Cheapest and Best Car Insurance in New Jersey as Rated by Customers in 2021
It can be difficult to tell which car insurance company is the best fit for you, especially when they all promise to save you money. If you're a customer shopping for New Jersey car insurance, you can use Clearsurance customer reviews to help you figure out which insurer is the best for you. Our hope at Clearsurance is to help you better understand how a company performs before you even purchase a policy so you can select the best auto insurance in New Jersey.
With thousands of evaluations from unbiased policyholders, we have reviews and rankings for hundreds of car insurance companies so you can evaluate and compare the best providers offering auto policies in New Jersey. You can find coverage regardless of what zip code you're in, if you have a few marks on your driving record, and much more. You may be surprised just how affordable the average cost can be.
If you're shopping for auto insurance, keep in mind the average cost is based on a lot of factors combined. So you can't know who will offer the lowest average cost until you get insurance quotes.
In the table above, you can sort through all the New Jersey car insurance companies ranked on Clearsurance. The rating next to each company is the insurer's Clearsurance score and is based exclusively on the ratings provided by customers. Note: Only those companies with at least 25 car insurance reviews are eligible to appear in the best New Jersey car insurance rankings.
Interested in learning more about these New Jersey car insurers? You can visit the company's profile page to find out what additional coverages they offer, any discounts they offer, and read car insurance reviews to learn from the experiences of other policyholders. Discounts to ask about include student discounts, military discounts, and safe driver discounts. It is also a good idea to talk to an insurance agent to see if the company offers any additional discounts.
On this page:
- Cheapest teen car insurance rates in New Jersey
- Cheapest car insurance rates for a married couple in New Jersey
- Cheapest senior car insurance rates in New Jersey
- 10 Cheapest areas in New Jersey for car insurance
- 10 Most expensive areas in New Jersey for car insurance
- Minimum car insurance coverage and limits in New Jersey
- New Jersey’s uninsured motorists percentage
Compared to their competitors, NJM offers the most affordable average car insurance rate for both male and female teen drivers in New Jersey. Rates will still be higher for teen drivers partly because they're just learning to drive. But an auto insurance quote can build in things like good student discounts. You can also decide what you want beyond basic property damage and bodily injury liability coverage.
In the table below, you can find average New Jersey teen car insurance rates for male and female drivers for the five largest car insurance companies in New Jersey.
|Company||Female teen rates||Male teen rates|
|NJM Insurance Group||$1,168||$1,164|
|State Farm Insurance Company||$3,605||$4,208|
These rates are based on profiles for 18-year-old male and female drivers in New Jersey. The car used was a 2015 Honda Civic EX. We used the minimum car insurance state limits. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.
Out of the five largest companies in New Jersey, Allstate offers the cheapest average car insurance rates for married couples in New Jersey. Allstate offers many insurance products. So you can also shop for homeowners, renters, and other policies to protect your belongings in the event of a disaster. Allstate offers comprehensive coverage in many areas of insurance. Married couples are often seen as more stable in insurance terms, and they're more likely to qualify for things like multi-car and multi-policy discounts.
Below is a table that displays New Jersey car insurance rates for a married couple with two cars on a policy from the five largest companies in the state.
|Company||Married couple rates|
|NJM Insurance Group||$2,262|
|State Farm Insurance Company||$3,554|
These rates are based on a 35-year-old married couple with two drivers and two vehicles on a policy. The cars used were two 2015 Toyota Highlander LEs. Full coverage was used with 100/300/50 policy limits and a $500 collision and comprehensive deductible. The drivers had 1 driving incident within the past 3 years and they both have a good credit score. The rates displayed should only be used for comparative purposes as individual coverage per person in New Jersey will differ. Rate data is provided by Quadrant Information Services.
Among the five largest companies in New Jersey, NJM Insurance Group provides the cheapest car insurance rates for male and female senior drivers in New Jersey. Senior drivers enjoy the benefit of more experience and discounts meant for drivers 65+. Some companies even cater specifically to the 65+ crowd with optional coverages, affordable prices, and more.
Below you can take a look at average New Jersey car insurance rates for male and female senior drivers for the five largest companies in the state.
|Company||Female senior rates||Male senior rates|
|NJM Insurance Group||$986||$985|
|State Farm Insurance Company||$1,232||$1,232|
These rates are based on profiles for 65-year-old male and female drivers. The car used for each was a 2015 Toyota Camry LE. Full coverage was used with 100/300/50 coverage limits and a $500 collision and comprehensive deductible. The drivers had zero incidents within the past three years and a good credit score. The rates displayed should only be used for comparative purposes as protection per person in New Jersey will differ. Rate data is provided by Quadrant Information Services.
Where are the cheapest areas for insurance?
The state you live in affects your car insurance rates, but did you know the area within the state that you live in also matters? Location is a factor that determines auto coverage rates regardless of the coverage option you choose. The frequency of criminal activity and car accidents can vary by zip code, and these are just a couple of the things that affect the lowest rates for auto insurance. In the table below, you can see the top 10 areas in New Jersey for cheap car insurance based on average rates for a single adult.
|Area||Car insurance rates|
These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 coverage limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.
What are the 10 most expensive areas in New Jersey for car insurance?
On average, the most expensive policies in New Jersey can be found in Newark. In the table below, you can see the top 10 most expensive areas in New Jersey for car insurance based on average auto insurance rates for single adults.
|Area||Car insurance rates|
These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.
What are minimum car insurance coverage and limits in New Jersey?
Most states outline the limits needed for minimum liability coverage as a legal driver, but New Jersey handles things a little differently. It offers two auto insurance policy options for drivers: basic coverage and standard coverage. Basic is the cheaper option, but it also provides drivers with significantly less coverage and choices than a standard policy. The basic policy comes with the set minimum liability limits, while a driver who selects a standard policy can select the minimum limits of a standard policy or opt for higher limits. Drivers should also include adding additional coverage to their auto policy. Some options to consider are collision coverage, underinsured motorist coverage, and uninsured motorist coverage.
The basic policy also doesn't come with bodily injury liability, though policyholders have the option to purchase $10,000 of bodily injury coverage. Bodily injury liability provides coverage for injuries sustained by the other vehicle's driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal insurance claims.
Another key difference between basic and standard is your right to sue if you are injured in a car accident. With a basic policy, you automatically have what New Jersey calls a “limited right to sue.” This means that you only can sue a driver who caused a car accident that resulted in one of the following permanent injuries: loss of a body part, significant disfigurement or significant scarring, displaced fractures, loss of a fetus, permanent injury, or death.
If you have a standard policy, you have the option to select “unlimited right to sue.” With this option, “you retain the right to sue the person who caused an auto accident for pain and suffering for any injury,” according to New Jersey’s state insurance website.
New Jersey coverage options and minimum limits:
- Property damage liability — $5,000 per accident
- Personal injury protection (PIP) — $15,000 per person, per accident
- Severe injuries — up to $250,000
- Bodily injury — $15,000 per person
- Bodily injury — $30,000 per accident
- Property damage — $5,000 per accident
- Personal injury protection (PIP) — $15,000 per person, per accident
- Severe injuries — up to $250,000
Property damage liability provides coverage in the event you damage someone else's property in a car accident, most commonly the other vehicle, but also things like a home or fence.
Personal injury protection (PIP) covers you for any injuries that you or someone else covered by your policy sustains in a car accident. If you have health insurance that covers injuries in a car accident, you can select your health insurance to be your primary insurance over PIP, which would help you save on premiums.
The severe injuries coverage in both policies is for “permanent or significant brain injury, spinal cord injury or disfigurement, or for medically necessary treatment of other permanent or significant injuries rendered at a trauma center or acute care hospital immediately following an accident and until the patient is stable, no longer requires critical care and can be transferred to another facility in the judgment of the physician,” according to New Jersey’s state insurance website.
If you have a standard policy, you can opt for uninsured motorist coverage. This offers you protection in the event you are involved in an accident with a driver who either doesn't have insurance or doesn't have enough coverage. If you do select the coverage, you may select limits up to your liability coverage. In New Jersey, 14.9 percent of drivers don't have auto coverage, according to 2015 data from the Insurance Information Institute. That is the 14th highest percentage of drivers uninsured in the country.
How are car insurance rates calculated in New Jersey?
When searching and comparing quotes from the best auto insurance companies in New Jersey, it can be frustrating trying to understand how your insurance rates are calculated. While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your policy. Among the factors that car insurers consider are:
- Your driving record (drivers who keep a clean driving record pay less in insurance)
- How much you drive
- Marital status
- Your car’s make, model and year
- Your credit history
- Amount of car insurance coverage (required coverage and optional add-ons, such as collision and comprehensive)
One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. For instance, those with a clean driving record or who have gone two years without an accident may find that if there were a lot of accidents nearby recently, their rates might still go up. Why is that the case?
Insurance companies disperse risk across all policyholders so that when it comes time to pay a claim, they have enough money to payout. However, imagine a scenario where they only raised rates for drivers with an accident. For drivers who had an expensive claim, they simply wouldn't be able to afford the raised rates that are based on how much their insurer had to pay after an accident. So instead, companies slightly increase rates across the board to offset the costs, though of course, the at-fault driver may see a larger increase.
How can you save money on your car insurance in New Jersey?
At the end of the day, we'd all like to have the best, affordable car insurance coverage from one of the best New Jersey car insurance companies. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance premiums.
Here are six ways you may be able to lower your car insurance rates:
- Bundle your car insurance with other insurance policies
- Consider raising your deductibles
- Pay your auto policy in full
- Try usage-based car insurance
- Monitor price changes to your policy
- Shop around getting auto insurance quotes to find better rates
How does Clearsurance rate and rank the best car insurance companies in New Jersey?
Consistent with their mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:
- Customer Service
- Claim service
- Likelihood to renew
The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.
The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings.
Do you have a car insurance guide?
Whether you're buying your insurance directly or going through an agent, understanding the different auto insurance coverage options is a must. Do you know what is covered by comprehensive car insurance? Are you familiar with uninsured motorist coverage? Do you know how a deductible works?
We want to make sure you’re equipped with a proper knowledge of car insurance, so check out our car insurance guide. Looking for more educational information about car insurance? Check out our car insurance blog for more information and related topics.
Frequently Asked Questions
Who offers the best teen car insurance rates in New Jersey?
Out of the five largest companies in New Jersey, NJM Insurance Group is the cheapest car insurance option for both male and female teen drivers on average.
Who offers the best car insurance rates for a married couple in New Jersey?
Out of the five largest companies in New Jersey, Allstate offers the cheapest car insurance rates for married couples in New Jersey on average.
Who offers the best senior car insurance rates in New Jersey?
Among the five largest companies in New Jersey, NJM Insurance Group provides the cheapest car insurance rates for male and female senior drivers in New Jersey on average.