New Jersey Car Insurance

New Jersey car insurance costs $132/mo, or $1,592/yr on average, which is a little more expensive than the national average. New Jersey is a unique state for car insurance laws as it operates under no-fault car insurance but also offers drivers multiple options for car insurance coverage to assist low-income families. Start shopping for affordable New Jersey auto insurance rates here with our free comparison tool below.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 24, 2020

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In a nutshell...

  • New Jersey is a trendy market for car insurance companies, and insurers compete heavily in the marketplace
  • The state of New Jersey’s Department of Banking & Insurance requires all vehicles to maintain auto insurance at all times
  • New Jersey car insurance laws help some drivers who otherwise could not coverage have some form of protection

New Jersey is a unique state for car insurance laws as it operates under no-fault car insurance laws but also offers drivers multiple options for car insurance to assist families with fewer assets and obligations afford coverage.

State minimum auto insurance rates and requirements vary from state to state. Compare state to state below:

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The number of uninsured motorists is staggering in many states, and New Jersey car insurance laws help some drivers who otherwise could not coverage have some form of protection.

Ready to compare car insurance quotes in New Jersey? Enter your zip code above and start comparing quotes now!

Car Insurance is Mandatory in New Jersey

Fines and penalties for driving with no car insurance are very stiff in New Jersey and potentially expose you to significant personal liability not to mention possible vehicle impoundment, suspension of your driver’s license, vehicle registration tags and even a felony conviction under some circumstances.

The state of New Jersey’s Department of Banking & Insurance requires all vehicles to maintain auto insurance at all times.

What’s unique about New Jersey car insurance laws is the state has two options for drivers to comply with minimum auto insurance requirements.

This additional option was passed from the result of the Automobile Insurance Cost Reduction Act and aimed at providing drivers with fewer obligations and assets a way to obtain car insurance coverage at a lower cost.

Of course, any kind of state minimum car insurance requirements is usually far less than you need in an ideal world.

This lower cost auto insurance option may help some people afford a policy which either (a) they could not afford before or (b) provide the minimal protection their circumstances require.

Your average monthly car insurance rates may not increase as much as you might think by adding additional coverage like comprehensive. Review rates for auto insurance coverage below:

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New Jersey drivers have two options for meeting state minimum car insurance laws including:

  • $15,000 bodily injury protection per person per accident
  • $30,000 bodily injury protection per accident for all persons
  • $5,000 of property damage insurance
  • $15,000 PIP (Personal Injury Protection) coverage per person
  • $15,000 UIM (uninsured/underinsured motorist coverage) per person per accident
  • $30,000 UIM (uninsured/underinsured motorist coverage) per person per accident

The basic policy provides almost no coverage, but it will help you avoid the roller coaster effect of driving with no car insurance and cover damage in some very minor accidents.

Drivers who opt for the underlying policy can also purchase up to $10,000 of liability insurance and smaller amounts of comprehensive and collision coverage, although additional types of coverage such as UIM or GAP may not be available.

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Can I sue for car accident injuries in New Jersey?

New Jersey operates under no-fault car insurance laws, but drivers have a choice in New Jersey whether or not to retain or waive the right to sue for damages from a future car accident.

Whenever you purchase an NJ car insurance policy, you will be asked about this, and it’s not a choice you can retract.

Drivers must choose between:

  • Unlimited Right to Sue This provides you the right to sue for damages from a car accident in the future.
  • Limited Right to Sue If you choose this option then all your rights to sue are waived except for a small list of car accident related injuries including fetus loss, death, and some other extreme injuries. You can still sue for loss of income but choose this option severely limits your future legal rights so never take this option without the advice of proper legal counsel.

New Jersey is a very popular market for car insurance companies, and insurers compete heavily in the marketplace. Drivers have a vast number of providers to choose from including both national brands and superb regional providers.

The key to finding the best NJ car insurance rates will be to spend time and compare New Jersey auto insurance companies which most drivers do with a car insurance comparison search online

ZIP codes affect auto insurance because of factors like traffic, crime to name a few. Find out how your ZIP code stacks up in NJ.

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Gender and age will affect your auto insurance. Younger drivers are often in a higher risk class. See if the gender stereotype (males vs female car insurance rates) holds true in NJ.

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Six major factors affect car insurance rates in New Jersey. Which auto insurance factors will affect rates the most? Find out below:

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Now let’s see who is the cheapest car insurance company in New Jersey.

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Who are the largest car insurance companies in New Jersey?

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Ready to compare car insurance quotes? Enter your zip code below and start comparing car insurance quotes for FREE!

References:

  1. https://www.thebalance.com/suspended-vs-revoked-license-527274
  2. https://www.state.nj.us/dobi/division_consumers/insurance/basicpolicy.shtml
  3. http://www.njlawyers.com/blog/2016/june/what-is-the-automobile-insurance-cost-reduction-/
  4. https://www.state.nj.us/mvc/license/initiallicense.htm
  5. https://www.geico.com/information/aboutinsurance/auto/
  6. https://www.travelers.com/car-insurance/coverage
  7. https://www.nolo.com/legal-encyclopedia/new-jersey-no-fault-car-insurance.html
  8. https://www.nationwide.com/new-jersey-auto-insurance-coverage.jsp

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State Minimum Car Insurance Rates Nationwide
Average Monthly Car Insurance Rates by State
Monthly New Jersey Car Insurance Rates by ZIP Code
Average Monthly Car Insurance Rates by Age & Gender in New Jersey
Factors Affecting Car Insurance Rates in New Jersey
New Jersey Car Insurance Rates by Company vs. State Average
New Jersey Car Insurers by Market Share %