How Much Does Car Insurance Cost in Lakewood, NJ?
Lakewood, New Jersey, is a dynamic and culturally diverse town situated in Ocean County. NJ state law requires that all drivers in the city have car insurance, so how much can you expect to pay for local car insurance on average?
- State Minimum Liability: You can expect to pay $152 a month or $1,826 a year.
- Full Coverage: You can expect to pay $331 a month or $3,973 a year.
Drivers should compare multiple car insurance coverage options that may be cheaper than the average rates – which we will breakdown throughout this city guide for review. Knowing what to expect can be helpful before using InsuranceQuotes to compare free local provider quotes.
- InsuranceQuotes cost rates are pulled from our real-time auto insurance cost database for multiple drivers and quotes in your city – it is based on a used car driver who is single, middle aged, has a clean NJ driving record and no prior violations. – Read on to learn about the cheapest local rates other are paying filtered by insurance providers, new cars, different vehicle types and age.
Cheapest Car Insurance Providers in Lakewood
- In Lakewood, NJ the cheapest auto insurance providers on average are New Jersey Manufacturers (NJM) and GEICO.
- State minimum liability car insurance starts at $82 a month or $984 a year.
- Full coverage car insurance would cost around $331 a month or $3,973 a year.
Here is a breakdown of average costs from the cheapest local insurance providers near you from our data set of used-car drivers who are single, middle aged and have a clean driving record:
| Insurance Provider: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| NJM Insurance: | $984 | $82 | $2,374 | $198 |
| GEICO: | $1,177 | $98 | $3,647 | $304 |
| Progressive: | $1,324 | $110 | $2,592 | $216 |
| Allstate: | $1,405 | $117 | $3,661 | $305 |
| State Farm: | $4,238 | $353 | $7,591 | $633 |
| Average Cost: | $1,826 | $152 | $3,973 | $331 |
Does Vehicle Type Affect Coverage Costs?
The type of vehicle you drive in New Jersey will affect the overall costs of car insurance.
To determine how much you can expect to pay for your insurance based on vehicle type we averaged multiple cost quotes in NJ and pulled data for vehicles such as a Toyota Camry, Chevrolet Bolt, BMW 4 Series, Honda CRV and Nissan Titan.
We pulled data from New Jersey insurance policy cost records across multiple providers. Our table displays the average costs associated with vehicle types for state minimum vs. full coverage policies of a driver who is single, middle aged, has a clean driving record, for a used vehicle:
| Vehicle Type: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Car (4door): | $1,571 | $131 | $3,130 | $261 |
| Hybrid Electric: | $1,418 | $118 | $3,183 | $265 |
| Luxury Coupe: | $1,326 | $110 | $4,044 | $337 |
| SUV: | $1,342 | $112 | $2,637 | $220 |
| Truck: | $1,393 | $116 | $3,211 | $268 |
How Much is Insurance for a New Car in NJ?
Newer vehicles are often more expensive to insure since they cost more to repair and have higher rates of theft. However, coverage is sometimes cheaper than older models of the same vehicle because of enhanced security features on newer models.
We pulled insurance cost rates data for new 2022-2023 vehicles to give you an idea of the difference in coverage price for newer cars vs. used vehicles:
| New Vehicle Type: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Car (4door): | $1,388 | $116 | $3,391 | $283 |
| Hybrid Electric: | $1,348 | $112 | $3,469 | $289 |
| Luxury Coupe: | $1,223 | $102 | $4,502 | $375 |
| SUV: | $1,262 | $105 | $2,872 | $239 |
| Truck: | $1,360 | $113 | $3,674 | $306 |
Auto Insurance Rates by Age
In New Jersey, age is a significant factor that influences your auto rates. Generally, younger drivers tend to face higher annual premiums compared to older, more experienced drivers.
Statistics show that younger drivers, particularly teenagers and individuals in their early twenties, are more likely to be involved in accidents due to their limited driving experience and potential risky behavior on the road.
* Full Coverage Average Costs:
- 17 – 25 years: $6,747 yearly – $562 monthly
- 25 – 54 years: $3,290 yearly – $274 monthly
- 55+ years: $3,357 yearly – $280 monthly
* State Minimum Liability Average Costs:
- 17 – 25 years: $2,610 yearly – $218 monthly
- 25 – 54 years: $1,379 yearly – $115 monthly
- 55+ years: $1,435 yearly – $120 monthly
Here is a breakdown of the average costs for car insurance based on age in New Jersey:
| Age: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| 17 | $3,621 | $302 | $9,397 | $783 |
| 18 | $3,256 | $271 | $8,358 | $697 |
| 20 | $2,441 | $203 | $6,414 | $535 |
| 22 | $2,017 | $168 | $5,158 | $430 |
| 24 | $1,716 | $143 | $4,408 | $367 |
| 29 | $1,445 | $120 | $3,588 | $299 |
| 34 | $1,377 | $115 | $3,319 | $277 |
| 39 | $1,385 | $115 | $3,295 | $275 |
| 44 | $1,387 | $116 | $3,265 | $272 |
| 49 | $1,364 | $114 | $3,217 | $268 |
| 54 | $1,315 | $110 | $3,057 | $255 |
| 64 | $1,300 | $108 | $3,013 | $251 |
| 74 | $1,464 | $122 | $3,435 | $286 |
| 76 | $1,540 | $128 | $3,625 | $302 |
How Much Car Insurance Do I Need?
New Jersey car insurance regulations require drivers to have certain minimum coverage in order to legally operate a vehicle on the state’s roads. Here are the key car insurance requirements in New Jersey to decide how much car insurance you need:
- Liability Insurance: New Jersey requires drivers to have liability insurance, which includes both bodily injury and property damage coverage. The minimum liability limits are typically represented as 15/30/5, which means:
- $15,000 bodily injury liability coverage per person
- $30,000 bodily injury liability coverage per accident
- $5,000 property damage liability coverage per accident
- Personal Injury Protection (PIP): New Jersey follows a no-fault insurance system, so drivers are required to carry Personal Injury Protection (PIP) coverage. PIP helps cover medical expenses, lost wages, and other costs related to injuries sustained in a car accident, regardless of who is at fault.
- Uninsured/Underinsured Motorist Coverage: While not mandatory, New Jersey car insurance policies must offer uninsured/underinsured motorist coverage. This coverage helps protect you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage to fully compensate you for damages.
These are the minimum coverage requirements in New Jersey. However, it’s important to note that these minimums might not provide sufficient coverage to fully protect you in more serious accidents. Many drivers opt for higher coverage limits and additional optional coverages like comprehensive and collision coverage to provide broader protection.
The New Jersey Motor Vehicle Commission (MVC) regulates these requirements. The MVC can offer advice when it comes to reducing your insurance costs. Some advice includes the following:
- Check for available discounts.
- Consider choosing higher deductibles.
- Consider choosing a limited right-to-sue clause.
- If you’re a student, maintain good grades for a potential student discount.
Car insurance in Lakewood, NJ averages approximately $63 per month for minimum coverage and $176 per month for full coverage in 2026. New Jersey is one of the most expensive states for car insurance due to its high population density and no-fault requirements. NJM Insurance offers some of the most competitive rates in the state starting around $63/month for minimum coverage. Comparing multiple quotes is the fastest way to find the lowest rate for your specific driver profile in Lakewood.
New Jersey requires drivers to choose between a Basic and Standard policy. The Standard policy requires 15/30/5 minimum liability plus mandatory Personal Injury Protection (PIP). New Jersey is a no-fault state — your PIP pays your medical bills after an accident regardless of fault. Most insurance professionals strongly recommend the Standard policy over the Basic since the Basic provides minimal liability protection.
Yes. New Jersey is a no-fault state. All Standard policy drivers carry mandatory PIP that pays their medical bills after an accident regardless of who was at fault. Drivers choose between verbal threshold and unlimited threshold tort options. The verbal threshold limits your right to sue to serious injuries only. Most NJ drivers with the Standard policy choose verbal threshold to keep premiums lower.
For Lakewood drivers in 2026, NJM Insurance is consistently among the most affordable options in the state. NJM Insurance (New Jersey Manufacturers) is the top-rated local carrier and often the price leader for Standard policy holders — NJM exclusively operates in New Jersey and Pennsylvania. GEICO and Progressive are competitive for minimum-coverage drivers. Always compare at least three quotes since rate variation between carriers in New Jersey can exceed $80 to $100/month for identical coverage.
To reduce your Lakewood car insurance: (1) Compare quotes annually — NJM Insurance frequently prices below national carriers. (2) Choose the verbal tort threshold on your Standard policy to reduce premiums while keeping meaningful lawsuit rights. (3) Bundle your auto and home or renters policies for 5 to 15% savings. (4) Maintain a clean driving record since violations significantly raise rates at renewal. (5) Raise your deductible on collision and comprehensive to $1,000 to cut full-coverage premiums by 10 to 15%.
- About the Author
- Latest Posts
Michael Giusti is a senior insurance analyst, business journalist, and university professor with over 20 years of experience. He serves as department chair at Loyola University New Orleans and contributes to Insurance Thought Leadership, U.S. News, and other leading financial outlets.
