On average, New Jersey drivers spent a little over $2,000 per year in 2015 insuring their vehicles.
The lowest paying individuals lived in Hillsborough and Bridgewater. These people faced around $1,500 in annual car insurance costs. Meanwhile, in Atlantic City, Jersey City, Newark, Trenton, and many other larger areas of New Jersey, auto insurance ran around $2,500 to $2,750 per year.
This puts New Jersey roughly in the top-5 list of the most expensive states to get auto insurance. So you need to be ever so careful when pricing out your car insurance policy. You could end up paying double what someone else does if you don’t play your cards right!
So let’s send you on the right way …
What are the Requirements for Car Insurance in New Jersey?
The mandatory minimum coverage for auto insurance in New Jersey requires:
- $5,000 against property damage,
- $15,000 for personal injury protection, and,
- $15,000 against bodily injury liability for up to $30,000 per accident.
Understanding Limited and Unlimited “Right to Sue”
Interestingly, one variable you can modify is whether you have the “right to sue” for non-financial losses. If you want to pay less in premiums go for the “limited right” instead. You could pay around 30% less this way, versus if you go the “unlimited right” route.
By avoiding this type of coverage you are basically saying you don’t expect to get in an accident, and if you do you won’t really be trying to get compensated for it. Because you will void yourself of financial gain from “pain and suffering” type claims.
For instance, those with an unlimited right to sue (but higher insurance premiums) can get compensated by the person who caused an accident for stuff like a ‘lowered life quality’. It extends much further than the typical claims like a ‘loss of income’ due to the accident.
So if you really want to pay as little as possible on car insurance in New Jersey, you definitely want to drop the extra cost for your “unlimited right to sue,” right off the bat. And don’t stress over it, because you can still get covered for losing time at work, facing hospital bills, and etc., without this additional coverage. Further, you can still get rewarded for your “pain and suffering” if you get seriously injured.
Car Insurance Costs by City – New Jersey Prices
Have you ever wondered what you can expect to pay in your particular city?
Typically, insurance premiums are higher in the larger cities because there’s a higher chance of getting into an accident. This was noted earlier in the examples of Hillsborough and Bridgewater, which have a combined population of under 100,000 people.
In these small areas, drivers typically pay nearly half of what drivers in larger cities pay. For example, the average car insurance cost is over $2,500 in Newark where there are around 300,000 residents.
In fact, there was a Forbes article about four years ago that outlined the ‘worst drivers in America’ in relation to auto accident stats and car insurance rates. It was found that New Jersey was the second-worst state; Elizabeth, Jersey City, Newark and Paterson all ranked very poorly.
But don’t use this as your only way of judging auto insurance rates for your New Jersey city or town. Instead, take a look at a detailed list of car insurance premiums by city for New Jersey drivers below:
Newark is the largest city in New Jersey, with a population hovering around 300,000 people as of 2018. This is small when compared to other parts of the U.S., but it doesn’t mean auto accidents are rare. In fact, there are over 100 reported accidents each month in Newark alone; still, the fatality rate is low (and under the national average) as only around 8 in 100,000 residents die in an auto accident each year.
Still, Newark itself is highly recognized as being the most expensive place to live in New Jersey and their car insurance rates definitely reflect this claim. Some residents pay upwards of $500 per month for their auto insurance, whether or not they go with the, “unlimited right to sue,” option.
As a single mid-20’s individual, you can expect to pay just a bit over $3,000 for car insurance each year. Younger drivers will notice car insurance quotes can fluctuate by as much as $250 to $350 per month depending on where they go. As such, it becomes very important to shop around for the best auto insurance rates.
If you want to stay cheap, try your luck with New Jersey Skylands Insurance, The Farmers Insurance Group, or The Norfolk & Dedham Group.
These three are known to be the lowest-priced auto insurance providers in Newark, New Jersey at this time. They all average closer to $1,500 per annual, which means their premiums are about 25% less than the state average and almost 50% less than the average for Newark.
However, we only recommend going for “cheap” and ignoring “the reviews” if you want bare-minimum coverage … so only if you just care about driving “legally” and not so much being optimally covered.
Alternatively, if you are an AAA driver you are entitled to discount auto insurance rates through their policies offered by Western United Insurance. This is one of the cheaper car insurance providers in Newark, but it does require an AAA membership.
Additionally, if you’re married you will find that The Farmers Insurance Group offers highly competitive rates. They undercut their competitors by as much as 60%, with the average insurance policy costing around $1,500 per individual when coupled together.
Make sure you compare car insurance rates across Newark regardless of what position you are in. After all, insurance quotes can range from $100 to $500+ per month, so you have a big decision on your hands!
Jersey City, NJ
Jersey City has a population of over 250,000 and it’s not much smaller in land size than Newark either. But the area doesn’t see quite as high insurance premiums. In fact, the amount paid out by drivers in Jersey City tends to float between $1,000 and $5,000 yearly. This isn’t so bad as, in Newark, you could see rates surpass $7,00 per year.
Just like Newark, the three best-priced car insurance companies seem to be The Farmers Insurance Group, New Jersey Skylands Insurance, and The Norfolk & Dedham Group. Their policyholders tend to pay around $1,400 per annum on average. Similarly, almost 60% savings on average were noticed by married couples going through The Farmers Insurance Group for auto coverage.
If you’re a mature driver, your best bet would be to request car insurance quotes from Norfolk and Skylands directly. These two will offer you very reasonable rates, especially if you’re a bit older. Younger drivers won’t get many favors here, or in any other city in New Jersey, so shopping between many rate quotes will be essential.
Here’s another New Jersey city that was labeled for having some of the worst drivers in America. They’re also one of the three priciest cities for New Jersey drivers to live in when it comes to car insurance premiums. Quotes can range dramatically, hitting as much as over $7,000 in a single year.
So the same New Jersey car insurance companies (Farmers, Norfolk, Skylands) are known for providing the cheapest rates to Paterson drivers. A younger driver looking for car insurance can expect to pay in the $2,500 to $3,000 range each year. Meanwhile, married couples and seniors get protection for about half this amount.
If you’re a mature driver, in your 30’s or 40’s with no major accidents behind you then your car insurance premiums will add to around $2,000 to $2,300 per year.
As long as you stick to one of the three cheapest Paterson NJ car insurance companies you’ll face reasonable coverage costs. These each charge about 40% less than what the alternative auto insurance providers want from Paterson drivers.
Furthermore, AAA drivers can get coverage for about $1,600 annually. This is not the only city where you can save a substantial amount by having an AAA membership. If you really want to maximize your savings, consider the cost of an AAA membership vs. the amount you’d save from whichever companies that give you insurance quotes.
You are looking at paying around $1,500 yearly for car insurance coverage in Elizabeth, NJ when shopping at one of the cheaper insurers we’ve already mentioned. The average cost you could face from any other Elizabeth NJ car insurance companies is about 40% more than this amount.
If you’re married, The Farmers Insurance Group is one of your cheapest options in Elizabeth with almost 60% lower premiums than most other insurers in the area. In fact, senior couples can pay around $700 annually for auto coverage. Married people 30+ generally face around $1,500 per year in insurance costs.
If you’re a mature driver, you can get coverage for under $1,000 through a lot of auto insurance providers. Even drivers in their mid-20’s can get car insurance for about $100 per month through a good New Jersey car insurance provider.
Toms River, NJ
Toms River might be one of the larger cities in New Jersey, but that doesn’t mean the insurance rates are sky-high here. In fact, it falls in the top-3 list for the cheapest cities in New Jersey to get your car insured in.
You pay around $1,750 per year on average for car insurance in Toms River, NJ. This is more than 20% below what the average resident of New Jersey pays for auto coverage. Further, you can expect to pay about $1,000 to $1,200 per year on average through one of the cheapest insurance companies in the area.
However, the cheapest car insurance companies in Toms River are not the same as the other cities listed above. Well, both New Jersey Skylands Insurance and The Farmers Insurance Group are still on the list. But there’s a new addition: Plymouth Rock Assurance.
If you’re a married couple, you can find auto insurance in Toms River, NJ, for about $1,250 per year via The Farmers Insurance Group.
If you’re a mature driver, you could get coverage for about $600 per year (only $50 monthly!) through New Jersey Skylands Insurance.
There are still many other cities in New Jersey and the auto insurance prices will vary depending on where you live. Overall, the average insurance premium ranges from between $101 and $366 per month based on where you’re located in NJ.
Some residents cut corners — say you have family in Hillsborough but you live in Newark, you could get the better insurance pricing if your address is tied to Hillsborough instead. If you just shop for the best rates though, the extra hassle won’t be necessary as you could get the same rates statewide by finding the right provider.
The Verdict: Cheap Car Insurance Will Always Exist!
The thing about shopping for auto insurance in New Jersey is that you can get it for a ‘cheap rate’ no matter what. This is because ‘cheap’ is used to describe the lowest cost plan in town, and if you shop around and get quotes from many insurers you’ll be able to get the best rates in your city.
So if everyone else in your position is paying $3,000 annually for coverage, getting insurance for $150 per month would be a huge deal. It would mean a savings of $100 per month or $1,200 per year.
And that’s how much you could easily save by comparing car insurance quotes …
In fact, some drivers are able to save much more if they play their cards right. This is especially true for younger drivers, as many New Jersey car insurance companies are just looking to take advantage of them. By not getting trapped, you could pay say $2,000 to $3,000 annually instead of $3,500 to $7,500 annually.
But no matter what, the most powerful thing you have on your side is the ability to compare prices before signing anywhere. So make sure you take advantage of free rate quotes from many different insurance providers.
Make sure to include The Farmers Insurance Group, The Norfolk & Dedham Group, and New Jersey Skylands Insurance since they are the cheapest overall based on 2015’s stats. But do not limit yourself to these three, as there could always be a better deal around the corner.
And once again, if you’re an AAA driver you should look into a rate quote for their discounted auto insurance plan. After all, it ranks as the second or third cheapest option in most cities of New Jersey.
Furthermore, reading all these comments about how cheap these companies are will make it easier for you to do business with one of them. We don’t want to be responsible for your insurance experience, so please read up a little on each of these insurers before considering them.
- New Jersey Skylands Insurance – founded in 2002, Skylands is a newer player but one of the best exclusive providers New Jersey has to offer. They currently cover almost 30,000 automobiles in NJ without any complaints made against them to the state’s Department of Insurance. The company was originally built by OneBeacon which is a holdings company with a $1 billion plus valuation.
- The Farmers Insurance Group – founded in 1928, Farmers Insurance provides coverage to American homeowners, motorists, business owners, individuals, and more. The company boasts in excess of 50,000 agents, and has well over 20,000 hired employees. They announced more than $12 billion of revenues for 2015, and claimed to have over $15 billion in held assets.
- The Norfolk & Dedham Group – founded in 1825, Norfolk & Dedham is one of the longest-standing mutual insurance providers in the state. They currently serve MA, ME, NH, NJ, NY, and RI. Their annual revenue is only around $20 million, but they have over $500 million in assets and almost 200 years behind them. They have hundreds of agents that sell their insurance plans across the six states they service.
- Plymouth Rock Assurance – founded in 1982, Plymouth Rock serves Connecticut, Massachusetts, and New Jersey. Through Playmouth Rock, you can get coverage on personal and commercial vehicles, real estate properties, boats and watercrafts, life insurance, and much more. They have over $1 billion in policies written under them currently, and they have between 500 and 1,000 agents across these states.
How Each of Them Compare …
Overall, the average price of insurance at each of the companies listed above is as follows: New Jersey Skylands Insurance ($1,200), The Farmers Insurance Group ($1,300), The Norfolk & Dedham Group ($1,450), and Plymouth Rock ($1,500).
Honorable mentions: GEICO, the Teachers Auto Insurance Company of New Jersey (for teachers), and USAA (for military members) all have an average coverage cost close to $1,500 annually. The other issuers typically run at least an extra $300 per year on average.