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Best & Cheapest New Jersey Car Insurance as Rated by Customers in 2020

4.67 ★★★★★
4579 customer reviews
rated their claim's experience positively
4.58 ★★★★★
282 customer reviews
rated their claim's experience positively
4.19 ★★★★★
461 customer reviews
rated their claim's experience positively
4.13 ★★★★★
16886 customer reviews
rated their claim's experience positively
4.09 ★★★★★
2059 customer reviews
rated their claim's experience positively
4.03 ★★★★★
7149 customer reviews
rated their claim's experience positively
4.02 ★★★★★
30 customer reviews
rated their claim's experience positively
3.96 ★★★★★
1333 customer reviews
rated their claim's experience positively
3.90 ★★★★★
144 customer reviews
rated their claim's experience positively
3.74 ★★★★★
545 customer reviews
rated their claim's experience positively
3.69 ★★★★★
90 customer reviews
rated their claim's experience positively

It can be difficult to tell which car insurance company is the best fit for you, especially when they all promise to save you money. If you’re a customer shopping for New Jersey car insurance, you can use Clearsurance customer reviews to help you figure out which insurer is the best for you. Our hope at Clearsurance is to help you better understand how a company performs before you even purchase a policy so you can select the best auto insurance in New Jersey. With thousands of car insurance reviews from unbiased policyholders, we have reviews and rankings for hundreds of car insurance companies so you can evaluate and compare the best New Jersey car insurance companies.

In the table above, you can sort through all the New Jersey car insurance companies ranked on Clearsurance. The rating next to each company — the insurer’s Clearsurance score — is based exclusively on the ratings provided by customers. Note: Only those companies with at least 25 car insurance reviews are eligible to appear in the best New Jersey car insurance rankings.

Interested in learning more about one of these New Jersey car insurance companies? You can visit the company’s profile page to find out what additional coverages they offer, any discounts they offer and read car insurance reviews to learn from the experiences of other policyholders.

On this page:

Who offers the best teen car insurance rates in New Jersey?

Out of the five largest companies in New Jersey, NJM Insurance Group is the cheapest car insurance option for both male and female teen drivers on average.

In the table below, you can find average New Jersey teen car insurance rates for male and female drivers for the five largest car insurance companies in New Jersey.

Company Female teen rates Male teen rates
Allstate Insurance $2,598 $2,187
Geico $2,048 $1,899
NJM Insurance Group $1,168 $1,164
Progressive $2,822 $2,828
State Farm Insurance Company $3,605 $4,208

These rates are based on profiles for 18-year-old male and female drivers in New Jersey. The car used was a 2015 Honda Civic EX. We used the minimum car insurance state limits. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.

Who offers the best car insurance rates for a married couple in New Jersey?

Out of the five largest companies in New Jersey, Allstate offers the cheapest car insurance rates for a married couples in New Jersey on average.

Below is a table that displays New Jersey car insurance rates for a married couple with two cars on a policy from the five largest companies in the state.

Company Married couple rates
Allstate Insurance $2,022
Geico $2,309
NJM Insurance Group $2,262
Progressive $2,584
State Farm Insurance Company $3,554

These rates are based on a 35-year-old married couple with two drivers and two vehicles on a policy. The cars used were two 2015 Toyota Highlander LEs. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had 1 driving incident within the past 3 years and they both have a good credit score. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.

Who offers the best senior car insurance rates in New Jersey?

Among the five largest companies in New Jersey, NJM Insurance Group provides the cheapest car insurance rates for male and female senior drivers in New Jersey on average.

Below you can take a look at average New Jersey car insurance rates for male and female senior drivers for the five largest companies in the state.

Company Female senior rates Male senior rates
Allstate Insurance $1,266 $1,266
Geico $1,354 $1,354
NJM Insurance Group $986 $985
Progressive $1,100 $1,158
State Farm Insurance Company $1,232 $1,232

These rates are based on profiles for 65-year-old male and female drivers. The car used for each was a 2015 Toyota Camry LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had zero incidents within the past three years and a good credit score. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.

10 Cheapest areas in New Jersey for car insurance

The state you live in affects your car insurance rates, but did you know the area within the state that you live in also matters? Location is one of the factors that determines car insurance rates because crime rate and frequency of car accidents can vary by area. In the table below, you can see the top 10 cheapest areas in New Jersey for car insurance based on average rates for a single adult.

Area Car insurance rates
Brookside $1,835
Morristown $1,843
Convent Station $1,843
Randolph $1,843
Mount Freedom $1,850
Cedar Knolls $1,855
Morris Plains $1,855
Whippany $1,855
Madison $1,855
New Vernon $1,859

These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.

10 Most expensive areas in New Jersey for car insurance

On average, the most expensive car insurance in New Jersey can be found in Newark. In the table below, you can see the top 10 most expensive areas in New Jersey for car insurance based on average rates for single adults.

Area Car insurance rates
Newark $3,381
Irvington $3,381
Orange $3,348
East Orange $3,348
Passaic $3,309
Paterson $3,298
Elizabethport $3,279
Elizabeth $3,279
Camden $3,269
North Bergen $3,254

These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in New Jersey will differ. Rate data is provided by Quadrant Information Services.

Minimum car insurance coverage and limits in New Jersey

Most states outline the minimum limits needed for liability coverage to be a legal driver, but New Jersey handles things a little differently. It offers two policy options for drivers: basic and standard. Basic is the cheaper option, but it also provides drivers with significantly less coverage and choices than a standard policy. The basic policy comes with the set minimum limits, while a driver who selects a standard policy can select the minimum limits of a standard policy or opt for higher limits.

The basic policy also doesn’t come with bodily injury liability, though policyholders have the option to purchase $10,000 of bodily injury coverage. Bodily injury liability provides coverage for injuries sustained by the other vehicle’s driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims.

Another key difference between basic and standard is your right to sue if you are injured in a car accident. With a basic policy, you automatically have what New Jersey calls a “limited right to sue.” This means that you only can sue a driver who caused a car accident that resulted in one of the following permanent injuries: loss of a body part, significant disfigurement or significant scarring, displaced fractures, loss of a fetus, permanent injury or death.

If you have a standard policy, you have the option to select “unlimited right to sue.” With this option, “you retain the right to sue the person who caused an auto accident for pain and suffering for any injury,” according to New Jersey’s state insurance website.

Drivers who select either policy have the option to obtain comprehensive insurance and/or collision insurance coverage.

New Jersey coverage options and minimum limits:

Basic policy:

  • Property damage liability — $5,000 per accident
  • Personal injury protection (PIP) — $15,000 per person, per accident
  • Severe injuries — up to $250,000

Standard policy:

  • Bodily injury — $15,000 per person
  • Bodily injury — $30,000 per accident
  • Property damage — $5,000 per accident
  • Personal injury protection (PIP) — $15,000 per person, per accident
  • Severe injuries — up to $250,000

Property damage liability provides coverage in the event you damage someone else’s property in a car accident, most commonly the other vehicle, but also things like a home or fence.

Personal injury protection (PIP) covers you for any injuries that you or someone else covered by your policy sustains in a car accident. If you have health insurance that covers injuries in a car accident, you can select your health insurance to be your primary insurance over PIP, which would help you save on premiums.

The severe injuries coverage in both policies is for “permanent or significant brain injury, spinal cord injury or disfigurement, or for medically necessary treatment of other permanent or significant injuries rendered at a trauma center or acute care hospital immediately following an accident and until the patient is stable, no longer requires critical care and can be transferred to another facility in the judgment of the physician,” according to New Jersey’s state insurance website.

New Jersey’s uninsured motorist percentage

If you have a standard policy, you can opt for uninsured motorist coverage. This offers you protection in the event you are involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough coverage. If you do select the coverage, you may select limits up to your liability coverage. In New Jersey, 14.9 percent of drivers don’t have car insurance, according to 2015 data from the Insurance Information Institute. That is the 14th highest percentage of drivers uninsured in the country.

How car insurance rates are calculated in New Jersey

When searching and comparing quotes from the best auto insurance companies in New Jersey, it can be frustrating trying to understand how your insurance rates are calculated. While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your insurance. Among the factors that car insurers consider are:

  • Your driving record
  • How much you drive
  • Location
  • Age
  • Marital status
  • Gender
  • Your car’s make, model and year
  • Your credit history
  • Amount of car insurance coverage (required coverage and optional add-ons, such as collision and comprehensive)

One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. For instance, even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Why is that the case?

Insurance companies disperse risk across all policyholders so that when it comes time to pay a claim, they have enough money to pay out. But imagine a scenario where they only raised rates for drivers with an accident. For drivers who had an expensive claim, the drivers simply wouldn't be able to afford the raised rates that are based off how much their insurer had to pay after an accident. So instead, insurance companies slightly increase rates across the board to offset the costs, though of course the at-fault driver may see a larger increase.

How to save money on your car insurance in New Jersey

At the end of the day, we’d all like to have the best coverage at a cheap, affordable price from one of the best New Jersey car insurance companies. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance premium.

Here are six ways you may be able to lower your car insurance rates:

  • Bundle your car insurance with other policies
  • Consider raising your deductibles
  • Pay your car insurance policy in full
  • Try usage-based car insurance
  • Monitor price changes to your policy
  • Shop for better insurance rates

How Clearsurance rates and ranks the best car insurance companies in New Jersey

Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:

  • Price
  • Customer Service
  • Claim service
  • Likelihood to renew

The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.

The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings.

Car insurance guide

Whether you’re buying your insurance direct or going through an agent, understanding the different car insurance coverage options is a must. Do you know what is covered by comprehensive coverage? Are you familiar with uninsured motorist coverage? Do you know how a deductible works?

We want to make sure you’re equipped with a proper knowledge of car insurance, so check out our car insurance guide. Looking for more educational information about car insurance? Check out our car insurance blog for more information and topics related to car insurance.