The cheapest car insurance in New Jersey, at a glance
The Hanover offers the cheapest full coverage in New Jersey, with an average monthly rate of $0, according to NerdWallet's July 2025 analysis.
The Hanover offers the cheapest liability coverage in New Jersey, with an average monthly rate of $0.
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More than 270 million rates analyzed by our team of specialists.
More than 50 insurance companies analyzed in all 50 states and Washington D.C.
You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which includes rates from every locale in the state where coverage is offered and data is available. When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.
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The average cost of full coverage car insurance in New Jersey is $3,103 per year, or $259 per month, according to our analysis. Minimum coverage in New Jersey costs an average of $1,001 per year, or $83 per month.
New Jersey is generally one of the pricier states for auto insurance — so it’s wise to shop around for the best rate.
Cheapest car insurance in New Jersey for July 2025
NerdWallet analyzed rates for 15 insurers to find the cheapest auto insurance in New Jersey. We reviewed rates for drivers of different ages, with different driving histories and coverage types, to find the companies offering the best deals for a variety of driver profiles.
Be aware that your rates will probably be different because of personal characteristics like your age, driving record, car and ZIP code. We recommend getting quotes from several of the companies below to find out which insurer will actually be the cheapest for you.
Full coverage insurance will help pay for repairs to your own vehicle after an at-fault accident, as well as damage and injuries you cause to others.
If you have a car loan or lease, your lender will likely require you to carry full coverage, which includes comprehensive and collision insurance. These coverage types pay you if your car is stolen or damaged in an accident you cause, among other scenarios.
These rates are based on a 35-year-old driver with good credit and a clean driving history.
| Company | Median annual rate | Median monthly rate |
|---|---|---|
| The Hanover | $0 | $0 |
| GEICO | $1,748 | $146 |
| Travelers | $2,100 | $175 |
| NJM | $2,336 | $195 |
| Penn National | $2,450 | $204 |
Liability coverage pays only for damage you cause to others, so you’ll have to pay for your own repairs yourself if you don’t have full coverage.
The rates below are based on a 35-year-old driver with good credit and a clean driving history.
| Company | Median annual rate | Median monthly rate |
|---|---|---|
| The Hanover | $0 | $0 |
| GEICO | $522 | $44 |
| State Farm | $524 | $44 |
| Progressive | $713 | $59 |
| NJM | $872 | $73 |
Having a DUI or at-fault accident on your record will cause your rates to go up — or even double. But each car insurer prices these incidents a little differently, so it’s worth shopping around for the best rates.
The rates below are for 35-year-old drivers with full coverage.
| Category | Cheapest company | Median annual rate |
|---|---|---|
| Clean driving history | The Hanover | $0 |
| After a DUI | The Hanover | $0 |
| After an accident | The Hanover | $0 |
| After a speeding ticket | The Hanover | $0 |
| Having poor credit | The Hanover | $0 |
Rates refreshed July 2025.
Risks of liability car insurance
Liability coverage is typically the cheapest car insurance available, and that usually means getting the barest coverage required by law in your state. But state requirements can be quite low and leave you financially vulnerable if you’re in a serious accident.
Getting the cheapest car insurance possible might also mean missing out on optional coverage types that can help cover your own injuries or property damage — for example, when you’re injured in an accident or if your car is banged up after a bad storm or a hit-and-run. To find cheap car insurance with more coverage, check out NerdWallet’s list of cheap full coverage insurance.
» MORE: Best car insurance in New Jersey
Cheapest car insurance in large New Jersey cities
NerdWallet analyzed rates for 35-year-old drivers with a range of driving histories in some of the largest New Jersey cities.
- Jersey City
Below are the cheapest insurers we found in Jersey City. To see the full list, read NerdWallet's analysis of car insurance in Jersey City.
Category Cheapest Company Median annual rate Clean driving history The Hanover $0 After a DUI The Hanover $0 After an accident The Hanover $0 After a speeding ticket The Hanover $0 Having poor credit The Hanover $0 Category Cheapest Company Median annual rate Clean driving history The Hanover $0 After a DUI The Hanover $0 After an accident The Hanover $0 After a speeding ticket The Hanover $0 Having poor credit The Hanover $0 Rates refreshed July 2025.
- Newark
Below are the cheapest insurers we found in Newark. To see the full list, read NerdWallet's analysis of car insurance in Newark.
Category Cheapest Company Median annual rate Clean driving history The Hanover $0 After a DUI The Hanover $0 After an accident The Hanover $0 After a speeding ticket The Hanover $0 Having poor credit The Hanover $0 Category Cheapest Company Median annual rate Clean driving history GEICO $762 After a DUI The Hanover $0 After an accident The Hanover $0 After a speeding ticket GEICO $762 Having poor credit The Hanover $0 Rates refreshed July 2025.
Cheapest auto insurance in New Jersey by age
Your age is one important factor in determining how much you'll pay for car insurance. Teens pay the most, with rates typically decreasing once you hit your 30s and going up again in your 70s.
Below are the cheapest car insurance rates for New Jersey drivers. All rates are for drivers with clean driving records and good credit.
- For 20-year-old drivers
Young drivers may have to get a lot of quotes to find the best cheap car insurance. Prices can be high in your 20s, but tend to come down as you get more experience on the road. Still, some companies routinely have better insurance rates for young drivers, so it's best to shop around to find them.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $2,060 $172 NJM $4,099 $342 Travelers $4,229 $352 Penn National $5,174 $431 Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $596 $50 State Farm $1,211 $101 Progressive $1,615 $135 Good2Go $1,675 $140 Rates refreshed July 2025.
- For 30-year-old drivers
By the time they reach their 30s, most drivers will enjoy cheaper car insurance rates than in their teens and 20s. Still, factors like a person’s driving record and car make and model can increase prices. Drivers in their 30s can get lower rates by shopping around and taking advantage of any car insurance discounts.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $1,773 $148 Travelers $2,101 $175 NJM $2,430 $203 Penn National $2,585 $215 Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $518 $43 State Farm $527 $44 Progressive $736 $61 NJM $937 $78 Rates refreshed July 2025.
- For 40-year-old drivers
While insurance rates vary by age and gender, drivers in their 40s can often expect to get cheap insurance rates from most companies. You may find even cheaper rates from smaller or regional insurers.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $1,747 $146 Travelers $2,064 $172 NJM $2,285 $190 Penn National $2,358 $197 Company Median annual rate Median monthly rate The Hanover $0 $0 State Farm $530 $44 GEICO $530 $44 Progressive $676 $56 NJM $858 $72 Rates refreshed July 2025.
- For 60-year-old drivers
Car insurance costs may start to rise for older drivers, so it’s wise to shop around for the cheapest rates. You can also check for senior discounts. For example, some insurers offer discounts to senior drivers who take a defensive driving course.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $1,811 $151 Travelers $1,862 $155 NJM $1,988 $166 Penn National $2,177 $181 Company Median annual rate Median monthly rate The Hanover $0 $0 State Farm $483 $40 GEICO $578 $48 Progressive $620 $52 NJM $754 $63 Rates refreshed July 2025.
- For 70-year-old drivers
Our analysis shows that older drivers with good credit and a clean driving history enjoy some of the cheapest auto insurance rates, but car insurance rates for senior drivers start to creep up once you reach your 70s.
Company Median annual rate Median monthly rate The Hanover $0 $0 NJM $2,012 $168 Travelers $2,223 $185 GEICO $2,229 $186 Selective $2,488 $207 Company Median annual rate Median monthly rate The Hanover $0 $0 State Farm $557 $46 GEICO $739 $62 NJM $797 $66 Progressive $817 $68 Rates refreshed July 2025.
"Dollar a day" insurance
For affordable medical coverage, New Jersey offers an auto insurance policy to low-income drivers eligible for federal Medicaid with hospitalization. The policy, known as the Special Automobile Insurance Policy (SAIP), costs $360 to $365 per year, or about $1 per day.
SAIP provides minimal medical coverage only, and does not cover liability or vehicle damage.
Cheapest auto insurance in New Jersey by driving record
Having a driving violation on your record is likely to increase your car insurance premium. How much more you’ll pay depends on the type of violation, your car insurance carrier and your other personal characteristics.
NerdWallet found the companies offering the lowest car insurance rates for 35-year-old New Jersey drivers with different driving records. If you have multiple violations on your record, consider looking into the best high-risk car insurance companies.
- After a speeding ticket
In most cases, a speeding ticket affects the cost of car insurance, but insurers use different equations to calculate prices. So, if your rates rose after a recent ticket, you may still be able to get cheaper coverage by shopping around.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $1,748 $146 Travelers $2,797 $233 NJM $3,085 $257 Penn National $3,620 $302 Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $522 $44 State Farm $922 $77 Progressive $948 $79 Good2Go $1,161 $97 Rates refreshed July 2025.
- After one at-fault accident
An accident can affect your car insurance costs for up to three years, depending on your location and your insurer. But not all insurance companies use the same pricing model, so it can be hard to predict how much insurance will increase after an accident. If your insurance went up after a recent crash, you might find cheaper options by shopping around.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $2,425 $202 NJM $2,539 $212 Travelers $3,297 $275 Penn National $3,751 $313 Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $707 $59 State Farm $869 $72 NJM $952 $79 Amica $1,182 $98 Rates refreshed July 2025.
- After a DUI
A DUI on your driving record can significantly increase the cost of car insurance. Our analysis showed that a 35-year-old in New Jersey with a clean driving history could get full coverage insurance for $0 a month, on average, while that same driver could pay $0 for the same coverage after a DUI. This makes it especially valuable to shop for cheap car insurance after a DUI.
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $2,466 $206 NJM $3,085 $257 Travelers $3,543 $295 Plymouth Rock $3,558 $297 Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $720 $60 Progressive $838 $70 NJM $1,166 $97 Plymouth Rock $1,265 $105 Rates refreshed July 2025.
If DUIs, poor credit or other high-risk factors are preventing you from getting car insurance on the voluntary market, you can seek coverage through the New Jersey Automobile Insurance Plan. For more help finding competitive car insurance quotes in New Jersey, try NerdWallet's car insurance comparison tool.
» MORE: Getting an SR22 in New Jersey
Cheapest car insurance in New Jersey by credit history
Your credit history can impact your auto insurance rates in New Jersey. Insurers use a credit-based insurance score, which is different from your regular credit score, to determine the likelihood you’ll file a claim.
NerdWallet found the companies offering the lowest car insurance rates for 35-year-old New Jersey drivers with poor credit.
- Poor credit
Company Median annual rate Median monthly rate The Hanover $0 $0 NJM $3,848 $321 Travelers $4,403 $367 New Jersey Skylands $4,544 $379 Progressive $4,983 $415 Company Median annual rate Median monthly rate The Hanover $0 $0 Progressive $959 $80 Good2Go $997 $83 Plymouth Rock $1,213 $101 Foremost $1,379 $115 Rates refreshed July 2025.
- Good credit
Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $1,748 $146 Travelers $2,100 $175 NJM $2,336 $195 Penn National $2,450 $204 Company Median annual rate Median monthly rate The Hanover $0 $0 GEICO $522 $44 State Farm $524 $44 Progressive $713 $59 NJM $872 $73 Rates refreshed July 2025.
Cheapest car insurance in New Jersey for military families
USAA
- High customer satisfaction ratings.
- One-stop shop for insurance as well as banking and investing products.
- Policies available in all states and Washington, D.C.
- Available to active military, veterans and their families only.
If you're an active member of the military or a veteran — or you have an immediate family member who is — chances are you'll get a relatively cheap rate with USAA, a company that isn't available to the general public. Because of that restriction, USAA isn't ranked with the others, but it's often one of the cheapest insurance providers available. Read our USAA auto insurance review.
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.
Minimum auto insurance limits in New Jersey
New Jersey is a no-fault state, requiring drivers to carry personal injury protection, or PIP, in addition to liability insurance. New Jersey is unique in that it offers a choice between two sets of requirements for minimum insurance coverage, in the form of a Basic Policy and a Standard Policy. The state says most drivers opt for Standard, but the Basic Policy is cheaper and has the lowest possible limits you can buy in the state.
Basic Policy:
$5,000 property damage liability per accident.
$15,000 personal injury protection.
Bodily injury liability isn’t required for the Basic Policy, but should you choose to buy it, the minimum is $10,000 per accident.
Standard Policy:
$15,000 bodily injury liability per person.
$30,000 bodily injury liability total per accident.
$5,000 property damage liability per accident.
$15,000 personal injury protection.
Liability car insurance covers the cost of any damage, injuries or deaths you cause in a car accident, up to your policy’s predefined limits.
Personal injury protection will cover your medical bills and expenses if you’re injured in a car crash, up to your policy limits, no matter whose fault it was. Depending on your state, PIP may also pay for:
Lost wages if you’re unable to work due to injuries from an accident.
Services you can no longer perform, like house cleaning or child care, because of your injuries.
Funeral costs if an accident-related injury leads to death.
A small death benefit as a cash payout.
Even though these minimums will allow you to drive legally, you may want to buy more liability coverage to better guard your savings and assets against lawsuits. For example, if you total another person’s car, the damage could easily exceed a $5,000 property damage liability limit on your policy. The difference would have to come out of your pocket.
It’s also wise to consider common optional coverages such as collision and comprehensive, which keep you from paying out of pocket if, say, you skid on ice and hit a tree, or your vehicle is stolen.
Learn more about your required and optional New Jersey coverages with our guide to state car insurance requirements.
Methodology
NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services. We examined rates for 35-year-old men and women for all ZIP codes in all 50 states and Washington, D.C.
Unless otherwise stated, our analysis was based on our base driver profile, which has the following characteristics and coverage levels:
35 years old
Single. Male or female.
2022 Toyota Camry LE
12,000 annual miles driven.
Good driving record and credit
No moving violations.
"Good driving" discount applied.
Good credit-based insurance score.
Bodily injury liability coverage
$100,000 per person. $300,000 per crash.
Property damage liability coverage
$50,000 per crash.
Uninsured motorist bodily injury coverage
$100,000 per person. $300,000 per crash.
Collision coverage
With a $1,000 deductible.
Comprehensive coverage
With a $1,000 deductible.
- See characteristics for other driver profiles
For all other driver profiles, we used the same assumptions, with the following exceptions:
We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for drivers with poor credit. These rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers.
For drivers with one at-fault crash, we added a single at-fault crash that happened six months ago, resulting in $10,000 in property damage and no bodily injury claim.
For drivers with a DUI, we added a single drunken driving violation that happened six months ago.
For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.
For young drivers, we considered 20-year-olds with good credit and no driving violations.
For millennial drivers, we considered 40-year-olds with good credit and no driving violations.
For senior drivers, we considered 70-year-olds with good credit and no driving violations.
These are median rates, and your rate will vary based on your personal details, state and insurance provider. Sample drivers had the minimum required coverage by law in each state. Some policies include additional coverage at the insurer’s discretion.
Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.
