Cheap Auto Insurance in New Jersey for 2025 (Save Money With These 10 Companies)
Geico, Progressive, and State Farm provide cheap auto insurance in New Jersey, with Geico's rates starting at $47/month. These insurers are outstanding for their competitive rates, comprehensive coverage options, and customer service, ensuring affordable car insurance in NJ.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
UPDATED: Jan 17, 2025
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17,760 reviewsThe best picks for cheap auto insurance in New Jersey are Geico, Progressive, and State Farm, with Geico’s rates starting at just $47 per month.
Geico is the overall best due to its affordability, extensive discounts, and A++ financial rating. Progressive has excellent customer service, and State Farm has great options for safe drivers.
Our Top 10 Company Picks: Cheap Auto Insurance in New Jersey
| Insurance Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | $47 | A++ | Budget Drivers | Geico |
 | #2 | $60 | A+ | Safe Drivers | Progressive |
 | #3 | $73 | B | Customer Service | State Farm |
 | #4 | $74 | A | Young Drivers | American Family |
 | #5 | $76 | A+ | Tech Discounts | Nationwide |
 | #6 | $87 | A++ | Hybrid Owners | Travelers |
 | #7 | $100 | A+ | Customer Care | Amica |
 | #8 | $101 | A+ | Comprehensive Coverage | Allstate |
 | #9 | $148 | A | Bundling Savings | Farmers |
 | #10 | $178 | A | Policy Customization | Liberty Mutual |
If you’re a high-risk driver, you can also find cheap high-risk auto insurance with these providers. Use our free comparison tool to see what auto insurance quotes look like in your area.
- Geico offers rates from $47/month with bundling discounts
- Progressive provides 24/7 support and safe driver discounts
- State Farm is great for safe drivers with flexible coverage
#1 – Geico: Top Pick Overall
Pros
- Affordable Monthly Rates: Geico provides auto insurance in New Jersey starting at $47 per month, making it an excellent option for cheap auto insurance in New Jersey.
- Top A.M. Best Rating: Our Geico auto insurance review highlights its A++ rating, which ensures reliable coverage and financial stability.
- Budget-Friendly Discounts: Geico’s discount for bundling policies helps reduce costs while maintaining quality coverage.
Cons
- Limited In-Person Support: Drivers in New Jersey who want face-to-face support may find Geico’s local office presence lacking.
- Inconsistent Customer Service: Some customers report mixed experiences with claims and support.
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#2 – Progressive: Best for Customer Service
Pros
- Customer Service Excellence: Progressive offers 24/7 support for New Jersey drivers needing auto insurance assistance.
- Wide Range of Coverage Options: Drivers in New Jersey can customize their policies with options like gap insurance. Look at our Progressive auto insurance review for expanded insights.
- Discounts for Safe Driving: Progressive’s Snapshot program offers discounts for safe driving, helping drivers save on auto insurance in New Jersey.
Cons
- Higher Monthly Rates: At $60 per month, Progressive’s rates are higher than some providers offering cheap auto insurance in New Jersey.
- Mixed Claims Experience: Some drivers have reported delays in Progressive’s claims processing.
#3 – State Farm: Best for Safe Drivers
Pros
- Best for Responsible Drivers: State Farm allows safe New Jersey drivers to reap discounts on their safe driving record.
- Best Coverage: Our State Farm auto insurance review presents various coverage policies, such as collision and comprehensive, so that policyholders can choose the one that best suits their needs.
- Savings for Multi-Vehicle Households: Bundling coverage for multiple vehicles with State Farm helps drivers save on cheap auto insurance in New Jersey without compromising coverage.
Cons
- Higher Premiums: At $73 per month, State Farm may be more expensive compared to other options offering cheap auto insurance in New Jersey.
- Limited Discounts for Young Drivers: State Farm’s discounts may not significantly reduce costs for younger drivers.
#4 – American Family: Best for Bundling Savings
Pros
- Bundling Discounts: Bundling car insurance with other policies may lead to significant savings on American Family auto insurance.
- Comprehensive Coverage: American Family auto insurance offers a wide range of coverage options that ensure adequate protection.
- Strong Financial Stability: With an A rating, American Family offers secure auto insurance for New Jersey drivers. Gain insights by reading our American Family auto insurance review.
Cons
- Limited Availability in Trenton: American Family car insurance in New Jersey has fewer agents in smaller cities like Trenton.
- Average Financial Strength Rating: holds an A rating from A.M. Best but falls short of top competitors like Geico. This may affect the overall car insurance cost in NJ.
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#5 – Nationwide: Best for Policy Customization
Pros
- Flexible Coverage Options: Nationwide offers customizable auto insurance plans for New Jersey drivers. Expand your knowledge with our Nationwide auto insurance review.
- Solid Financial Backing: With an A- rating from A.M. Best, Nationwide provides reliable coverage for New Jersey drivers.
- Safe Driver Discounts: New Jersey drivers with safe driving habits can earn discounts on their car insurance premiums.
Cons
- Higher Premiums for Some: At $76 per month, Nationwide’s rates may be higher for young drivers under 25, making it harder to find cheap auto insurance in New Jersey.
- Limited Local Availability: Fewer Nationwide locations in New Jersey may make it difficult for drivers to receive in-person support.
#6 – Travelers: Best for Tech Discounts
Pros
- Discounts for Tech-Savvy Drivers: Our Travelers auto insurance review found discounts are available to tech-savvy drivers in New Jersey with their telematics program.
- A+ A.M. Best Rating: Travelers has a tremendous financial rating, giving the New Jersey auto insurance buyer a sense of security regarding the stability of their car insurance.
- Affordable Monthly Rates: Travelers offer inexpensive auto insurance in New Jersey, with rates starting at $87/monthly.
Cons
- Limited Local Presence: Travelers has fewer locations across New Jersey, which could mean less in-person customer support.
- Claims Processing Delays: New Jersey drivers have reported delays in claims processing with Travelers, which may affect the experience of filing claims.
#7 – Amica: Best for Customer Care
Pros
- Customer Care Excellence: Amica auto insurance review points out the firm class claims to be of top level wherein New Jersey drivers refer to its fast service when needed.
- Customizable Coverage: Amica provides flexible auto insurance, enabling New Jersey drivers to add coverage options that suit their needs.
- Affordable Rates: With monthly premiums as low as $100 and reliable coverage, Amica provides affordable auto insurance in New Jersey.
Cons
- Limited Physical Locations: Amica has limited offices in New Jersey, which may be difficult for people who prefer in-person care.
- Not Always the Most Affordable: While Amica is cost-effective, some drivers may find cheaper auto insurance options with other providers in New Jersey.
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#8 – Allstate: Best for Young Drivers
Pros
- Great for Young Drivers: Our Allstate auto insurance review reveals that young New Jersey drivers can enjoy many discounts, making auto insurance in NJ cheaper.
- Multiple Coverage Options: Allstate provides New Jersey drivers various flexible coverage options, from roadside assistance to rental reimbursement coverage and more.
- Advanced Technology Integration: Allstate’s mobile tools allow you to conveniently manage your auto insurance in New Jersey.
Cons
- Higher-than Average Premiums: Allstate’s auto insurance in New Jersey costs, on average, $101/month, so this can be costly.
- Less Competitive for Older Drivers: If the discounts at Allstate don’t do much for older drivers, this may not be as attractive for them.
#9 – Farmers: Best for Comprehensive Coverage
Pros
- Comprehensive Coverage Options: Our Farmers auto insurance review provides extensive coverage tailored to New Jersey drivers.
- Bundling Discounts: You can enjoy significant savings on your New Jersey auto insurance by bundling it with other policies like home or renters insurance.
- A+ A.M. Best Rating: An A+ rating from A.M. Best, Farmers offers dependable financial support for auto insurance customers.
Cons
- Higher Monthly Premiums: Farmer’s auto insurance costs $148 per month, making it less suitable for individuals looking for cheap auto insurance in New Jersey.
- Limited Discounts for Young Drivers: The young drivers of New Jersey will not get substantial savings from Farmers.
#10 – Liberty Mutual: Best for Hybrid Owners
Pros:
- Hybrid Owners Discount: Liberty Mutual offers discounts for environmentally friendly New Jersey drivers with hybrid vehicles.
- A++ Rating: Liberty Mutual has an A++ financial stability rating, which means that it can provide coverage for New Jersey drivers when needed.
- User-Friendly Digital Tools: Liberty Mutual has a user-friendly website and mobile application, making policy management and claims handling easy for policyholders.
Cons:
- Limited Discounts for Older Drivers: Liberty Mutual may offer fewer discounts for older drivers in New Jersey. Explore further details in our Liberty Mutual auto insurance review.
- Expensive Coverage: Liberty Mutual is the most expensive auto insurance provider on our list, with monthly rates at $178, making it a less convenient option for cheap auto insurance in New Jersey.
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New Jersey Car Insurance Coverage and Rates
New Jersey has the highest car insurance rates because of its high population density, many commuters, and more affluent residents who own costly vehicles.
New Jersey Auto Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $47 | $74 |
| $60 | $93 |
| $73 | $113 |
| $74 | $115 |
| $76 | $119 |
| $87 | $136 |
| $101 | $157 |
| $110 | $180 |
| $148 | $231 |
| $178 | $279 |
The state’s strict personal injury protection(PIP) requirements also increase premiums. Insurance premiums vary depending on the provider and the level of coverage. Geico and American Family offer some of the lowest premiums, with rates starting at $47 for minimum coverage.
In contrast, providers like Liberty Mutual and Farmers have higher premiums, with full coverage exceeding $200. Find the best auto insurance company near you by entering your ZIP code into our free quote tool.
Best New Jersey Car Insurance Companies
Consider discounts, customer service, and financial stability when choosing the best auto insurance New Jersey offers. Top providers offer discounts for safe driving, anti-theft devices, and bundling policies.
Auto Insurance Discounts From the Top Providers in New Jersey
| Insurance Company | Available Discounts |
|---|---|
| Bundling, Safe Driving, Anti-Theft Devices, Early Signing, New Car, Good Student, Homeowner, Drivewise, EZ Pay, Pay-In-Full |
| Bundling, Safe Driving, Student Away At School, Anti-Theft, Vehicle Safety Features, Good Student, Hybrid/Electric Vehicle, Defensive Driving, Low Mileage |
| Bundling, Good Student, Defensive Driving, Paid-In-Full, Vehicle Safety Features, Low Mileage, Loyalty, Early Signing |
| Bundling, Safe Driving, Good Student, Defensive Driving, Bundling Home/Auto, Hybrid/Electric Vehicle, Pay-In-Full, Loyalty, Early Signing |
| Good Driver, Bundling, Military, Anti-Theft, Safe Vehicle, Emergency Deployment, Defensive Driving, Low Mileage, Student, Safe Driving App |
| Bundling, Safe Driving, Vehicle Safety Features, Early Signing, Anti-Theft, Hybrid/Electric Vehicle, Pay-In-Full, TeenSMART, New Car |
| Bundling, Safe Driving, Good Student, Accident-Free, Anti-Theft, Defensive Driving, SmartRide, Pay-In-Full, Low Mileage, Homeowner |
| Snapshot Program, Bundling, Safe Driving, Paid-In-Full, Student, Homeowners, Electronic Payments, Low Mileage, Defensive Driving, Paperless Billing |
| Bundling, Good Student, Safe Driving, Anti-Theft, Defensive Driving, Vehicle Safety, Steer Clear (For Young Drivers), Low Mileage, Hybrid/Electric Vehicle |
| Bundling, Safe Driving, Anti-Theft, New Car, Good Student, Vehicle Safety Features, Pay-In-Full, Early Signing, Defensive Driving, Low Mileage |
For example, Allstate provides discounts for early signing and multi-policy coverage, while Progressive and Farmers reward home and auto bundling.
Safe driver discounts can save up to 30%, and companies like State Farm, Allstate, and Geico offer them. Multi-vehicle discounts from Progressive, Farmers, and Liberty Mutual can reduce premiums by up to 25%.
New Jersey Report Card: Auto Insurance Discounts
| Discount Name | Grade | Savings | Participating Providers |
|---|---|---|---|
| Safe Driver | A | 30% | State Farm, Allstate, Geico |
| Multi-Vehicle | A- | 25% | Progressive, Farmers, Liberty Mutual |
| Anti-Theft | B+ | 20% | Allstate, Nationwide, Progressive |
| Good Student | B | 15% | State Farm, Geico, Liberty Mutual |
| Defensive Driving Course | B- | 10% | Progressive, Nationwide, Geico |
| Pay-in-Full | C+ | 5% | Farmers, Geico, State Farm |
Comparing rates and discounts is key to finding the best car insurance in New Jersey deal.
New Jersey Minimum Coverage
In New Jersey, all drivers must have car insurance, and they can choose between basic and standard policies. The standard policy includes automobile liability coverage with higher injury and property damage limits.
The standard policy offers personal injury protection (PIP) of $15,000 per accident, with a $250,000 cap for serious injuries. In contrast, the basic policy provides lower coverage, with an optional personal injury liability of $10,000 per accident.
Geico offers the best value for New Jersey auto insurance rates, combining affordability, extensive discounts, and an A++ financial rating.
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The cost of car insurance in New Jersey depends on the policy selected. The basic policy may be more affordable for those looking for the cheapest car insurance in New Jersey.
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Cheapest Auto Insurance Companies in New Jersey
To drivers in New Jersey, reasonable auto insurance is a necessity. The following guide shall help you decide by comparing the carriers based on their price and coverage.
- Identify Key Players: Select the best insurance companies available in New Jersey. These companies represent a range of options to help narrow your choices.
- Collect and Organize Data: Gather average annual premiums from each company and compare them to the state average. This helps identify cost differences.
- Identify the Cheapest Options: Identify providers offering premiums significantly lower than the state average. These are the most affordable choices.
- Evaluate the Most Expensive Options: Assess providers with higher premiums to understand the reasons behind the cost. Consider if the extra coverage justifies the higher price.
- Make an Informed Decision: Review all options and choose the company that best fits your budget and coverage needs.
Following these five steps, you can easily find the best auto insurance in New Jersey. Compare premiums, evaluate coverage, and make the choice that suits you best.
Premiums as a Percentage of Income
New Jersey offers many auto insurance options, earning high marks for availability. Discounts for bundling, safe drivers, and multi-policy packages vary widely.
New Jersey Report Card: Auto Insurance Premiums
| Category | Grade | Explanation |
|---|---|---|
| Availability | A | Wide range of providers with comprehensive coverage options |
| Discount Options | A- | Ample discounts offered, including bundling, good driver, and multi-policy |
| Claims Processing | B+ | Average claims resolution times with room for faster service |
| Customer Satisfaction | B | Mixed reviews with positive feedback on coverage but concerns over price hikes |
Claims processing is average and needs improvement. Customer satisfaction is mixed, with some praising coverage and others criticizing price hikes.
| Details | 2012 | 2013 | 2014 |
|---|---|---|---|
| Full Coverage Premiums (Annual) | $1,334.59 | $1,369.70 | $1,379.20 |
| Personal Disposable Income (Annual) | $48,569 | $47,972 | $49,983 |
| Percentage of Income | 2.75% | 2.86% | 2.76% |
The average cost of car insurance is 2.75%-2.86% of disposable income. To get affordable vehicle insurance, policyholders can seek discounts, adjust coverage, or compare rates.
Additional Liability
In New Jersey, additional liability coverage includes personal injury protection (PIP), medical payments (MedPay), and (UM/UIM) auto insurance coverage for motorists.
5 Common Auto Insurance Claims in New Jersey
| Claim Type | Portion of Claims | Cost per Claim |
|---|---|---|
| Collision Damage | 35% | $3,200 |
| Comprehensive Damage | 25% | $2,100 |
| Bodily Injury | 20% | $15,000 |
| Property Damage | 15% | $4,000 |
| Uninsured Motorist | 5% | $7,500 |
PIP is mandatory for medical expenses, while MedPay is optional. UM/UIM covers incidents involving uninsured or underinsured drivers.
New Jersey Accidents & Claims per Year by City
| City | Accidents per Year | Claims per Year |
|---|---|---|
| Atlantic City | 1,230 | 980 |
| Camden | 1,500 | 1,200 |
| Clifton | 980 | 750 |
| Elizabeth | 1,800 | 1,450 |
| Jersey City | 2,200 | 1,700 |
| Newark | 3,500 | 2,800 |
| Paterson | 2,400 | 1,900 |
| Princeton | 500 | 380 |
| Trenton | 1,100 | 870 |
| Vineland | 800 | 620 |
Newark reports 3,500 accidents annually, while smaller cities like Princeton have fewer. Adequate coverage ensures protection and helps you find cheap car insurance in New Jersey.
Finding Affordable Auto Insurance in New Jersey
Affordable auto insurance in New Jersey should strike a good balance between affordable pricing and adequate protection. Big names, such as Geico, Progressive, and State Farm, have cheap auto insurance, starting at around $47 per month in premiums. Mentioned providers ensure great affordability, protection, and quality customer service.
New Jersey drivers can benefit from discounts for safe driving, multi-policy bundling, and more, lowering their overall car insurance cost in NJ. Explore your auto insurance options by entering your ZIP code into our free comparison tool today.
Frequently Asked Questions
What is the average car insurance rate for drivers in New Jersey?
The average car insurance cost in NJ depends on coverage levels, with minimum policies starting at $47 and full coverage exceeding $200. Explore more details about high-risk drivers.
What is the best way to find cheap auto insurance in NJ?
Comparing quotes from top car insurance companies in New Jersey, such as Geico, State Farm, and Progressive, ensures affordable coverage. Find your cheapest auto insurance quotes by entering your ZIP code into our free comparison tool.
How much is auto insurance in New Jersey for minimum coverage?
The cheapest car insurance option in New Jersey starts at $47 per month, offered by Geico for basic policies.
Why does car insurance in New Jersey have higher than average premiums?
New Jersey’s dense population and strict PIP requirements raise the cost of auto insurance in New Jersey compared to other states. Look at our factors that affect your car insurance premium for expanded insights.
How much is car insurance in NJ for full coverage?
Full coverage car insurance in New Jersey costs vary but start at affordable rates from providers like Geico and American Family. Find your cheapest auto insurance quotes by entering your ZIP code into our free comparison tool.
Can drivers save on car insurance companies in New Jersey by bundling policies?
Bundling home and auto policies with providers like Progressive and Allstate can lower the average car insurance cost that New Jersey residents pay.
What discounts can help reduce premiums for cheap auto insurance in New Jersey?
Discounts for safe driving, multi-vehicle policies, and anti-theft devices significantly reduce the average car insurance in NJ premium. Read about car insurance discounts for more insights.
How much is car insurance in New Jersey for young drivers?
Car insurance in NJ for young drivers is often higher, but companies like Allstate and Progressive offer discounts to reduce costs. Avoid expensive auto insurance premiums by entering your ZIP code to see the cheapest rates for you.
What is the average car insurance cost New Jersey residents spend as a percentage of income?
On average, drivers spend 2.75%-2.86% of disposable income on car insurance New Jersey.
How does population density affect car insurance rates in New Jersey?
High population density and frequent traffic incidents contribute to the car insurance New Jersey cost being among the highest in the U.S. Dive into our article about auto insurance rates by state.