New Jersey Car Insurance
Everything You Need to Know About Auto Insurance in New Jersey
One of the original 13 U.S. states, New Jersey is small in size but densely populated. Across the Hudson River from New York and the Delaware River from Pennsylvania, the state has always held its own prominence by being at the forefront during the American Revolution, the Industrial Revolution, and many other important historical developments that helped shape the U.S.
The state is a great place to do business, home to nearly a million small businesses and major corporations such as Johnson & Johnson, Merck, Prudential Financial, and about a dozen Fortune 500 companies. Some of its world-famous attractions include Six Flags Great Adventure and Safari in Jackson, Liberty State Park in Jersey City, the Atlantic City casinos, and the Meadowlands sports arena in East Rutherford, where the New York Giants and Jets play their home games, despite being from out of state. With about 130 miles of coastline along the Atlantic Ocean, the famous Jersey Shore attracts vacationers all summer long.
Comprising only slightly more than 8,700 square miles, this state packs quite the punch for its size. With over 9.5 million residents and an endless flow of tourists, many areas of the state get congested throughout the day. Wind events, snow, rain, and fog also affect driving conditions in the state. Your expert InsureOne agent can help you secure the best car insurance in New Jersey so you can enjoy the state without having to worry about whether you are protected if you get into an accident.
How Much Does Car Insurance Cost in New Jersey?
Full coverage car insurance in New Jersey averages $2,736, and minimum liability costs $1,124. These rates are much higher than the national average of $2,014 for full coverage and $622 for minimum liability. A high rate of accidents due to urban density and congested high-speed highways, and the high cost of medical care and car repairs contribute to auto insurance in New Jersey being among the most costly in the U.S.
What Does It Mean If New Jersey Is a No-Fault State?
New Jersey car insurance is based on a no-fault set of laws. As a driver, this means that if you are injured in an accident, whether or not you caused it, your insurer is responsible for paying for your injury-related expenses. At-fault vs. no-fault systems are the same when it comes to property damages — the negligent party’s insurer pays all such losses up to the policy holder’s limits. The state requires drivers to obtain personal injury protection (PIP) to ensure they have coverage if they are injured in an accident, which is typical for no-fault states.
Affordable Car Insurance Rates Comparison by Cities in New Jersey
As you compare car insurance quotes in New Jersey, you have to provide your agent with the city and ZIP code because each area has different rates based on local factors. The following table shows rates for several cities, suburbs, and rural towns in the state.
| City | Full Coverage Insurance | Liability Insurance Coverage |
|---|---|---|
| Cherry Hill | $223 | $89 |
| Edison | $239 | $95 |
| Elizabeth | $331 | $130 |
| Jersey City | $295 | $115 |
| Newark | $347 | $131 |
| Paterson | $332 | $132 |
| Parsippany | $213 | $76 |
| Shiloh | $243 | $91 |
| Toms River | $220 | $90 |
| Yardville | $216 | $81 |
Our average auto policy costs are based on a male driver, aged 30, with a clean driving record. Liability insurance coverage is the state‑required minimum. Full coverage is based on a 100K/300K/100K policy. Your costs will depend on your individual circumstances.
How Bundling Your Vehicle and Homeowners Insurance Can Save You Money in New Jersey
If you ask your agent how to get affordable car insurance in New Jersey, they will likely advise you to bundle your auto and home policies. Insurers work hard to bring in new business, and when you give them an additional policy to bind for you, they will offer anywhere from 5% to 25% off both policies. You will likely save more in cities like Elizabeth and Paterson, where rates are high, than in Yardville and Parsippany, where premiums are lower. Regardless of where you live, your InsureOne agent will shop your auto and homeowners insurance with several top-tier carriers and will get you the best car insurance in New Jersey at affordable prices.
Discounts for Car Insurance in New Jersey
There are many discounts for car insurance in New Jersey, and the more you qualify for, the lower your premiums will be. Below are some examples of the types of discounts insurers offer:
- Low mileage
- Good driver
- Defensive driver
- Military
- Antitheft
- Loyalty
- Good student
What Are the Car Insurance Laws in New Jersey?
New Jersey auto insurance laws are somewhat unique in that you can choose between different minimum policies based on your needs and your willingness to forgo your right to sue if you get into an accident. Also, every driver is required to obtain PIP, much like in other no-fault states. There is no SR-22 insurance in New Jersey for uninsured motorists because the state has strict penalties for drivers without coverage. Here are some more details about New Jersey auto insurance laws:
What Are the Minimum Car Insurance Requirements in New Jersey?
New Jersey DMV insurance requirements allow you to choose a basic policy with very low limits, but with limited opportunity to file a lawsuit if someone crashes into your vehicle. Or you can choose a standard policy with more rights to bring negligent drivers who cause an accident to court. The basic option includes:
- $5,000 in property damage liability
- $15,000 in personal injury protection (PIP)
The standard option includes:
- $35,000 in bodily injury protection per person
- $70,000 in bodily injury protection per accident
- $25,000 in property damage coverage
- $15,000 in PIP
If you choose a standard policy, you can reduce your premiums by signing a “Limitation on Lawsuit,” which is also known as “limited tort.” This option restricts your ability to sue for pain and suffering in an accident unless the injury is very serious.
What Is the Penalty for Driving Without Insurance in New Jersey?
Driving without auto insurance in New Jersey will land you in a lot of trouble. The state has a very low tolerance level for uninsured drivers and imposes these penalties for a first offense:
- Fines of $300 to $1,000
- Community service requirement to be determined by the court
- Possible driving suspension for up to one year
- A $250 yearly insurance surcharge for three years
The penalties increase significantly for a second offense, as follows:
- Up to a $5,000 fine
- 14 days imprisonment
- 30 days of community service
- Possible two-year suspension
Uninsured motorists are not required to obtain SR-22 insurance in New Jersey. Instead, the state relies on these strict fines and penalties to deter drivers from operating a vehicle without having a policy in place.
What Factors Does New Jersey Law Allow in Determining Your Premiums?
New Jersey car insurance regulations allow insurers to use many different factors, some that are not directly related to your driving abilities, in determining your rates. These are some of the details your provider will use:
- Age
- Gender
- Credit history
- Vehicle type
- Location
- Marital status
- Driving record
- Driving experience
What Happens If I Damage Property in New Jersey?
Basic New Jersey car insurance policies have extremely low limits. Even if you get into a light accident in traffic on Route 21 in Newark, you can easily exceed the policy’s $5,000 property damage limit. This means that if you crash into another vehicle and cause $8,000 in damage, your insurer will cover the first $5,000, and you will have to pay $3,000 out of pocket. To prevent this from happening, ask your InsureOne agent to help you customize a policy that gives you the right amount of protection for this state.
What Is Driving Like in New Jersey?
Despite being one of the smallest U.S. states, the terrain and driving conditions here are diverse. Cities like Newark and Trenton can have heavy local traffic throughout the day, and you do not want to get stuck on Route 9 or the Garden State Parkway during rush hour. However, the three-lined, idyllic back roads of Howell or Jackson can be quite a pleasant drive throughout the day.
During the winter months, snow can cause issues, especially in the northern counties like Sussex or Passaic. Occasional hurricanes can present a challenge, but they are limited in the state, and there is always ample warning.
Generally, driving throughout the state is no different than in any other area — once you get the lay of the land, you know the pitfalls to avoid in order to have a pleasant driving experience.
How Many Car Accidents Happen in New Jersey?
In 2023, there were 606 crash-related deaths on state roads. The following data is for individual municipalities within the state:
| City | Fatal Motor Vehicle Crashes |
|---|---|
| Cherry Hill | 5 |
| Edison | 4 |
| Elizabeth | 10 |
| Jersey City | 10 |
| Newark | 28 |
| Paterson | 8 |
| Parsippany | 5 |
| Shiloh | 0 |
| Toms River | 8 |
| Yardville | 0 |
How Many Uninsured/Underinsured Motorists Are in New Jersey?
The Insurance Information Institute reports that 14.1% of the state’s drivers had no coverage at all in 2023. On top of that, many drivers who do have coverage only have a basic policy with a $5,000 limit for property damage, which means they will likely have to pay out of pocket if they crash into your vehicle. To protect yourself from having to sue a driver for damages above a negligent driver’s policy limits, ask your InsureOne agent about adding uninsured/underinsured motorist coverage to your policy.
Get the Best Car Insurance in New Jersey Today
As you shop for coverage, you likely have lots of questions: How much does car insurance cost in New Jersey? What are the car insurance laws in New Jersey? What are the minimum car insurance requirements in New Jersey? Count on our experts at InsureOne to show you how to get affordable car insurance in New Jersey without hassle and without giving up on important coverage that you and your family need.
Our one-stop shop for all your insurance needs — liability insurance, SR-22 insurance, full coverage, or any other coverage — offers bilingual experts who compare car insurance quotes in New Jersey from top-tier carriers to get you the best coverage available. Contact us to get a quote online, stop by one of our offices, or call us at 800‑836‑2240.
FAQs
How Much Does Car Insurance Cost in New Jersey?
You will pay an average of $2,736 for full coverage in New Jersey and $1,124 for minimum liability insurance. The national average for these policies is $2,014 for full coverage and $622 for minimum liability.
What Are the Minimum Car Insurance Requirements in New Jersey?
At a minimum, New Jersey DMV insurance requirements choose between a basic plan with $5,000 in property damage liability and $15,000 of PIP, or a standard option with $35,000 in coverage for a single injury that occurs in an accident, $70,000 for multiple injuries in a single accident, $25,000 for property damage, and $15,000 of PIP.
Is New Jersey an At-Fault or No-Fault State for Car Insurance?
NJ is a no-fault state, so if you are in an accident, you will have to pay for your own medical bills, regardless of whether you were responsible for the incident.
What Factors Influence Car Insurance Rates in New Jersey?
The Garden State allows insurers to use many factors to determine your premiums, including age, gender, credit history, vehicle type, location, marital status, driving record, and driving experience.