Everything You Need to Know About Car Insurance in New Jersey

New Jersey is one of the smallest states in the country, but it’s big on culture and entertainment. It’s home to big-name singers and rock stars, as well as fictional gangsters, with a shoreline made famous by a reality TV series and a strip of casinos that dot the Atlantic coast.

Whether you like the hustle and bustle of the city or more serene settings, the Garden State’s got something for everyone. In North Jersey, Liberty State Park has some of the best views of Upper New York Bay, Liberty Island, and the Statue of Liberty, as well as 1,200 acres of trails, tidal salt marshes, and nature preserves. South Jersey’s got Cape May, one of the oldest resort towns in the country, where the Delaware Bay meets the Atlantic Ocean. Then there’s Atlantic City, where you can play the slots or simply take a stroll along the boardwalk chewing on saltwater taffy.

If you’re looking for an affordable auto policy to keep you and your loved ones safe on the road, InsureOne expert agents can help you find the best auto insurance at a great rate in New Jersey.

How Much Does Car Insurance Cost in New Jersey

In New Jersey, drivers pay $1,754 and $782 in annual auto premiums for full and minimum liability coverage, respectively.

Garden State drivers pay $260 less for a full coverage policy than the national average, which is $2,014 per year. But those who hold a basic policy pay a bit more — specifically, $160 more than drivers with minimum liability coverage in other states, who pay around $622 every year.

New Jersey is a no-fault state. This means your state-required liability insurance will help pay for your injuries and damages up to policy limits whether the accident is caused by you or another driver.

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What Does Full Coverage vs. Minimum Liability Mean?

A full coverage policy consists of liability, collision, and comprehensive insurance. Collision will pay for repairs (or replacement) above the limits of your liability policy. Comprehensive pays to repair or replace you vehicle if it is damaged by things such as a hailstorm or if it is vandalized or stolen.

Every state has basic liability insurance requirements that drivers must meet. In New Jersey, the minimum requirement helps pay for your damages and injuries in a crash.

Affordable Car Insurance Rates Comparison by Cities in New Jersey

For a comparison of the average monthly premiums drivers pay in different cities across the state, check out our breakdown below.

City Full Coverage Insurance Liability Insurance Coverage
Newark $243 $114
Trenton $199 $101
Jersey City $205 $99
Paterson $236 $115
Lakewood $174 $93

We arrive at our average auto insurance costs by using a male driver, aged 30 with a clean driving record. Minimum liability is the state-required minimum. Full coverage is a 100K/300K/100K policy. Your costs will be different and based on your individual factors.

How Bundling Car and Home Insurance Can Save You Money in New Jersey

Policyholders who bundle (or combine) coverages tend to save more than those who don’t. Bundling typically reduces annual premiums anywhere between 5% and 25%. This is especially beneficial for homeowners, who tend to pay more for insurance than renters.

If you own a house in Freehold, Montclair, or Toms River, for example, and you bundle your home and auto coverage, you’ll likely see a 25% reduction — typically, the maximum discount. But if you rent an apartment, you might only get a 15% reduction.

Whether you own or rent your home, an InsureOne agent can help you build a quality insurance package that meets your needs and budget. They do all the work, comparing offerings from top providers, which saves you time and money.

What Types of Auto Discounts Are Available in New Jersey?

Insurers offer several discounts that can save you money on your premiums. If you own a house and two cars, bundling home and auto coverage could decrease your rate by as much as 25%.

Other rate-reducing discounts include:

  • Good driver
  • Anti-theft
  • Low mileage
  • Loyalty
  • Paperless billing
  • Military
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New Jersey Car Insurance Laws

In New Jersey, drivers can choose between two options that meet state-required coverage limits. Here’s a closer look at what they are.

What Are the Mandatory Car Insurance Requirements in New Jersey?

You can meet state-mandated car insurance requirements by choosing one of two policy types: basic or standard.

Under the basic option, drivers must have:

  • $5,000 in property damage liability
  • $15,000 in personal injury protection (PIP)

Because New Jersey is a no-fault state, PIP takes care of your medical costs if you’re injured in a car accident, regardless of fault.

Under the standard option, drivers must have:

  • $25,000 in bodily injury coverage per person, with $50,000 in coverage per accident
  • $25,000 in property damage liability
  • $15,000 in PIP

While the basic option tends to be cheaper, most drivers choose the standard one because it offers a more protection.

What Is the Penalty for Driving Without Insurance in New Jersey?

Penalties for driving without proof of insurance are strict in the Garden State, regardless of how many times you’ve been caught by police.

A first-time offender can expect to have their license suspended for a year and face a $300 fine — that amount may be higher, depending on the circumstances involved. A repeat offender must face harsher penalties, including higher fines ($5,000 at most), a mandatory jail term of 14 days, and nine points to their driver’s license, making their auto premium skyrocket. They’re also expected to pay a $750 surcharge to the New Jersey Motor Vehicle Commission.

What Factors Does New Jersey Law Allow in Determining Your Premiums?

State law allows insurers to calculate your auto premium based on several factors. Some of the most important ones are:

  • Age
  • Gender
  • Credit history
  • Vehicle type
  • Location
  • Marital status
  • Driving record and experience
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Insurance That Helps You Prepare for the Future

Auto insurance coverage has added benefits you don’t see until you tap into your policy. These benefits include:

  • Avoiding huge costs in the future. All those monthly payments you make add up over time. This isn’t something you realize till a crash happens. That’s when all that coverage you have paid for kicks in and takes care of medical costs and property damage.
  • Protecting yourself and others. Auto policies are designed to ensure that everyone involved in a crash can get the medical attention they need by covering the cost of treatment. Whether you or your passengers are hurt in a crash, or an accident you cause hurts another driver, having auto insurance coverage ensures everyone’s protected.
  • Ensuring crash-related issues are addressed promptly. From covering medical costs and property damage to having your vehicle towed to a repair shop, coverage from a trusted insurer addresses all of these issues promptly rather than bogging you down in the claims process.
  • Supplementing medical coverage. Auto policies usually provide additional medical coverage that kicks in if you’re injured in a crash. It may also include medical expenses that your health insurance doesn’t cover.

At InsureOne, our expert agents help you find the best auto insurance with customizable options that best meet your needs.

What Is Driving Like in New Jersey?

Like other Mid-Atlantic states, New Jersey experiences all four seasons, so you can expect chilly spring and autumn months, warm summers, and frigid winters, with temperatures tumbling to 30 degrees Fahrenheit (or 1 degree Celsius). Nor’easters can sweep through this region any time of the year but typically happen — and are strongest — between September and April. These superstorms bring torrential rain during warmer months that can easily flood roads. If a nor’easter sweeps through during the winter, it can bring excess snow and ice, making roads very dangerous.

How Many Car Accidents Happen in New Jersey?

In 2021, 669 fatal crashes in New Jersey resulted in 699 deaths. The following chart shows the number of fatal crashes in various cities across the state that year.

City Fatal Crashes in 2021
Newark 37
Trenton 13
Jersey City 15
Paterson 6
Elizabeth 9
Lakewood 6
Edison 6
Toms River 9
Hamilton Township 7
Woodbridge 7
Clifton 7
Bayonne 1
Camden 19

Source: U.S. Department of Transportation National Highway Traffic Safety Administration.

How Many Uninsured/Underinsured Motorists Are in New Jersey?

In New Jersey, 3.1% of drivers don’t have auto insurance. This state has the lowest rate of uninsured and underinsured drivers nationwide, ranking no. 1 in 2019.

Get the Best Car Insurance in New Jersey

InsureOne offers a one-stop auto insurance shopping experience with expert agents who will listen to your needs and help you find top-quality insurance options that work best for you.

We will save you time and money by researching quotes and presenting several options that meet your needs. Get a quote online visit us at a New Jersey office near you, or call us at (800) 836-2240 for a quote.