As in all other fifty states, New Jersey drivers are required to carry car insurance. If you’re already making monthly payments for your car, gas, and tolls, adding insurance to the mix can result in an expensive overall auto bill.

Once you’ve completed your New Jersey car registration, it’s normal to wonder where you can find the cheapest car insurance.

New Jersey’s state minimum requirements for car insurance are quite low, which means there are plenty of deals to be had on car insurance. However, there are a number of factors to consider when finding an affordable policy that meets your unique needs.

In this short guide, we’ll go over the factors that influence insurance rates and the best low-cost insurers the Garden State has to offer.

Factors That Affect Insurance Rates

Your best car insurance rate isn’t the same as your neighbor’s, or even your twin’s!

Why is that?

The following factors determine New Jersey car insurance rates:

  • Age

  • Zip code

  • Car make, model, and year

  • Driving history

  • Credit score

  • When you last carried insurance

  • Whether your own or rent your home

Someone with a DUI on their record may pay significantly more than the neighbor with a spotless driving history. Likewise, someone with a spotty credit history may find they can get the best rate from a different insurer than a friend with a higher score.

Beyond these factors, the other major influence on your overall rate are the coverages and limits that you select.

New Jersey drivers can take out a basic policy with the following minimum requirements:

  • Property damage coverage – If you’re found at-fault in a car accident, you’ll need a policy that can help pay for the other driver’s damaged vehicle. The minimum allowable insurance coverage in New Jersey is $5,000 per accident.

  • Personal injury protection – If you’re found at-fault, or you hit an uninsured driver, you’ll want a policy that can help cover your own physical injuries. The minimum allowable insurance coverage is $15,000 per person, per accident. (I.e., you’ll need a policy that covers drivers and passengers.)

However, beyond the bare minimum, you may want to invest in the following kinds of policies:

  • Bodily injury liability, to pay for other people’s injuries in a car accident where you’re found to be at fault

  • Collision insurance, to pay for damage to your motor vehicle when you’re found at fault

  • Uninsured motorist insurance, to pay for your costs when the at-fault driver carries no insurance

  • Comprehensive insurance, to cover damage to your motor vehicle caused by weather events, falling trees, theft, or other incidents that do not involve another driver

The cost of your policy will ultimately depend on which coverages you select, your policy limits, and the deductible you agree to pay.

Choosing an Insurer

Once you’ve decided which coverages you need, you’re ready to start shopping for cheap auto insurance NJ-style.

The most affordable insurers for New Jersey drivers with a clean driving record include:

  • NJM

  • Plymouth Rock

  • Geico

  • Travelers

  • Progressive

Are you surprised to see small and regional insurers at the top of the list above nationwide powerhouses like Geico and Progressive? While these famous companies eschew traditional insurance offices to offer cheap policies online, they may not always have a leg up on regional insurers, who deeply understand Garden State drivers’ needs.

In fact, NJM insurance usually has the lowest-cost policies for higher-risk drivers.

Whether you have a DUI, a ticket, or an at-fault accident on your record, New Jersey-based NJM might be the most affordable policy for you. This regional insurer has a hundred year history of providing affordable insurance policies to NJ drivers.

However, that doesn’t mean NJM Insurance has the cheapest or best policy for your needs.

Use the following tips to find the best policy:

  • Shop insurance quotes based on the specific coverage you need.

  • Bundle car insurance with homeowner’s insurance, renter’s insurance, or life insurance to enjoy an overall discounted rate.

  • Take advantage of any discounts applicable to your family (look for programs for veterans, educators, or honor roll students).

  • Try out an insurer who tracks your driving with a telemetric device. If you can prove you drive well and use low mileage, you may be able to lower your rate with Progressive, for example.

OAI: Find Affordable Car Insurance NJ-Wide

Not sure how to find the most affordable car insurance New Jersey has to offer?

With online tools, you can get dozens of quotes from local insurers, all in one place: Online Auto Insurance. When you tell us your personal details and insurance needs, we aggregate quotes from the best insurers in New Jersey, so you can shop for the perfect policy without having to go from insurer to insurer.

Use our online tools today to get started! It’s fast, easy, and best of all, completely free.

Sources:

State of New Jersey Department of Banking & Insurance. Get Legal with New Jersey's Basic Auto Insurance Policy. https://www.state.nj.us/dobi/division_consumers/insurance/basicpolicy.shtml