How Much Is Car Insurance in New Jersey? (Update in 2024)
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Codee Chessher
- Last updated:
Car insurance is required in every US state, though the exact pricing varies widely based on coverage level and other factors. In New Jersey, the average car insurance premium for full coverage is $1,891 per year or $158 per month. This is just a bit higher than the national average of $1,771 per year. Let’s check out more detailed info about the cost of car insurance in New Jersey, prices by company, and more relevant info.
Why Is Car Insurance Important?
Car insurance is absolutely essential if you drive on a regular basis because it’s required by law in every state. Minimum coverage levels vary, but comprehensive coverage will help protect against weather damage, collisions, and other damages.
Without car insurance, you and other drivers would have to pay out of pocket for damages from collisions and other damages. It can be irritating to pay your insurance if you never have accidents or make claims, but that’s actually a good thing!
Paying your insurance regularly without making claims or getting into accidents lowers your rates over time. This means that even if you do eventually make a claim, you’ll have saved a lot of money in that period of time.
How Much Is Car Insurance in New Jersey?
We already mentioned that average premiums in New Jersey are a bit higher than the national average, but that doesn’t count minimum coverage policies. Minimum coverage in New Jersey for drivers with good credit averages $561, while drivers with bad credit can pay as much as $973.
The company you choose has a huge impact on your insurance costs as well, plus a whole laundry list of other variables. In New Jersey, the biggest insurance companies are Geico, New Jersey Manufacturers, Allstate, and Progressive.
Every insurance company has a different rating system that changes how they assess and charge for coverage. Let’s check out what the biggest four companies in New Jersey charge for minimum and full coverage policies.
| Company | Minimum Coverage | Full Coverage |
| Geico | $530 | $1,374 |
| N.J Manufacturers | $833 | $1,242 |
| Allstate | $785 | $1,782 |
| Progressive | $877 | $2,073 |
Going by these prices, you get the most value by going with Geico, who offers relatively cheap minimums and full coverage quotes.
However, there are numerous factors that impact the quote an insurance company will offer you. Let’s dive a bit deeper into that.
Variables That Affect Insurance Costs
We mentioned that every insurance company has its own rating systems to assess how risky it is to cover drivers. Generally, riskier drivers will receive higher quotes and pay higher premiums until the company decides their risk level has lowered. The main factors are age, gender, where you live, driving history, credit score, and vehicle type.
Age
Younger drivers are riskier to insure, with 18-year-old drivers paying an average of $6,816 for a year of full coverage. By contrast, a 50-year-old driver will only pay $1,689 for the same coverage. Younger drivers are more likely to engage in risky driving behavior, plus they don’t have as much experience behind the wheel.
Gender
It might surprise you, but your gender also affects insurance quotes and premiums. Men are more likely to get into accidents and make claims than women, so they pay a bit more. For some inexplicable reason, though, men in New Jersey pay a bit less than women. Men pay an average of $1,722 for a year of full coverage, while women pay an annual average of $1,793 for the same coverage.
Where You Live
Different cities and even neighborhoods have varying prices for healthcare, vehicle repairs, and crime statistics. For example, a neighborhood with lots of car theft and vandalism will pay more for car insurance than a safer neighborhood with low crime.
New Jersey Full Coverage Insurance Prices by City:
- Trenton: $1,781
- Newark: $2,683
- Jersey City: $2,371
- Edison: $1,834
- Camden: $2,554
Driving History
The more experience you have behind the wheel without accidents, traffic tickets, or DUIs, the better. A speeding ticket in New Jersey can increase your annual premium by as much as $300, accidents run up your premiums by an average of 70%, and a DUI will double your premium. Statistically, people with tickets, accidents, and DUIs make more claims.
Vehicle Type
Every vehicle has unique crash and safety stats, differently priced parts, and requires different labor skill levels. For example, a Tesla requires specialized parts and knowledge to fix compared to a Toyota Camry. Sports and luxury cars almost always carry higher premiums because drivers of these cars are more likely to have accidents, plus the parts for them are pricey.
What Minimum Coverage Does New Jersey Require?
Every US state requires car insurance, but the type of insurance required by law varies. Let’s find out what the Garden State requires by law.
- $15,000 per person for injury and/or death (PIP)
- $30,000 per accident for injuries
- $5,000 for property damage
Is New Jersey a No-Fault State?
New Jersey is one of a dozen or so states that are “no-fault,” meaning that your car insurance covers your injuries and property damage regardless of the person at fault. This means that in New Jersey, personal injury protection or PIP coverage is required as part of minimum coverage.
Conclusion
Car insurance is required by law to protect you and other drivers, but the price can change based on where you live and a bunch of other factors. New Jersey pays a bit more than the national average, but they also require PIP coverage because it’s a no-fault state.
Featured Image Credit: Rawpixel.com, Shutterstock
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