Cheap New Jersey Auto Insurance for 2023

New Jersey, known as the “Garden State”, is the most densely populated state in the country and one of the wealthiest. All New Jersey auto insurance is required to be on the road, and it can be a bit confusing.

Understanding auto insurance will make it easier to buy with confidence, and we have everything you need to know about New Jersey auto insurance rates, laws, and companies right here.

Find affordable New Jersey auto insurance with one click. Just enter your ZIP code to compare New Jersey auto insurance quotes for free.

New Jersey Auto Insurance Minimum Requirements And Laws

In New Jersey, the state liability coverage minimums are:

• Bodily Injury Liability Coverage – $15,000 per person
• Bodily Injury Liability Coverage – $30,000 per accident
• Property Damage Liability Coverage – $5,000 per accident

Take a look at how New Jersey’s minimum rates compare with surrounding states.

Uninsured/underinsured motorist coverage is also required, with these minimums:

• Bodily Injury Coverage – $15,000 per person
• Bodily Injury Coverage – $30,000 per accident
• Property Damage Coverage – $5,000

Finally, you will need personal injury protection coverage with the following minimums:

• $15,000 coverage per person

Optional coverage options in NJ include:

• Comprehensive Coverage
• Collision Coverage
• Rental Car Reimbursement Coverage
• Roadside Assistance/Towing and Labor

New Jersey has one of the more complicated sets of auto insurance regulations that can be found in the United States. First, drivers are governed under a “Choice No-Fault” system, which means that drivers can either choose to go with no-fault auto insurance or stick with the classic tort system which allows them to sue for injuries related to an accident.

On top of this, the New Jersey government mandates that drivers have minimum coverage in quite a few different areas, which we’ll look at below.

The first mandatory coverage that New Jersey drivers must have is bodily injury liability insurance. BIL coverage covers the costs associated with the other party’s bodily injuries when you cause an accident. The minimum coverage here is $15,000 per person in a single accident and $30,000 for all parties in a single accident.

Next, drivers must purchase a minimum of $5,000 of property damage liability insurance, which is the policy that covers you against automobile and other damage costs when you cause an accident. $5,000 is one of the lowest mandated minimums in the nation and with today’s repair costs it’s recommended that drivers exceed this if they can afford it.

Next, drivers must by law insure themselves against accidents caused by an uninsured motorist. Uninsured motorist BIL coverage works similar to that above, however, it applies to you and those in your automobile. Drivers must have coverage totaling $15,000 per person, per accident, and $30,000 for all parties in any single accident at a minimum.

Uninsured motorist PDL coverage is also required, for damage to your car or other property. The minimum required coverage is $5,000.

Finally, New Jersey drivers are required to insure themselves for injury no matter who causes the accident. Personal injury protection or PIP coverage will pay out for your medical treatment, as well as things like lost wages as a result of the injury. The minimum PIP coverage is $15,000 by law, however, the limit is $250,000 so drivers may as well insure themselves for as much as they can reasonably afford.

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New Jersey Auto Insurance Rates

Due to a wide variety of factors, New Jersey’s average auto insurance costs are in the high end when compared to the rest of the country. Statewide, New Jersey drivers are looking at an annual average of about $2400 a year for auto insurance, or about $200 per month; this is significantly higher than the national average of $1440 per year.

The situation goes from bad to worse for those living in major cities in New Jersey; drivers in Newark are assessed a sky-high $3100 per year on average, which works out to over $250 per month.

It really pays off for New Jersey drivers to work with their auto insurance agent to maximize any available discounts they can and to fine-tune their coverage to ensure they only have what they need. Take a look at what factors are considered when determining your rates.

The reason for high auto insurance rates in New Jersey has a lot to do with the legal system for dealing with accidents but is also affected by the risk of getting into an accident in the first place. Unlike the vast majority of the states, New Jersey’s auto crash rates haven’t been trending downward over the past few years, and with more accidents come higher auto insurance premiums.

The past three years saw totals of 301,000, 303,000, and 307,000 auto crashes respectively – very little change in either direction. Injuries attributed to automobile crashes are trending slightly downward, dropping from nearly 71,000 in 2006 to 67,500 in 2009. With much of New Jersey covered in interstate highways and the massive amounts of traffic on the New Jersey Turnpike, there is a higher than average risk of being in an auto accident if you live in the state.

While many of these factors are simply based on your own driving record, two things that affect even the safest of drivers are age and gender. As with most states, males typically pay higher auto insurance rates than females.

New Jersey Auto Insurance Rates by Company

With such expensive average rates, it really helps to search around for a provider that charges well below the state average.

But which companies are the largest, holding the most market share percentage in the region?

Related Driving Statistics In New Jersey

Unlike New Jersey’s flat trends for auto crash rates, the rates for automobile theft are plummeting, bringing New Jersey into one of the lowest states in the nation for stolen vehicles. 2009 saw just 15,500 instances of vehicle theft, down from over 20,000 in 2008.

When compared to the start of the decade, 2009’s auto theft rate was down by more than 60 percent, proving that the major push by law enforcement to stamp out vehicle theft has been very successful.

While New Jersey drivers do have to pay higher auto insurance rates than those in most other states, they do enjoy very low auto theft rates and a moderate risk of being in an automobile accident.

The best one can do is to shop around and try to source out any discounts that they can apply to their premiums to drive them downward. Regardless of how it may seem expensive, auto insurance costs are low compared with the cost of being in an accident.

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New Jersey Auto Insurance Agents

Additional Information On Auto Insurance In New Jersey

• New Jersey Department Of Banking And Insurance – Official website from the state of New Jersey
• Automobile Insurance – Guide from the dept. of banking and insurance.
• New Jersey MVC – State of New Jersey motor vehicle commission.
• Governors Highway Safety Association – Important information on traffic laws in New Jersey

New Jersey Auto Insurance Quotes

Whether you live in Trenton or Jersey City, anybody in New Jersey can save on their auto insurance by comparing rates.  By using the 4AutoInsuranceQuote.com price comparison tool, you can compare New Jersey auto insurance quotes from the top providers in the state.  To start, enter your New Jersey ZIP code below. 

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