Car insurance in New Jersey costs about $124 per month, according to an analysis by financial education website MoneyGeek. The national average is about $85 per month for full coverage auto insurance, so this makes New Jersey more expensive than many other states.
New Jersey ranks 45th in the country for car insurance affordability, but your individual insurance rate will be based on several different factors. Let’s take a look at what you can expect when you shop for insurance in New Jersey.
Average car insurance costs in New Jersey by city
In addition to getting full coverage versus the state minimum liability coverage, where you live can make a big difference. Insurers consider the likelihood of accidents and the number of claims in different cities and adjust car insurance quotes accordingly. Below are some of the average monthly full-coverage car insurance rates you can expect to pay in different cities in New Jersey, according to the MoneyGeek analysis. These prices represent the 30-59-year-old age range; prices for younger age ranges are considerably higher, while 60+ are lower.
- Elizabeth: $172.75.
- Jersey City: $156.08.
- Newark: $178.75.
- Paterson: $177.08.
As you can see, living in Jersey City has the potential to save you right around $20 per month on car insurance premiums.
Average car insurance costs in New Jersey by age & gender
Age and gender also play a role in your car insurance premium costs. If you’re more experienced, you’re more likely to pay less for your auto insurance. Additionally, women usually pay less than men since they’re considered less likely to get into an accident that involves an expensive claim.
Here are some average monthly premiums for different age groups, assuming full coverage auto insurance:
- Age 22-29: $139.75.
- Age 30-59: $124.33.
- Age 60+: $121.
Auto insurance policies that include teenagers are generally the most expensive in New Jersey and other states. Being a male teenager is likely to result in the highest monthly premium. For example, the monthly family premium for a policy with a 17-year-old teenage boy is $382 for full coverage, while the same policy with a female driver is $329.
Average car insurance costs in New Jersey by coverage
If you decide only to buy insurance to cover liability, which is the coverage required by law, you’ll probably have a much lower monthly premium than what you’d see with full coverage.
When you get the state minimum liability coverage, the average cost is $68 per month, according to the MoneyGeek analysis. Compare that to full coverage car insurance in New Jersey, which has an average cost of about $103 with the state minimum liability coverage and a $1,000 deductible.
If you want more coverage, you’ll see a higher monthly cost. For example, a 100/300/100 liability policy with a $500 deductible costs about $133 per month. However, if you get 300/500/300 liability as part of your full coverage policy with a $500 deductible, the average cost is $142.50.
Average car insurance costs in New Jersey by driving record
Serious issues reflected on your driving record can also greatly impact your monthly auto insurance premium in New Jersey. Here are the monthly averages for full coverage, as reported by MoneyGeek, based on driving record:
- Clean record: $124.33.
- At-fault accident: $190.33.
- Speeding ticket: $137.25.
- DUI: $218.25.
As you can see, the biggest consequences come from an at-fault accident or receiving a DUI. A clean driving record makes you more likely to keep your auto insurance costs lower.
Average car insurance costs in New Jersey by credit score
New Jersey is one of the many states in the country that allow auto insurers to base car insurance rates partially on credit scores. As a result, you could find yourself potentially paying more each month due to a poor credit score. Here are the average monthly costs for full coverage based on a credit score range:
- Excellent: $90.25.
- Good: $115.17.
- Fair: $146.58.
- Below fair: $176.50.
- Poor: $212.58.
Generally, excellent credit is considered to be 800 and up, while poor credit is a score of 579 and below. Having poor credit can potentially cost as much as a DUI in New Jersey, resulting in paying nearly $1,500 more each year than you would with excellent credit.
What factors affect your car insurance rate in New Jersey
There are several factors that affect insurance rates in New Jersey. Here are some of the factors that can affect your monthly auto insurance premiums:
- Location: If the insurer perceives that you live in an area with a higher risk for accidents, theft and vandalism, you might get a higher insurance quote.
- Gender: As you get older, your gender matters less, but it still plays a role. You’ll probably pay more as a man than you would as a woman.
- Age: Teenagers pay the most for car insurance. However, as you get older and if you remain a safe driver, you might see lower rates over time.
- Driving record: The more traffic violations and accidents you have, especially in a short period of time, the higher your car insurance rate.
- Credit score: Some insurers believe that a lower credit score indicates that you could be a risky driver. You might see a lower auto insurance premium in New Jersey if you have good to excellent credit.
- Type of car: Sports cars, modified cars and late-model cars may cost more to insure because they are costlier to repair. Conversely, you may see lower rates for cars with safety features.
How to lower your car insurance premium in New Jersey
When looking to lower your car insurance premium in New Jersey, here are some ways to shave off a bit from your monthly costs:
- Compare quotes: Use a website like Insurify to compare rates for multiple insurers to find the lowest rates.
- Increase your deductible: Increasing your deductible from the minimum might also save money monthly. With the highest amount of coverage, the average savings drivers might see from raising a deductible to $1,500 from $500 could be about $15 per month or $180 per year.
- Get liability-only: Consider dropping comprehensive coverage if your car has fallen enough in value that it is relatively easy to replace. Liability-only coverage is usually much cheaper.
- Look for discounts: Ask an insurance agent what discounts are available for drivers in New Jersey. You might be able to lower your monthly premium by taking a driving course or through membership to certain professional organizations.
Cheapest car insurance companies in New Jersey
The cheapest car insurance companies in New Jersey depend on what you qualify for and the discounts you can get. Some places to start, according to MoneyGeek, include:
Note that these might not be the cheapest depending on your situation. You should still compare different companies to see what insurance is cheapest in New Jersey.
Frequently asked questions (FAQs)
Why is car insurance so expensive in New Jersey?
While it’s not the most expensive state for car insurance in the country, New Jersey still ranks 45th for affordability. Car insurance is likely higher due to traffic levels in urban areas, proximity to other major cities and the number of claims in the state.
How much is car insurance in NJ monthly?
While the exact cost of your car insurance will depend on things like your age, car and driving record, the overall average monthly car insurance cost is $124 in New Jersey.
This story was written by NJ Personal Finance, a partner of NJ.com. The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.
