Car Insurance in New Jersey

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Looking for Cheap Car Insurance in New Jersey?

New Jersey is one of a handful of states with no-fault insurance, which means that your insurance company must pay for damages to you and your passengers after an accident, regardless of who was at fault. All drivers in New Jersey must have several types of auto insurance coverage in order to follow the state's laws.

Also, New Jersey is home to some of the most populated cities in the U.S., including Newark, Jersey City, and Atlantic City. That population density means more cars on the road, and as a result, car insurance tends to be more expensive than in other states where there are fewer people.

The price of your insurance is determined by many factors, including where you live. So whether you're in Jersey City, Bayonne, or along the Jersey Shore, comparing rates between providers can help you find the best deal.

Carlay is here for you. Carlay will ask a few short questions to gather quotes from 50+ top providers in your area. After you select the policy that's right for you, Carlay will handle the switchover, so you don't have to lift a finger. Carlay makes it easy to tailor the insurance packages and policy options that fit your needs, and a friendly team of licensed agents stands by, ready to assist you.

You're probably wondering, is Carlay right for me? Read the quotes some of our customers in New Jersey have been offered:

How Much Does Car Insurance Cost in New Jersey?

The average cost of car insurance in New Jersey is $2,550 per year. Car insurance with full coverage will cost you an average of $3,048 per year.

In comparison, the national average for basic liability car insurance is $1,783 per year, and the national average for full coverage car insurance is $2,485 per year.

What contributes to the insurance rates in New Jersey?

Here are a few things that might affect the cost of your car insurance in New Jersey:

  • Highest population density

New Jersey is a state with the highest population density of any state in the country. Obviously, this high population density increases the likelihood of car accidents. With more drivers on the road than in any other state, New Jersey's population density means more traffic and higher congestion. Its' also a large state, with big cities (Newark, Trenton) and even bigger suburbs (Paramus, Cherry Hill).

  • No-fault status

In New Jersey, all drivers are required to have car insurance coverage. There's no-fault status in the state, as well as fairly high insurance minimums — both factors that make New Jersey a potentially expensive state for drivers.

Here are the insurance savings that local Carlay customers have enjoyed:

All Coverage BeforeCarlay All Coverage AfterCarlay Minimum Coverage BeforeCarlay Minimum Coverage AfterCarlay Full Coverage BeforeCarlay Full Coverage AfterCarlay
NJ $2,767 $1,890 $2,454 $1,547 $3,079 $2,435
National Average $2,489 $1,671 $2,360 $1,390 $2,761 $1,963
NJ National Average
All Coverage BeforeCarlay $2,767 $2,489
All Coverage AfterCarlay $1,890 $1,671
Minimum Coverage BeforeCarlay $2,454 $2,360
Minimum Coverage AfterCarlay $1,547 $1,390
Full Coverage BeforeCarlay $3,079 $2,761
Full Coverage AfterCarlay $2,435 $1,963

Top auto insurance providers in New Jersey

Some of the most well-known insurance companies are available in New Jersey, including State Farm, Allstate, and AAA.

Finding the right insurance company for you might take a little work; it is important to prepare for that by learning as much about insurance as you can. Insurers calculate premiums in different ways. This means that you might get three different quotes from three different companies—even for the same coverage.

There are several factors that influence car insurance rates, including your age, driving record, and zip code. Your car's make and model also play a role. If you drive a more expensive car, such as an Acura RL, you will pay more for full-coverage insurance than you would for a Mazda 6.

Customers in New Jersey have found great insurance deals with a variety of companies:

What Car Insurance Do You Need in New Jersey?

The Garden State may be a small one, but its motor vehicle laws are just as important as those in any of the other states. In fact, if you call yourself a driver in New Jersey, you have to abide by the following minimum insurance requirements:

Coverage Amount Description
Bodily injury liability $15,000 per person / $30,000 per accident Covers the costs associated with injuries you cause to others
Property damage liability $5,000 per accident Covers the costs associated with damage you cause to other people's vehicles or property

If you drive without insurance coverage that meets these limits, you could have serious trouble:

  • Fine of up to $5,000
  • Driver's license suspension for up to 2 years
  • Up to 9 points on your license
  • Possibility of community service or 14 days in jail
  • Financial liability in the event of an accident

To protect yourself, it's a good idea to buy as much coverage as you can afford—here are some options:

Coverage Description
Collision insurance Covers damages that are the result of a collision with a vehicle or stationary object
Comprehensive insurance Covers damages that aren't the result of a collision, such as vandalism, theft, or a natural disaster
Uninsured motorist coverage Reimburses you for your expenses from an accident caused by an uninsured driver
Personal injury protection Covers medical expenses, lost wages, and rehabilitation costs after an accident
Rental reimbursement Reimburses you for your rental car expenses while your car is being repaired after a claimable accident

When you're ready to find the right policy for you, contact Carlay.

Carlay is the car insurance app that helps you save money on your car insurance policy. If you choose to leave your current provider, Carlay will gather quotes from over 50 providers such as Progressive and Travelers and then handle the paperwork, phone calls and even monitor your rates before your renewal.

At this point, let's break down the factors that can impact your car insurance costs.

How is Your Cost of Car Insurance Determined in New Jersey?

While there are numerous factors that go into your insurance rates, some of the most important include the type of vehicle you drive, the number of points on your license, moving violations, and your age.

  • Cost to insure your car in New Jersey by age

Young drivers are less experienced than older ones. And in New Jersey, motor vehicle accidents are the leading cause of death for people under age 21- from 16 to 20. In fact, young people make up just over 6% of the state's population but are involved in about 13% of its car crashes.

What young drivers in New Jersey need to know

  • The New Jersey Motor Vehicle Commission (MVC) has a graduated licensing program that allows young drivers to take lessons, practice driving and receive instruction from knowledgeable instructors before they are allowed to drive on their own.

  • Signing up for a defensive driving course can improve safe driving habits and reduce car insurance premiums for teen drivers.

  • Student drivers who maintain a good average on the tests they take can qualify for a good student discount permit.

Maintaining a clean driving record and shopping around are two great ways to ensure that you get the best insurance rates you qualify for as a young driver. Whether you're a senior or a teen, the best place to start comparison shopping is Carlay. Here are the average rates for drivers in each age group:

Age Group Average Cost Annual Savings withCarlay
18-20 $3,119 $923
21-24 $2,984 $812
25-34 $2,864 $998
35-44 $2,737 $901
45-54 $2,592 $939
55-64 $2,978 $1,599
65+ $2,379 $627
  • Cost to insure your car in New Jersey with a poor driving record

Your insurance company takes a look at your driving record to determine how much of a risk you are on the road. If you get in an accident, get a speeding ticket, or are arrested for driving under the influence, you'll have to pay more for your New Jersey car insurance.

Carlay knows how to help you get cheap car insurance, even if you've got a few driving violations. Here are a few examples of Carlay customers with poor driving records who saved money with us:

Driving Violation Average Cost Annual Savings withCarlay
Clean Record $3,496 $1,106
Careless Driving $5,891 $2,491
Failure to Obey Traffic Sign $4,769 $2,033
Speeding over 15 $4,350 $1,977
Wrong Way/Wrong Lane $4,560 $1,874
Speeding under 15 $4,328 $1,808
DUI $4,633 $1,565
Defective Equipment $3,600 $1,435
Driving on Sus. License $4,631 $1,259
Suspension $3,720 $1,195
  • Cost to insure your car in New Jersey based on where you live

The most densely populated state in the country, New Jersey boasts 1,211 people per square mile. As you might expect, different areas can have vastly different population densities. As a result, it's important to compare quotes from local agents to find the best deal for you.

Also, there is generally a higher rate of auto insurance in cities than in rural areas due to the increased risk of accidents, thefts, and claims. In New Jersey, no-fault car insurance means that a driver's rates are affected less by any one accident because he or she is not dependent on the fault level of other drivers. The top 10 cheapest cities for car insurance in the state are:

City Average Cost Annual Savings withCarlay
Bayonne $3,266 $947
East Orange $3,150 $973
Elizabeth $3,400 $1,132
Hackensack $2,761 $975
Hoboken $2,109 $563
Irvington $2,130 $650
Jersey City $3,082 $1,069
Newark $2,959 $687
Paterson $3,312 $1,006
Trenton $2,713 $699
  • Cost to insure your car in New Jersey based on the type of car you drive

When you shop for auto insurance, the type of vehicle you drive will affect your premium. If you drive a standard vehicle, such as a Chrysler 300 or Honda Pilot, you should find affordable rates wherever you shop.

If you drive a cheaper car, you're likely to pay lower insurance premiums because it will cost less to repair or replace if you're in an accident. Moreover, if you drive less, you're also less likely to get into an accident and therefore pay less for insurance.

However, if you're looking for insurance for a Tesla Model 3, you can expect to pay more than standard rates since the car is expensive.

Here's how much insurance you can expect to pay for popular cars with and without Carlay:

How to Save Money On Car Insurance in New Jersey?

Some people would consider paying less for car insurance to be a bonus, especially when rates are already high in your state. Here are some simple ways to save on your premium.

  • Shop around for quotes

Carlay simplifies the process of comparing rates between auto insurance providers. It's a quick and easy way to ensure you're getting the best price for the coverage you need.

Carlay is the super app that helps you find the best car insurance rates, saving you time and money. All you need to do is sign up, answer a few questions, and watch as Carlay gets to work finding quotes from 50+ insurance companies.

When it's time to renew your policy, Carlay handles the paperwork and even helps you cancel your old policy so that there are no hassles.

  • Look for discounts

Car insurance companies in New Jersey offer a variety of discounts for motorists with certain license plates, car make and model, marital status, and many other factors.

Discount type Who is eligible?
Defensive driving discount State law requires insurers to provide a discount to drivers 50 or older who complete an approved defensive driving course.
Bundling discount Getting more than one insurance policy from the same company (often home and auto) can qualify you for a bundling discount, which can reduce premiums by up to 12% each.
Safe driving discount Many insurance companies offer safe driving discounts, whereby you agree to share certain information with them in exchange for a small discount (often 5%). From there, your driving habits determine how much you can save—in some cases, up to 30%.
Good student discount Students who are in school full time and maintain an average of at least a B may be eligible for a policy discount.
  • Increase your deductible

When it comes to minimizing your insurance costs, you may be able to decrease your annual premium simply by increasing the deductible in your auto policy. Typically, the higher the deductible, the lower your monthly bill. It's a great way to improve your coverage while saving money on insurance. Just don't go too high on your deductible, as that can reduce the amount of coverage available when you are unfortunate enough to need it.

Registering Your Car in New Jersey

In order to register your car in New Jersey, you will need to bring the following documents to your local DMV:

  • Valid driver's license or ID card
  • Proof of insurance
  • Proof of sales tax payment
  • Car title or signed lease agreement
  • Application for vehicle registration
  • Smog check certificate (every two years)
  • Safety inspection certificate (every two years)

New Jersey drivers must renew their vehicle registrations annually.