Best Car Insurance in New Jersey for 2025 [Compare the Top 10 Companies] Car Insurance Guide (Cheap Rates + Best Companies)

Geico, State Farm, and Progressive provide the best car insurance in New Jersey, with Geico having the lowest rates at $47 per month. State Farm favors a local agent support base, while Progressive has budgeting tools. New Jersey car insurance costs vary depending on the state, but these companies deliver the best value.

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Rachel Bodine

Insurance Feature Writer

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Insurance Feature Writer

Eric Stauffer

Licensed Insurance Agent

Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...

Licensed Insurance Agent

UPDATED: Feb 7, 2025

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Top Pick in New Jersey: Geico
4.5

Table of Contents

Company Facts

Full Coverage in New Jersey

$74/mo

A.M. Best Rating

A++

Complaint Level

Low

Pros & Cons

  • 24/7 customer support with an easy-to-use mobile app
  • Discounts for bundling and multiple vehicles
  • Accident forgiveness program available for eligible drivers
  • Highly rated for claims satisfaction by many customers
  • Higher rates for drivers with a history of accidents
  • Limited local agent availability compared to other insurers
  • Rate increases reported after the initial policy term
Best Agents in New Jersey: State Farm
4.3

Company Facts

Full Coverage in New Jersey

$113/mo

A.M. Best Rating

B

Complaint Level

Low

Pros & Cons

  • Affordable car insurance rates
  • Local State Farm agents
  • Multiple car insurance discounts
  • Low financial stability rating
  • Doesn’t sell modified car insurance
Best New Jersey Tools: Progressive
4.4

Company Facts

Full Coverage in New Jersey

$93/mo

A.M. Best Rating

A+

Complaint Level

Low

Pros & Cons

  • Affordable Rates for Most Drivers
  • Robust Digital Tools
  • UBI Program Snapshot
  • Generous Discounts
  • Low Customer Loyalty
  • Unexpected Rate Increases
  • Snapshot Can Increase Rates

Geico offers the best car insurance in New Jersey, followed by State Farm and Progressive. Geico has the lowest car insurance rates in New Jersey, starting at $47 per month for minimum coverage.

State Farm, Geico, and Progressive: Best Car Insurance in Kansas

State Farm is a great option for those who value local agents and personalized service, while Progressive shines with its budget-friendly tools like the Name Your Price® feature.

Our Top 10 Company Picks: Best Car Insurance in New Jersey

CompanyRankBundling DiscountA.M. BestBest ForJump to Pros/Cons
Geico: Best Car Insurance in New Jersey#125%A++Low RatesGeico
State Farm: Best Car Insurance in New Jersey#217%BLocal AgentsState Farm
Progressive: Best Car Insurance in New Jersey#310%A+Budgeting ToolsProgressive
Allstate: Best Car Insurance in New Jersey#425%A+Bundling OptionsAllstate
Liberty Mutual: Best Car Insurance in New Jersey#525%AComprehensive CoverageLiberty Mutual
USAA: Best Car Insurance in New Jersey#610%A++Military FocusedUSAA
Farmers: Best Car Insurance in New Jersey#720%AStrong ServiceFarmers
Nationwide: Best Car Insurance in New Jersey#820%A+SmartRide ProgramNationwide
Travelers: Best Car Insurance in New Jersey#913%A++Flexible OptionsTravelers
American Family: Best Car Insurance in New Jersey#1025%ABundling DiscountsAmerican Family

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These best car Insurance companies provide excellent value with a mix of affordability, service, and coverage options. Ready to find affordable car insurance? Use our free comparison tool to get started.

#1 – Geico: Top Overall Pick

Geico: Best Car Insurance in New Jersey

Pros

  • Cheapest Rates in NJ: Geico’s lowest-priced car insurance quote in New Jersey is at a minimum coverage of $47 per month and $74 for full coverage.
  • Top-Rated Financial Strength: Geico’s A++ rating from A.M. Best endorses Geico’s stability in footing and settling claims on behalf of New Jersey drivers.
  • Bundling Discounts: Geico provides a 25% discount when bundling auto and home insurance policies in New Jersey.

Cons

  • Limited In-Person Support: Geico operates primarily online, which may not appeal to those seeking in-person service for their Geico car insurance review.
  • Fewer Coverage Add-Ons: Geico offers fewer customization options than competitors like Allstate and Liberty Mutual.

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#2 – State Farm: Best for Local Agents

State Farm: Best Car Insurance in New Jersey

Pros

  • Extensive Local Agent Network: Our State Farm car insurance review proves that the company is highly prevalent in New Jersey, and the assistance provided by local agents is personalized.
  • Affordable Full Coverage: Full coverage begins at $113 monthly, thus giving competitive New Jersey auto insurance rates.
  • Discount Opportunities: It also offers the discount opportunity to save up to 17% by bundling and other safe driver discounts.

Cons

  • Lower A.M. Best Rating: A B rating from A.M. Best means slightly lower financial strength than top-rated insurers.
  • Basic Digital Experience: Online tools and mobile apps are less advanced than Progressive’s.

#3 – Progressive: Best for Budgeting Tools

Progressive: Best Car Insurance in New Jersey

Pros

  • Great Budgeting Features: Progressive’s Name Your Price® tool is a great choice for New Jersey drivers who want to find affordable policies that fit their financial plans.
  • Reliable Financial Stability: With an A+ rating from A.M. Best, Progressive car insurance review emphasizes the company’s solid reputation for secure claims handling.
  • Affordable Monthly Costs: Starting from as low as $60 monthly for minimum coverage and $93 for full coverage, it comes with very reasonable pricing among other car insurance companies in New Jersey.

Cons

  • Small Bundling Discount: At only 10%, Progressive’s bundling discount is relatively tiny compared to other providers in the market.
  • Minimal In-Person Support: Fewer local agents in New Jersey could be a downside for drivers who prefer more personalized, face-to-face service.

#4 – Allstate: Best for Bundling Options

Allstate: Best Car Insurance in New Jersey

Pros

  • High Bundling Discount: Many people find combining their house and auto insurance appealing since they can save 25%.
  • Comprehensive Coverage Options: Provides accident forgiveness, new car replacement, and rideshare coverage to ensure safety.
  • Financially Secure Provider: Our Allstate car insurance review shows the company’s A+ A.M. Best rating, meaning the company can guarantee reliable claims service and financial stability.

Cons

  • Higher Premiums: With minimum coverage starting at $101 per month, it tends to be pricier than companies like Geico and Progressive.
  • Mixed Customer Service Experience: Some drivers in New Jersey report delays in claims processing, especially with New Jersey car insurance rates being a bit higher for this provider.

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#5 – Liberty Mutual: Best for Comprehensive Coverage

Liberty Mutual: Best Car Insurance in New Jersey

Pros

  • Offers wide coverage options: Our Liberty Mutual car insurance review shows the wide portfolio of policies that cater to different types of New Jersey drivers.
  • Great Savings for Bundling: Bundling earns a 25% discount on all policies, so you save by bundling.
  • Financial Stability: Liberty Mutual is accredited with an A rating by A.M. Best Company, thus secure and available with car insurance in New Jersey.

Cons

  • High Basic Coverage Rates: The minimum coverage begins at $178 a month, which is another of the highest-priced auto insurance rates in NJ.
  • Limited Discount Options: Liberty Mutual offers fewer savings programs compared to competitors like State Farm and Nationwide, which may limit your opportunities for discounts.

#6 – USAA: Best for Military Families

USAA: Best Car Insurance in New Jersey

Pros

  • Unique Perks for Military Members: The USAA car insurance review presents special perks afforded to military forces and their households.
  • Cheap Coverage Rates: Starting at just $39 per month for minimum coverage and $61 for full coverage, making it one of the best choices for New Jersey car insurance.
  • Financing Security: An A++ A.M. Best rating brings with it ultimate security for smooth claims processes from the USAA company.

Cons

  • Membership Eligibility: The coverage is available only to military-affiliated drivers in New Jersey.
  • Limited Local Access: In-person service locations are few and might not be accessible for many policyholders.

#7 – Farmers: Best for Customer Service

Farmers: Best Car Insurance in New Jersey

Pros

  • Highly Rated Customer Service: Our Farmers car insurance review showcases their responsive and helpful claims support.
  • Good Bundling Discounts: Customers can enjoy up to 20% discounts by bundling insurance policies.
  • Solid Financial Strength: Farmers has received an A rating from A.M. Best, which ensures reliable service.

Cons

  • More Expensive Rates: The average car insurance cost in NJ is lower than Farmers’ minimum coverage, starting at $148 per month.
  • Outdated Digital Tools: Farmers’ mobile and online tools are obsolete and lack advanced features from other insurers.

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#8 – Nationwide: Best for Safe Driving Programs

Nationwide: Best Car Insurance in New Jersey

Pros

  • Safe Driving Discounts: The SmartRide program offers rewards for safe driving in New Jersey.
  • Bundling Options: Enjoy a 20% discount when combining policies for even more savings on car insurance rates in NJ.
  • Strong Claims Stability: With an A+ A.M. Best rating, this insurer offers solid financial backing, which is a key point in any Nationwide car insurance review.

Cons

  • Limited In-Person Service: Unlike State Farm, this company has fewer local agents available.
  • Mid-Range Monthly Costs: Starting at $76 per month for basic coverage, their rates aren’t the lowest in NJ.

#9 – Travelers: Best for Flexible Policies

Travelers: Best Car Insurance in New Jersey

Pros

  • Comprehensive Coverage Options: Offers benefits like accident forgiveness, gap insurance, and new car replacement.
  • Strong Financial Stability: A++ rating from A.M. Best Travelers car insurance review shows its reliability when handling claims.
  • Reasonable Bundling Discounts: Save up to 13% when bundling multiple policies together.

Cons

  • Higher Starting Premiums: At $87 per month, the average car insurance premiums in NJ are typically lower than those of other providers like Geico and USAA.
  • Limited Digital Experience: compared to competitors like other providers, their online tools and mobile apps are less advanced.

#10 – American Family: Best for Bundling Discounts

American Family: Best Car Insurance in New Jersey

Pros

  • Attractive Bundling Discounts: Enjoy up to 25% savings when combining auto, home, or life insurance policies.
  • Strong Financial Backing: American Family car insurance review highlights its A rating from A.M. Best, reflecting its solid financial standing.
  • Handy Add-on Options: A vehicle can be covered with useful add-ons such as accident forgiveness, roadside assistance, and rental reimbursement for a more comprehensive policy.

Cons

  • Fewer Local Agents: Comparatively, if one compares Geico or State Farm, it could be tough to find an agent selling car insurance in New Jersey.
  • Higher Initial Premiums: The starting rate for minimum coverage is $74 per month, which is higher than some competitors like Geico and Progressive.

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New Jersey’s  Car Insurance Coverage & Rates

Car insurance rates in New Jersey vary by provider and coverage. Affordable car insurance in NJ starts at $39 with USAA for minimum coverage, while Liberty Mutual charges up to $178. Full coverage ranges from $61 to $279.

New Jersey Car Insurance Monthly Rates by Provider & Coverage Level

Insurance CompanyMinimum CoverageFull Coverage
Allstate: Best Car Insurance in New Jersey$101$157
American Family: Best Car Insurance in New Jersey$74$115
Farmers: Best Car Insurance in New Jersey$148$231
Geico: Best Car Insurance in New Jersey$47$74
Liberty Mutual: Best Car Insurance in New Jersey$178$279
Nationwide: Best Car Insurance in New Jersey$76$119
Progressive: Best Car Insurance in New Jersey$60$93
State Farm: Best Car Insurance in New Jersey$73$113
Travelers: Best Car Insurance in New Jersey$87$136
USAA: Best Car Insurance in New Jersey$39$61

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Providers like Allstate, Geico, and Progressive offer competitive rates. Minimum coverage costs between $47 and $148, and full coverage ranges from $74 to $231. Compare quotes to find the best deal.

Factors That Affect Car Insurance Rates Definition Card: Best Car Insurance in New Jersey

Factors that affect the price of car insurance include age, gender, marital status, driving history, car make, model, and credit score. Choose the right coverage for the best rates.

New Jersey’s Best Car Insurance Providers for Discounts

Comparing rates and discounts is essential when searching for the cheapest car insurance companies in New Jersey. Top discount providers are Allstate, American Family, and Geico, which offer discounts like multi-policy, safe driving, and claim-free savings.

Car Insurance Discounts From the Top Providers in New Jersey

Insurance CompanyAvailable Discounts
Allstate: Best Car Insurance in New JerseyMulti-Policy, Safe Driving, Claim-Free, New Car
American Family: Best Car Insurance in New JerseyBundling, Safe Driver, Early Bird, New Car
Farmers: Best Car Insurance in New JerseyMulti-Policy, Safe Driver, Homeowner, Good Student
Geico: Best Car Insurance in New JerseyGood Driver, Multi-Policy, Military, Good Student
Liberty Mutual: Best Car Insurance in New JerseyMulti-Policy, Early Sign-Up, Homeowner, Accident-Free
Nationwide: Best Car Insurance in New JerseyMulti-Policy, SmartRide, Safe Driver, Accident-Free
Progressive: Best Car Insurance in New JerseyMulti-Policy, Snapshot, Safe Driver, Good Student
State Farm: Best Car Insurance in New JerseySafe Driver, Multi-Policy, Good Student, Vehicle Safety
Travelers: Best Car Insurance in New JerseyMulti-Policy, Safe Driver, Homeowner, Good Student
USAA: Best Car Insurance in New JerseyMilitary, Multi-Policy, Safe Driver, Good Student

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For example, Allstate offers a 17% discount for safe drivers, while USAA provides 15% off for safe driving and bundling. Farmers and Liberty Mutual also offer savings to students, homeowners, and accident-free drivers.

Coverage and financial stability should be considered when choosing a provider. Evaluating New Jersey car insurance companies ensures you receive reliable protection at a reasonable price.

Car Insurance Discounts From Top New Jersey Providers

Insurance CompanySafe DriverBundlingAccident-FreeMulti-VehicleDefensive Driving
Allstate: Best Car Insurance in New Jersey17%14%17%17%15%
American Family: Best Car Insurance in New Jersey10%15%12%10%10%
Farmers: Best Car Insurance in New Jersey13%14%13%13%12%
Geico: Best Car Insurance in New Jersey12%14%12%12%10%
Liberty Mutual: Best Car Insurance in New Jersey10%12%10%10%12%
Nationwide: Best Car Insurance in New Jersey10%14%10%10%10%
Progressive: Best Car Insurance in New Jersey13%14%13%13%12%
State Farm: Best Car Insurance in New Jersey14%14%14%14%15%
Travelers: Best Car Insurance in New Jersey30%14%30%30%10%
USAA: Best Car Insurance in New Jersey15%15%15%15%15%

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Providers like Progressive, State Farm, and Travelers offer additional discounts for multi-vehicle and defensive driving. Comparing rates from NJ auto insurance companies helps you find the best deal.

Important Considerations When Driving in New Jersey

Driving in New Jersey varies by city, with Newark reporting 6,000 accidents and 5,000 claims annually. Smaller cities like Hamilton Township see fewer incidents, making location a key factor when considering car insurance in Newark, NJ.

New Jersey Accidents & Claims per Year by City

CityAccidents per YearClaims per Year
Camden1,8001,500
Clifton2,5002,100
Edison2,8002,500
Elizabeth3,5003,000
Hamilton Township1,5001,300
Jersey City5,5004,800
Newark6,0005,000
Paterson3,8003,400
Toms River2,2001,800
Trenton2,0001,600

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Understanding accident statistics can help when filing a car insurance claim after an accident. Being informed will help you understand better potential claims and risks in your area.

Rear-end collisions make up 23 percent of claims, which costs an average of $7,000. Single-car crashes and side impacts are also common, but pedestrian and motorcycle accidents are costlier.

5 Most Common Car Insurance Claims in New Jersey

Claim TypePortion of ClaimsCost per Claim
Rear-End Collisions23%$7,000
Single-Vehicle Crashes20%$9,000
Side-Impact Collisions15%$8,000
Pedestrian Accidents10%$50,000
Motorcycle Accidents10%$25,000

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With the risk of distracted and impaired driving, staying prepared is necessary. Understanding the process of filing a claim after an accident can help manage the aftermath effectively.

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New Jersey Car Insurance Additional Coverages

New Jersey requires Personal Injury Protection (PIP) for medical expenses, lost wages, and rehabilitation. Exceeding PIP limits can lead to out-of-pocket costs, making higher coverage a smart choice.

Loss Ratio in New Jersey Car Insurance

Loss Ratio201520142013
Personal Injury Protection75.78%70.93%72.98%
Medical Payments80.04%58.30%66.79%
Uninsured/Underinsured Motorist56.23%57.29%68.54%

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Medical Payments (MedPay) covers medical and burial expenses, regardless of fault. Uninsured/underinsured motorist coverage protects against accidents with drivers who have little or no insurance.

According to how the states rank on uninsured drivers, New Jersey ranks 14th for uninsured motorists, with 14.9% of drivers uninsured. This risk makes extra coverage essential.

New Jersey Report Card: Car Insurance Premiums

Traffic DensityAHigh traffic congestion
Average Claim SizeBModerate claim amounts
Weather-Related RisksBSevere weather impacts
Uninsured Drivers RateCHigh percentage uninsured
Vehicle Theft RateCVehicle theft is common

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New Jersey insurers balance claims payouts with premium revenue. If you’re wondering how much car insurance is in New Jersey, factors like traffic, weather, and uninsured drivers impact costs.

How to Find Affordable Car Insurance in New Jersey

Finding affordable car insurance in New Jersey requires comparing rates and understanding how different insurers stack up against the state average.

Geico Screenshot: Best Car Insurance in New Jersey

Here’s a simple five-step process to help you secure the best deal.

  • Compare the Cheapest Insurers – Geico, Progressive, and St. Paul offer the lowest rates in New Jersey.
  • Check Rates Against the State Average – The average car insurance cost in NJ varies, with some insurers charging significantly more than others.
  • Choose the Right Coverage – Whether you need basic liability or full protection, selecting a policy depends on the different types of car insurance coverage that fit your needs.
  • Request Personalized Quotes – Factors like location, driving history, and vehicle type affect rates, so comparing quotes helps find the best price.
  • Look for Discounts and Benefits – Safe driver, multi-policy, and low-mileage discounts can further reduce costs.

By following these steps, you can find an affordable policy that fits your budget while ensuring you have the right level of protection on the road.

New Jersey Car Insurance Minimum Coverage

New Jersey drivers must carry minimum car insurance. The basic policy is cheaper but only includes $5,000 in property damage liability, while bodily injury liability insurance coverage is optional.

Personal injury protection (PIP) covers $15,000 per person per accident, with up to $250,000 for severe injuries. Since New Jersey follows a no-fault system, PIP covers medical costs, but the basic policy excludes vehicle damage.

Geico stands out as the best car insurance company in New Jersey, offering a strong balance of affordability, reliable coverage options, and excellent customer satisfaction, making it a top choice for drivers seeking value and peace of mind.

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Liability insurance protects against lawsuits and penalties for at-fault accidents. Consider if the basic policy is enough based on your needs and the average cost of car insurance in New Jersey.

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Best Car Insurance in New Jersey: Top Providers and Rates

The best car insurance in New Jersey for 2025 includes Geico, State Farm, and Progressive. Geico offers the lowest rates, starting at $47/month for minimum coverage. State Farm provides local agent support, while Progressive offers budget tools like Name Your Price®.

Car insurance rates by state in New Jersey vary, with full coverage ranging from $61 to $279. To get the best rates, compare auto insurance in NJ using comparison tools and take advantage of discounts for safe driving, bundling, and accident-free records from providers like Geico, Allstate, and USAA.

Frequently Asked Questions

What Impacts Your Car Insurance Rates in New Jersey?

Car insurance rates depend on age, gender, marital status, driving history, vehicle type, and credit score. Look at our how car insurance works for expanded insights.

How can I find affordable car insurance in New Jersey?

Compare prices from several providers and look for discounts like safe driving, bundling, and accident-free histories. See if you’re getting the best deal on car insurance by entering your ZIP code here.

What discounts are available for car insurance in New Jersey?

Discounts include multi-policy, safe driving, claim-free, and defensive driving discounts.

What is the minimum required car insurance coverage in New Jersey?

New Jersey requires Personal Injury Protection (PIP) and $5,000 in property damage liability coverage. Bodily injury liability is optional. Dive into our types of car insurance coverage archives to gain a deeper insight.

Is full coverage necessary in New Jersey?

Full coverage is not strictly necessary in New Jersey, as the state’s New Jersey car insurance laws only require liability coverage. However, if you own a newer or more valuable vehicle, full coverage is highly recommended.

Can I get car insurance with a history of accidents in New Jersey?

Yes, you can get car insurance rates in NJ with a history of accidents; though premiums may be higher, accident forgiveness or safe driving discounts could help lower them.

How do I compare car insurance quotes in New Jersey?

Use an online comparison tool and enter your ZIP code to get quotes based on your coverage needs. Explore our car insurance comparison archives for more insights.

What is the best way to evaluate a car insurance company?

Consider financial stability, customer service, claims handling, and competitive pricing. Explore your car insurance options by entering your ZIP code and finding which companies have the lowest rates.

What is Personal Injury Protection (PIP), and do I need it?

Personal Injury Protection (PIP) covers medical expenses, lost wages, and rehabilitation costs regardless of fault, and car insurance in New Jersey cost requires it for all drivers in New Jersey.

What additional coverage options should I consider in New Jersey?

For further protection, take into account Medical Payments (MedPay) and uninsured/underinsured motorist policy. Read our one-day car insurance coverage for more insights.

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