5 Best Car Insurance Companies in New Jersey for 2022
There are over 7.6 million licensed drivers in New Jersey. Despite so many drivers on the roads, New Jersey isn’t the worst state for bad driving. In fact, it has a better reputation than many states, as it tied for 36th place in a recent study on the states with the worst drivers. Regardless of ranking, it’s a good idea for drivers to protect themselves and their vehicles with the best car insurance in New Jersey.
New Jersey drivers are required to meet the state’s minimum requirements for liability insurance. The average cost of auto insurance in New Jersey is $1,592 per year. While it’s not as high as some states, it’s still 3% higher than the national average.
You can find cheaper car insurance rates, though, by comparing multiple insurers and getting quotes before purchasing insurance.
We narrowed down the best car insurance companies in New Jersey. The information below will help you understand more about the top five car insurance options for New Jersey drivers.
Where to Get the Best Car Insurance in New Jersey
- Best for Discounts: GEICO
- Best for Customization: Progressive
- Best for Customer Service: Allstate
- Best for Coverage Add-Ons: Liberty Mutual
- Best for Comparing Rates: Insurify
Compare Auto Insurance Companies in New Jersey
Best for Discounts: GEICO
Few insurance companies offer as many discounts as GEICO. Combine already-low rates with many driver discounts, and New Jersey drivers can save a ton of money with GEICO. GEICO offers a host of discounts for your vehicle, among them: safety equipment, driving record and habits, affiliations, customer loyalty and even taking a driver’s education course.
Statewide Average Premium in New Jersey:
The average premium for New Jersey drivers through GEICO is $47 per month. This is significantly lower than the statewide average across all insurers. The average car insurance rate in New Jersey is $1,592 per year, or roughly $133 per month.
Coverage Options:
- Liability
- Collision
- Comprehensive
- Uninsured motorist
- Underinsured motorist
- Medical payments
- Personal injury protection
- Emergency roadside service
- Rental reimbursement
- Mechanical breakdown
Discounts:
- Airbag discount
- Antilock brakes discount
- Antitheft system discount
- Daytime running lights discount
- New-vehicle discount
- Good driver discount
- Seat belt use discount
- Defensive driving discount
- Driver’s educational course discount
- Good student discount
- Emergency deployment discount
- Federal employee (Eagle) discount
- Membership and employee discount
- Military discount
- Multivehicle discount
- Multipolicy discount
Customer Satisfaction Rating: 841
Every year, J.D. Power releases an auto insurance study that ranks insurers based on customer satisfaction based on regions of the U.S. New Jersey falls into the Mid-Atlantic region, along with Delaware, Maryland, Pennsylvania, Virginia, West Virginia and the District of Columbia.
In 2020, GEICO ranked fourth (a score of 841 out of 1,000) in customer satisfaction in the Mid-Atlantic Region in the J.D. Power 2020 U.S. Auto Insurance Study, slightly above the regional average.
Financial Strength Rating: A++
GEICO received an A++ (superior) financial strength rating from credit rating agency AM Best.
Financial strength ratings measure an insurance company’s ability to meet contractual obligations.
Best for Customization: Progressive
Every driver is different, which is why Progressive’s customizable insurance coverage is a home run. Start with Progressive’s Name Your Price Tool, which lets customers choose the coverage that fits their budget. Through the tool, customers tell Progressive how much they want to pay, and Progressive sends them a list of coverage options they can afford.
Another way that Progressive saves customers money is through various driver discounts. There’s a discount for almost everything. Plus, you can use Progressive’s Snapshot program to get personalized insurance rates based on your driving performance.
Statewide Average Premium in New Jersey:
The average premium for New Jersey drivers through Progressive is $86 per month. This is significantly lower than the statewide average across all insurers. The average car insurance rate in New Jersey is $1,592 per year, or roughly $133 per month.
Coverage Options:
- Liability coverage
- Comprehensive
- Collision
- Uninsured motorist
- Underinsured motorist
- Medical payments
- Loan/lease payoff
- Rental car reimbursement
- Custom parts and equipment value
- Ride-hailing coverage
- Roadside assistance
- Deductible savings bank
Discounts:
- Multipolicy discount
- Multicar discount
- Continuous insurance discount
- Safe driver discount
- Teen driver discount
- Good student discount
- Distant student discount
- Homeowner discount
- Online quote discount
- Sign online discount
- Paperless discount
- Pay-in-full discount
- Automatic payment discount
Customer Satisfaction Rating: 828
Progressive ranked 10th (a score of 828 out of 1,000) in customer satisfaction in the Mid-Atlantic region of the J.D. Power 2020 U.S. Auto Insurance Study.
Financial Strength Rating: A+
Progressive received an A+ (superior) financial strength rating from credit rating agency AM Best. A+ (superior) is one of the highest ratings possible from AM Best. This signifies that Progressive is known for keeping its contractual commitments with customers.
Best for Customer Service: Allstate
Allstate is a leader in providing quality customer service to car insurance customers. It all starts with 24/7 phone support. Allstate is there anytime you need help. You can also get help through local Allstate agents, your online accounts and its mobile app.
The claim process also is made simple with Allstate. Customers can go online or use the mobile app to create and track insurance claims. You can even take photos of vehicle damage and upload them directly to the app while on the scene of any incidents.
Statewide Average Premium in New Jersey:
The average premium for New Jersey drivers through Allstate is $220 per month. This is significantly higher than the statewide average across all insurers. The average car insurance rate in New Jersey is $1,592 per year, or roughly $133 per month.
Coverage Options:
- Collision
- Comprehensive
- Liability
- Medical payments
- Uninsured motorists
- Underinsured motorists
- Sound system
- Roadside assistance
- Personal injury protection
- Personal umbrella
- Rental reimbursement
Discounts:
- Antilock brake discount
- Antitheft device discount
- Multiple policy discount
- Early signing discount
- Responsible payer discount
- Smart student discount
- New-car discount
- EZ pay plan discount
- Allstate eSmart discount
- Pay-in-full discount
- Safe driving club discount
Customer Satisfaction Rating: 812
Allstate ranked 15th (a score of 812 out of 1,000) in customer satisfaction in the Mid-Atlantic region of the J.D. Power 2020 US Auto Insurance Study.
Financial Strength Rating: A+
Allstate received an A+ (superior) financial strength rating from AM Best, a trusted credit rating agency.
Best for Coverage Add-Ons: Liberty Mutual
Liberty Mutual is known for its special add-on coverage choices to meet insurance needs outside of state minimums. It offers coverage for teachers, rental cars, gap coverage and more. If you need more than just basic coverage, Liberty Mutual is a solid choice.
Another reason to consider Liberty Mutual is because of its annual policies. While many insurance companies set rates for six months, Liberty Mutual lets you lock in your rates for a full year. That means your rates won’t go up regardless if you have an accident.
Statewide Average Premium in New Jersey:
The average premium for New Jersey drivers through Liberty is $154 per month. This is slightly higher than the statewide average across all insurers. The average car insurance rate in New Jersey is $1,592 per year, or roughly $133 per month.
Coverage Options:
- Liability coverage
- Personal injury protection
- Bodily injury liability
- Property damage
- Medical payments
- Comprehensive
- Collision
- Liberty Mutual Deductible Fund
- Lifetime repair guarantee
- New car replacement
- Better car replacement
- Towing and labor (24-hour roadside assistance)
- Gap coverage
- Original parts replacement
- Teachers car insurance
- Mexico car insurance (vehicles traveling across the border)
- Uninsured motorist
- Rental car reimbursement
Discounts:
- Homeowner discount
- Military discount
- Early shopper discount
- Good student discount
- Student-away-at-school discount
- Advanced safety features discount
- Alternative energy discount
- Antitheft device discount
- Accident-free discount
- Violation-free discount
- RightTrack discount
- Multipolicy discount
- Multicar discount
- Preferred payment discount
- Pay-in-full discount
- Online purchase discount
- Paperless policy discount
Customer Satisfaction Rating: 816
Liberty Mutual ranked 14th (a score of 816 out of 1,000) in customer satisfaction in the Mid-Atlantic region of the J.D. Power 2020 U.S. Auto Insurance Study.
Financial strength rating: A
Liberty Mutual received an A (excellent) financial strength rating from credit rating agency AM Best. An A (excellent) rating is among the highest ratings a company can receive from AM Best.
Best for Comparing Rates: Insurify
Insurify lets you compare rates from dozens of car insurance companies at one time. That’s because it’s not a car insurance company. Insurify is an online car insurance comparison platform.
Customers have access to the latest artificial intelligence technology, which uses your driver history and personal information to find the best rates. In some cases, you may even see what discounts you qualify for with various insurers.
Insurify saves you time and money by giving you a one-stop shop for your car insurance needs. The comparison site claims that customers save an average of $585 annually going through Insurify.
Statewide Average Premium in New Jersey:
Average insurance premiums through Insufy depend on specific insurance companies.
Coverage Options:
As a car insurance comparison site, coverage availability depends on the specific car insurance company.
Discounts:
Specific car insurance discounts through Insurify depend on the car insurance company.
Customer Satisfaction Rating: 4.8 Out of Five Stars
Because it’s a car insurance comparison platform, it is not included in the J.D. Power 2020 U.S. Auto Insurance Study.
Insurify has 4.8 stars out of a five-star customer satisfaction rating on ShopperApproved (2,900-plus reviews).
Financial Strength Rating: Not rated
Insurify isn’t an insurance company and is not rated by AM Best for its financial strength.
How We Chose the Best Car Insurance Options in New Jersey
We considered several factors when rating the best car insurance companies in New Jersey.
Average New Jersey insurance rates are slightly higher than the national average, so it was important for us to include companies that offer competitive pricing in our research.
We compared the average insurance premiums of individual insurers against the state average. We also weighed important items like coverage, features, discounts, customer satisfaction and financial stability to determine the state’s best insurance companies.
What You Need to Know About New Jersey Coverage
The state of New Jersey requires all motor vehicle owners to carry at least the following minimum amounts of auto liability insurance coverage:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $15,000 personal injury protection
- $15,000 uninsured/underinsured motorist bodily injury per person
- $30,000 uninsured/underinsured motorist bodily injury per accident
- $5,000 uninsured/underinsured motorist property damage per accident (with a $500 deductible)
What If I Can’t Afford Insurance in New Jersey?
New Jersey is one of few states that has a state-sponsored car insurance program for low-income drivers. The Special Automobile Insurance Policy was created to make limited auto insurance coverage available to select drivers. Not everyone qualifies, though. The program is strictly for drivers who are eligible for federal Medicaid (with hospitalization).
In 1998, New Jersey adopted the Automobile Insurance Cost Reduction Act to reduce car insurance costs so every driver could afford insurance. Two policies were created — the standard policy and the basic policy. The Automobile Insurance Cost Reduction Act mandated that the basic policy be available to all drivers in the state. This policy offers fewer benefits for those injured in a car accident but is available through all New Jersey-licensed insurance companies.
New Jersey drivers can lower insurance costs by maintaining a good driving record, building up their credit, comparing insurance companies for the best rates and choosing a vehicle that costs less to insure.
What If You’re a High-Risk Driver in New Jersey?
If you are a high-risk driver, there’s a chance that you won’t qualify for insurance coverage with insurance companies because of your driving record.
The state of New Jersey created the New Jersey Automobile Insurance Plan to provide high-risk car insurance for drivers who can’t get insured any other way. This car insurance coverage is only available through an NJPAIP-certified provider.
What Are New Jersey’s Laws Regarding Noninsurance?
If you are caught driving without insurance in New Jersey, you could face:
- Fines between $300 and $1,000 for first offenses
- Fines up to $5,000 for subsequent offenses
- A surcharge of $250 per year for three years ($750 total)
- Insurance eligibility points on repeat offenses
- Community service
- Driver’s license suspension
There’s also the possibility that you could eventually face jail time if you fail to secure the proper insurance coverage.
Final Thoughts
New Jersey requires all drivers to carry a minimum amount of car insurance coverage. You can find the best rates by shopping around and comparing quotes from multiple insurance carriers.
Several factors go into car insurance rates, like where you live, the vehicle you drive and your driving history. Pay attention to additional details like insurance deductibles, driver discounts, customer service options and digital tools before you choose the best car insurance company for your needs.
