Average Cost of Car Insurance in New Jersey for 2025
Quick Answer
Car insurance in New Jersey costs on average $2,922 annually or $244 per month. Your driving record, age, credit and the car you drive can all affect the cost of car insurance in New Jersey.
The average cost of car insurance in New Jersey is $2,922 annually or $244 per month, according to Experian data from January 2025 and based on policies sold through our automotive insurance marketplace.
Here are the average premium costs for full and minimum coverage car insurance in New Jersey:
| Type of Coverage | Annual Cost | Monthly Cost |
|---|---|---|
| Full coverage | $3,011 | $251 |
| Minimum coverage | $2,561 | $213 |
Source: Experian data as of January 2025
State law in New Jersey requires all drivers to carry minimum coverage including bodily injury liability of $25,000 per person and $50,000 per accident, property damage liability of $25,000 per accident, bodily injury uninsured/underinsured motorist coverage of $25,000 per person and $50,000 per accident, and personal injury protection (PIP) coverage of $15,000 per accident. (As of January 2026, liability insurance minimums will increase to $35,000 per person and $70,000 per accident.)
Minimum coverage may be less expensive, but you typically need full coverage car insurance if your car is financed or leased. Full coverage adds collision and comprehensive coverage, which lenders insist on to protect the vehicle from damage. Even if your car isn't financed or leased, insurance professionals typically recommend buying more than the minimum coverage to protect yourself.
New Jersey is one of three states where drivers can opt for either no-fault or tort auto insurance. If you choose no-fault insurance in New Jersey, your insurance policy covers collision-related costs, including medical bills, no matter which driver is at fault, and you can't sue the other driver except in certain circumstances.
If you choose tort insurance, you can opt for full tort, which allows you to sue an at-fault driver for unlimited damages, or limited tort, which is less expensive but limits your ability to recover damages for pain and suffering.
Car insurance often costs more in no-fault insurance states like New Jersey because insurance carriers in those states tend to have higher expenses. However, your actual cost of auto insurance in New Jersey will be impacted by factors such as:
- Age (younger drivers generally pay more)
- Gender (men typically pay more than women)
- Where you live (premiums may be higher areas with high crime or a lot of accidents)
- The vehicle you're insuring (new cars cost more to insure than used cars)
- Your driving record (incidents and violations usually drive your costs up)
Keep in mind that, although our averages are good general guideposts, how much you pay for New Jersey car insurance will likely differ. To help you find the best rates, take some time to compare auto insurance quotes from several insurers before purchasing a policy.
How Are Car Insurance Costs Trending?
Even though the number of claims is on the downswing, the national average cost of car insurance has risen for the past several years for multiple reasons, including higher costs for new cars, auto parts and repair labor. Increasingly severe accidents have led to more lawsuits, and auto insurance fraud is on the rise. Extreme weather events such as the major storms that have battered New Jersey with growing frequency in recent years are another factor pushing insurance companies' costs higher.
Nationwide, the average cost of full coverage car insurance has risen by 30.46% since March 2023, as the chart below shows. The cost of minimum coverage auto insurance has increased by a smaller percentage, rising by 15.45%.
Average Annual Auto Insurance Premiums, 2023-2025
If your New Jersey car insurance costs are rising, comparing car insurance quotes from other providers might help you find the same coverage for less. For a convenient way to explore your options, try Experian's free car insurance comparison tool. It lets you easily gather quotes from top New Jersey insurance carriers in one place.
Average New Jersey Car Insurance Rates by City
Your location within New Jersey can impact the amount you'll pay for auto insurance because drivers in different areas of New Jersey face different risks. For example, more crowded urban areas may have higher rates of auto theft, heavier traffic or longer average commutes, all of which could make it more likely you'll eventually file a car insurance claim. The cost of auto repairs and medical care for accident-related injuries is also higher in some New Jersey cities than others, which may translate to higher auto insurance premiums.
The chart below shows how the average cost of car insurance in some of New Jersey's most populous cities can vary significantly depending on the location.
| City | Annual Cost |
|---|---|
| Trenton | $2,937 |
| Jersey City | $2,988 |
| Edison | $3,551 |
| Newark | $3,771 |
| Paterson | $3,824 |
Source: Experian data as of January 2025
Note: Top cities are ranked by those with the highest policy count
Average New Jersey Car Insurance Rates by Age and Gender
Your gender may also affect the cost of auto insurance in New Jersey, where insurers are legally allowed to consider it when setting your premiums. Because women are statistically less likely to have severe auto accidents or DUIs, the Insurance Information Institute reports, they often pay less for car insurance. That's the case in New Jersey, where auto insurance costs an average of $2,948 annually or $246 monthly for men and $2,879 annually or $240 monthly for women.
| Gender | Annual Cost | Monthly Cost |
|---|---|---|
| Male | $2,948 | $246 |
| Female | $2,879 | $240 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
The difference between men's and women's auto insurance premiums is especially pronounced when age is added to the equation. In general, younger drivers—particularly teens—pay more for car insurance than older drivers. Teens are nearly four times as likely to get into car accidents as older drivers, according to data from the Insurance Institute for Highway Safety (IIHS).
As the chart below shows, men under age 20 pay the highest prices for car insurance. As you get older, however, your car insurance premiums generally decrease, then increase again once you hit your mid-70s.
| Age | Female | Male |
|---|---|---|
| Under 20 | $3,307 | $3,717 |
| 20-29 | $2,642 | $2,683 |
| 30-39 | $2,436 | $2,252 |
| 40-49 | $2,327 | $2,141 |
| 50-59 | $1,983 | $1,942 |
| 60-69 | $1,660 | $1,669 |
| 70-79 | $1,628 | $1,758 |
| 80 or above | $1,701 | $1,894 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
How Your Driving Record Impacts Your Insurance Costs in New Jersey
When setting your premiums for car insurance, insurance companies check your motor vehicle report. Accidents or moving violations on your driving record could cause the insurer to view you as a high-risk driver and raise your insurance rates. This could happen even if you weren't at fault in the accidents.
Conversely, a clean driving record indicating a history of safe driving could save you money on car insurance. The average cost of car insurance for New Jersey drivers with a clean driving history (no incidents or violations) is $2,710 annually. However, just one moving violation can bump those premiums to an average of $3,104 per year.
The chart below shows how the number and severity of infractions might affect the cost of car insurance in New Jersey. Incidents include things like traffic accidents or insurance claims; violations include moving violations, such as speeding tickets.
| Driving Record | Annual Cost |
|---|---|
| Clean Record | $2,710 |
| 1 Incident | $2,889 |
| 1 Violation | $3,104 |
| 2 Incidents | $3,267 |
| 2 Violations | $3,476 |
| 3+ Incidents | $3,710 |
| 3+ Violations | $3,487 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
Cheapest Car Insurance in New Jersey
The price you pay for auto insurance is affected by factors including your driving record, vehicle and age; however, these aren't the only elements that impact your premiums. Each auto insurance carrier uses its own method to set premiums. That means the cost of car insurance can vary widely depending on the insurance company you choose.
As a result of these differences, comparing quotes from several different insurance companies is a good way to find the most affordable car insurance for your situation. The chart below shows the cheapest full coverage auto insurance among the insurance carriers that sell the most policies in New Jersey.
| Carrier | Annual Cost | Monthly Cost |
|---|---|---|
| AAA Insurance | $2,916 | $243 |
| GEICO | $3,267 | $272 |
| Progressive | $3,467 | $289 |
| Bristol West | $5,201 | $433 |
Source: Experian data as of January 2025
Note: Costs above represent insurance quotes, not policy premiums
It's impossible to know exactly how each insurance carrier calculates its rates. However, elements including the company's risk tolerance, estimated claims payouts, projected operating costs and profitability goals are usually factors when determining premiums. For example, an insurance provider with lower overhead expenses may charge less than a provider with higher overhead costs.
How to Save on Car Insurance in New Jersey
There's no question that the cost of car insurance in New Jersey can add up. Fortunately, there are several things you can do to save on car insurance in New Jersey.
Choose a Higher Deductible
You're typically responsible for paying a deductible when you file a car insurance claim. After you've paid your share, the insurance company's coverage kicks in. You can generally choose a deductible between $250 and $2,000. A larger deductible usually translates into lower premiums, because you're shouldering a larger share of financial responsibility.
Before raising your deductible, however, make sure you have the funds to cover the higher amount if you have to file a claim. Evaluate whether your emergency fund and other financial resources could handle the cost. By asking your insurance carrier how various deductibles would affect your premiums, you should be able to strike the right balance between affordable premiums and a manageable deductible.
Investigate Discounts
You may be surprised what discounts car insurance companies have to offer. Check with your current auto insurance provider to see if there are any discounts you aren't aware of and visit other providers' websites to see what discounts they have available. You might save on coverage by bundling home and auto insurance, paying your premium upfront, setting up automatic payments or eliminating paper statements.
A high school or college student who gets good grades or is away at school without a car could qualify for a discount too. You can sometimes get discounts for gathering insurance quotes online or signing documents online. Finally, see if your employer or a membership organization you belong to offers auto insurance discounts.
Drop Coverage You Don't Need
It might be nice to have car insurance extras such as rental car reimbursement, windshield replacement or roadside assistance coverage. However, if these add-ons aren't essential to you, canceling them could lower your car insurance premiums. For instance, you probably don't need to pay for roadside assistance if you already have this coverage through an auto club.
You may even want to consider cancelling your collision and comprehensive coverage if your car is paid off and not worth very much. At most, collision and comprehensive coverage will only pay out the value of your vehicle. If that's just a few thousand dollars, the extra coverage may not be worth the expense. Before canceling the coverage, though, weigh whether you could afford to replace or repair your car yourself if it were totaled.
Reduce Your Mileage
The more miles you drive, the bigger your risk of getting involved in an accident. As a result, many insurance companies offer discounts if you drive fewer than 12,000 miles annually. Low-mileage car insurance discounts typically require monitoring your mileage, which can be done via self-reported or third-party odometer readings or with devices installed in your vehicle.
Another option to investigate is pay-per-mile car insurance, which charges a monthly base rate plus a per-mile charge for each additional mile you drive. If your annual mileage isn't much over 12,000, see if you can cut it down by biking, walking, carpooling or taking public transportation instead of driving.
Maintain a Clean Driving Record
Safe driving habits generally reduce your risk of getting into accidents or getting moving violations, both of which can increase your insurance premiums. Try to keep your driving record clean. If you do get a moving violation, take advantage of any opportunities to remove the mark from your record that your state's motor vehicle department allows. In addition to keeping your driving skills sharp, completing a state-approved defensive driving or safe driving course might qualify you for an auto insurance discount.
Improve Your Credit
New Jersey state law allows insurance companies to review your credit-based insurance score when they're determining your car insurance premiums. A poor score could mean paying more for car insurance. Taking steps to improve your consumer credit score, such as paying bills on time, could also improve your credit-based insurance score, which could help you save money on car insurance.
Consider a Basic or Special Policy
New Jersey offers a bare-bones auto insurance policy called the Basic Policy, designed for people who can't afford standard auto insurance. Designed as an alternative to going without insurance, the Basic Policy provides protections you don't have when driving uninsured, such as the right to sue for damages related to an accident. New Jersey also offers a Special Automotive Insurance Policy (SAIP) that provides limited, medical-only auto insurance coverage to qualifying Medicaid recipients.
Shop Around
Sticking with the status quo could cost you when it comes to car insurance. At least once a year or before your current auto insurance policy comes up for renewal, make it a habit to compare quotes from several insurance carriers and see if there's a better deal available. You can visit insurance company websites or contact insurance companies by phone to get car insurance quotes.
Want an easier way to explore your options? Try using Experian's free car insurance comparison tool. It gathers auto insurance quotes from top insurance companies in New Jersey, making it easy to compare alternatives and see which provider offers the best rates.
Average Car Insurance Costs by State
Methodology
This analysis is based on a review of auto insurance policies and quotes provided through Experian's insurance marketplace. Policy premium and quote averages are based on driver data across all genders and ages unless otherwise noted.
Experian's insurance marketplace matches users with auto insurance coverage from more than 30 carriers across 50 states and Washington, D.C.
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About the author
Karen Axelton
Karen Axelton specializes in writing about business and entrepreneurship. She has created content for companies including American Express, Bank of America, MetLife, Amazon, Cox Media, Intel, Intuit, Microsoft and Xerox.
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