Drivers in New Jersey must carry at least a minimum amount of car insurance if they own a registered vehicle. However, car insurance rates in New Jersey can be high, which means it’s important to shop around and compare providers to find the best policy at the lowest price.
To help you find the best car insurance in New Jersey, we reviewed some of the largest car insurance carriers based on average premium, coverage options, discounts, customer service, and third-party ratings for financial strength and customer satisfaction. See which providers could be good options for drivers in the Garden State.
The 5 Best Auto Insurance Companies in New Jersey
- New Jersey Manufacturers Insurance: Best for Low Rates
- State Farm: Best for Customer Satisfaction
- Geico: Best for Discounts
- Allstate: Best for Coverage Options
- Progressive: Best for High-Risk Drivers
Compare the Best Car Insurance Companies in New Jersey
| AVERAGE PRICE FOR MINIMUM COVERAGE* | Average Price for Full Coverage* | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Overall Customer Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin New Jersey Manufacturers Insurance | $370 | $1,271 | A+ (Superior) | 867 | |
| Pin State Farm | $724 | $1,244 | A++ (Superior) | 851 | |
| Pin Geico | $559 | $1,316 | A++ (Superior) | 835 | |
| Pin Allstate | $909 | $1,686 | A+ (Superior) | 830 | |
| Pin Progressive | $735 | $1,469 | A+ (Superior) | 834 |
Information accurate as of December 2021
* Data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.
New Jersey Manufacturers Insurance
Best for Low Rates
Why we chose it
Why we chose it
Pros
- Low annual premiums
- Highly rated customer service
- Wide variety of coverage options
Cons
- Only available in 4 states
- No mobile app to manage your policy
- Limited endorsement options
Types of Coverage Offered
- Liability
- Uninsured & underinsured motorist
- Medical expenses
- Collision
- Comprehensive
- Gap insurance
- Transportation expense
- Roadside assistance
- New car replacement
- Pet coverage
Discounts Available
- Driver training
- Electronic payment
- Full coverage
- Good student
- Home and auto bundle
- Multi-vehicle
- New car
- Paid-in-full
- Vehicle safety equipment
MORE NEW JERSEY MANUFACTURERS INSURANCE REVIEWS
State Farm
Best for Customer Satisfaction
Why we chose it
Why we chose it
Pros
- Highly-rated customer satisfaction
- Many coverage options, including rideshare
- Useful digital tools
Cons
- Higher premiums than some competitors
- No accident forgiveness coverage available for purchase
- Fewer additional endorsements than competitors
Types of Coverage Offered
- Collision
- Comprehensive
- Liability
- Car rental and travel expense
- Uninsured & underinsured motorist
- Medical payments
- Emergency road service
- Rideshare driver coverage
Discounts Available
- Accident-free
- Defensive driving course
- Good student
- Good driving
- Driver training
- Student away at school
- Vehicle safety features
- Passive restraint
- Anti-theft
- Multi-auto
- Multiple line
More State Farm Insurance Reviews
Geico
Best for Discounts
Why we chose it
Why we chose it
Pros
- Many discounts available
- Highly-rated mobile app
- Special coverage for trips to Mexico
Cons
- No gap coverage
- Few local agents
- Average customer satisfaction
Types of Coverage Offered
- Liability
- Medical
- Uninsured & underinsured motorist
- Collision
- Comprehensive
- Emergency road service
- Rental reimbursement
- Mechanical breakdown
Discounts Available
- Vehicle safety features
- Good driver
- Seat belt use
- Defensive driving
- Driver’s education course
- Good student
- Emergency deployment
- Federal employee
- Membership & employee
- Military
- Multi-vehicle
- Multi-policy
More Geico Insurance Reviews
Allstate
Best for Coverage Options
Why we chose it
Why we chose it
Pros
- Many coverage options
- Excellent digital tools and resources
- Large network of local agents
Cons
- Below-average customer satisfaction
- Higher rates than many competitors
- Only 6-month policies available
Types of Coverage Offered
- Collision
- Comprehensive
- Liability
- Medical payments
- Uninsured & underinsured motorist
- Sound system
- Roadside coverage
- Personal injury protection
- Personal umbrella
- Rental reimbursement
- Rideshare
- Classic car
- Travel to Mexico
Discounts Available
- Anti-lock brake
- Anti-theft device
- Multiple policy
- Early signing
- Responsible payer
- Smart student
- New car
- Automatic payments
- Paperless billing
- Full-pay
- Safe driver
More Allstate Insurance Reviews
Progressive
Best for High-Risk Drivers
Why we chose it
Why we chose it
Pros
- Low rates for New Jersey drivers
- Coverage for high-risk drivers
- Excellent digital tools
Cons
- Below-average customer satisfaction
- Poor claims satisfaction
- Discounts not available everywhere
Types of Coverage Offered
- Liability
- Comprehensive
- Collision
- Uninsured/underinsured motorist
- Medical payments
- Roadside assistance
- Loan/lease payoff
- Rental car reimbursement
- Customer parts and equipment value
- Rideshare coverage
- Deductible savings bank
Discounts Available
- Multi-policy
- Multi-car
- Continuous insurance
- Safe driver
- Teen driver
- Good student
- Distant student
- Homeowner
- Quote and sign online
- Paperless billing
- Pay in full
- Automatic payment
More Progressive Insurance Reviews
* Data provided by Bankrate.com
**J.D. Power’s 2021 U.S. Auto Insurance Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.
The Average Cost of Car Insurance in New Jersey
New Jersey car insurance rates can be high, which could be partially due to its dense traffic and high cost of living. Based on 2021 average quoted premiums from Bankrate.com, drivers in New Jersey can expect to pay an average of $847 per year for the state’s minimum liability insurance (for the “standard policy” coverage level), while a full-coverage policy costs around $1,757 per year. It can be helpful to shop around when choosing an insurance carrier — rates can vary by hundreds of dollars from one provider to the next. Other factors that will help determine your insurance rate include your age, driving history, vehicle, and credit score (in states where allowed).
Top 3 Cheapest Car Insurance Companies in New Jersey
| Company | Average Annual Premium for Full Coverage |
| Selective | $1,085 |
| Palisades | $1,135 |
| State Farm | $1,244 |
Top 3 Most Expensive Car Insurance Companies in New Jersey
| Company | Average Annual Premium for Full Coverage |
| The Hanover | $4,638 |
| American Independent | $3,414 |
| Farmers | $2,803 |
Top 3 Cheapest Cities for Car Insurance in New Jersey
| City | Average Annual Full Coverage Premium |
| Manasquan | $1,434 |
| Brielle | $1,434 |
| Sea Girt | $1,434 |
Top 3 Most Expensive Cities for Car Insurance in New Jersey
| City | Average Annual Full Coverage Premium |
| Irvington | $2,628 |
| Newark | $2,624 |
| East Orange | $2,573 |
Key Things to Know About Car Insurance in New Jersey
While the Garden State is one of the smallest states in the U.S., it is densely populated. This means that traffic-heavy roads present a higher risk of crashes and fatalities. Here’s what you need to know about driving and car insurance in New Jersey.
- In 2019, New Jersey’s rate of death for drivers was 0.71 deaths per 100 million vehicle miles traveled. This is slightly below the national average of 1.11.
- A total of 1,391 car crashes that occurred in New Jersey were linked to cell phone use while driving in 2019.
- In New Jersey, 276,861 accidents happened in 2019, slightly less than the 278,413 recorded in 2018.
In addition, New Jersey experiences occasional extreme weather, including hurricanes, tropical storms, wildfires, winter storms, and flooding. As a result, it can be important for drivers to have the right types of car insurance to protect their vehicle against these risks. Here are some things to consider when it comes to severe weather in New Jersey:
- During Hurricane Sandy in 2012, an estimated 100,000-250,000 vehicles in use were destroyed by flood waters.
- Every year, there are an average of 1,500 wildfires in New Jersey that damage or destroy 7,000 acres, including homes, vehicles, and personal property.
New Jersey Car Insurance Requirements
New Jersey has two different minimum coverage car insurance options: the basic policy and the standard policy. The coverage types and limits required are as follows:
Basic policy:
- Up to $10,000 in optional bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection (PIP)
Basic policies do not have an uninsured or underinsured motorist option. Depending on the insurance company, drivers with basic policies may also not be able to add comprehensive or collision coverage.
Standard policy:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection (PIP)
- $15,000 uninsured motorist bodily injury liability per person
- $30,000 uninsured motorist bodily injury liability per accident
- $15,000 underinsured motorist bodily injury liability per person
- $30,000 underinsured motorist bodily injury liability per accident
Comprehensive and collision coverage are available on standard policies.
Car Insurance Coverage Options
While a basic policy is all you need to drive legally in New Jersey, there are other coverages that could provide greater financial protection. For example, if you have a loan or lease on your vehicle, your financial institution likely requires you to carry comprehensive and collision coverages. Other coverages you may want to consider include:
- Uninsured/underinsured motorist: This coverage, required in New Jersey with a standard policy, protects you from financial losses if you’re in an accident with another driver who doesn’t have insurance or does not have enough insurance to pay for your damages.
- Roadside assistance: Most insurance companies offer this optional coverage you can use to get a towing service, tire change, and more in the event your car breaks down.
- Gap coverage: This optional coverage covers any financial losses you might experience when you total your new vehicle and the claim payout of the car is lower than the remaining amount on your loan or lease.
Accident forgiveness: Car insurance rates usually increase after an accident. With optional accident forgiveness coverage, your rates won’t increase after just one accident.
Frequently asked questions
Methodology
Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance companies in New Jersey, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company and averaged the scores to produce our very own Reviews.com rating. These scores were created with our readers in mind and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you.
As for average pricing, we used Bankrate.com’s data of car insurance in New Jersey, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets New Jersey’s standard policy option requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.
