Best car insurance in New Jersey for 2024

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

New Jersey car insurance laws are unique, and it is a no-fault state. There are two options for minimum required coverage: the basic policy and the standard policy. Basic policies include just a required level of property damage liability per accident and personal injury protection (PIP) coverage and come with the option to purchase bodily injury liability coverage. If you choose a basic policy, your ability to add other coverage types could be limited.

Standard policies include bodily injury liability, property damage liability and PIP, and also come with a broader range of optional endorsements to choose from. Understanding New Jersey’s car insurance laws could help you decide if you need to purchase more coverage than just the minimum required. In 2023 and again in 2026, the minimum liability levels required to drive legally are increasing, which will likely mean a corresponding increase in your premium if you opt for minimum coverage car insurance.

Drivers with loans or leases may have additional car insurance requirements to consider. Financing and leasing companies want financial protection for their asset (your vehicle) until it is paid off and in your name. They often do this by imposing insurance requirements that you must meet to comply with your financing or leasing agreement. To satisfy lender requirements, you may need to have full coverage insurance, which includes comprehensive coverage and collision coverage on your car insurance. Although not required, you could also consider gap insurance, which helps pay the difference between your loan balance and your vehicle’s cash value if your car is totaled.

Auto insurance is a highly personalized product. Each driver has their own needs, but you might find that not every company offers what you are looking for. If you have a youthful driver in your home, you may need to tailor your search toward companies that offer cheap car insurance rates for teens. Those who work remotely may find savings by purchasing pay-per-mile insurance. If you drive for a ridesharing company like Uber or Lyft, you may need to find a company that offers rideshare insurance. Before you shop, it can be helpful to list your priorities and use this as a guide while requesting car insurance quotes.

Finding the cheapest car insurance company in New Jersey will depend on your own specific circumstances and needs. For instance, a driver with a history of prior incidents or violations might find more affordable rates with a company that specializes in high-risk drivers, offering tailored policies that mitigate the higher premiums typically associated with such records. A driver who uses their vehicle infrequently might want to look for a company with a telematics program, where premiums are based on actual mileage and driving habits. Additionally, young drivers, those with excellent credit scores, or individuals seeking extensive discounts for bundling policies could find varying rates among different insurers. Ultimately, personal factors such as driving history, vehicle type, annual mileage and specific coverage play a crucial role in identifying the most cost-effective insurance provider in New Jersey. Insurance experts recommend seeking quotes from a variety of providers to find out the company that can offer you the best coverage for your needs at the cheapest rates.

Yes, New Jersey is a no-fault state. If you are in an accident, your personal injury protection (PIP) coverage is designed to help pay for your injuries and any injuries that your passengers sustain, regardless of who is at fault for an accident, up to your policy’s limits. PIP also covers lost wages due to injuries sustained in an accident.

In New Jersey, the average cost for full coverage car insurance is $221 per month, while for minimum coverage, the average monthly cost is $90. These figures are based on data gathered by Quadrant Information Services and represent state averages, so individual rates may vary based on personal factors and specific policy choices.

New Jersey insurance averages are often higher than the national averages, but the rate you pay is likely to differ from the average rate — and may indeed be more. Your rate is determined by factors that are unique to you and your situation, including your age, credit rating and driving history as well as your car's age, make and model. So, for example, if you have past marks on your license, your rate may be above the state averages. ZIP code also plays a role, and New Jersey's many urban areas may mean higher rates. Crowded city streets and highways are often more likely to see a high number of accidents than more rural locations, and car theft may also be more common in cities. These increased risks lead insurers to charge higher rates to protect themselves financially from expensive claims. Parts of New Jersey also occasionally experience severe weather coming in from off the coast, and this can lead to higher costs for comprehensive coverage.