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Best Cheap Car Insurance in New Jersey for 2021

April 30, 2021
Auto Insurance, Insurance
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If you’re looking for cheap auto insurance in New Jersey, having patience can pay off. Rates vary significantly from one company to the next, so it’s wise to compare several quotes rather than settle for the first price you see.

To help save you time and hassle, NerdWallet analyzed rates from 22 car insurance companies in New Jersey. For each driver profile below we identified the cheapest insurers in the state.

Cheapest car insurance in New Jersey for 20-year-old drivers

Drivers in their 20s may have to get a lot of quotes to find cheap car insurance. Prices can be sky-high for younger 20-somethings, but tend to come down as drivers get more experience on the road. Still, some companies routinely have lower insurance rates for young drivers, so it's best to shop around to find them.

Many insurance companies offer ways for young drivers to save, such as good student discounts for those in college or premium reductions for those who take a defensive driving course. If you live in an apartment, consider getting your renters and auto insurance from the same company to take advantage of bundling discounts.

Cheapest full coverage car insurance in New Jersey for 20-year-olds

Drivers in New Jersey with clean driving records may want to consider the following companies, which had the lowest average rates:

  1. Geico: $2,221 per year.
  2. State Farm: $2,605 per year.
  3. Selective: $2,744 per year.
  4. Travelers: $2,841 per year.
  5. Penn National: $3,269 per year.

Cheapest minimum coverage car insurance in New Jersey for 20-year-olds

Drivers in New Jersey who want just the state minimum coverage may want to check with these companies, which had the lowest average rates:

  1. State Farm: $538 per year.
  2. Geico: $673 per year.
  3. NJM: $760 per year.
  4. Selective: $1,177 per year.
  5. Travelers: $1,319 per year.

Cheapest auto insurance in New Jersey for 20-year-olds with poor credit

Drivers with poor credit in New Jersey should look at the following insurers with the lowest average rates for minimum coverage:

  1. State Farm: $1,156 per year.
  2. NJM: $1,273 per year.
  3. Selective: $1,297 per year.
  4. Allstate: $1,349 per year.
  5. Plymouth Rock: $1,446 per year.

Cheapest auto insurance in New Jersey for 20-year-old drivers with one at-fault crash

For drivers with a recent accident in New Jersey, here are the companies with the lowest average rates for minimum coverage:

  1. NJM: $760 per year.
  2. Geico: $788 per year.
  3. State Farm: $892 per year.
  4. Selective: $1,343 per year.
  5. Amica: $1,758 per year.

Cheapest auto insurance in New Jersey for 20-year-old drivers after a DUI

The cheapest auto insurance we found after a DUI is shown here, alongside the insurers’ average rates for minimum coverage.

  1. NJM: $935 per year.
  2. Geico: $980 per year.
  3. Progressive: $1,580 per year.
  4. Plymouth Rock: $1,767 per year.
  5. Selective: $1,805 per year.

Cheapest car insurance in New Jersey for 30-year-old drivers

By the time they reach their 30s, most drivers enjoy cheaper car insurance rates than in their teens and 20s. Still, factors like a person’s driving record and car make and model can increase prices.

Drivers in their 30s can get lower rates by shopping around and taking advantage of car insurance discounts. You may be able to save by insuring multiple vehicles with the same carrier, or by bundling your auto policy with your home insurance. Also, keep an eye out for discounts based on your profession or affiliations; some insurers offer more affordable insurance rates for teachers, members of the military or alumni of certain colleges.

Cheapest full coverage car insurance in New Jersey for 30-year-olds

Drivers in New Jersey with clean driving records may get the lowest rates from these companies:

  1. Plymouth Rock: $1,239 per year.
  2. Geico: $1,261 per year.
  3. State Farm: $1,285 per year.
  4. Selective: $1,350 per year.
  5. Travelers: $1,416 per year.

Cheapest minimum coverage car insurance in New Jersey for 30-year-olds

Drivers in New Jersey who want their state’s minimum coverage can check with the following companies, which had the lowest average rates:

  1. State Farm: $263 per year.
  2. Geico: $392 per year.
  3. NJM: $496 per year.
  4. Plymouth Rock: $555 per year.
  5. Selective: $626 per year.

Cheapest auto insurance in New Jersey for 30-year-olds with poor credit

Drivers with poor credit in New Jersey should consider the following companies with the lowest average rates for full coverage:

  1. Selective: $1,478 per year.
  2. State Farm: $2,643 per year.
  3. Progressive: $2,652 per year.
  4. Geico: $2,695 per year.
  5. Travelers: $2,797 per year.

Cheapest auto insurance in New Jersey for 30-year-old drivers with one at-fault crash

For drivers in New Jersey with a recent accident, here are the lowest average rate options for full coverage:

  1. Plymouth Rock: $1,326 per year.
  2. Selective: $1,518 per year.
  3. Geico: $1,673 per year.
  4. State Farm: $2,063 per year.
  5. Travelers: $2,137 per year.

Cheapest auto insurance in New Jersey for 30-year-old drivers after a DUI

For the cheapest auto insurance after a DUI, we found the following options for full coverage.

  1. Progressive: $1,830 per year.
  2. Selective: $2,031 per year.
  3. Plymouth Rock: $2,080 per year.
  4. Geico: $2,185 per year.
  5. Travelers: $2,446 per year.

Cheapest car insurance in New Jersey for 40-year-old drivers

Drivers in their 40s tend to have better insurance rates than their younger counterparts but still pay more than older age groups. Shopping around for cheap car insurance quotes with multiple insurers is the best way to find lower rates. Good drivers who don’t get behind the wheel often might want to consider pay-per-mile insurance, which charges drivers by how many miles they drive.

Ask about discounts for signing up for autopay, paying your premium in full rather than quarterly or monthly, and opting for electronic statements. If you own your home, consider insuring it with the company that provides your auto insurance; most carriers offer bundling discounts.

Cheapest full coverage car insurance in New Jersey for 40-year-olds

Drivers in New Jersey with clean driving records may want to think about the following companies, which had the lowest average rates:

  1. Plymouth Rock: $1,197 per year.
  2. Selective: $1,216 per year.
  3. Geico: $1,225 per year.
  4. State Farm: $1,255 per year.
  5. Travelers: $1,370 per year.

Cheapest minimum coverage car insurance in New Jersey for 40-year-olds

Drivers in New Jersey who want just the minimum coverage may want to check prices from these companies, which had the lowest average rates:

  1. State Farm: $259 per year.
  2. Geico: $387 per year.
  3. NJM: $458 per year.
  4. Plymouth Rock: $542 per year.
  5. Selective: $565 per year.

Cheapest auto insurance in New Jersey for 40-year-olds with poor credit

Drivers with poor credit in New Jersey can check out the following insurers with the lowest average rates for full coverage:

  1. Selective: $1,327 per year.
  2. Progressive: $2,539 per year.
  3. State Farm: $2,576 per year.
  4. Geico: $2,606 per year.
  5. Travelers: $2,735 per year.

Cheapest auto insurance in New Jersey for 40-year-old drivers with one at-fault crash

For drivers with a recent accident living in New Jersey, here are the companies with the lowest average rates for full coverage:

  1. Plymouth Rock: $1,280 per year.
  2. Selective: $1,363 per year.
  3. Geico: $1,622 per year.
  4. State Farm: $2,012 per year.
  5. Travelers: $2,160 per year.

Cheapest auto insurance in New Jersey for 40-year-old drivers after a DUI

The cheapest full coverage auto insurance we found for drivers with a DUI came from the following companies.

  1. Progressive: $1,752 per year.
  2. Selective: $1,812 per year.
  3. Plymouth Rock: $1,986 per year.
  4. Geico: $2,114 per year.
  5. Travelers: $2,460 per year.

Cheapest car insurance in New Jersey for 50-year-old drivers

Drivers in their 50s have, on average, cheaper auto insurance rates than most other age groups. Prices will continue to drop as they inch toward their 60s and gain more driving experience. Rates can still vary depending on other factors such as a driver’s gender and location, so it’s smart to shop around to find the cheapest price you can. Our list of the best cheap car insurance companies is a good place to start.

Some insurers offer senior discounts to policyholders in their 50s, though some may require you to take a defensive driving course to snag the savings. If you’ve been with your insurer for many years, you may qualify for a loyalty discount. Still, it’s a good idea to check with other companies periodically to make sure you’re not paying too much.

Cheapest full coverage car insurance in New Jersey for 50-year-olds

Drivers in New Jersey with clean driving records may want to get quotes from these insurers, which had the lowest average rates:

  1. Selective: $1,155 per year.
  2. Geico: $1,181 per year.
  3. State Farm: $1,220 per year.
  4. Plymouth Rock: $1,244 per year.
  5. Travelers: $1,297 per year.

Cheapest minimum coverage car insurance in New Jersey for 50-year-olds

Drivers in New Jersey who opt for the state minimum coverage may want to consider the following companies, with the lowest average rates:

  1. State Farm: $253 per year.
  2. Geico: $379 per year.
  3. NJM: $429 per year.
  4. Selective: $533 per year.
  5. Plymouth Rock: $581 per year.

Cheapest auto insurance in New Jersey for 50-year-olds with poor credit

Drivers with poor credit in New Jersey can check with the following companies, which showed the lowest average rates for full coverage:

  1. Selective: $1,259 per year.
  2. Progressive: $2,285 per year.
  3. Geico: $2,494 per year.
  4. State Farm: $2,498 per year.
  5. Plymouth Rock: $2,535 per year.

Cheapest auto insurance in New Jersey for 50-year-old drivers with one at-fault crash

For drivers living in New Jersey with a recent accident, here are the insurers with the lowest average full coverage rates:

  1. Selective: $1,292 per year.
  2. Plymouth Rock: $1,332 per year.
  3. Geico: $1,584 per year.
  4. State Farm: $1,952 per year.
  5. Penn National: $2,077 per year.

Cheapest auto insurance in New Jersey for 50-year-old drivers after a DUI

The cheapest auto insurance we found for drivers with a recent DUI comes from the following companies, listed with rates for full coverage.

  1. Progressive: $1,629 per year.
  2. Selective: $1,714 per year.
  3. Plymouth Rock: $1,857 per year.
  4. Geico: $2,089 per year.
  5. Travelers: $2,397 per year.

Cheapest car insurance in New Jersey for 65-year-old drivers

Although 65-year-olds have cheaper car insurance rates than many other age groups on average, prices will start increasing as they get older. To find cheap auto insurance for seniors, drivers in their mid-60s should shop around to find the lowest rate.

Drivers in this age group should also take advantage of any available discounts for senior citizens. For example, some companies will discount your rate if you take a defensive driving course. You may also be able to save money after retirement if you’re driving fewer miles each year.

Finally, consider whether you need all the coverage you currently have. If you’re not commuting to work each day, for instance, you may not need rental reimbursement coverage when your own car is in the shop for repairs.

Cheapest full coverage car insurance in New Jersey for 65-year-olds

Drivers in New Jersey with clean driving records may want to think about getting quotes from these companies, which had the lowest average rates:

  1. Geico: $1,147 per year.
  2. Selective: $1,205 per year.
  3. State Farm: $1,294 per year.
  4. Travelers: $1,336 per year.
  5. Plymouth Rock: $1,436 per year.

Cheapest minimum coverage car insurance in New Jersey for 65-year-olds

Drivers in New Jersey who want just the state minimum coverage may want to check with these insurers, which had the lowest average rates:

  1. State Farm: $265 per year.
  2. Geico: $382 per year.
  3. NJM: $396 per year.
  4. Selective: $550 per year.
  5. Plymouth Rock: $662 per year.

Cheapest auto insurance in New Jersey for 65-year-olds with poor credit

Drivers with poor credit in New Jersey can look at the following companies with the lowest average rates for full coverage:

  1. Selective: $1,313 per year.
  2. Geico: $2,419 per year.
  3. Progressive: $2,625 per year.
  4. Plymouth Rock: $2,629 per year.
  5. Travelers: $2,661 per year.

Cheapest auto insurance in New Jersey for 65-year-old drivers with one at-fault crash

For drivers with a recent accident living in New Jersey, here are the companies with the lowest average rates for full coverage:

  1. Selective: $1,351 per year.
  2. Geico: $1,543 per year.
  3. Plymouth Rock: $1,545 per year.
  4. State Farm: $2,080 per year.
  5. Penn National: $2,213 per year.

Cheapest auto insurance in New Jersey for 65-year-old drivers after a DUI

The cheapest auto insurance we found after a DUI came from the following companies, shown with their average rates for full coverage.

  1. Selective: $1,804 per year.
  2. Plymouth Rock: $1,862 per year.
  3. Progressive: $2,007 per year.
  4. Geico: $2,050 per year.
  5. Travelers: $2,610 per year.

Minimum car insurance requirements in New Jersey

New Jersey is a no-fault state, requiring drivers to carry personal injury protection, or PIP, in addition to liability insurance. New Jersey is unique in that it offers a choice between two sets of requirements for minimum insurance coverage, in the form of a Basic Policy and a Standard Policy. The state says most drivers opt for Standard, but the Basic Policy is cheaper and has the lowest possible limits you can buy in the state.

Basic Policy:

  • $5,000 property damage liability per accident.
  • $15,000 personal injury protection.

Bodily injury liability isn’t required for the Basic Policy, but should you choose to buy it, the minimum is $10,000 per accident.

Standard Policy:

  • $15,000 bodily injury liability per person.
  • $30,000 bodily injury liability total per accident.
  • $5,000 property damage liability per accident.
  • $15,000 personal injury protection.

Liability car insurance covers the cost of any damage, injuries or deaths you cause in a car accident, up to your policy’s predefined limits.

Personal injury protection will cover your medical bills and expenses if you’re injured in a car crash, up to your policy limits, no matter whose fault it was. Depending on your state, PIP may also pay for:

  • Lost wages if you’re unable to work due to injuries from an accident.
  • Services you can no longer perform, like house cleaning or child care, because of your injuries.
  • Funeral costs if an accident-related injury leads to death.
  • A small death benefit as a cash payout.

Even though these minimums will allow you to drive legally, you may want to buy more liability coverage to better guard your savings and assets against lawsuits. For example, if you total another person’s car, the damage could easily exceed a $5,000 property damage liability limit on your policy. The difference would have to come out of your pocket.

It’s also wise to consider common optional coverages such as collision and comprehensive, which keep you from paying out of pocket if, say, you skid on ice and hit a tree, or your vehicle is stolen.

Learn more about your required and optional New Jersey coverages with our guide to state car insurance requirements.

Alternative car insurance in New Jersey

If DUIs, poor credit or other factors are preventing you from getting car insurance on the voluntary market, you can seek coverage through the New Jersey Automobile Insurance Plan.

For more help finding competitive car insurance quotes in New Jersey, try NerdWallet’s car insurance comparison tool.

Methodology

For our “good driver” profile, NerdWallet averaged insurance estimates from an average of 14 insurers in each state and Washington, D.C., for single male and female drivers with good credit and no tickets or violations. The analysis included 5-10 of the largest insurance companies in each state; smaller insurers were also included when rates were available. Liberty Mutual and its subsidiaries were excluded from our analysis as rates were not available.

For full coverage policies, we used the following coverage limits:

  • $100,000 bodily injury liability per person.
  • $300,000 bodily injury liability per accident.
  • $50,000 property damage liability per accident.
  • $100,000 uninsured motorist coverage per person.
  • $300,000 uninsured motorist coverage per accident.
  • Collision coverage with a $1,000 deductible.
  • Comprehensive coverage with a $1,000 deductible.

In states where required, minimum additional coverages were added. Some policies include additional coverages at the insurer’s discretion.

  • We used a 2018 Toyota Camry L for all drivers and assumed 12,000 annual miles driven.
  • We analyzed rates for drivers 20 to 80 years old in five-year increments.

We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.
  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
  • For drivers with one at-fault crash, we added a single at-fault crash that happened six months ago, resulting in $10,000 in property damage and no bodily injury claim.
  • For drivers with a DUI, we added a single drunken driving violation that happened six months ago.

These are rates generated through Quadrant Information Services. Your own rates will be different.

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