey is unique in that it has two minimum coverage options for its drivers. Drivers are required to purchase at least the minimum amount of state-mandated coverage to legally drive, but can buy either a basic policy or a standard policy. A basic policy comes with the following minimum coverage limits:

• Up to $10,000 in optional bodily injury liability per accident
• $5,000 property damage liability per accident
• $15,000 personal injury protection (PIP)

If you buy a basic policy, you will not have the option to purchase comprehensive coverage or collision coverage. You also won’t be able to buy uninsured motorist or underinsured motorist coverage. Additionally, the property damage liability coverage per accident is capped at $5,000, which means you could be paying large out-of-pocket costs if you damage another person’s property in an at-fault accident. Basic policies may be the cheapest auto insurance option available, but you get very little financial protection.

You can opt for more coverage, though, and still only buy a “minimum coverage” policy by purchasing a standard policy, which has the following limits:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $25,000 property damage liability per accident
• $15,000 personal injury protection (PIP)
• $25,000 uninsured motorist bodily injury per person
• $50,000 uninsured motorist bodily injury per accident
• $25,000 underinsured motorist bodily injury per person
• $50,000 underinsured motorist bodily injury per accident

You should be aware that the standard policy limits increased on January 1, 2023 and will increase again on January 1, 2026. Bankrate’s rates for minimum coverage in New Jersey reflect these standard policy limits. Purchasing minimum coverage may seem like the best option for smaller budgets, but if you are involved in an at-fault accident without adequate coverage, it could lead to financial distress. Additionally, most lenders require you to purchase full coverage if you lease or finance a vehicle to ensure that your vehicle has coverage for damage.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Getting a ticket or causing an accident typically raises your insurance rates, at least for a few years. However, the surcharge amount will depend on the severity of the incident and your insurance carrier. Below we outline the cheapest insurers across a few common driver scenarios.

• Cheapest car insurance for drivers with a ticket: Selective
• Cheapest car insurance for drivers with an at-fault accident: Selective
• Cheapest car insurance for high-risk drivers: Selective

Cheapest insurance companies for drivers in New Jersey with a speeding ticket: Selective

Insurance companies view a speeding ticket as an indicator of future risky driving behavior. A speeding ticket will typically impact your insurance rates for three to five years, but you may be able to save money with the following carriers.

Cheapest car insurance for drivers in New Jersey with an at-fault accident: Selective

Having an at-fault accident on your record will likely increase your car insurance premiums as these drivers are seen as more likely to cause future accidents. However, some insurance carriers weigh accidents less than others. Here are some of the lowest average rates for drivers with at-fault accidents on their record.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Cheapest rates in New Jersey for high-risk drivers: Selective

Drivers with multiple speeding tickets, accidents or a DUI on their record are typically deemed high-risk. These drivers see high average rates and may have difficulty securing coverage. The following companies offer some of the lowest average rates for drivers with DUIs, but you should note that not all companies will extend coverage to drivers with DUIs, so you may need to request a personalized quote to inquire about eligibility.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Bankrate’s take:Not all insurance companies will insure a driver with a DUI. Insurance eligibility with specific carriers may depend on the circ*mstances of your DUI as well as your other personal rating factors. Being honest about your driving record during the quoting process may help you quickly identify whether a carrier will insure you based on your driving history.

In most states, including New Jersey, age plays a role in determining your auto insurance premium. Younger drivers are typically seen as more risky to insure based on their high accident rates. Whether you're insuring a teen driver or seeking coverage yourself, shopping around is likely the best way to find affordable rates for your auto coverage needs.

• Cheapest car insurance for insuring a teen driver: Geico
• Cheapest car insurance for teens with a ticket: Geico
• Cheapest car insurance for teens with an at-fault accident: Geico
• Cheapest car insurance for young drivers with a DUI: Geico

Cheapest New Jersey car insurance for insuring a teen driver: Geico

Teens see some of the highest average insurance rates due to their lack of experience and tendency for distracted driving. Teens under the age of 18 cannot purchase their own insurance policy, so they must be added to a guardian's policy until they are legal adults. Shopping around for carriers that offer low average rates and leveraging teen discounts, such as discounts for good grades, may help you and your teen find affordable insurance. Below are five companies that offer the lowest average rates for teen drivers based on our rate analysis.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Bankrate’s take:To calculate average premiums for teens, Bankrate's insurance editorial team assessed rates for a 16-year-old added to their married parents' insurance policy. The premiums for teens reflect the total cost to insure a teen and their parents.

Cheapest car insurance for teens with a ticket: Geico

Car insurance rates can be significantly higher for teens, especially when the teen driver has a driving incident like a speeding ticket on their record. However, we found that certain carriers offer more affordable options for teens with imperfect driving records. It's worth noting that these incident rates pertain to an 18-year-old driver holding their own policy. Among these cheap auto insurers, Geico stands out as one of the most economical choices.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Cheapest car insurance for teens with an at-fault accident: Geico

New Jersey teen drivers who have been in at-fault accidents may see a surcharge to their insurance premiums for three to five years afterward depending on the carrier.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Bankrate’s take:Personal injury protection, or PIP coverage, is legally required for all New Jersey drivers with standard minimum coverage policies. In the Garden State, the minimum PIP coverage for these policies is $15,000 per person. Regardless of fault, PIP is designed to cover medical expenses, lost wages and household responsibilities for you and your passengers following a covered accident.

Cheapest car insurance for young drivers with a DUI: Geico

Young drivers with DUIs see some of the highest average insurance premiums of any age or incident profile. To assess average rates for young drivers with DUIs, we analyzed premiums for a 21-year-old driver with a single DUI conviction.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

The table below illustrates how your ZIP code could impact the premium you pay for minimum coverage. Although rate variations may be slight, it’s important to update your address even when moving within the same city, county or state, as rates may be different in your new ZIP code. These variations are due to changes in crime rates, local weather patterns, repair costs and more.

Cheapest cities in New Jersey for car insurance

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Although specific auto insurance discounts will vary based on the carrier you choose, there are some options that are commonly found with many companies. Here are some of the best car insurance discounts that drivers may qualify for:

• Safe driver discounts: Drivers who demonstrate safe driving through telematics programs, clean driving records or enrolling in safe driver courses may be eligible for this type of discount.
• Bundling discounts: These discounts are typically some of the most substantial. Savings may be available for bundling auto coverage with home, renters, motorcycle or even boat insurance.
• Student discounts: Depending on the carrier, high school and college students may qualify for a discount for getting good grades or leaving a car at home while away at school.
• Billing discounts: Many carriers offer discounts to drivers who choose paperless billing or enroll in autopay.
• Vehicle discounts: You may be eligible for a discount if your car is equipped with safety features like an alarm system, anti-lock brakes or seatbelts.
• Claims-free discount: Some providers give a discount if you haven’t submitted a claim with any insurance company within the last few years. Typically, providers specify a period of three or five years.

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These are sample rates and should only be used for comparative purposes.