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The Best Car Insurance Companies in New Jersey

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    Reviews Report

    • State Farm is the best New Jersey car insurance company, earning a 4.6 out of 5 Reviews.com score.
    • The best cheap car insurance in NJ is New Jersey Manufacturers Insurance, with an average annual minimum coverage premium of $649.
    • The average annual car insurance rate in New Jersey is $1,151 for minimum coverage and $2,057 for full coverage.

    New Jersey is one of the smallest states, but it has 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 select the top companies.

    The 5 Best Auto Insurance Companies in New Jersey

    Compare the Best Car Insurance Companies in New Jersey

    AVERAGE PRICE FOR MINIMUM COVERAGE* 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 New Jersey Manufacturers Insurance$649$1,6153.6A+867
    Pin State Farm$1,375$23104.6A++851
    Pin Geico$777$1,8464A++835
    Pin Allstate$1,109$2,2674A+830
    Pin Progressive$988$2,1054.2A+834

    Information accurate as of September 2021

    * Data provided by Coverage.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 Auto Insurance

    Cheapest New Jersey Car Insurance

    Why we chose it

    New Jersey Manufacturers Insurance, a regional company, offers the lowest rates for New Jersey drivers with an average annual premium of $649 for state minimum coverage, based on our research. Furthermore, its high customer satisfaction scores mean drivers can rest easy knowing their needs will be met.
    • 3.6 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,615* 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.
    • 867** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    New Jersey Manufacturers Insurance, a regional company, offers the lowest rates for New Jersey drivers with an average annual premium of $649 for state minimum coverage, based on our research. Furthermore, its high customer satisfaction scores mean drivers can rest easy knowing their needs will be met.

    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
    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

    MORE NEW JERSEY MANUFACTURERS INSURANCE REVIEWS

    State Farm

    Best for Customer Satisfaction

    Why we chose it

    State Farm has highly-rated customer satisfaction for New Jersey drivers, according to J.D. Power’s auto insurance study. Plus, the company’s large network of agents makes it convenient to manage your auto insurance policy.
    • 4.6 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $2,310* 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.
    • 851** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    State Farm has highly-rated customer satisfaction for New Jersey drivers, according to J.D. Power’s auto insurance study. Plus, the company’s large network of agents makes it convenient to manage your auto insurance policy.

    Pros

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

    Cons

    • Higher-than-average premiums
    • No accident forgiveness coverage available
    • Fewer additional endorsements than competitors
    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

    More State Farm Insurance Reviews

    Geico

    Best for Discounts

    Why we chose it

    Geico offers customers multiple ways to lower your bill by providing a long list of discounts, including safe vehicle, good driver, military, and federal employee.
    • 4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,846* 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.
    • 835** 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 providing a long list of discounts, including safe vehicle, good driver, military, and federal employee.

    Pros

    • Many discounts available
    • Highly-rated mobile app
    • Special coverage for trips to Mexico

    Cons

    • No gap coverage
    • Few local agents
    • Average customer satisfaction
    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

    More Geico Insurance Reviews

    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.
    • $2,267* 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.
    • 830** 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
    • Only 6-month policies available
    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

    More Allstate Insurance Reviews

    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 a policy elsewhere, and the company offers many ways to lower your premium through discounts and smart driving.
    • 4.2 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $988* 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.
    • 834** 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 a policy elsewhere, and the company offers many ways to lower your premium through discounts and smart driving.

    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
    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

    More Progressive Insurance Reviews

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

    **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 is one of the most expensive states in the nation for minimum liability coverage, which could be partially due to its dense traffic and high cost of living. Based on average quoted premiums, drivers in New Jersey may expect to pay an average of $1,151 per year for the state’s minimum liability insurance, while a full-coverage policy costs around $2,057 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.

    Top 3 Cheapest Car Insurance Companies in New Jersey

    CompanyAverage Annual Premium for Minimum Coverage
    New Jersey Manufacturers Insurance$649
    Progressive$988
    Geico$777

    * 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 for Minimum Coverage
    Farmers$1,753
    American Independent$1,745
    State Farm$1,375

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

    New Jersey Auto Insurance: What You Need to Know

    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.

    New Jersey Minimum Insurance Requirements

    **NJ offers two “minimum” coverage options: the basic policy and the standard policy. 

    Official website

    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.

    Standard policy (UM/UIM required)

    • $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 are available on standard policies. Our minimum rates for NJ are for standard policies.

    **New Jersey is a no-fault state but you can choose a tort option to be able to sue the at-fault party.**

    Additional Car Insurance Coverage in New Jersey

    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 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.

    New Jersey Car Insurance FAQ

    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 X, 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 Coverage.com’s data, based on the profiles of 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

    Cate Deventer

    Cate Deventer Insurance Editor

    Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.

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