Are you a resident of New Jersey looking to purchase car insurance? If so, you may be wondering how much you can expect to pay for your auto coverage.
The cost of car insurance in New Jersey is determined by several factors, including your age, driving history, zip code and the type of vehicle you drive.
In particular, your age can have a significant impact on the cost of your premiums for drivers in New Jersey. Car insurance prices tend to be lowest for those in their twenties and thirties. This is because younger teen drivers are seen as less experienced, and therefore more likely to get into an accident. So, if you’re in your twenties or thirties, you can expect to pay lower premiums than older drivers.
As you get older, the cost of your car insurance premiums will start to increase, because historical data from insurance companies has shown that senior drivers are more likely to get into an accident. So, if you’re in your fifties or older, you can expect to pay higher premiums than a younger driver.
The cost of car insurance in New Jersey also varies depending on the type of vehicle you drive. Generally, cars with higher safety ratings and newer models tend to cost more to insure.
You zip code and the areas you will be driving the insured vehicle can also have an impact of your overall costs. If you live in a high traffic city within NJ – you may end up paying more for your auto policy as heavily populated areas tend to have more accidents, while more urban areas will have less driving hazards or potential for accidents.
| NJ Auto Insurance by Age: | Male | Female |
|---|---|---|
| Age: 16 - 20 | $1,720 | $1,613 |
| Age: 21 - 25 | $901 | $871 |
| Age: 25 - 40 | $663 | $708 |
| Age: 40 - 50 | $644 | $689 |
| Age: 50+ | $673 | $701 |
With the rising cost of vehicle ownership, it’s no surprise that car insurance costs are a major concern for drivers. and choosing the type of vehicle they want to own. While some drivers may be able to get away with a lower-cost policy, others may find themselves paying higher rates based on their vehicle type. For starters, those who own luxury vehicles such as sports cars and SUVs will generally have to pay the highest rates for car insurance coverage, these types of vehicles usually have a higher risk for theft and accidents. Furthermore, the high cost of repairs for these vehicles can make them more expensive to insure.
On the other hand, drivers who own more economical vehicles such as a 4 door car and hatchbacks can often find lower rates due to their lower value. The age of the car is also a factor that can affect car insurance costs. Generally, older vehicles are less expensive to insure than newer models due to their lower value. That being said, some older cars may not be eligible for certain discounts and coverage options due to their age, meaning they could still end up with a higher premium than newer models on average.
We pulled data from New Jersey insurance policy cost records across multiple insurance providers and found that on average these were the costs associated with vehicle types:
| Vehicle Type: | 2015 -2019 Model: | 2020 – 2023 Model: | Average Monthly Payment: |
|---|---|---|---|
| Luxury: | $918 | $926 | $77 |
| Electric / Hybrids: | $965 | $913 | $78 |
| SUV: | $902 | $843 | $73 |
| Truck: | $940 | $914 | $77 |
| Car / Sedan: | $1,048 | $924 | $82 |
This data was compiled from 1000’s of auto insurance policies in all cities in New Jersey for any single driver with a clean driving record and good credit history between the ages of 16 to 80 years old. We used common brands for each vehicle type such as a Toyota Camry, Chevy Bolt, Honda CRV, Nissan Titan, and BMW 4 series to build our average costs.
| Insurance Providers: | State Minimum Coverage Annual: | Average Monthly Premium: |
|---|---|---|
| GEICO | $555 | $46 |
| NJM Insurance | $693 | $58 |
| All State | $948 | $79 |
| Progressive | $1,218 | $102 |
| State Farm | $1,234 | $103 |
As a driver in New Jersey, you are legally required to take out an auto insurance policy. All vehicles registered in the state of New Jersey must have the following types of insurance:
The New Jersey Motor Vehicle Commission (MVC) regulates these requirements. The MVC can offer advice when it comes to reducing your insurance costs. This advice includes the following:
To find an auto insurer that is licensed to cover you in New Jersey, you can use the Department of Banking & Insurance (DBI) auto insurance finder. This auto insurance finder allows you to search for a provider or agent according to your vehicle type. You can also narrow your search to the insurance you require.
The DBI also allows you to use an interactive auto insurance planning tool. This tool helps you determine which type of insurance is right for you and how much coverage you need.
If you want to reduce the cost of your auto insurance, you can take a defensive driving course. Insurance companies often offer a discount to drivers who complete the course as they are deemed less of a risk.
If you just want to meet the basic insurance requirements in New Jersey and save money, take out a basic policy. It is worth keeping in mind this policy limits your coverage significantly. If you want enhanced protection, opt for the standard policy.
If you’re enrolled in certain Medicaid programs, you may qualify for a low-cost auto insurance program. This type of insurance only covers medical costs, which New Jersey requires, but can save Medicaid users a significant amount of money.
If you move to New Jersey from another state, transfer your title and registration. To do this, visit your local MVC agency and complete the following steps:
If you are moving to New Jersey from another country, you’ll need to follow special regulations to drive in the state. In order to drive your foreign vehicle in New Jersey, you must put your request in writing to the MVC. You must also register for a New Jersey title following the normal rules.
If you are under the age of 21 or you are new to driving, you must complete a period of supervised driving. In order to drive alone, you must complete one of the following programs:
New Jersey observes strict speed laws. To prevent acquiring points on your license and raising your insurance premium, you must follow them. These laws are:
In New Jersey, you can’t use handheld electronic devices while you’re in control of a car. Those caught talking or texting with a cellphone while driving (unless using a hands-free device) face a fine of $100 as a first-time offender.
1. How is your right to sue affected by your New Jersey auto insurance policy?
Both the unlimited right to sue and limited right to sue policies cover emotional pain and suffering. They don’t cover economic losses. You can sue for medical expenses under both plans.
2. What deductible should you choose?
The deductible you choose when taking out your auto insurance policy should depend on how much you can afford to pay now and in the long run. If you want a lower monthly premium, choose a higher deductible. However, ensure you are able to afford to pay the deductible in the event of an accident.
3. What is personal injury protection?
When driving in New Jersey, or any state, you cannot rely on other drivers to have adequate insurance. Personal Injury Protection (PIP) covers expenses from accidents if the other driver is not insured. Taking out this insurance ensures you do not face hefty medical bills without coverage.
Finding an auto insurance quote can seem overwhelming – but insuranceQuotes.com helps you find the best car insurance policy at the best price. Every year, we match 15 million consumers to the nation’s biggest auto insurance companies, including State Farm, Allstate and Liberty Mutual.
insuranceQuotes.com connects you with local and national insurance companies that give you free car insurance estimates within minutes. By comparing multiple quotes, you can be sure that you’re getting the best price for car insurance.
Need more than just New Jersey car insurance quotes? To learn more beyond auto insurance quotes in New Jersey, check out the resources at some of these sites.
State of New Jersey Automobile Insurance
Auto insurance information for New Jersey drivers
http://www.state.nj.us/dobi/division_consumers/insurance/auto.htm
State of New Jersey Motor Vehicle Commission
Everything You Wanted to Know About Auto Insurance.
But were afraid to ask!
http://www.state.nj.us/dobi/division_consumers/pdf/everythingauto2006.pdf
Rates are based on one vehicle and one driver who has state minimum coverage with $500 deductibles. The hypothetical driver is 35 years old, female or male, employed, a college graduate, and has good credit. She has no traffic violations, claims, or lapse in coverage. The vehicle is assumed to be a sedan that is garaged on premises, used primarily for commuting, and driven 16,000 miles per year. Rates include commonly available carrier discounts and are estimates and not guaranteed.
