Finding the best car insurance in New Jersey involves weighing all your options.
It’s true that most people are mainly interested in how much their premium will cost.
However, it’s also essential that your provider offers sufficient coverage, an efficient claims process, and reliable customer service.
Choose an insurer that covers you appropriately in the event of an accident by evaluating each of these factors.
Your age, gender, driving record, and the make and model of your car are the main factors that determine your insurance rates.
Your geographical location also plays a significant role in how much you pay.
We will show you how providers calculate premiums so that you can answer the following question: “How much is car insurance in New Jersey?”
Use the information below to find the best car insurance in New Jersey at a cost that fits your budget.
Average Cost of Car Insurance in New Jersey
The first step is to learn the average cost of car insurance for vehicles in New Jersey.
Then you can determine if the quotes you receive make sense.
The National Association of Insurance Commissioners reports that rates in New Jersey increased by $79 between 2011 and 2015.
Compared to the surrounding states, the price of insurance in New Jersey is higher, and it’s $373 higher than the national average.
New York insurance is just $22 less, but Pennsylvania drivers pay far less at $971.
|Average Cost of Car Insurance in New Jersey||$1,382.79|
|Average Cost of Car Insurance in New York||$1,360.66|
|Average Cost of Car Insurance in Pennsylvania||$970.51|
|Average Cost of Car Insurance in Delaware||$1,240.57|
|Countrywide Average Cost of Car Insurance||$1009.38|
Your geographic location influences many factors that indirectly affect the price of your insurance, including traffic conditions, auto thefts, disposable income, and population density.
Many insurers look at traffic density and accident rates when they calculate risks to determine your rates.
New Jersey has a fairly high traffic density, which can contribute to higher premiums.
As you study these statistics, remember that traffic is heavier in urban areas than in smaller towns, so rates tend to be higher in metropolitan locations.
The 2014 NAIC report on traffic density shows 1,917,379 vehicle miles driven per total number of highways throughout New Jersey, which is higher than the national average of 724,348.
When you compare the total number of miles traveled to the total number of registered vehicles in the state, New Jersey comes in at 11,132, while the U.S. average is 12,010.
At 0.08 per 1,000 registered cars, fatal accidents in the Garden State are fewer than the national average of 0.13 per 1,000 vehicles.
The high traffic density and fatal accident rates may increase the cost of your car insurance in New Jersey.
Vehicle Theft Rates
According to the Insurance Information Institute, New Jersey does not appear among the top 10 most stolen or least stolen cars in 2016.
The FBI estimates that 126 auto thefts occurred per 100,000 residents in the state that year.
This number is less than half of the national average, which is 236 auto thefts per 100,000 residents, but higher than that of New York at 72.9 auto thefts per 100,000.
The National Insurance Crime Bureau’s Hot Wheels Report reveals that in New Jersey, the Honda Accord and Honda Civic are the most frequently stolen automobiles.
In 2016 alone, a total of 692 Honda Accords and 671 Honda Civics were stolen.
Other popular cars targeted in the state include the full-size Ford pickup, Dodge Caravan, and Nissan Altima.
Choose a vehicle that doesn’t appear on this list, and you might get lower rates in New Jersey.
Population density indirectly affects your insurance rate because it influences other factors.
Areas with high population densities typically have more vehicles, so they have more auto thefts and accidents.
Insurance companies consider these areas a risk factor and charge higher premiums to those who live in these locations.
Additionally, population densities are higher in metro areas than in rural towns—99.9 percent of New Jersey residents live in urban areas and typically pay more for premiums than those in rural towns.
New Jersey has a higher than average population density, at 1,203 persons per square mile.
The U.S. average is 90 persons per square mile.
Disposable income indirectly affects your insurance rate, and states that have more disposable income often have a higher number of expensive vehicles, leading to higher theft rates and repair and replacement expenses.
The insurance companies pass this cost along to customers via more costly premiums.
According to the NAIC, the per capita disposable income per person in 2014 throughout New Jersey was $49,983.
This figure is much higher than the national average of $40,859 and that of Pennsylvania at $42,414, but it is comparable to New York’s $47,446.
Companies with the Best Car Insurance in New Jersey
You have a lot of options when it comes to buying car insurance in New Jersey, so don’t just look for a policy with the lowest rate and buy it.
It’s essential that you compare more than just the quotes you receive.
If you’ve narrowed the field down to at least three insurance providers, it’s time to research customer reviews, coverage options, and financial strength to get a better idea of which carrier has the best coverage and rates.
The following companies have strong reputations and are familiar names:
Travelers Insurance was founded in 1853, making it the oldest insurance company in the country.
Based in Saint Paul, Minnesota, the company has expanded its operations to several countries.
It offers several options to customers, including home, auto, and life insurance.
USAA offers auto and other insurance policies to U.S. military members and their families at affordable rates.
The company provides many discounts to policyholders who live on an army base, and some coverage is available for veterans.
Progressive Car Insurance:
Progressive is one of the most recognized insurance companies and is known for its fun commercials with Flo and her squad of dedicated price busters who tout the Name Your Price tool.
The company offers many discounts and coverage options to its customers.
Allstate was founded in 1931 and covers home, auto, and business-related policies.
It also has a large amount of discount options for eligible policyholders and is reputed to have a quick and reliable claims process and high customer satisfaction ratings.
Liberty Mutual is a significant player in the industry, and it provides personal and commercial insurance policies.
This company operates globally, and its auto insurance customers enjoy perks that include a New Car Replacement policy and 24/7 roadside assistance.
MetLife Insurance is a financial company that offers insurance, employee benefits, retirement planning services, and annuities.
Its insurance offerings are broad, and the company prides itself first and foremost on its exemplary customer service.
Esurance is affiliated with Allstate and provides simple insurance policies without a lot of bells and whistles.
Its technology-focused solutions include a smartphone app that allows customers to manage their policy, monitor driving habits, and file claims online.
What Is Mandatory for Car Insurance in New Jersey?
In New Jersey, drivers must meet the minimum auto insurance requirements set by the New Jersey Department of Insurance, and all drivers are required to carry liability insurance.
There are limits set by the state of New Jersey regarding how much coverage must be obtained by every driver.
The minimum automobile coverage in New Jersey includes:
- $15,000 bodily injury per person per accident
- $30,000 bodily injury for all persons per accident
- $5,000 property damage liability
- $15,000 (1 person) and $30,000 (2 people) uninsured motorist bodily injury
- $5,000 per accident with $500 deductible uninsured/underinsured motorist property damage.
New Jersey drivers cannot register their vehicles without proof of insurance and are required to provide it to law enforcement officers if asked.
How to Reduce the Cost of Your Car Insurance in New Jersey
When you buy auto insurance, you do so with the expectation that you’re protecting yourself, your passengers, and your vehicle.
Investing in this may seem expensive, but the price is low compared to the cost of repairs and medical bills that can follow a bad accident.
To help reduce the cost of insurance, you can follow the tips below, which are based on the advice of the Insurance Information Institute.
- Request an increase to your deductible, or reduce coverage on older cars – if your older car costs less than 10 times your policy, you’re better off paying for less coverage. Likewise, though increasing your deductible will mean you’ll pay more in the case of an accident, it will significantly lower your monthly expenses.
- Pay your insurance policy a year at a time, or set up automatic payments – many insurers offer discounts for these types of payment options
- Reduce your mileage by moving closer to work or telecommuting a few days a week – the less you drive your car, the less mileage, and the lower your rate
- Maintain a good credit rating – this indicates financial responsibility, and most insurers will therefore consider you a lower risk proposition
- Look for insurance providers that give discounted rates if you have a good driving record – another option here is taking safe driving courses, as this can also lower your rate
- Drive a car with standard safety features and high safety ratings – this makes insurers feel safe as well, knowing that payouts will likely be lower
Before you call your top candidates for quotes, have the following information ready so that you can take advantage of any discounts:
- Number of drivers in your home, amount of the deductible desired, where you live and park your car
- Information for all drivers on your policy, including their ages and driving histories
- The make, model, year, VIN, usage habits, safety features, and anti-theft devices for all vehicles on your policy
- Report cards or college records for teen drivers
What Can Increase the Cost of Your Car Insurance in New Jersey?
There are also factors that result in higher rates.
If you can reduce your risk in some areas it might help keep your rates reasonable.
Driving an expensive car increases the price of your insurance.
Pricey vehicles cost more to repair or replace in the event of an accident, which increases the risk to your insurance provider.
When you buy a new car, choose one with a lower value to receive a lower rate.
Violating traffic laws by speeding, running stop lights, or driving under the influence almost always results in higher insurance prices.
Obeying the law is the best way to avoid rate increases due to traffic infractions.
If you do receive traffic tickets, contest them in court whenever it’s justified or complete any required traffic courses to bring your rate back down.
Now that you’ve become familiar with how providers calculate insurance rates in the Garden State, you should be able to answer the question, “How much is car insurance in New Jersey?”
You should also feel more confident in your ability to find the best car insurance in New Jersey.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.