Cheap Car Insurance in New Jersey

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Whether you’re hitting Ocean City for a weekend of fun family adventures, moving to Jersey City for its proximity to the Big Apple, or going about the suburban hustle and bustle in Ridgewood, all drivers with vehicles registered in the Garden State must always have an active and adequate auto insurance policy. 

Living in such close proximity to New York City can mean many positive things for New Jerseyans, but it also means more traffic and higher auto insurance premiums. Finding the proper New Jersey car insurance policy for your budget can be tricky, but with a few tricks up your sleeve, you could save in no time. 

How To Find Cheap Car Insurance in New Jersey

Cheap auto insurance in New Jersey may be challenging to find, but not impossible. Insurance policies vary greatly depending on the person, policy, insurer, and state, as well as several factors about the driver and the state where they live. Since insurance is so subjective, the cheapest rates may not be available to all drivers. However, there may be a few ways all drivers can lower their premiums without much effort.

According to auto insurance laws in the Garden State, all drivers must have an active and adequate policy while behind the wheel, as driving without insurance in the state is illegal. Those who fail to comply with the mandatory insurance minimums aren’t subject to SR-22 insurance but may be considered high-risk drivers and face legal penalties like fines, license and registration suspension, or even jail time. 

New Jerseyans must select one of two types of policies in the state: a basic or a standard policy. Those with a basic policy must have at least $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

Drivers that have a standard auto insurance policy must maintain 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 PIP. Those who lease or finance their vehicles may be required to have comprehensive and collision coverages on their policies as well.

While the cheapest policy in the state will often be one that only meets the minimum coverage requirements and doesn’t exceed them, especially with a basic policy, such minimal coverage may not create the best policy for some drivers. It’s important to maintain enough coverage to ensure you’re comfortable each time you get behind the wheel, lest the worst-case scenario occur and leave you with massive bills to pay.

Cheap Insurance in New Jersey Explained

While New Jersey car insurance isn’t notoriously expensive or inexpensive, many drivers prioritize savings in every aspect of their lives. The best way to find the right policy for you is to narrow down what you value in your policy. Essentially, there are two things drivers may value when it comes to their policies: cost or coverage. 

Drivers who value cost over coverage generally bind minimum coverage policies with insurers that offer below-average base rates. Those who value coverage over cost will likely bind full coverage policies with insurers that offer plenty of additional coverages they may use to customize their policies to their needs. Drivers who value cost and coverage equally may need to compromise by binding full coverage policies with insurers offering lower-than-average base rates and various stackable discounts. 

So, finding cheap New Jersey insurance will differ depending on each driver and their values in a policy. Those with minimum coverage policies will generally pay the lowest premiums. However, those with full coverage policies shouldn’t lose all hope for savings when it comes to saving on their premiums, as there are still a few ways one may be able to save.

Why Is It Hard To Find Affordable Car Insurance in New Jersey?

Whether you’re searching for low-income car insurance in New Jersey, getting a policy for the first time, or have checked the average rates in the state recently, you’ll have noticed that premiums are a bit expensive in the Garden State. 

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 of $1,670 annually. If that seems expensive to you, you’re right. In fact, New Jersey is one of the country’s most expensive states for auto insurance

Auto insurance is costly in the Garden State in part because of its proximity to New York City, the most populated city in the country. Also, New Jersey happens to be the most densely populated state in terms of people per square mile, which can lead to a higher frequency of accidents and claims, which then causes a hike in insurance premiums across the state.

The Garden State is also a no-fault state, meaning drivers are required to carry a first-party medical benefit (FPMB) called PIP, which is one of the most expensive coverage types. Many no-fault states have higher-than-average premiums because this mandatory coverage is so costly.

When the average rate in a state is so high, it can be difficult for drivers to find lower rates. However, some of the top insurers in the state offer below-average rates, like Geico, which boasts average rates for full coverage policies nearly 45% below the state average.

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How To Get Cheap Liability Insurance in New Jersey

It’s true that some of the lowest auto insurance rates in New Jersey will be found with a minimum coverage policy, sometimes referred to as a liability-only policy. It’s important to note, here, that minimum coverage on either policy New Jerseyans elect will contain more than just liability coverage. 

Getting a cheap, minimum coverage policy is generally pretty easy, as minimum coverage policies contain about half as much coverage as their full coverage counterparts, so they cost about half as much. However, if you want to lower your minimum coverage policy rates, you may consider binding with one of the state’s top insurers. Such insurers have below-average base rates and plenty of stackable discounts you can load onto your policy to lower your premiums even further. 

What’s the Cheapest Car Insurance in New Jersey?

The cheapest insurance in New Jersey is generally a minimum coverage policy from one of the state’s top insurers, with several discounts applied. It’s essential to remember that auto insurance is highly subjective, so while a minimum coverage policy may work fine for your friend or your neighbor, it may not offer enough coverage for you to feel comfortable on the road.

Many drivers who value coverage and cost bind a full coverage policy from an insurer that offers lower-than-average base rates and plenty of stackable discounts. Drivers may be able to lower their premiums by 25% if they play their cards right or meet certain criteria for high-value discounts.

Many insurers, especially those with a nationwide (no pun intended) presence, offer discounts that fall into two categories: criteria or enrollment-based. Criteria-based discounts simply require the policyholder to meet a set of standards to qualify for the discount. Enrollment-based discounts, however, require policyholders to play an active part in their savings.

For example, some commonly offered criteria-based discounts are bundling discounts for those who purchase more than one insurance product through their insurer, multi-car discounts for those with more than one car insured on their policy, or student discounts for young drivers who earn certain grades on their transcripts. 

One of the most commonly offered enrollment-based discounts is a usage-based discount program. Drivers who enroll in such a program are given a telematics device with which they tack and send their driving data to their insurer to receive a discount based on a score they’re given for making safe choices behind the wheel. Some insurers may also use telematics devices for pay-per-mile programs, in which drivers pay for insurance by the mile.

Stacking multiple discounts is the best way to get the coverage you want at a price that won’t break the bank. While a full coverage policy will likely always be more expensive than a minimum coverage one, one’s safety is well worth the investment.

Finding the Best Auto Insurance Rates in New Jersey

While cheap car insurance in New Jersey for young drivers, drivers with a poor driving record, or drivers with a history of driving without sufficient coverage may be tough to find, it’s not impossible. However, it’s important to understand how insurers determine their rates so you can be prepared for how much your premiums may cost. 

While some factors that contribute to the above-average premiums in the Garden State have nothing to do with drivers, others do. Insurers will often use characteristics about each driver to determine their rates, such as one’s insurance history, driving record, ZIP code, insurance history, gender, and age, among several other factors. While drivers may have an excellent driving record and insurance history, other factors may work against them, raising their premiums.

Who Has the Cheapest Car Insurance in New Jersey?

The insurer with the best price for auto insurance in New Jersey is Geico, but other insurers like State Farm, Travelers, and Progressive are in the ranks, too. These insurers offer base rates at or below the state average, with Geico’s average premium on a full coverage policy falling at about 45% below the state average. Plus, each insurer offers top-of-the-line customer service, plenty of stackable discounts, and various optional coverages for those who value coverage over cost.

How To Get Auto Insurance Quotes in New Jersey

Whether you’re searching for the cheapest car insurance in New Jersey for new drivers, old drivers, young drivers, or average drivers, the best way to find the right policy is to get and compare quotes online. By getting and comparing quotes online, you can ensure you’re getting the best deal out there, so you can use your savings on something fun like an all-you-can-eat buffet at one of the Garden State’s famous diners.

Lucky for you, you’ve come to the right place for quotes. Here at Clovered, we have a free quoting tool you can use to access your unique quotes in minutes. If you prefer to speak with a professional, you can contact one of our licensed agents at 833-255-4117 or [email protected].

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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