If you’re looking for cheap auto insurance in New Jersey, you may know that it is hard to find. With its high population density and crowded highways, New Jersey has insurance rates that tend to be significantly higher than the national average.
To help you shop smarter, NerdWallet researched rates from the seven largest insurers in New Jersey and found the three cheapest options for several driver groups.
Included are the cheapest rates for:
- Good drivers
- Young drivers
- Drivers with one at-fault accident
- Drivers with poor credit
- Retired drivers
Cheapest for good drivers
For drivers who have no at-fault accidents, DUIs or moving violations; range of average prices: $1,507 to $4,547 a year
The average for good drivers among the three cheapest companies was $2,162 per year. NJM Insurance Group notched rates that were well below that mark, however, making it the most cost-effective choice. The catch is that the company only serves people employed the state of New Jersey, the federal government, the New Jersey Business & Industry Association and their families. For other drivers, Geico was the next-closest competitor with rates about $200 a year higher. Good drivers typically have the most discounts available of any group, so policyholders should look to trim their premiums by asking what discounts are available.
Cheapest for young drivers
For drivers in their early 20s; range of average prices: $661 to $2,414 a year
Since drivers in their early 20s often don’t have pricey assets or families to protect, they might be able to get less coverage and cheaper quotes than other groups. With prices nearing $2,500 a year on the high end of our study, however, there’s still major incentive for young drivers to shop around diligently to avoid a raw deal. Again, NJM had the best price in our analysis, roughly $100 a year less than Geico.
Cheapest for drivers with one at-fault accident
Range of average prices: $1,507 to $14,711 a year
The same sample policy fetched rates over $13,000 apart depending on the insurer, proving that drivers with spotty records can reap huge benefits by comparing quotes. Those who qualify for NJM should have the best deal by far, as the company returned an estimate nearly $1,500 a year lower than the next closest competitor’s. Both Geico and Travelers do offer accident forgiveness, which could keep your rates from going up after your first at-fault claim and at least partially make up for higher rates.
Cheapest for drivers with poor credit
For drivers placed in the lowest credit tier as determined by the industry; range of average prices: $1,507 to $6,011 a year
Insurers use credit-based insurance scores to help predict the likelihood of future accidents, and could charge higher rates to those with poor credit. That said, the lowest average quote for this category was identical to that for good drivers with no credit issues. Prices spiked on the high end of our study, however, meaning drivers with less-than-ideal credit scores should be extra careful about settling for that first or second quote and getting stuck with sky-high rates.
Cheapest for retired drivers
For drivers in their mid to late 60s who no longer use their car for commuting; range of average prices: $1,507 to $4,525 a year
While older drivers may fear that their insurance rates will climb as they age, our analysis showed that the lowest average rate for retired motorists was actually the same as the lowest price for good drivers half their age. NJM again led the field with the cheapest quotes, but Geico wasn’t far behind — about $50 more per year. Mature drivers can usually save even more with unique discounts, such as those for owning a home, completing a safe-driving class or simply reaching a certain age.
Minimum car insurance requirements in New Jersey
New Jersey requires drivers to carry liability insurance and personal injury protection (PIP) in the following amounts:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection
Even though these minimums will allow you to drive legally, you may want more liability protection, especially if you have significant assets to protect. It’s also wise to consider common optional coverages such as collision and comprehensive, which keep you from paying out of pocket if, say, you skid on ice and hit a tree or your vehicle is stolen.
Learn more about your required and optional New Jersey coverages with our guide to state car insurance requirements.
Alternative car insurance in New Jersey
If you have DUIs, poor credit or other factors preventing you from getting car insurance on the voluntary market, you may be eligible to enter New Jersey’s high-risk pool of auto coverage providers. High-risk drivers who qualify will be assigned an insurance company for a three-year span. High-risk drivers can click here to get a quote.
Price-conscious drivers can turn to NerdWallet as their go-to source for competitive car insurance quotes. Try our hassle-free comparison tool to view the rates from top companies and see how much you could save.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist bodily injury coverage limits and $50,000 PIP. We used a 2012 Toyota Camry in all cases.
Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
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