Best Car Insurance in New Jersey

Selecting an auto insurance policy can be tricky, especially since the marketplace is oversaturated with so many excellent options. Let’s take a look at how you can find the best policy for your needs, what types of policies other New Jerseyans seem partial to, and how you can save a dollar or two on your policy so you can splurge on an extra-large bag of salt water taffy. 

When it comes to car insurance, New Jersey insurers definitely have your back, but finding the right policy for your needs may involve a bit of searching beyond binding the first policy you see. Policies are highly subjective and vary based on the driver, insurer, and state, so the best policy for your best friend or neighbor may not be the best policy for you. Generally, drivers should narrow their search to two factors when looking for a policy: cost and coverage.

Those who value cost over coverage will likely select a policy with the minimum legal amount of coverage from an insurer offering base rates far below the average premium cost in the state. Those who value coverage over cost will likely select a full coverage policy from an insurer that offers an array of additional coverages beyond the minimum required by law.

Those who can’t decide between cost and coverage and value both equally may have to compromise in the middle ground between the two factors. Those who value cost and coverage equally will likely bind a full coverage policy from an insurer that offers base rates below the state average and plenty of stackable discounts policyholders can use to lower their premiums. 

Whether you value cost, coverage, or both equally when it comes to your policy, all New Jerseyans must always maintain the minimum amount of coverage required by law. Car insurance laws in the Garden State differ from other states in that drivers have predetermined policies they may choose instead of needing to meet a set standard of minimum coverage. The minimum limits of a basic policy, which contains the least coverage, are up to $10,000 in bodily injury liability per accident, $5,000 in property damage liability per accident, and $15,000 in personal injury protection (PIP) per accident.

A standard policy, or the type of policy most residents choose, requires drivers to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $25,000 in property damage liability per accident (25/50/25 liability coverage), the same 25/50/25 limit for uninsured and underinsured motorist coverage (UM/UIM), and $15,000 in personal injury protection (PIP) on their policies. So, that looks like:

Those who lease or finance their vehicles may need to carry collision and comprehensive coverages on their full coverage policies. Those who fail to comply with the auto insurance laws in the state may face penalties such as fines, license and registration suspension, vehicle impoundment, community service, or even jail time.

The best auto insurance in New Jersey isn’t a one-size-fits-all title. Drivers have different needs regarding their policies, so what may be the best for one driver may not be a great choice for another. When it comes to finding the right policy for your needs, you first need to decide if you value cost or coverage more or if you value both equally. Once you decide what you value in a policy, you can gather quotes from several insurers so you can make an informed choice about your policy.

Insurance is highly subjective based on the driver, insurer, policy, and state. Just as policies differ based on the driver, premiums vary, too. Insurers determine a policyholder’s rates based on many factors related and unrelated to their driving habits. While an insurer will often use one’s driving record and insurance history when determining rates, they may also use a driver’s gender, age, ZIP code, and several other factors unrelated to their driving habits. 

Each of the factors insurers use to determine a driver’s rates helps them determine the driver’s risk of filing a claim. If a driver is considered high-risk, meaning they’re more likely than the average driver to file a claim, they may see higher-than-average premiums. 

The average cost of a full coverage policy in the Garden State is about $1,900 annually, or about 15% higher than the national average. While high-risk drivers may have a hard time binding a policy at the average rate, all hope for finding the cheapest policy in the state isn’t lost just yet. Let’s take a look at some of the favored insurers in the state and why New Jerseyans tend to bind policies with these companies over others. 

While there are many car insurance companies in New Jersey, only a select few are preferred among drivers in the state. New Jerseyans may prefer these insurers because of their lower-than-average base rates, range of optional coverage types, variety of stackable discounts, or a combination of these factors.

While the average full coverage policy in the state costs about $1,900 annually, many of the top insurers in the state offer policies far below the average rate. It’s important to remember that maintaining an amount of coverage that helps you feel safe on the road is crucial. Getting a policy with lower-than-average rates is just the icing on the cake.

Keep in mind that the Garden State is a no-fault state, meaning drivers in the state must carry more coverage than drivers in other states, thus raising rates a bit. While the average rate in the state may be a bit higher than the national average, it isn’t impossible to lower one’s rates without sacrificing coverage. Driving without insurance in the Garden State is illegal, and those who fail to maintain adequate coverage risk legal and financial consequences. Among the consequences of breaking the mandatory insurance law is SR-22 insurance, which can significantly raise one’s rates for several years. 

Top car insurance companies in New Jersey have earned their title for having a wide range of stackable discounts, an array of optional coverages, lower-than-average base rates, or a combination of these factors. Let’s check out which insurers New Jerseyans are most loyal to and how they’ve earned such a title.

Drivers in New Jersey favor Allstate when it comes to their auto insurance policies. The average full coverage policy with this insurer is about $1,980 annually, only about 5% higher than the state average. However, this insurer offers an array of stackable discounts policyholders can use to reduce their premiums, perhaps even lower than the state average. Allstate also offers various optional coverages for drivers who value coverage over cost.

New Jerseyans tend to bind with our partner, Progressive, because this insurer consistently ranks highly for overall customer satisfaction. The average full coverage policy from Progressive in the Garden State costs about $1,790 annually, or about 7% less than the state average. While policies for the average driver are already available at a lower-than-average rate, drivers can choose from a range of discounts to lower their premiums even further. Progressive offers discounts like a bundling discount, a student discount, and even a usage-based telematics discount for drivers confident in their safe driving skills. 

State Farm tends to be a favorite among drivers in the Garden State, as the insurer has a great reputation for best-in-class customer service and perks for all its policyholders. This insurer’s average full coverage policy is about $1,760 annually, or nearly 10% less than the state average. While State Farm ranks highly in customer service and consistently offers base rates below the state average, this insurer also offers an expansive variety of optional coverages. Those with full coverage policies with this insurance can choose from coverage types like comprehensive coverage, collision coverage, gap coverage, and medical payments coverage (MedPay), among other options. 

One of the top insurers in the Garden State is our partner, Travelers. This insurer offers a range of additional coverage drivers can add to their policies for more tailored coverage and various discount options policyholders may select to lower their premiums. The average full coverage policy from this insurer is about $1,660, or nearly 15% lower than the state average. 

Geico is preferred among drivers in New Jersey for its below-average base rates for drivers of all ages, backgrounds, and skill levels. The average premium on a full coverage policy with Geico in New Jersey costs about $1,240, or about 45% below the state average. The below-average base rates available through this insurer are just the beginning of one’s savings. This insurer also offers plenty of discounts drivers can combine to lower their premiums even further, like a good driver discount, a multi-car discount, and a pay-per-mile discount program for drivers to really maximize their savings. 

While there isn’t one car insurance company in New Jersey that will be the best for every driver, Geico has the lowest average rates for full coverage policies and plenty of coverage options and discounts for drivers to use to tailor their policies to their needs. Plus, Geico is known for being very accessible among its policyholders and has a reputation for excellent customer service. 

While Geico may be the best insurer in the state on paper, that doesn’t mean it’ll have the best policy for every driver. Drivers who have a poor driving history, new drivers, young drivers, or elderly drivers may find lower rates elsewhere or may have difficulty finding low rates at all. It’s always best to gather quotes for your specific needs when searching for an insurer to ensure you get the best policy for your lifestyle and budget.

If you’re ready to get the best policy for your needs and budget, the best way to find the right insurer for you is to get and compare quotes online. By getting and comparing quotes from several insurers, you can easily tailor your policy to meet your needs and make the best decision for your lifestyle from the available options. 

Lucky for you, here at Clovered, we specialize in quotes. We even have a free quoting tool you can use to access your unique quotes from the state’s top insurers within minutes. If you’d rather speak to an agent about your quote, we have those, too! You can contact one of our licensed agents at 833-255-4117 or agent@clovered.com with any auto insurance queries.