Best car insurance companies in New Jersey
Fact-checked with HomeInsurance.com
In New Jersey, the average cost of car insurance is $1,763 per year, which is a bit more expensive than the national average annual rate of $1,555. Every driver in New Jersey must carry a minimum amount of car insurance. New Jersey drivers pay a big premium for car insurance for a few reasons, including:
- New Jersey is a no-fault state, so drivers have to carry more coverage
- Nearly 15% of New Jersey drivers are uninsured
- New Jersey is the most densely populated state
If you’re shopping for car insurance in New Jersey, you might pay more or less than the statewide average rate based on your driving record. The table below includes average rates for drivers with a clean record, one speeding ticket and one accident:
|Clean record||1 speeding ticket||1 accident|
Top 5 insurance providers in New Jersey
- Progressive – Best for discounts
- MetLife – Best for replacement cost coverage
- State Farm – Best for safe drivers
- Allstate – Best for online tools
- Travelers – Best for coverage options
|Company||J.D. Power 2019 claims satisfaction score||AM Best||Discounts offered||Average rate|
|Allstate||3/5||A- (Excellent)||New car, responsible payer||$1,828|
|MetLife||3/5||A+(Excellent||Automatic payments, employer groups||$1,385|
|Progressive||3/5||A+ (Superior)||Snapshot program, continuous insurance||$1,220|
|State Farm||3/5||A++ (Superior)||Drive Safe & Save program, Steer Clear program||$1,675|
|Travelers||3/5||A++ (Superior)||Electric vehicle, driver training course||$1,838|
Progressive – Best for discounts
Progressive is our top recommendation for New Jersey drivers who are specifically looking for an affordable rate. The average full coverage Progressive policy in New Jersey costs $1,220 a year, which is well below the statewide average. Progressive also offers a variety of discounts that can help drivers lower their premium. Available discounts include those for safe drivers, teen drivers, homeowners, getting a quote online, enrolling in autopay and paying your premium in full, among many others.
MetLife – Best for replacement cost coverage
MetLife’s car insurance policies are fairly basic, but is one of the few companies that offers replacement cost coverage. New Jersey drivers can purchase replacement coverage for a total loss, new car replacement coverage, special parts replacement coverage and even enhanced car rental damage coverage. Purchasing these endorsements will increase your premium, but MetLife’s policies are fairly competitive to begin with; an average full coverage premium runs about $1,385 per year in New Jersey.
State Farm – Best for safe drivers
If you’re confident in your safe driving skills, consider a policy from State Farm. The company offers two safe driver rewards programs, Drive Safe & Save for adults and Steer Clear for drivers under 25. Both programs are telematics-based, where a small device is placed in your car to track on-road behavior. If you can prove your safe driving habits, you could save up to 30% on your car insurance premium in New Jersey, according to State Farm.
Allstate – Best for online tools
New Jersey drivers who are constantly on-the-go may want to consider a car insurance policy from Allstate. The company has a variety of online tools that makes it easy to manage your policy from anywhere. Using the smartphone app, drivers can file a claim, request roadside assistance, view ID cards and get fast access to policy documents. Additionally, Allstate offers customizable coverage, good discounts and fairly affordable rates.
Travelers – Best for coverage options
Travelers is a great option to consider for drivers who want to customize their car insurance coverage. In addition to the basics, like collision and comprehensive insurance, Travelers also offers personal injury protection (a requirement in New Jersey), gap insurance, new car replacement coverage, roadside assistance, rental car reimbursement and accident forgiveness. Travelers is also one of the few insurance companies that offers a discount specifically for hybrid and electric car owners.
Car insurance in New Jersey by city
One of the factors that impacts your car insurance rate is your ZIP code. As you can see from the table below, drivers in Newark pay a much different rate than drivers in Edison. Here are the average full and minimum coverage rates for prominent cities in New Jersey:
|City||Full coverage annual rate||Minimum coverage annual rate|
Newark is New Jersey’s most populated city. You can purchase a full coverage car insurance policy for $2,271 on average, which is significantly higher than the statewide average rate of $1,763. In addition to the large population, Newark also has a relatively high crime rate, which generally leads to higher car insurance premiums.
The average cost of car insurance in Jersey City is $1,950 per year for full coverage, which is $187 more expensive than the statewide average rate. Jersey City also has a large population and has a high population density. With so many drivers on the road at a given time, the risk of an accident goes up, which can significantly impact the cost of car insurance.
In Paterson, the average full coverage car insurance premium is $2,222 per year, which is almost $460 more expensive than the statewide average. In addition to a high population density, Paterson has a very high crime rate, and particularly a high rate of theft. That contributes to the high cost of car insurance.
Drivers in Elizabeth pay an average premium of $2,181 for their car insurance, which also is higher than the statewide average. In 2019, there were 745 reported car thefts in the city. Elizabeth also ranks fourth on the list of most densely populated New Jersey cities. These factors cause car insurance rates to be higher overall.
Car insurance rates in Edison are more affordable, with an average annual premium of $1,803 a year for full coverage. That’s only about $40 higher than the statewide average. Edison is a smaller city with just under 100,000 people and a lower population density. It also has a lower crime rate than places like Newark and Paterson.
New Jersey car insurance considerations
Drivers in New Jersey face several risks on the road — first and foremost being the weather. New Jersey is prone to major hurricanes every few years that trigger widespread flooding and damage. Whether your car is parked in the driveway or you’re on the road, severe weather can cause accidents and serious vehicle damage.
Another thing to consider is that New Jersey has a high rate of uninsured drivers. As of 2015, roughly 15% of New Jersey drivers were uninsured. That creates additional risk for insured drivers, especially because New Jersey roads are highly trafficked. Having the right type of insurance coverage can protect you from uninsured or underinsured drivers.
Car insurance is legally required in New Jersey. In order to register a vehicle or get behind the wheel, you must carry a minimum amount of car insurance coverage.
New Jersey minimum liability requirements
New Jersey’s minimum liability insurance requirements are listed at 15/30/5. Every driver must fulfill the requirements for bodily injury liability coverage per person and per accident, as well as property damage liability coverage per accident. Here is what that figure indicates:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
In addition, New Jersey is a no-fault state, which means drivers must carry at least $15,000 in personal injury protection (PIP). New Jersey state law also requires all drivers to carry uninsured/underinsured motorist coverage, but there is no minimum amount required.
How we chose the best car insurance providers in New Jersey
To choose the best car insurance companies in New Jersey, Coverage started by finding the biggest providers in the state by market share. We then evaluated each company based on discounts, coverage options, customer service and the average premium for the state. We also looked at ratings from industry experts including J.D. Power and AM Best to determine what policyholders can expect from customer service, claim satisfaction and financial stability.
Other car insurance providers in New Jersey to consider
In addition to the top five companies that made our list, here are some additional providers that New Jersey drivers should consider when shopping for insurance:
|Company||J.D. Power 2019 claims satisfaction score||AM Best||Discounts offered||Average rate|
|American Independent||N/A||B+(Good)||Claims-free, policy bundling||$3,199|
|AAA||3/5||A – (Excellent)||Good driver, good student||$2,661|
|Farmers||3/5||B++ (Good)||Military, affinity group||$2,762|
American Independent is a regional insurance provider that sells property and casualty coverage. Because it’s a smaller company, it may be a good option for drivers who care about good customer service and a personalized experience.
AAA car insurance is highly-rated and it comes with a variety of coverage options and discounts. The average AAA premium in New Jersey is extremely high compared to other providers, but you’re getting comprehensive coverage and additional perks that come with AAA membership.
Farmers’ car insurance is a great option for drivers who want customizable coverage, and don’t mind paying extra for it. Farmers offers unique add-on policies, like OEM coverage, full windshield and glass coverage, customized equipment coverage, rideshare coverage, glass deductible buyback coverage and more.
Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of ZIP codes across all 50 states and the District of Columbia, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-male and female with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.