If you are looking for auto insurance in New Jersey, knowing how much it will cost is a promising idea. The average premium for car insurance in New Jersey is $1,901 per year or $158 per month. While the national average is $1,682. There is a difference of $219 more between the national average and the state average.

If you live here, you know that already. But do you know why? There are a range of factors that affect car insurance rates. A few of them are –age group, gender, driving history, credit score, and location where you live.

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Apart from the factors which affect auto insurance rates, this guide also talks about the average rate of full coverage in state, companies offering cheap monthly premiums for car insurance, average car insurance rates by cities in New Jersey, and car insurance rates by age group.

Shop around and compare quotes to save money on your auto insurance. Keep reading the guide to make sure the insurance policy does not cost you more than your requirements.

Summary of average car insurance cost in New Jersey
Average annual cost
$1,901
Average per month cost
$158
Average cost for state minimum coverage
$989 / Year
Cheapest car insurance company
Palisades
($1,073/ Year)
Average cost for young drivers
$3,031 / Year
Average cost for Senior drivers
$1,907 / Year

KEY TAKEAWAYS

  • The average car insurance cost in New Jersey is $1,901 per year, based on Insure.com’s analysis.
  • In New Jersey, the average premium for car insurance is $158 per month.
  • Palisades has the cheapest car insurance rates in New Jersey, at an average annual rate of $1,073 a year.

Average car insurance cost in New Jersey per month

In New Jersey, the average premium for car insurance is $158 per month.

The price for the same coverage may differ between companies, which is true of every auto insurance company. When looking for car insurance rates in New Jersey, it is a promising idea to get quotes from many firms.

As per the rate analysis conducted by Insure.com, the company which offers cheapest car insurance premiums in New Jersey is Palisades. The average annual cost is $1,073 while the average cost per month is $89. The second-best option available is, Geico, offering insurance at an average per month cost of $104.

The table below lists the other available car insurance companies which offer car insurance in New Jersey, along with their average cost per month and average annual cost.

 

Company name Average per month cost Average annual cost
Palisades $89 $1,073
Geico $104 $1,250
New Jersey Manufacturers $107 $1,284
State Farm $141 $1,688
Travelers $149 $1,791
Allstate $150 $1,798
Mercury Insurance $175 $2,103
Farmers Insurance $204 $2,445
Progressive $261 $3,135

 

Read our guide to best car insurance companies of 2022

Average cost of car insurance by coverage levels in New Jersey

The amount of coverage you purchase has an impact on how much car insurance costs in New Jersey. Your premium is determined by your liability limits, as well as whether you want comprehensive and collision coverage.

Liability only insurance protects a third party’s property damage and personal injuries in the event of an accident. In the case of a collision, having only liability coverage on your auto insurance would not cover your injuries or personal property damage since you are the driver responsible for the accident. If your coverage limit is 50/100/50 Liability only, the average cost per year in New Jersey is $1,120.

When you add more coverage to your policy, your insurance premium increases. As the insurance provider will have to compensate you if you are in an accident or suffer damage in any other manner. Hence, the average cost of full coverage car insurance in New Jersey is $1,901 per year.

For someone who does not own the car, but frequently rents a car, non-owner state minimum liability coverage is best suited. It is like liability-only coverage and covers for property damage and bodily injury caused to another driver. In New Jersey, the average annual cost for non-owner state minimum liability only is $993.

And for those who wish to save money on car insurance premiums can opt to have only the state minimum liability coverage, to be able to legally drive in the state. The state minimum liability only coverage costs $989 per year in New Jersey.

 

Coverage limits Average annual cost
50/100/50 Liability Only $1,120
100/300/100 Liability with $500 Comp/Coll Deductible $1,901
Non-Owner State Minimum Liability Only $993
State Minimum Liability Only $989

 

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Average car insurance cost in New Jersey by City

Your car insurance premium is determined by a variety of factors, including your state, city, and even ZIP code. The incidence of accidents and the likeliness of vehicle theft or vandalism can influence the overall cost of a city or ZIP code.

The table below depicts the top popular cities in New Jersey:

 

City Average annual cost
Newark $2,807
Jersey City $2,398
Paterson $2,729
Elizabeth $2,700
Clifton $2,355
Trenton $2,135
Camden $2,680
Passaic $2,754
Union City $2,601
Bayonne $2,270

 

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Car insurance rates in New Jersey by city

Newark
Jersey City
Paterson
Elizabeth
Clifton
 

Average car insurance cost in New Jersey by age of the driver

Age is also a consideration when it comes to auto insurance rates. Teens are more likely to be in automobile accidents than any other generation. For example, the average annual rate for young drivers in New Jersey is $3,031 while for seniors is $1,907. Here, the rate for young drivers is $1,124 more than the rate for senior drivers.

According to statistics, young drivers are more likely to be in a vehicle accident than more experienced drivers. As a result, they are deemed high-risk and costly to insure. They are considered a high-risk driver because of over-speeding and less driving experience on road. Although, premiums start to rise again about age 70 when some aspects of aging start affecting driving abilities.

Average car insurance cost in New Jersey for young drivers

The average car insurance cost for female young drivers in New Jersey is $2,848 per year or $237 per month and rate for a male young driver is $3,214 per year or $268 per month.

The average annual rates for young male and female drivers are listed in the table below:

 

Age of driver Average annual cost for Male drivers Average annual cost for Female drivers
18 $7,183 $6,285
19 $4,626 $3,970
20 $4,229 $3,643
21 $3,377 $2,960
22 $3,118 $2,758
23 $2,749 $2,511
24 $2,598 $2,368
25 $2,257 $2,145

 

Average car insurance cost in New Jersey for senior drivers

In New Jersey, the cost of car insurance for senior female driver is $1,898 per year or $158 per month and cost of car insurance for male senior driver is $1,915 per year or $160 per month.

 

Age of driver Average annual cost for Male drivers Average annual cost for Female drivers
65 $1,886 $1,871
70 $1,967 $1,956
75 $2,135 $2,099

 

Read more about senior car insurance

Cheapest cars to insure in New Jersey

Make Model Average annual premium
Subaru Forester 2.5I $1,735
Mazda CX-30 S $1,744
Hyundai Venue SE $1,764
GMC Savana G2500 $1,777
Mazda CX-5 S $1,779
Kia Seltos EX $1,788
Toyota C-HR Limited $1,789
Volkswagen Tiguan S $1,793
Ford Transit Connect Titanium $1,795
Mini Cooper SE $1,798

Most expensive cars to insure in New Jersey

Make Model Average annual premium
Maserati Quattroporte $4,900
Porsche 718 Boxster Spyder $4,646
Tesla Model S Plaid $4,533
Maserati Levante Trofeo $4,437
Maserati Ghibli Modena $4,301
Maserati Ghibli GT $4,152
BMW M8 Competition XDrive $3,935
Dodge Charger SRT Hellcat $3,888
Alfa-Romeo Giulia Quadrifoglio $3,823
Porsche Taycan Turbo S $3,804

Note: For coverage limit: 100/300/50 liability with a $500 comprehensive and collision deductible.