The best cheap car insurance in New Jersey

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Car insurance is relatively expensive in New Jersey, with the average driver paying $1,350.28 per year. According to the Insurance Information Institute (III), it’s the fourth most expensive state in the US for car insurance. 

Car insurance companies consider your location, age, gender, and driving record to calculate rates. Other factors like credit score, marital status, vehicle type, previous coverage, and miles driven can all play a role in the amount you’ll pay for coverage.

In New Jersey, it’s essential to shop around for your coverage to get the best auto insurance policy for your money.  

Minimum car liability insurance requirements for New Jersey

In the US, drivers must have liability coverage. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers. If you finance or lease your car, your lender probably requires comprehensive and collision coverage. 

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage to protect you when an at-fault driver hits you and they have no coverage or not enough coverage.

According to data from the III, New Jersey requires bodily, property, personal, uninsured, and underinsured coverage. New Jersey’s minimum liability requirements are 15/30/5 — up to $15,000 of injury protection for each person involved in an accident, up to $30,000 worth of injuries per incident, and up to $5,000 of property damages per incident. 

Best car insurance in New Jersey based on credit score

Consumer Reports compiled information on insurance companies and their pricing formulas in each state. It found that a few companies offered the best coverage in New Jersey. Here are the best car insurance companies by credit level, along with the average cost for coverage for a single adult driver. 

*USAA for active duty military, veterans, and their families

Best car insurance for New Jersey driver with a clean record

For a driver in New Jersey age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:

Above data obtained from Savvy, based on 2,753 policyholders in the state of New Jersey

Best car insurance for New Jersey driver with one or more accidents

For a driver in New Jersey age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:

Above data obtained from Savvy, based on 2,753 policyholders in the state of New Jersey

Average premiums for seniors and teen drivers in New Jersey

The table below shows the average senior and teen drivers can expect to pay in New Jersey. Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. Most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Data provided by Goosehead Insurance

New Jersey car insurance rates by city

Below is the estimated average annual premium of auto insurance policies per household in New Jersey’s most populous cities:

Best car insurance in New Jersey based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. Five factors make up customer satisfaction: billing process and policy information; claims; interaction; policy offerings; and price. According to a 2021 survey by J.D. Power, a consumer research company that surveys customers, these are the top ten car insurance companies in Mid-Atlantic region, which includes New Jersey, based on customer rankings:

Most popular car insurance companies in New Jersey based on market share

The following are the most popular car insurance companies in New Jersey, based on the percentage of insured New Jersey drivers who use them:

*USAA – for active military, veterans, and their families

Data from S&P Global Market Intelligence

Who gets the best cheap car insurance in New Jersey?

Drivers who will see the best rates for coverage in New Jersey are those who have the best credit scores. Car insurance companies will look at many different factors when calculating how much you’ll pay for coverage, so each will offer you a different price. 

Another way to save is to shop around — every insurance company prices policies differently, and no two policies are the same. Prices vary greatly depending on whether you get liability, comprehensive, or collision coverage.

Consider the amount of coverage and the types of coverage listed on your quote. Remember, you’re looking for the most coverage for your money. Don’t forget to look at the deductible or the amount you’ll pay out of pocket if you get into an accident.

This content was originally published here.