How Much Is Car Insurance in New Jersey?

Car insurance is a legal requirement in New Jersey. Costs vary based on personal circumstances and coverage choices. This guide outlines typical price ranges, policy elements, mandatory New Jersey coverages, and advice for securing quotes.

Understanding Car Insurance Costs in New Jersey

New Jersey car insurance costs vary widely, as a single average is elusive. Full coverage, including liability, collision, and comprehensive insurance, averages $2,160 to $3,250 annually ($180 to $271 monthly). Minimum coverage policies, meeting state-required liability limits, average $1,030 to $1,320 annually ($86 to $110 monthly).

New Jersey auto insurance rates are higher than the national average, especially for minimum coverage. Premiums are highly individualized. An 18-year-old male, for example, might face annual full coverage costs exceeding $8,200, showing age’s significant impact. Location, driving history, and vehicle type determine a driver’s exact premium.

Within New Jersey, insurance costs fluctuate by city and ZIP code. Higher traffic density, accident frequency, or vehicle theft and vandalism rates result in higher premiums. Rural or suburban areas offer lower rates due to reduced risks. Personalized quotes are essential for accurate cost assessment.

Key Factors Influencing Your Premium

Several elements contribute to a New Jersey driver’s premium. Age and driving experience play a significant role. Younger, less experienced drivers, especially those under 25, face higher costs due to a higher statistical accident rate. As drivers gain experience and maintain a clean record, rates decrease.

A driver’s record (past accidents, traffic violations, DUI convictions) directly impacts premium. A clean driving history results in lower rates, signaling lower risk. Conversely, infractions or at-fault accidents lead to substantial premium increases, as perceived higher risk.

Vehicle type influences costs. Factors considered include:
Make
Model
Year
Safety features
Likelihood of theft or repair expenses
High safety ratings or anti-theft devices qualify vehicles for discounts. Luxury cars or those with high repair costs elevate premiums. Estimated annual mileage affects rates; higher mileage correlates to increased risk and costs.

Location within New Jersey, even by ZIP code, significantly alters insurance prices. Higher population density, traffic congestion, or crime rates result in higher premiums. A driver’s credit score also impacts premium, as insurers use credit-based scores to assess risk. Better credit scores mean lower insurance costs.

Coverage limits and deductibles directly affect premium. Higher liability limits or comprehensive coverage increase costs but provide greater protection. Choosing a higher deductible (the out-of-pocket amount paid before coverage begins) lowers the premium. Insurers also offer discounts like multi-policy, good student, safe driver, or anti-theft device discounts, which reduce overall costs.

New Jersey’s Mandatory and Common Coverages

New Jersey’s no-fault system makes Personal Injury Protection (PIP) coverage mandatory. PIP pays for medical expenses and lost wages for policyholders and passengers, regardless of fault. Minimum PIP coverage is $15,000 per person or per accident; drivers can increase this limit up to $250,000 for certain severe injuries.

New Jersey drivers must also carry specific liability coverages for damages or injuries to others. These include Bodily Injury Liability (BIL) and Property Damage Liability (PDL). As of January 2025, minimum BIL limits are $25,000 per person and $50,000 per accident; PDL is $25,000 per accident. For policies renewing on or after January 1, 2026, these minimums increase to $35,000 per person and $70,000 per accident for BIL; PDL remains at $25,000.

Uninsured/Underinsured Motorist (UM/UIM) coverage is mandatory. This coverage protects policyholders in accidents with uninsured or underinsured drivers. Minimum UM/UIM bodily injury limits mirror BIL requirements: $25,000 per person and $50,000 per accident, increasing to $35,000/$70,000 by 2026. UM/UIM property damage coverage is also required, with a minimum of $5,000 per accident and $500 deductible.

Beyond mandatory coverages, drivers opt for additional protection. Collision coverage pays for vehicle damage from a collision, regardless of fault, after a deductible. Comprehensive coverage addresses non-collision events like theft, vandalism, fire, or natural disasters. Both collision and comprehensive coverages require a deductible.

New Jersey also presents a unique “tort option,” affecting a driver’s right to sue for non-economic damages (e.g., pain and suffering) after an accident. Drivers choose between a “Limited Limitation on Lawsuit” (limited tort or verbal threshold) or a “No Limitation on Lawsuit” (full tort) option. Limited tort typically results in lower premiums but restricts suing for pain and suffering unless the injury meets specific criteria (e.g., death, dismemberment, permanent injury). Full tort allows suing for any injury but comes with a higher premium.

Steps to Get and Compare Car Insurance Quotes

Preparing necessary information streamlines seeking car insurance quotes in New Jersey. Insurers typically require personal details for all drivers (names, dates of birth, driver’s license numbers). Vehicle information essential for an accurate quote includes:
Make
Model
Year
VIN
Safety features
Driving history details (past accidents, traffic violations, or claims) are also requested.

Drivers should consider desired coverage levels and deductibles. Understanding New Jersey’s minimum mandatory coverages and any additional desired coverages (e.g., collision or comprehensive) helps in receiving comparable quotes. This preparation ensures quotes accurately reflect coverage needs.

Several avenues exist for obtaining car insurance quotes. Online comparison websites allow drivers to input information once and receive multiple quotes simultaneously. Drivers can also contact insurers directly (online, by phone, or through local agents). Independent agents provide quotes from multiple carriers; captive agents represent a single company.

When comparing quotes, ensure an “apples-to-apples” comparison. Verify that coverage limits, deductibles, and types of coverage are identical across all quotes. Differences in these details can significantly alter the quoted price, making true comparison difficult. Evaluating customer service ratings and financial strength of providers is beneficial, as these factors contribute to a policy’s overall value beyond the premium.