New Jersey requires all drivers to carry personal injury protection (PIP) and liability insurance. This comprehensive coverage requirement makes New Jersey a 'no-fault' state. Car owners in New Jersey must choose between basic or standard auto insurance types. The answer to 'how much is car insurance in NJ' depends on the type of insurance you select, among other factors such as credit score and driving record.
Basic vs. Standard Insurance
Basic insurance is less expensive than standard and offers limited coverage. It covers injuries you obtain and a small amount of damage you cause if you hit another car, making it a great option for individuals without significant savings or assets.
A basic policy includes:
- Property damage liability coverage of $5000, which covers, up to your limits, damage you cause to other cars or property.
- $15,000 personal injury protection per person, per accident, which pays for any medical expenses require for yourself, passengers, or authorized drivers of your vehicle. PIP also covers you and family members on the plan if injured while riding in someone else's vehicle or hit by a car while walking. You can use this 'no-fault' insurance regardless of who caused the damage.
New Jersey does offer the option to add an additional $10,000 in bodily injury liability, according to ValuePenquin. However, uninsured motorist coverage is unavailable with the basic option, so unless you receive severe or permanent injuries, you cannot sue for damages if hit by an uninsured driver.
If you want more sufficient coverage, a standard policy is a good option that costs a bit more.
Standard policies offer:
- $15,000 bodily injury liability per person, with a maximum of $30,000 per accident. This covers injuries others receive as a result of an accident you cause or one caused by any drivers listed under your policy, up to your policy limits.
- $5000 property damage liability, which covers any damage caused to property and vehicles that aren't yours.
- $15,000 personal injury protection per accident or per person, which you can raise up to $250,000.
- $5000 uninsured motorist property damage, which covers any damage to your vehicle, up to your policy limits, caused by a driver who lacks sufficient insurance coverage.
Average Car Insurance Premiums in New Jersey by Age
According to CarInsurance.com, your insurance premiums fluctuate with age. Auto insurance tends to be more expensive for teenagers and younger drivers, whom insurance companies deem less responsible and less experienced than older drivers.
In New Jersey, auto coverage for a 16-year old driver is almost seven times higher per year at $7870 than insurance for a driver over 50, who pays an average of $1497.
Regardless of where you live, adding a young driver to your coverage will greatly impact your rate. In New Jersey, expect your rate to increase by 223 percent on average for 16-year-old drivers.
Other Factors That Affect Insurance Premiums
Premiums are dictated based on a number of factors other than state and age. Marital status, credit, and risk level will also affect your premium price.
- Marital status: Married couples usually receive a discount on their insurance policies. In New Jersey, married drivers save roughly $104 a year on insurance.
- Credit score: When shopping for car insurance, one thing that will hike up your rates is poor credit. Insurance companies rely heavily on credit scores to determine a customer's ability to pay for coverage on a reliable basis. Per The Zebra, data show that drivers with exceptional credit history receive inexpensive policies because they are more dependable clients and less likely to file claims insurance companies will need to cover.
- Risk: Drivers who are found at fault for a crash or guilty of a driving offense will see a rise in insurance rates. NerdWallet notes that your auto insurance will continue to increase the more violations you accrue, so maintaining a great driving record is important for keeping your rates down.
Best Car Insurance in New Jersey
Insure.com performed a survey of 3700 customers and found the following 17 insurance companies rated the highest for the best auto insurance in New Jersey, with USAA as the top-rated provider:
- USAA
- CSAA Insurance Group
- The General
- Liberty Mutual
- Allstate
- Auto Club of Southern California (Auto Club Enterprise Insurance Group)
- Geico
- Hartford
- Farmers
- Progressive
- Esurance
- State Farm
- Safeco
- Nationwide
- Travelers
- MetLife
- Erie
Best Car Insurance in New Jersey for 2020
If you're looking for information on car insurance rates, here are the most recent data for common situations:
Good Credit and Clean Driving Record
For 2020, drivers with good credit and a good driving record can get inexpensive insurance policies at the following companies:
- NJM: $1301 annually
- Plymouth Rock: $1326 annually
- Geico: $1453 annually
- Travelers: $1715 annually
- Progressive: $1760 annually
Poor Credit and Clean Driving Record
Drivers with poor credit can still find fairly affordable policies if their driving histories are clean. Here are the least expensive insurance companies in New Jersey and their average annual prices:
- NJM: $2041 annually
- Progressive: $3042 annually
- Geico: $3101 annually
- Allstate: $3686 annually
- State Farm: $3804 annually
Recent Speeding Ticket
If you have a recent speeding ticket on your driving record, here are the least expensive auto insurance companies to get quotes from and their average annual rates:
- NJM: $1552 annually
- Geico: $1723 annually
- Progressive: $2221 annually
- Travelers: $2300 annually
- Allstate: $2326 annually
Young Driver With Clean Driving Record
Here are the least expensive insurance companies for young drivers with clean records looking for policies with the minimum required insurance:
- NJM: $759 annually
- Geico: $765 annually
- Progressive: $967 annually
- Travelers: $972 annually
- Plymouth Rock: $991 annually
25-Year-Old With Good Credit and Clean Driving History
Here are the least expensive insurance companies for drivers age 25 with great records and credit history:
- NJM: $1591 annually
- Geico: $1676 annually
- Travelers: $1753 annually
- Progressive: $1899 annually
- Plymouth Rock: $1964 annually
Recommended Car Insurance Coverage
According to QuoteWizard, these are the two most recommended auto insurance coverages to include in your policy:
Collision and Comprehensive
Collision covers damage to your vehicle as a result of an accident. Comprehensive covers the cost to replace a stolen vehicle, as well as any damages to your vehicle caused by theft, vandalism, fires, flood, hail, falling objects, and harm caused by animals.
Uninsured/Underinsured Motorist
This covers any damages caused by drivers with no insurance or insufficient insurance to pay fully for repairs or medical expenses. In New Jersey, this coverage is required and must match your liability limits.
Finding the best insurance in New Jersey depends on a number of factors. It takes time and effort to find the perfect company to fit your needs and budget, but the search is worth having great coverage you can afford.
Sources:
https://www.thezebra.com/new-jersey-car-insurance/nj-average-cost-of-auto-insurance/
https://www.carinsurance.com/state/New-Jersey-car-insurance.aspx
https://www.nerdwallet.com/blog/insurance/cheapest-car-insurance-in-new-jersey-nj/
https://quotewizard.com/auto-insurance/new-jersey
Hearst Autos Research
Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.
