About New Jersey Auto Insurance
New Jersey drivers pay an average of $1,592 per year for full coverage auto insurance, 6% more than the national average of $1,500. This makes New Jersey around average for car insurance costs nationally, ranking #35 out of 51 states and territories.
As a no-fault state, New Jersey requires drivers to carry Personal Injury Protection (PIP) coverage. This means your own insurance pays for your medical expenses regardless of who caused an accident, which adds to premium costs but provides faster claim payouts.
Your actual rate will depend on your driving record, vehicle, age, and coverage choices. We recommend comparing quotes from at least 3-5 carriers.
New Jersey Minimum Coverage Requirements
New Jersey requires all registered vehicles to carry minimum liability insurance of $15k/30k/5k. This notation means:
- • $15,000 bodily injury liability per person injured
- • $30,000 total bodily injury liability per accident
- • $5,000 property damage liability per accident
As a no-fault state, New Jersey requires drivers to carry Personal Injury Protection (PIP) coverage that pays for their own medical expenses regardless of who caused the accident. The minimum PIP coverage required is $15,000.
New Jersey also requires uninsured/underinsured motorist (UM/UIM) coverage with minimums of $15k per person. This protects you if you're hit by a driver without adequate insurance.
What Affects New Jersey Auto Insurance Rates
Dense population, high traffic
No-fault with lawsuit threshold
Choice between standard and basic policy
How to Save on New Jersey Auto Insurance
- ✓Basic policy saves money but limits rights
- ✓Compare standard vs basic carefully
- ✓PIP health insurance coordination
Driving Risk Factors in New Jersey
These factors are used by insurers to set rates in New Jersey:
| Risk Factor | New Jersey | National Avg | Rating |
|---|---|---|---|
| Traffic Fatalities (per 100k) | 8.3 | 12.8 | Below Average |
| Vehicle Thefts (per 100k) | 199 | 282 | Below Average |
| Most Stolen Vehicle | Honda Accord | ||
New Jersey ranks #48 for traffic fatalities and #34 for vehicle theft among all 50 states.
What This Means for Insurance Rates
New Jersey's below-average risk profile for both traffic fatalities and vehicle theft helps keep insurance rates more competitive compared to higher-risk states. If you drive a Honda Accord, consider adding comprehensive coverage with a low deductible.
Data: NHTSA FARS 2022, NICB Hot Spots Report 2022
Average Auto Insurance Rates in New Jersey
The average annual auto insurance premium in New Jersey is:
That's $133/month for full coverage
National avg: ~$$1,500/year
Top Auto Insurance Companies Operating in New Jersey
New Jersey Auto Insurance FAQ
What is the minimum car insurance required in New Jersey?
New Jersey requires minimum liability coverage of $15k/$30k/$5k. Additionally, Personal Injury Protection (PIP) of at least $15k is required. Uninsured/underinsured motorist coverage is also mandatory.
Is New Jersey a no-fault or at-fault state?
New Jersey is a no-fault state. This means after an accident, you file a claim with your own insurance company for medical expenses, regardless of who caused the accident. PIP coverage handles these expenses.
How much does car insurance cost in New Jersey?
The average annual car insurance premium in New Jersey is $1,592, which is 6% above the national average of $1,500. Rates vary significantly based on your driving record, age, vehicle, and ZIP code within the state.
Data Sources & Methodology
The information on this page is compiled from authoritative sources:
- •NAIC↗ — National Association of Insurance Commissioners complaint data
- •State DOI — State Department of Insurance rate filings
- •U.S. Census Bureau↗ — Population and demographic data
Insurance quotes and actual premiums will vary based on individual factors. This content is for informational purposes only.