Best Cheap Car Insurance in New Jersey 2020
Getting car insurance in New Jersey doesn’t have to break the bank.
While policies in the Garden State are higher than the national average, there are many ways to save.
In this article, we will be looking at the best car insurance companies in New Jersey, along with some tips and tricks to save some serious cash so you can also find the cheapest car insurance in NJ for your budget!
New Jersey Auto Insurance Requirements
Every driver in the state of New Jersey must carry auto insurance.
While how much car insurance you need varies by individual and depends on many factors, there are minimum requirements that all drivers need to meet.
In New Jersey, drivers need to have at least liability coverages and personal injury protection.
Drivers can choose between two minimum packages – basic and standard. The coverages included also have minimum limits set by law. The packages include:
- Property damage liability per accident of $5,000
- Personal injury protection or PIP of $15,000
- Bodily injury liability per person of $15,000
- Bodily injury liability per accident of $30,000
- Property damage liability per accident $5,000
- Personal injury protection of $15,000
Best Cheap Car Insurance in New Jersey
Here are the top providers of cheap car insurance in NJ:
It’s an appealing idea: To pay for car insurance only when you’re driving and not when you’re parked.
Tech-savvy insurer Metromile delivers car insurance based on this philosophy, but its coverage may not always save you money.
First off, Metromile bases only part of your monthly bill on your mileage. The other chunk of the bill falls back on traditional underwriting questions: your driving record, your age, details about your vehicle, your deductible, and even your credit history.
This static portion of your bill — which Metromile calls your base rate — dilutes the power of pay-by-the-mile insurance. Still, occasional drivers in the Garden State could save some money each month.
If your mileage exceeds the national average — about 12,000 miles a year — you’ll pay Metromile more than you’d pay a traditional insurer.
- Won’t charge for more than 150 miles per day for Jersey drivers (250 max in other states).
- Metromile Pulse device can help you diagnose (or locate) your car.
- Great for occasional drivers — a few hundred miles a month.
- Mileage-based bill means rates aren’t fixed.
- Pulse hardware installed under the hood.
- Metromile can access your car’s GPS data (but it doesn’t record it)
NJM or New Jersey Manufacturers Insurance Company is a regional auto insurance provider in New Jersey. They offer all of the usual coverages, including roadside assistance.
They offer low rate car insurance with many discounts, including good student, defensive driving, new car, and more.
You can get a quote from NJM online or over the phone. NJM also offers classic car insurance policies.
- Affordable auto insurance
- Classic cars insurance
- Online quotes
With their wide network of agents, you can expect a great face to face service. Travelers offers all major coverages and some optional add ons to customize your policy. These include gap insurance, accident forgiveness, and disappearing deductibles.
To get your premiums down, Travelers has many discounts to offer, such as safe driver, student away from home, homeowner, and many others.
- A large network of independent agents in each state
- Good selection of discounts
- Accident forgiveness and disappearing deductibles
The Hartford is an auto insurance provider for AARP members. Besides all common car insurance coverages, they also offer some extras, such as roadside assistance, classic car coverage, and in-home care.
It has special deals for senior drivers and is known to be expensive for young and inexperienced drivers.
The Hartford offers lifetime renewability, which means you will be able to renew your policy as long as you have a driver’s license and pay your premiums.
- A great choice for AARP members and senior drivers
- Lifetime renewability
- In-home care
Esurance is another car insurance provider in New Jersey. It offers a wide range of coverages that can be easily customized.
While they have a great list of discounts, Esurance might not necessarily be the cheapest when it comes to premiums.
But if you are willing to pay a bit more, you can expect great customer service, extra coverages such as custom part insurance and gap coverage, and excellent online and mobile tools.
- Gap coverage and custom parts insurance
- Mobile and online tools, such as video appraisal option
- Fast quotes online
Hanover has affordable car insurance with 3 customizable packages – Platinum Auto Essential, Platinum Auto Advantage, and Platinum Auto Elite.
They also have a Prestige package, which is perfect for high-value automobiles. Their extra coverages include newer car replacement, key replacement coverage, child seat replacement, pet injury coverage, and many more.
With Platinum Auto Advantage, you also get an option to reduce your deductible on collision coverage.
- A long list of extra coverages
- Affordable car insurance
- Accident forgiveness and deductible reduction
Allstate is a popular choice for car insurance nationwide, and New Jersey is no exception. They offer a long list of coverages, including sound system insurance, rental reimbursement coverage, vintage car insurance, and many of the usual auto insurance coverages you can find elsewhere.
Their rates are not the lowest in the state, but they have many ways to save on your premiums, such as paperless insurance, pay in full, and many discounts.
Allstate is also known for its overall customer satisfaction being above average and number 8 in the region, according to J.D. Power.
- Customizable policies with many extra add ons
- Many ways to save on premiums
- Great overall customer satisfaction
Plymouth Rock is the number 5 auto insurance provider in the State of New Jersey, according to J.D. Power.
It has an excellent overall customer satisfaction rating and offers affordable car insurance.
They have a good selection of coverages, as well as many discounts. You can get a quote online, through the phone, or find a local agent.
- Excellent overall customer satisfaction
- Great rates
- Many discounts and coverages
MetLife offers quality car insurance at affordable rates. They have a long list of coverages available, including new car replacement, custom sound system, major parts replacement, gap coverage, and all basic coverages.
Besides the many discounts on offer, MetLife also offers other ways to save, such as vanishing deductible and no deductible glass repair.
- A long list of coverages
- Vanishing deductibles
- Affordable rates
Geico is known for its affordable auto insurance with many coverages to choose from.
With Geico, everything can be done online or through their mobile app, from getting a quote to filing a claim.
All of this and low rates make Geico popular amongst younger drivers nationwide. Since they don’t work with agents, it might not be the best option for those who prefer face to face services.
- Low rates
- Many discounts
- Online quoting and claim filing
Mercury is an auto insurance provider that offers all basic coverages, including roadside assistance and rental car, among others.
Their discounts are quite standard as well, including pay in full, good student, and multi-policy discounts. To see which discounts you qualify for, you can get an online quote.
Mercury might not be the best option for those that are used to doing everything online since you will need to call to file a claim.
- Affordable auto insurance
- All standard coverages and discounts
- Online quotes
Tips For Finding Cheap Car Insurance In NJ
While the average car insurance cost in the state of New Jersey is a bit higher than the national average, this doesn’t mean that finding an affordable policy is impossible.
Shopping around is a must, but before getting quotes from different companies, make sure you decide on how much coverage you need.
If you are not sure about this, you can always consult a car insurance agent. The next step is to decide on the deductible size and coverage limits. This might seem like a great way to save on premiums, but make sure you have enough in your emergency fund to cover the deductibles and the cost if the damage exceeds your limits.
Ways To Save On Your Car Insurance:
- Drive carefully. No accidents give you great discounts with most companies.
- Drive less. The less you drive, the lower the possibility of an accident. Plus, you could be paying less with pay-per-mile insurance (check out my review of Metromile, which is also available in New Jersey).
- Keep your credit good. Many companies check your credit when calculating rates
- Bundle policies. You can get discounts for bundling your home or renters policy with your car policy.
- If you are a student, keep your grades up. Most companies offer good student discounts, and it will help you later in life.
Car Insurance in New Jersey FAQ
What is the average cost of car insurance in New Jersey?
Location impacts the cost of car insurance, but that is not the only factor. There are many factors that determine the cost of auto insurance, such as age, gender, driving records, credit, education, and more.
This might vary from company to company. On average, drivers in New Jersey pay about $1,520 a year. This is a bit higher than the national average, which is $1,457.
Who has the best auto insurance rates in New Jersey?
There are many auto insurance providers in NJ, and many of them have low rates. When trying to find who has the best auto insurance rates for you, you should compare not only the amount you have to pay but also what is included in the policy, including coverages and limits.
The best way to choose a car insurance provider is to shop around, get quotes for the same coverages with the same limits, and then compare the rates.
What is the best-rated car insurance in New Jersey?
Your car insurance rates depend on many factors, as we mentioned already. You can also customize many policies by adjusting the limits and deductibles. The premium will go down if you choose to go with higher deductibles and go up if you choose a lower deductible. The rate can also be brought down by the discounts on offer.
If you are in the military, USAA might have the best rates for you, and if you are a member of AARP, The Hartford might have the lowest premium for you. NJM Insurance, Geico, and Esurance usually have the lowest rates, but it might not be the case for you.
So, Who Has The Cheapest Car Insurance in NJ?
There is no one insurance company that has the cheapest car insurance for everyone.
Since premiums are calculated individually, and companies tend to use different formulas, it is best to get quotes from a few companies to find the cheapest one for you.
Cheapest Car Insurance in NJ:
- Overall cheapest. In most cases, NJM offers the cheapest car insurance in New Jersey, leaving Geico right behind it.
- Young drivers. The cheapest average full coverage car insurance for a 25-year-old good driver comes from NJM with $1,591 per year.
- Minimum coverage. If you are looking for the minimum car insurance coverage required, NJM has the lowest average rate at $644 per year for a 40-year-old good driver.
- Young drivers with poor credit. Young drivers with a poor credit score can choose NJM, where on average, a good 25-year-old driver with poor credit pays $1,250 per year.