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What Is the Best Car Insurance in New Jersey?
Based on our research, the best company for car insurance in New Jersey is Travelers, followed by Geico, State Farm, Progressive and NJM Insurance. All of these top insurers offer great rates on both minimum- and full-coverage policies and have strong financial backing and solid reputations for providing excellent service to New Jersey drivers.
Compare New Jersey Auto Insurance
To compare New Jersey auto insurance companies, we looked at their performance in five key categories: industry standing, availability, coverage, cost and discounts and customer experience. We then developed an overall score for each and ranked them from 1 to 5 for the state of New Jersey as shown below.
| Best Car Insurance in New Jersey | Our Score* | Industry Standing | Availability | Coverage | Cost and Discounts | Customer Experience |
| Travelers | 9.5 | 9 | 10 | 9.8 | 9.8 | 8.7 |
| Geico | 9.1 | 9.7 | 10 | 8.4 | 9.1 | 8.8 |
| State Farm | 9.4 | 10 | 9.8 | 9.2 | 9.3 | 9.3 |
| Progressive | 9 | 9.5 | 10 | 9.5 | 7.8 | 8.7 |
| NJM Insurance | 8.7 | 8.3 | 7.3 | 9.2 | 9.3 | 7.9 |
Customer Experience
To assess customer experience for each of the top auto insurers on this list, we looked at major industry watchdogs, including the Better Business Bureau (BBB) and J.D. Power. We also read reviews on sites such as Trustpilot and Google to get a sense of individual experiences as well as overall sentiment. Using this analysis and our independent research, we then calibrated a unique customer-experience score for each company.
State Farm earned the best score for customer experience at 9.3 out of 10. Geico came in second with a score of 8.8, and Travelers and Progressive tied at 8.7. NJM Insurance rounded out our top five with a score of 7.9.
Best Car Insurance Companies in New Jersey
#1: Travelers
J.D. Power rating: 860
AM Best financial strength rating: A++
BBB rating: A
Pros
Strong industry ratings
Accident-forgiveness coverage
Can bundle with homeowners insurance and more
Cons
Low customer ratings on the BBB
Travelers Car Insurance Coverage
Travelers offers New Jersey drivers all of the standard car insurance coverages, including these:
- Bodily injury liability
- Property damage (PD) liability
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist (UM/UIM) coverage
- Personal injury protection (PIP)
- Medical payments (MedPay) coverage
In addition to these standard coverages, Travelers offers more protection through optional add-ons. In New Jersey, these include:
- Loan/lease gap insurance: This add-on covers any potential “gap” between the amount you still owe on your car and the amount it’s actually worth if it’s stolen or totaled in a covered accident.
- Rental car coverage: If you need alternative transportation for more than 24 hours because of a covered accident, this coverage pays for a rental car.
- Roadside assistance: This coverage pays for emergency services if your car breaks down on the side of the road.
- New car replacement: If you total your car within the first five years, this additional coverage helps you replace your car with a new vehicle of the same make and model.
- Accident forgiveness: Accident forgiveness ensures your rate doesn’t increase after a single accident within a specific time frame.
- Named non-owner coverage: This liability insurance option covers people who regularly drive vehicles they don’t own.
Travelers Insurance Company Reputation
Travelers has been in business since 1865 and enjoys excellent financial health and a strong commitment to customer service. It has an A++ rating from AM Best and an A rating from the BBB.
In the J.D. Power 2022 U.S. Auto Insurance Study, Travelers received 860 out of 1,000 points for overall customer satisfaction, ranking second on the list of top insurers in the Mid-Atlantic region, which includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, Washington, D.C., and West Virginia.
Read more: Travelers insurance review
#2: Geico
J.D. Power rating: 834
AM Best financial strength rating: A++
BBB rating: A+
Pros
A++ financial rating from AM Best and A+ from the BBB
Low average car insurance rates for most drivers
High policy limits
Usage-based insurance discount
Cons
Average J.D. Power claims-satisfaction ratings
Not always the cheapest for people with poor credit or recent accidents
Fewer local insurance agents than other companies
Geico Car Insurance Coverage
Geico offers standard auto insurance coverages and a selection of optional coverages, including:
- Emergency roadside assistance
- Rental car reimbursem*nt
- Mechanical breakdown insurance (MBI)
Geico also offers a usage-based insurance (UBI) program called DriveEasy, which gives customers the opportunity to save money based on their driving habits. UBI programs use telematics to monitor driving and offer custom discounts based on safe driving practices.
Geico Insurance Company Reputation
Geico is known for offering low car insurance rates to most drivers. In addition to affordability, the company has a solid reputation for providing reliable car insurance and quality customer service. Geico has an A++ financial strength rating from AM Best, which means it has the proven ability to pay claims. Its A+ rating from the BBB indicates a commitment to customer service and swift dispute resolution.
Geico received 834 out of 1,000 points in the J.D. Power Auto Insurance Study, which measured overall customer satisfaction. This rating placed the carrier sixth on the list of top insurers in the Mid-Atlantic region.
Read more: Geico insurance review
#3: State Farm
J.D. Power rating: 851
AM Best financial strength rating: A++
BBB rating: C-
Pros
A++ financial strength rating from AM Best
Good discounts for students and teens
Usage-based-insurance discount
Cons
Mixed reviews from customers
State Farm Car Insurance Coverage
State Farm offers all of the standard car insurance coverages in New Jersey and the following optional coverages:
- Emergency road service coverage
- Rental car reimbursem*nt
- Travel expenses coverage
- Ride-share driver coverage
State Farm Insurance Company Reputation
In business for more than a century, State Farm has proven industry expertise and a solid reputation for financial strength and quality customer service. But while it has an A++ rating from AM Best, it has a C- rating from the BBB for not resolving more than 40 customer complaints filed through the organization.
In the J.D. Power Auto Insurance Study, State Farm received 851 out of 1,000 points for overall customer satisfaction. The rating put the insurer at No. 3 (behind Erie Insurance and Travelers) on the list of the best insurers in the Mid-Atlantic region.
Read more: State Farm insurance review
#4: Progressive
J.D. Power rating: 827
AM Best financial strength rating: A+
BBB rating: A
Pros
A+ financial strength rating from AM Best
Wide selection of coverage options
Usage-based-insurance discount
Cons
Average customer service ratings
Higher rates for some drivers who use the Snapshot program
Progressive Car Insurance Coverage
Similar to most major insurers, Progressive offers all six standard car insurance coverages in New Jersey and has a range of optional coverages, including:
- Auto roadside assistance
- Custom parts and equipment value coverage
- Deductible savings bank
- Loan/lease payoff
- Pet injury coverage
- Rental car reimbursem*nt
- Ride-share coverage
- Trip-interruption coverage
Progressive Insurance Company Reputation
Founded in 1937, Progressive has a strong financial strength rating (A+) from AM Best and an A rating from the BBB. These ratings indicate Progressive is a reputable auto insurer with a proven ability to pay claims and maintain high levels of customer satisfaction.
In the J.D. Power Auto Insurance Study, Progressive received a score of 827 out of 1,000 points for overall customer satisfaction. This score put the company just ahead of Liberty Mutual and Nationwide on the list of top insurers in the six-state Mid-Atlantic region.
Read more: Progressive insurance review
#5: NJM Insurance
J.D. Power rating: 844
AM Best financial strength rating: A+
BBB rating: C-
Pros
Numerous discounts available
SafeDrive usage-based-insurance program
Other insurance products available
Cons
Low rating from the BBB
Limited information on its website
NJM Insurance Coverage
NJM Insurance offers the standard car insurance coverages, as well as transportation-expense coverage and roadside assistance. The insurer serves customers in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.
NJM Insurance Company Reputation
NJM Insurance has been in business for more than 100 years and has an A+ rating from AM Best, indicating excellent financial health and the ability to pay claims.
In the J.D. Power Auto Insurance Study, NJM Insurance received a score of 844 out of 1,000 points for overall customer satisfaction. The company is No. 4 on the study’s list of top insurers in the Mid-Atlantic region. According to its website, NJM Insurance was certified by J.D. Power for providing personal-lines insurance.
How To Find the Best Car Insurance in New Jersey
To find the best car insurance in New Jersey, do your research and shop around. Here are seven tips for ensuring you have the best car insurance policy to suit your needs.
Compare Discounts
Insurers offer a range of discounts to attract more customers. Maximize your savings by comparing discounts from at least three companies.
Choose the Right Coverage
Make sure you have the types and amounts of coverage you need. To guarantee an accurate view of each company’s offerings, enter the same coverages and limits for each quote.
Enroll in Usage-Based Insurance
UBI programs monitor your driving and personalize your rate based on that data. Your safe driving habits could save you money on your car insurance premium.
Keep a Clean Driving Record
Because a single car accident or ticket can result in a rate increase at renewal, driving safely helps keep your premiums low.
Avoid a Coverage Lapse
Keep your auto insurance policy active at all times. A lapse in coverage for any reason can raise your rate later.
Read Online Reviews
In addition to this guide, online reviews can give you a sense of what policyholders are saying about the insurance companies you’re considering. Look for trends (positive and negative) in the comments.
Bundle Policies
Most car insurance companies offer discounts if you purchase more than one policy from them. For example, bundling your auto insurance with your homeowners or renters insurance could reduce your rates.
Check New Jersey Car Insurance Requirements
Like most states, New Jersey requires a minimum amount of auto coverage to drive. However, the state allows drivers to choose between a basic policy and a standard one. A standard policy includes liability coverage that is equal to (or may be higher) than New Jersey’s mandated minimum, while a basic policy’s coverage is lower.”
In addition to carrying a minimum amount of property damage (PD) liability coverage, New Jersey drivers must carry personal injury protection (PIP) coverage. Drivers who choose the standard policy must also buy bodily injury (BI) liability coverage and uninsured/underinsured motorist (UM/UIM) protection. BI liability is optional with the basic policy.
| Type of Coverage | Standard PolicyMinimum Limits | Basic PolicyMinimum Limits |
| BI liability insurance | $25,000 per person$50,000 per accident | $10,000 for all persons, per accident (optional) |
| PD liability insurance | $25,000 | $5,000 per accident |
| PIP | $15,000 per person or accident | $15,000 per person or accident |
| UM/UIM insurance | $25,000 per person$50,000 per accident | None |
Liability coverages protect other drivers and include bodily injury (BI) and property damage (PD). These coverage limits are usually shown as three numbers — 25/50/25 or 25,000/50,000/25,000. When you see them displayed this way, it means the policy covers up to $25,000 BI liability per person, $50,000 BI liability per accident and $25,000 PD liability per accident.
While most states require a minimum level of liability coverage, New Jersey allows drivers to buy a basic policy with coverage that meets state requirements set by the Automobile Insurance Cost Reduction Act in 1998. Instead of the standard policy’s 25/50/25, drivers can buy a basic policy, which covers up to $5,000 for property damage and up to $15,000 in PIP insurance.
New Jersey’s Department of Banking & Insurance recommends the basic policy, which includes the limited right to sue option, for low-income or young drivers.
When deciding whether to go with the standard or basic option, keep in mind that a basic policy in New Jersey costs a lot less but also offers a lot less coverage. Always try to balance cost with coverage level to ensure your finances are adequately protected if an accident occurs.
Consider How Much Car Insurance Coverage You Need
How much car insurance you need depends on a number of factors, including your finances. If you have plenty of extra cash set aside, you could opt for a minimum-liability policy. Minimum-coverage policies cost a lot less because they cover much less. Specifically, they don’t cover damage to your vehicle or pay medical bills for you and your passengers. Only pick minimum coverage if you can afford to pay for repairs or medical bills out of pocket. If you can’t afford that — or would rather not have to — choose a full-coverage policy.
A full-coverage policy typically includes these coverages in New Jersey (with liability often at higher limits than the state’s minimum requirement):
- BI liability: Covers medical bills for other drivers and their passengers if you injure them in an accident
- PD liability: Covers other people’s cars and property if you damage them in an accident
- UM/UIM coverage: Pays expenses for your property damage and your and your passengers’ injuries you if you’re in an accident with a driver who doesn’t have enough insurance
- PIP insurance: Covers medical expenses and related costs for you and your passengers, regardless of who’s at fault for an accident (requires a minimum of $15,000 per person or accident in New Jersey)
- Collision: Optional coverage for damage to your vehicle after a collision
- Comprehensive: Optional coverage for damage to your vehicle from something other than a collision, such as vandalism, theft and hail damage
In addition to these types of insurance, there’s MedPay, which covers medical expenses for you and your passengers, regardless of who was at fault for the accident. MedPay is optional in New Jersey.
Know Your Lender’s Requirements
If you’re leasing or financing your vehicle, your lender will most likely require you to carry full coverage — meaning minimum liability plus comprehensive and collision. Lenders like to protect their financial investment (your vehicle).
Average Cost of Car Insurance in New Jersey
For New Jersey drivers, the average cost of full-coverage car insurance is $2,513 annually or about $209 monthly. For a minimum-coverage policy, that average goes down to $1,332 annually or $111 monthly.
| Average Annual Minimum-Coverage Cost | Average Monthly Minimum-Coverage Cost | Average Annual Full-Coverage Cost | Average Monthly Full-Coverage Cost |
| $1,332 | $111 | $2,513 | $209 |
New Jersey Car Insurance Costs by Provider
Geico offers the cheapest average rates for a minimum-coverage policy at an annual average of $633. It’s also the least expensive option for a full-coverage policy, averaging $1,472 a year.
| Car Insurance Provider | Minimum-Coverage Monthly Average Cost | Full-Coverage Annual Average Cost |
| Geico | $633 | $1,472 |
| NJM Insurance | $741 | $1,714 |
| Selective Insurance | $1,130 | $2,149 |
| State Farm | $1,150 | $2,099 |
| Farmers | $1,212 | $2,647 |
| Progressive | $1,250 | $2,071 |
| Travelers | $1,518 | $1,753 |
| Allstate | $1,929 | $2,726 |
| Hanover Insurance | $2,803 | $6,018 |
Average New Jersey Car Insurance Costs by Age Group
Because they’re less experienced behind the wheel and statistically more likely to take chances, drivers under the age of 25 pay more for car insurance than other age groups. Drivers older than 25 generally receive significantly lower rates, which continue to slowly decrease over time.
In New Jersey, 17-year-old drivers pay an average yearly rate of $10,578 for full-coverage policies. By age 25, however, they tend to pay a significantly lower average yearly rate for full coverage ($2,827).
| Age | Average Full-Coverage Monthly Cost | Average Full-Coverage Annual Cost |
| 17 | $882 | $10,578 |
| 25 | $236 | $2,827 |
| 35 | $209 | $2,513 |
| 45 | $203 | $2,441 |
| 55 | $189 | $2,269 |
Provider Car Insurance Costs by Age in New Jersey
Living up to its reputation for consistently being among the most affordable car insurance companies for most drivers, Geico offers the cheapest average rates for New Jersey drivers in every age group.
| Provider | 16 | 25 | 35 | 45 | 55 |
| Allstate | $10,362 | $3,104 | $2,726 | $2,726 | $2,444 |
| Farmers | $17,636 | $2,976 | $2,647 | $2,588 | $2,477 |
| Geico | $3,201 | $1,734 | $1,472 | $1,446 | $1,337 |
| Hanover Insurance | $26,829 | $6,809 | $6,018 | $5,903 | $5,414 |
| NJM Insurance | $4,167 | $1,994 | $1,714 | $1,627 | $1,494 |
| Progressive | $15,134 | $2,279 | $2,071 | $2,002 | $1,800 |
| Selective Insurance | $10,654 | $2,447 | $2,149 | $1,924 | $1,811 |
| State Farm | $5,868 | $2,466 | $2,099 | $2,091 | $1,996 |
| Travelers | $4,464 | $1,736 | $1,753 | $1,694 | $1,516 |
New Jersey Car Insurance Costs by City
Car insurance premiums vary not only by state but also by location within a state. Because accident, theft and vandalism rates increase in large cities and urban areas, drivers in those ZIP codes can expect to pay more than drivers in more rural areas.
In New Jersey, Hillsborough has the lowest average annual rates for full-coverage car insurance at $1,558. Irvington and Newark have the highest average annual rates at $2,584 for a full-coverage policy.
| City in New Jersey | Average Full-Coverage Monthly Cost | Average Full-Coverage Annual Cost |
| Atlantic City | $193 | $2,312 |
| Belleville | $185 | $2,220 |
| Bloomfield | $174 | $2,092 |
| Burlington | $131 | $1,571 |
| Camden | $203 | $2,438 |
| Edison | $145 | $1,736 |
| Elizabethport | $209 | $2,504 |
| Englishtown | $144 | $1,727 |
| Garfield | $184 | $2,210 |
| Hillsborough | $130 | $1,558 |
| Hoboken | $182 | $2,188 |
| Irvington | $215 | $2,584 |
| Jackson | $148 | $1,778 |
| Jersey City | $184 | $2,211 |
| Kearney | $185 | $2,223 |
| Lakewood | $161 | $1,935 |
| Linden | $185 | $2,222 |
| Maplewood | $180 | $2,162 |
| Millville | $148 | $1,776 |
| Mount Laurel | $133 | $1,592 |
| Newark | $215 | $2,584 |
| Orange | $208 | $2,493 |
| Paramus | $150 | $1,805 |
| Passaic | $210 | $2,525 |
| Perth Amboy | $189 | $2,264 |
| Princeton | $135 | $1,621 |
| Ridgewood | $135 | $1,619 |
| Scotch Plains | $146 | $1,746 |
| Sicklerville | $151 | $1,815 |
| Teaneck | $168 | $2,017 |
| Toms River | $136 | $1,635 |
| Trenton | $184 | $2,206 |
| Union City | $198 | $2,378 |
| Vineland | $155 | $1,859 |
| Wayne | $152 | $1,827 |
| Westfield | $139 | $1,667 |
| West Orange | $176 | $2,113 |
| Williamstown | $151 | $1,817 |
New Jersey Car Insurance Discounts
Getting discounts is an easy way to save on your car insurance premiums. When comparing car insurance quotes, look closely at discounts from each company to ensure you’re getting all of the savings you can. Keep an eye out for these common car insurance discounts:
| Discount | Description |
|---|---|
| Multi-policy | Insuring numerous products with the same carrier |
| Multi-auto | Insuring more than one vehicle with the same carrier |
| Good student | Maintaining a GPA of 3.0 or above (full-time students) |
| Distant student | Insuring a student under the age of 22 who lives more than 100 miles from home |
| Safe/accident-free driver | Maintaining a clean driving record for three consecutive years |
| Defensive driving | Completing an approved defensive-driving course |
| Driver training | Completing an approved driver’s ed course (teen drivers) |
| Pay in full | Paying your premium all at once versus monthly |
| Automatic payments | Setting up auto-pay on your car insurance account |
| Continuous insurance | Remaining continuously insured for six months or more |
Best New Jersey Car Insurance: The Bottom Line
If you want the best New Jersey car insurance, we recommend Travelers, Geico, State Farm, Progressive and NJM Insurance. Each of these top car insurance companies offers great rates and a broad selection of discounts and coverages.
When looking for the best car insurance, keep in mind that the best company for you may be different from the best company for someone else. Shop around and compare policies and prices from at least three providers.
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FAQ: Best Auto Insurance in New Jersey
Looking for the right car insurance company and policy can raise a lot of questions. Here are some frequently asked questions about car insurance in New Jersey.
The best car insurance to have in New Jersey is Travelers, followed closely by Geico, State Farm, Progressive and NJM Insurance.
The average cost of car insurance in New Jersey is $2,513 annually or about $209 monthly for a full-coverage policy. For minimum coverage, the average annual cost is $1,332 annually or $111 monthly.
On average, Geico offers the most affordable rates for New Jersey drivers.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
