Best Car Insurance in New Jersey in 2025
Updated
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New Jersey auto insurance rates are significantly higher than the national average. That's tough for drivers to swallow, but those who choose the best car insurance in New Jersey can often find coverage for far less.
Here's a closer look at the top companies for various types of drivers, along with key information all drivers in New Jersey should know.
NJM Insurance is our pick for the best car insurance in New Jersey, thanks to its comprehensive policies and competitive rates. Customers have also given the company above-average ratings for overall customer service and claims handling.
Geico is a strong contender for those on a tight budget. Its average annual premium in the state is just $1,870 -- well below the state average of $4,316 per year. However, its customer service isn't rated as highly as some of the other companies listed here.
Drivers with clean records can find affordable rates and excellent service with NJM Insurance. Its average annual premium for these drivers is just $1,988. By contrast, the state average is a whopping $3,285 per year.
State Farm is an excellent choice for those who place a premium on helpful service. It earned one of the highest scores in the Mid-Atlantic region of J.D. Power's most recent U.S. Auto Insurance Study, and it was also in the top five of J.D. Power's U.S. Auto Claims Satisfaction Study. The company has an A rating with the Better Business Bureau as well.
Price is typically the most important factor for those seeking minimum coverage. The New Jersey average is a costly $1,434 per year. But those who go with Geico can get the same coverage for just $545 per year.
Military veterans can also find something to appreciate with NJM Insurance. While it doesn't offer military-specific discounts, it does have some of the most affordable rates for military members and veterans. Their average annual premium is just $1,990.
Teen drivers pay some of the highest average New Jersey car insurance rates at $9,202 per year. But NJM offers them a much more reasonable $3,978 per year. The company also offers Good Student and Defensive Driving course discounts that could help teens save even more.
Drivers with a single speeding ticket see their average New Jersey auto insurance premiums rise to $4,256 per year. But those who go with NJM pay just $2,461 per year typically.
New Jersey car insurance is well above the national average of $3,017 per year. The table below gives the typical monthly and annual premiums for several common driver personas. But keep in mind that actual rates will vary depending on the driver in question, their vehicle make and model, their location within the state, and more.
| Driver Persona | Average Monthly Premium | Average Annual Premium |
|---|---|---|
| Overall | $359.67 | $4,316 |
| Drivers With Clean Records | $273.75 | $3,285 |
| Teen Drivers | $766.83 | $9,202 |
| Senior Drivers | $259.17 | $3,110 |
| Military Drivers | $272.08 | $3,265 |
| Drivers With 1 Accident | $400.08 | $4,801 |
| Drivers With 1 Speeding Ticket | $354.67 | $4,256 |
| Drivers With 1 DUI | $517.17 | $6,206 |
| Drivers Seeking Minimum Coverage | $119.50 | $1,434 |
Here are a few auto insurance laws all New Jersey drivers need to be aware of:
New Jersey is one of the country's few no-fault states. This means that in the event of an accident involving injuries, all drivers bill their own insurance, regardless of who was at fault. This is different from at-fault states where the driver who caused the accident must pay for the hospital bills for all parties involved.
New Jersey drivers who skip the state's minimum coverage could face the following penalties:
New Jersey has an unusual approach to minimum car insurance coverage. Drivers may either opt for basic coverage or standard coverage.
This coverage includes:
However, this policy also gives drivers limited rights to sue for damages in severe accidents.
The standard coverage option is closer to what most of the rest of the country requires. Drivers who go this route must have at least:
The standard policy option gives drivers the right to choose between an unlimited right to sue for pain and suffering and a limited right to sue.
Here are a few other things New Jersey drivers should keep in mind when shopping for car insurance:
Perhaps due to the state's flexible coverage options, only 3.1% of its drivers lack insurance. But as the coverage requirements outlined above show, it's possible to have insurance and still come up short in a severe accident. Drivers who want to be well-protected should purchase higher limits if they're able to.
New Jersey minimum auto insurance pays for damages to other people's property and the policyholder's medical care. But it doesn't cover repairs to the policyholder's vehicle following a crash. Those who want help with these bills will find what they need with collision and comprehensive coverage.
Here are a few things New Jersey drivers can do to keep their costs manageable:
NJM Insurance is the best car insurance in New Jersey. It offers excellent customer service along with affordable rates for many drivers.
Yes, New Jersey auto insurance is well above average. Its average annual premium is $4,316 compared to just $3,017 for the nation as a whole.
New Jersey drivers can lower their car insurance by shopping around and comparing quotes from several companies. They can also raise their auto insurance deductible to lower their monthly premiums.
All New Jersey drivers need car insurance to operate a vehicle legally. There's never a time when driving without insurance is allowed.
New Jersey drivers who skip car insurance could receive fines and insurance surcharges, be required to perform community service, or lose their driving privileges.
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The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.