Best Car Insurance in New Jersey for 2025 [Compare the Top 10 Companies]
Geico, State Farm, and Progressive provide the best car insurance in New Jersey. New Jersey car insurance costs vary by city, but Geico offers the lowest rates of all, starting at $74 per month. State Farm has a local agent support base, while Progressive has advanced budgeting tools.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
UPDATED: Mar 13, 2025
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18,154 reviewsCompany Facts
Full Coverage in New Jersey
A.M. Best Rating
Complaint Level
Pros & Cons
18,154 reviews
13,283 reviewsCompany Facts
Full Coverage in New Jersey
A.M. Best Rating
Complaint Level
Pros & Cons
13,283 reviewsGeico offers the best car insurance in New Jersey, followed by State Farm and Progressive. Geico has the lowest car insurance rates in New Jersey, starting at $47 per month for minimum coverage.
State Farm is a great option for those who value local agents and personalized service, while Progressive shines with its budget-friendly tools like the Name Your Price feature.
Our Top 10 Company Picks: Best Car Insurance in New Jersey
| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 25% | A++ | Low Rates | Geico |
 | #2 | 17% | B | Local Agents | State Farm |
 | #3 | 10% | A+ | Budgeting Tools | Progressive |
 | #4 | 25% | A+ | Bundling Options | Allstate |
 | #5 | 25% | A | Comprehensive Coverage | Liberty Mutual |
 | #6 | 10% | A++ | Military Focused | USAA |
 | #7 | 20% | A | Strong Service | Farmers |
 | #8 | 20% | A+ | SmartRide Program | Nationwide |
 | #9 | 13% | A++ | Flexible Options | Travelers |
 | #10 | 25% | A | Bundling Discounts | American Family |
These best car insurance companies provide affordability, excellent service, and coverage options. Ready to find affordable car insurance in NJ? Use our free comparison tool to get started.
#1 – Geico: Top Overall Pick
Pros
- Cheapest Rates in NJ: Geico offers the lowest-priced car insurance quote in New Jersey at $47 per month for minimum coverage and $74 for full coverage.
- Top-Rated Financial Strength: Geico’s A++ rating from A.M. Best highlights its stability in settling claims for New Jersey drivers.
- Bundling Discounts: Geico provides a 25% discount when bundling auto and home insurance policies in New Jersey.
Cons
- Limited In-Person Support: Geico operates primarily online, which may not appeal to those seeking in-person service. Read our Geico car insurance review for more details.
- Fewer Coverage Add-Ons: Geico offers fewer customization options than competitors like Allstate and Liberty Mutual.
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#2 – State Farm: Best for Local Agents
Pros
- Large Local Agent Network: Our State Farm car insurance review shows its strong presence in New Jersey, offering personalized assistance through local agents.
- Low-Cost Full Coverage: Full coverage begins at $113 monthly, making New Jersey auto insurance rates competitive.
- Discount Opportunities: It also offers the discount opportunity to save up to 17% by bundling and other safe driver discounts.
Cons
- Lower A.M. Best Rating: It has a B rating from A.M. Best, which means slightly lower financial strength than top-rated insurers.
- Basic Digital Experience: Online tools and mobile apps are less advanced than Progressive’s.
#3 – Progressive: Best for Budgeting Tools
Pros
- Great Budgeting Features: Progressive’s Name Your Price tool is a great choice for New Jersey drivers who want to find affordable policies.
- Reliable Financial Stability: With an A+ rating from A.M. Best, Progressive’s car insurance review emphasizes the company’s solid reputation for secure claims handling.
- Cheap Monthly Fees: With a minimum coverage of $60/month and complete coverage of $93, it has competitive pricing among other car insurance companies in New Jersey.
Cons
- Small Bundling Discount: At just 10%, Progressive’s bundling discount is quite small relative to other carriers.
- Minimal In-Person Support: Fewer local agents in New Jersey could be a downside for drivers who prefer more personalized, face-to-face service.
#4 – Allstate: Best for Bundling Options
Pros
- High Bundling Discount: Many people find combining their home and auto insurance appealing since they can save 25%.
- Comprehensive Coverage Options: Provides accident forgiveness, new car replacement, and rideshare coverage to ensure safety.
- Financially Secure Provider: Our Allstate car insurance review shows the company’s A+ A.M. Best rating, meaning it can guarantee reliable claims service and financial stability.
Cons
- Higher Premiums: With minimum coverage starting at $101 per month, it tends to be pricier than companies like Geico and Progressive.
- Mixed Customer Service Experience: Some drivers in New Jersey report delays in claims processing, especially since this provider’s New Jersey car insurance rates are a bit higher.
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#5 – Liberty Mutual: Best for Comprehensive Coverage
Pros
- Offers Wide Coverage Options: Our Liberty Mutual car insurance review shows the wide portfolio of policies that cater to different types of New Jersey drivers.
- Great Savings for Bundling: Bundling earns a 25% discount on all policies, so you save by bundling.
- Financial Stability: Liberty Mutual is accredited with an A rating by A.M. Best Company, so it offers secure car insurance in New Jersey.
Cons
- High Basic Coverage Rates: Minimum coverage begins at $178 a month, which means it has the highest auto insurance rates in NJ.
- Limited Discount Options: Liberty Mutual offers fewer savings programs compared to competitors like State Farm and Nationwide, which may limit your discount opportunities.
#6 – USAA: Best for Military Families
Pros
- Unique Perks for Military Members: USAA’s car insurance review presents special perks for military personnel and their families.
- Cheap Coverage Rates: Minimum coverage starts at just $39 per month and $61 for full coverage, making it one of the best choices for New Jersey car insurance.
- Financing Security: An A++ A.M. Best rating brings with it ultimate security for a smooth claims process.
Cons
- Membership Eligibility: The coverage is available only to military-affiliated drivers in New Jersey.
- Limited Local Access: In-person service locations are few and might not be accessible for many policyholders.
#7 – Farmers: Best for Customer Service
Pros
- Highly Rated Customer Service: Our Farmers car insurance review showcases their responsive and helpful claims support.
- Good Bundling Discounts: Customers can enjoy up to 20% discounts by bundling insurance policies.
- Solid Financial Strength: Farmers has received an A rating from A.M. Best, which ensures reliable service.
Cons
- More Expensive Rates: The average car insurance cost in NJ is lower than Farmers’ minimum coverage, starting at $148 per month.
- Outdated Digital Tools: Farmers’ mobile and online tools are obsolete and lack advanced features from other insurers.
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#8 – Nationwide: Best for Safe Driving Programs
Pros
- Safe Driving Discounts: The SmartRide program offers rewards for safe driving in New Jersey.
- Bundling Options: Enjoy a 20% discount when combining policies for even lower car insurance rates in NJ.
- Strong Claims Stability: With an A+ A.M. Best rating, this insurer offers solid financial backing, which is discussed more in our Nationwide car insurance review.
Cons
- Limited In-Person Service: Unlike State Farm, this company has fewer local agents available.
- Mid-Range Monthly Costs: Their basic coverage rates start at $76 per month, but they aren’t the lowest in NJ.
#9 – Travelers: Best for Flexible Policies
Pros
- Comprehensive Coverage Options: Offers benefits like accident forgiveness, gap insurance, and new car replacement.
- Strong Financial Stability: According to our Travelers car insurance review, it has A++ rating from A.M. Best, demonstrating its reliability when handling claims.
- Reasonable Bundling Discounts: Save up to 13% when bundling multiple policies together.
Cons
- Higher Starting Premiums: At $87 per month, it costs more than the average car insurance premiums in NJ.
- Limited Digital Experience: Compared to competitors, their online tools and mobile apps are less advanced.
#10 – American Family: Best for Bundling Discounts
Pros
- Attractive Bundling Discounts: Combine auto, home, or life insurance policies to enjoy up to 25% savings.
- Strong Financial Backing: Our American Family car insurance review highlights its A rating from A.M. Best, reflecting its solid financial standing.
- Handy Add-on Options: For a more comprehensive policy, a vehicle can be covered with useful add-ons such as accident forgiveness, roadside assistance, and rental reimbursement.
Cons
- Fewer Local Agents: It could be tough to find an American Family agent selling car insurance in New Jersey.
- Higher Initial Premiums: The starting rate for minimum coverage is $74 per month, which is higher than some competitors, such as Geico and Progressive.
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New Jersey’s Car Insurance Coverage & Rates
Car insurance rates in New Jersey vary by provider and coverage. Affordable car insurance in NJ starts at $39 per month with USAA for minimum coverage, while Liberty Mutual charges up to $178 per month. Full coverage ranges from $61 to $279 per month.
New Jersey Car Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $101 | $157 |
| $74 | $115 |
| $148 | $231 |
| $47 | $74 |
| $178 | $279 |
| $76 | $119 |
| $60 | $93 |
| $73 | $113 |
| $87 | $136 |
| $39 | $61 |
Providers like Allstate, Geico, and Progressive offer competitive rates. Minimum coverage costs between $47 and $148 monthly, and full coverage ranges from $74 to $231 monthly.
Factors that affect the price of car insurance include age, gender, marital status, driving history, car make, model, and credit score. Choose the right coverage for the best rates.
New Jersey’s Best Car Insurance Discounts
Comparing rates and discounts is essential when searching for the cheapest car insurance companies in New Jersey. Top discount providers are Allstate, American Family, and Geico, which offer discounts like multi-policy, safe driving, and claim-free savings.
Car Insurance Discounts From the Top Providers in New Jersey
| Insurance Company | Available Discounts |
|---|---|
| Multi-Policy, Safe Driving, Claim-Free, New Car |
| Bundling, Safe Driver, Early Bird, New Car |
| Multi-Policy, Safe Driver, Homeowner, Good Student |
| Good Driver, Multi-Policy, Military, Good Student |
| Multi-Policy, Early Sign-Up, Homeowner, Accident-Free |
| Multi-Policy, SmartRide, Safe Driver, Accident-Free |
| Multi-Policy, Snapshot, Safe Driver, Good Student |
| Safe Driver, Multi-Policy, Good Student, Vehicle Safety |
| Multi-Policy, Safe Driver, Homeowner, Good Student |
| Military, Multi-Policy, Safe Driver, Good Student |
For example, Allstate offers a 17% discount for safe drivers, while USAA provides 15% off for safe driving and bundling. Farmers and Liberty Mutual also offer savings to students, homeowners, and accident-free drivers.
Coverage and financial stability should be considered when choosing a provider. Evaluating New Jersey car insurance companies ensures you receive reliable protection at a reasonable price.
Car Insurance Discounts From Top New Jersey Providers
| Insurance Company | Safe Driver | Bundling | Accident-Free | Multi-Vehicle | Defensive Driving |
|---|---|---|---|---|---|
| 17% | 14% | 17% | 17% | 15% |
| 10% | 15% | 12% | 10% | 10% |
| 13% | 14% | 13% | 13% | 12% |
| 12% | 14% | 12% | 12% | 10% |
| 10% | 12% | 10% | 10% | 12% |
| 10% | 14% | 10% | 10% | 10% |
| 13% | 14% | 13% | 13% | 12% |
| 14% | 14% | 14% | 14% | 15% |
| 30% | 14% | 30% | 30% | 10% |
| 15% | 15% | 15% | 15% | 15% |
Providers like Progressive, State Farm, and Travelers offer additional discounts for multi-vehicle and defensive driving. Comparing rates from NJ auto insurance companies helps you find the best deal.
Important Considerations When Driving in New Jersey
Driving in New Jersey varies by city, with Newark reporting 6,000 accidents and 5,000 claims annually. Smaller cities like Hamilton Township see fewer incidents, making location a key factor when considering car insurance in Newark, NJ.
New Jersey Accidents & Claims per Year by City
| City | Accidents per Year | Claims per Year |
|---|---|---|
| Camden | 1,800 | 1,500 |
| Clifton | 2,500 | 2,100 |
| Edison | 2,800 | 2,500 |
| Elizabeth | 3,500 | 3,000 |
| Hamilton Township | 1,500 | 1,300 |
| Jersey City | 5,500 | 4,800 |
| Newark | 6,000 | 5,000 |
| Paterson | 3,800 | 3,400 |
| Toms River | 2,200 | 1,800 |
| Trenton | 2,000 | 1,600 |
Understanding accident statistics can help when filing a car insurance claim after an accident. Being informed will help you understand better potential claims and risks in your area.
Rear-end collisions make up 23 percent of claims, which costs an average of $7,000. Single-car crashes and side impacts are also common, but pedestrian and motorcycle accidents are costlier.
5 Most Common Car Insurance Claims in New Jersey
| Claim Type | Portion of Claims | Cost per Claim |
|---|---|---|
| Rear-End Collisions | 23% | $7,000 |
| Single-Vehicle Crashes | 20% | $9,000 |
| Side-Impact Collisions | 15% | $8,000 |
| Pedestrian Accidents | 10% | $50,000 |
| Motorcycle Accidents | 10% | $25,000 |
Staying prepared is necessary given the risk of distracted and impaired driving. Understanding the process of filing a claim after an accident can help manage the aftermath effectively.
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Additional New Jersey Car Insurance Coverage
New Jersey requires Personal Injury Protection (PIP) for medical expenses, lost wages, and rehabilitation. Exceeding PIP limits can lead to out-of-pocket costs, making higher coverage a smart choice.
Loss Ratio in New Jersey Car Insurance
| Loss Ratio | 2015 | 2014 | 2013 |
|---|---|---|---|
| Personal Injury Protection | 75.78% | 70.93% | 72.98% |
| Medical Payments | 80.04% | 58.30% | 66.79% |
| Uninsured/Underinsured Motorist | 56.23% | 57.29% | 68.54% |
Medical Payments (MedPay) covers medical and burial expenses, regardless of fault. Uninsured/underinsured motorist coverage protects against accidents with drivers who have little or no insurance.
According to how the states rank on uninsured drivers, New Jersey ranks 14th for uninsured motorists, with 14.9% of drivers uninsured. This risk makes extra coverage essential.
New Jersey Report Card: Car Insurance Premiums
| Traffic Density | A | High traffic congestion |
|---|---|---|
| Average Claim Size | B | Moderate claim amounts |
| Weather-Related Risks | B | Severe weather impacts |
| Uninsured Drivers Rate | C | High percentage uninsured |
| Vehicle Theft Rate | C | Vehicle theft is common |
New Jersey insurers balance claims payouts with premium revenue. If you’re wondering “How much car insurance is in New Jersey”?, factors like traffic, weather, and uninsured drivers impact costs.
How to Find Affordable Car Insurance in New Jersey
Finding affordable car insurance in New Jersey requires comparing rates and understanding how different insurers compare to the state average.
Here’s a simple five-step process to help you secure the best deal.
- Compare the Cheapest Insurers: Geico, Progressive, and St. Paul offer the lowest rates in New Jersey.
- Check Rates Against the State Average: The average car insurance cost in NJ varies, with some insurers charging significantly more than others.
- Choose the Right Coverage: Whether you need basic liability or full protection, selecting a policy depends on the different types of car insurance coverage that fit your needs.
- Request Personalized Quotes: Factors like location, driving history, and vehicle type affect rates, so comparing quotes helps find the best price.
- Look for Discounts and Benefits: Safe driver, multi-policy, and low-mileage discounts can further reduce costs.
By following these steps, you can find an affordable policy that fits your budget while ensuring you have the right level of protection on the road.
New Jersey Car Insurance Minimum Coverage
New Jersey drivers must carry minimum car insurance. The basic policy is cheaper but only includes $5,000 in property damage liability, while bodily injury liability insurance coverage is optional.
Personal injury protection (PIP) covers $15,000 per person per accident, with up to $250,000 for severe injuries. Since New Jersey follows a no-fault system, PIP covers medical costs, but the basic policy excludes vehicle damage.
Geico is the best car insurance in New Jersey, offering affordable rates, reliable coverage, and high customer satisfaction, making it a top choice for drivers seeking value.
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Liability insurance protects against lawsuits and penalties for at-fault accidents. Consider if the basic policy is enough based on your needs and the average cost of car insurance in New Jersey.
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Best Car Insurance in New Jersey: Top Providers and Rates
Geico, State Farm, and Progressive offer the best car insurance in New Jersey. Geico offers the lowest rates, starting at $47 monthly for minimum coverage. State Farm provides local agent support, while Progressive offers budgeting tools like the Name Your Price tool.
Car insurance rates by state vary, with full coverage ranging from $61 to $279 per month in New Jersey. To get the best rates, compare auto insurance in NJ using comparison tools and take advantage of discounts for safe driving, bundling, and accident-free records from top providers. Ready to find cheaper car insurance coverage? Enter your ZIP code to begin.
Frequently Asked Questions
What affects the cost of car insurance in New Jersey?
Several factors influence car insurance costs in New Jersey, including your age, gender, marital status, driving record, type of vehicle, and credit score. Learn how car insurance works.
How can I find affordable car insurance in New Jersey?
Compare prices from several providers and look for discounts like safe driving, bundling, and accident-free histories. See if you’re getting the best deal on car insurance by entering your ZIP code.
What discounts are available for car insurance in New Jersey?
Discounts include multi-policy, safe driving, claim-free, and defensive driving discounts.
What is the minimum required car insurance coverage in New Jersey?
New Jersey requires Personal Injury Protection (PIP) and $5,000 in property damage liability coverage. Bodily injury liability is optional. Dive into our the things you do that can raise your premiums to gain a deeper insight.
Is full coverage necessary in New Jersey?
Full coverage is not strictly necessary in New Jersey, as the state’s New Jersey car insurance laws only require liability coverage. However, full coverage is highly recommended if you own a newer or more valuable vehicle.
Can I get car insurance with a history of accidents in New Jersey?
Yes, you can get car insurance rates in NJ with a history of accidents; though premiums may be higher, accident forgiveness or safe driving discounts could help lower them.
How do I compare car insurance quotes in New Jersey?
Use an online comparison tool and enter your ZIP code to get quotes based on your coverage needs. Explore our car insurance rates by city for more insights.
What is the best way to evaluate a car insurance company?
Consider financial stability, customer service, claims handling, and competitive pricing. Explore your car insurance options by entering your ZIP code and finding which companies have the lowest rates.
What is Personal Injury Protection (PIP), and do I need it?
Personal Injury Protection (PIP) covers medical expenses, lost wages, and rehabilitation costs regardless of fault, and car insurance in New Jersey requires it for all drivers.
What additional coverage options should I consider in New Jersey?
For further protection, take into account Medical Payments (MedPay) and uninsured/underinsured motorist policy. Here’s how to find one-day car insurance coverage.