How much is car insurance in NJ per month?
Key takeaways. The average monthly car insurance cost in New Jersey is approximately $146 for full coverage and $65 for minimum coverage. New Jersey drivers with a DUI conviction pay average rates that are 88 percent higher compared to drivers with a clean driving record.
Car insurance in New Jersey costs about $124 per month, according to an analysis by financial education website MoneyGeek. The national average is about $85 per month for full coverage auto insurance, so this makes New Jersey more expensive than many other states.
Minimum insurance requirements for New Jersey
The minimum amount of New Jersey auto insurance coverage is $15,000/$30,000/$5,000. In the event of a covered accident, your limits for bodily injury are $15,000 per person, with a total maximum of $30,000 per incident.
Average Car Insurance Costs in New Jersey by Age
Typically, auto insurance premiums for new drivers or young drivers are higher since these drivers are riskier to insure. Here is how much full coverage car insurance typically costs in New Jersey for each age group: 22–29: $1,677 per year. 30–59: $1,492 per year.
Car insurance companies in New Jersey compute insurance prices based on several factors. These factors include your age, credit score, driving record, coverage levels and your car's make and model.
Is $100 a month for car insurance good? Our cost estimates show that 35-year-old married drivers with good credit and clean driving records pay an average of $144 per month for car insurance. Paying around $100 per month for quality auto coverage is a good deal.
The average cost of auto insurance in New Jersey is $92 per month, or $1,102 per year, for a minimum-coverage policy. A full-coverage policy costs around $168 per month, or $2,017 per year.
Car insurance in New Jersey is expensive because it's a no-fault state with the highest population density of any state in the country. In New Jersey, you can expect to pay approximately $6,080 per year for full coverage car insurance or $2,303 per year for minimum coverage.
Full coverage insurance in New Jersey is usually defined as a policy that provides more than the state's minimum liability coverage, which is $15,000 in bodily injury coverage per person, up to $30,000 per accident, and $5,000 in property damage coverage.
State Farm is the cheapest car insurance company overall according to NerdWallet's analysis, with an average rate of $39 a month for minimum coverage.
What age is car insurance most expensive?
As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
New Jersey residents with a good driving record generally see their car insurance premiums drop around age 25, and average rates continue to fall as policyholders age. However, around age 65, you will likely start to see your rates increase again.
The average cost of auto insurance in New Jersey is $1,592 per year — 3% more than the national average. Your auto insurance premiums are dictated by factors other than state lines. Auto insurance premiums price based on myriad factors, such as a driver's marital status, driving history, credit rating, gender, and age.
Years-Until-Retirement Method
Another way to calculate the amount of life insurance needed is to multiply your annual salary by the number of years left until retirement. For example, if a 40-year-old currently makes $20,000 a year, they will need $500,000 (25 years × $20,000) in life insurance.
In New Jersey, the average full coverage rate for a young adult is $1,884 per year for full coverage and $729 per year for minimum coverage. In the table below, you can see the average cost of car insurance for young drivers in all 50 states, based on data from NerdWallet.
Leif Olson, Car Insurance Writer
Yes, $500 a month for car insurance is very expensive. The average cost of car insurance ranges from about $60 per month for state-minimum coverage to $166 per month for full coverage, though individual car insurance rates vary based on factors such as driving record, age and location.
Is $200 a lot for car insurance? If paid on a monthly basis, $200 is a lot to pay for car insurance. The national average costs for car insurance are $52 per month for minimum-liability coverage and $167 per month for a full-coverage auto insurance policy.
On average, drivers with poor credit pay 118 percent more for full coverage car insurance than those with excellent credit. California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.
| State | Average annual full coverage premium | Average monthly full coverage premium |
|---|---|---|
| New Jersey | $3,461 | $288 |
| New Mexico | $2,971 | $248 |
| New York | $6,336 | $528 |
| North Carolina | $2,543 | $212 |
In New Jersey, you must carry liability insurance to drive legally. You also have to carry personal injury protection (PIP) and uninsured motorist coverage, even if you don't carry full coverage. PIP pays for you and your passengers injuries, regardless of fault.
Is NJ car insurance cheaper than NY?
New Jersey car insurance rates are an average of $749 per year cheaper than New York, in part because New Jersey has lower minimum coverage requirements.
The average annual premium for auto insurance in the Garden State stands at $2,555, which is $12 above the national average, highlighting the financial burden faced by residents. In 2024, the national average cost of full coverage car insurance reached $2,543, marking a 26% increase from the previous year.
Overview. Why Geico made our list: Based on our Bankrate Score, Geico tops our list of the best insurance companies in New Jersey. Geico also tied in first place for our 2024 Bankrate Awards for Best Auto Insurance Company Overall and Best Budget Auto Insurance Company and won first place for Best For Young Drivers.
With an average rate of $95 a month for full coverage, Geico wins as the best car insurance in NJ for your wallet in 2024. That's the cheapest car insurance rate among our list of top-rated insurers. Geico also offers a host of car insurance discounts drivers may qualify for.
It's a dense state, the densest state in the country. NJ packs in 1,218 people per square mile. That's about 20% higher than the next highest state, RI (1,021), and several times higher than Pennsylvania, which is ranked #15 in the country. High population density means that land is expensive (high demand, low supply).
