HomepageInsuranceCarThe Best New Jersey Auto Insurance Companies

The Best New Jersey Auto Insurance Companies

Fact-checked with HomeInsurance.com ​
Insurance Disclosure This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Reviews.com. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Save money on auto coverage with our simple comparison tool.

Please enter a valid zip code

Powered by HomeInsurance.com (NPN: 8781838)

Click at least 2-3 companies to find the very best rate.

    Advertiser Disclosure

    Close icon.

    We are an independent publisher. Our reporters create honest, accurate, and objective content to help you make decisions. To support our work, we are paid for providing advertising services. Many, but not all, of the offers and clickable hyperlinks that appear on this site are from companies that compensate us. The compensation we receive and other factors, such as your location, may impact what ads and links appear on our site, and how, where, and in what order ads and links appear. While we strive to provide a wide range of offers, our site does not include information about every product or service that may be available to you. We strive to keep our information accurate and up-to-date, but some information may not be current. So, your actual offer terms from an advertiser may be different than the offer terms on this site. And the advertised offers may be subject to additional terms and conditions of the advertiser. All information is presented without any warranty or guarantee to you.

    New Jersey is one of the smallest states, but with a dense population and high cost of living. As a result, drivers in New Jersey pay some of the nation’s highest car insurance rates. The state’s unique insurance laws also impact average premiums. When looking for the best car insurance in New Jersey, we considered affordability, customer support, coverage options, customer satisfaction, and online resources to narrow the list down to our five favorite companies.

    The 5 Best Auto Insurance Companies in New Jersey

    • NJM 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 State Minimum* Average Price for Full Coverage* Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. 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 NJM Insurance$853.16$2,057.723.4/5A+847/1,000
    Pin State Farm$1,798.62$2,465.154.8/5A++855/1,000
    Pin Geico$1,200.73$2,180.144.4/5A++841/1,000
    Pin Allstate$1,392.58$2,349.994/5A+812/1,000
    Pin Progressive$1,110.11$2,219.934.2/5A+828/1,000

    Information accurate as of: 11/27/2020

    * Data provided by Coverage.com

    NJM Insurance

    NJM Auto Insurance

    Best for low rates

    Why we chose it

    NJM Insurance, a regional company, offers the lowest rates for New Jersey drivers, along with highly-rated customer service.
    • 3.4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $853.16* Average Premium Pricing data comes from our partners at Coverage.com.
    • A+ AM Best Rate 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.
    • 847** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    NJM Insurance, a regional company, offers the lowest rates for New Jersey drivers, along with highly-rated customer service.

    Pros

    • Low annual premiums
    • Highly-rated customer service
    • Wide variety of coverage options

    Cons

    • Only available in a handful of states
    • No mobile app to manage your policy
    Read More

    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

     * Data provided by Coverage.com, price based on the state minimum required policy.

    **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.

    Further Reading on NJM Insurance:

    State Farm

    State Farm

    Best for customer satisfaction

    Why we chose it

    State Farm has the top-rated customer satisfaction for New Jersey drivers and offers unique coverage options.
    • 4.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,798.62* Average Premium Pricing data comes from our partners at Coverage.com.
    • A++ AM Best Rate 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.
    • 855** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    State Farm has the top-rated customer satisfaction for New Jersey drivers and offers unique coverage options.

    Pros

    • Top-rated customer satisfaction
    • Many coverage options, including rideshare
    • Useful digital tools

    Cons

    • High annual rates
    • No accident forgiveness
    • Fewer discounts available
    Read More

    Types of Coverage Offered

    • Collision
    • Comprehensive
    • Liability
    • Car rental and travel expense
    • Uninsured & underinsured motorist
    • Medical payments
    • Emergency road service
    • Rideshare driver

    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

     * Data provided by Coverage.com, price based on the state minimum required policy.

    **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.

    Further Reading on State Farm:

    Geico

    Geico

    Best for discounts

    Why we chose it

    Geico offers customers multiple ways to lower your bill by having the best line-up of discounts.
    • 4.4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,200.73* Average Premium Pricing data comes from our partners at Coverage.com.
    • A++ AM Best Rate 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.
    • 841** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Geico offers customers multiple ways to lower your bill by having the best line-up of discounts.

    Pros

    • Many discounts available
    • Above-average customer satisfaction

    Cons

    • No gap coverage
    • Few local agents
    Read More

    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

     * Data provided by Coverage.com, price based on the state minimum required policy.

    **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.

    Further Reading on Geico:

    Allstate

    Allstate

    Best for coverage options

    Why we chose it

    Allstate offers the most comprehensive list of coverages, including unique options like rideshare and sound system coverage.
    • 4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,392.58* Average Premium Pricing data comes from our partners at Coverage.com.
    • A+ AM Best Rate 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.
    • 812** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Allstate offers the most comprehensive list of coverages, including unique options like rideshare and sound system coverage.

    Pros

    • Many coverage options
    • Excellent digital tools and resources
    • Large network of local agents

    Cons

    • Below average customer satisfaction
    • Higher rates than many competitors
    Read More

    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

     * Data provided by Coverage.com, price based on the state minimum required policy.

    **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.

    Further Reading on Allstate:

    Progressive

    Progressive

    Best for high-risk drivers

    Why we chose it

    Progressive is well-known for offering coverage to high-risk drivers who may struggle to find it elsewhere, with many ways to lower your premium.
    • 4.2 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,110.11* Average Premium Pricing data comes from our partners at Coverage.com.
    • A+ AM Best Rate 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.
    • 828** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Progressive is well-known for offering coverage to high-risk drivers who may struggle to find it elsewhere, with many ways to lower your premium.

    Pros

    • Low rates for New Jersey drivers
    • Coverage for high-risk drivers
    • Excellent digital tools

    Cons

    • Below-average customer satisfaction
    • Poor claims satisfaction
    Read More

    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

     * Data provided by Coverage.com, price based on the state minimum required policy.

    **J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Mid-Atlantic region. Based on a 1,000-point scale.

    Further Reading on Progressive:

    The Average Cost of Car Insurance in New Jersey

    New Jersey is one of the most expensive states in the nation for minimum liability coverage, partially due to its dense traffic and high cost of living. Drivers in New Jersey can expect to pay an average of $912 for the state’s minimum liability insurance, while a full-coverage policy will cost around $1,763. It’s best to shop around when choosing an insurance carrier — rates can vary by hundreds, if not thousands, 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.

    Top 3 Cheapest Car Insurance Companies in New Jersey

    CompanyAverage Annual Premium
    NJM Insurance$853
    Selective Auto Insurance$1,000
    Progressive$1,110

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Most Expensive Car Insurance Companies in New Jersey

    CompanyAverage Annual Premium
    Hanover Insurance$2,328
    Foremost$1,964
    Personal Service Insurance Company$1,873

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Cheapest Cities for Car Insurance in New Jersey

    CityAverage Annual Premium*
    Flemington$1,071
    Lebanon$1,071
    Whitehouse Station$1,073

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Most Expensive Cities for Car Insurance in New Jersey 

    CityAverage Annual Premium*
    Passaic$1,852
    Paterson$1,839
    Elizabeth$1,839

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Guide to New Jersey Car Insurance 

    New Jersey has unique auto insurance laws. The state has requirements you won’t find in other states but lacks some of the minimum liability limits that other states require.

    New Jersey’s No-Fault Law

    New Jersey is one of a handful of states with no-fault car insurance. Regardless of which driver causes an accident, each party is responsible for paying their own medical expenses. Because of this no-fault law, the state requires all drivers to carry personal injury protection (PIP) to cover their medical expenses after an accident. The state’s minimum PIP coverage includes $15,000 of PIP coverage per person, per accident, and must allow for up to $250,000 for certain serious injuries.

    New Jersey Minimum Insurance Requirements

    New Jersey’s Automobile Insurance Cost Reduction Act requires that all New Jersey drivers carry a basic insurance policy. A basic plan in New Jersey requires at least $5,000 per accident of property damage liability insurance. The state does not require bodily injury liability insurance.

    • Personal Injury Protection (PIP) – $15,000 per person, per accident
    • Property damage – $5,000 per accident

    Car Insurance Add-Ons That Will Further Protect You 

    • Uninsured/underinsured motorist: This coverage, optional in New Jersey, protects you from financial losses if you’re in an accident with another driver who doesn’t have insurance.
    • Roadside assistance: Most insurance companies offer this optional coverage you can use to get 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 vehicle and the insurance value 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.

    New Jersey Car Insurance FAQ 

    What is the minimum car insurance required in New Jersey?

    New Jersey law requires drivers to carry at least $5,000 of property damage liability coverage and $15,000 of personal injury protection per person per accident.

    What is the average auto insurance cost in New Jersey?

    Drivers in New Jersey can expect to pay an average of $912 for state minimum coverage and $1,763 for full coverage auto insurance coverage.

    What is the cheapest car insurance company in New Jersey?

    NJM insurance offers the most affordable auto insurance rates in New Jersey, with minimum coverage costing just $853.

    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 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 score. 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 Coverage.com’s data of car insurance in New Jersey, based on the profiles of a 30-year male and female. For full coverage, the details used were the following:

    • $100k bodily injury liability per person
    • $300k bodily injury liability coverage per crash
    • $100k property damage liability coverage per crash
    • $500 collision coverage deductible
    • $500 comprehensive coverage deductible

    Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting five days a week and driving 12,000 miles per year. Since auto insurance rates vary widely among different profiles, we encourage you to compare options that fit your specific needs.

    About the Authors

    Erin Gobler is an insurance writer for Reviews.com. Over the past three years, she has covered personal finance topics such as insurance, banking, mortgages, and more. Her work has been featured in sites such as The Simple Dollar, Bankrate, and Coverage.com. She holds a bachelor’s degree in Journalism from the University of Wisconsin-Oskosh. Erin’s favorite Reviews.com article is the State Farm Renters Insurance Review.

    Table Of Contents