# What are the cheapest car insurance options available in New Jersey?

Amelia Palmer · August 4, 2026

> Geico consistently offers the lowest rates for both minimum and full coverage car insurance in New Jersey, with average premiums as low as $49 per...

Geico consistently offers the lowest rates for both minimum and full coverage car insurance in New Jersey, with average premiums as low as $49 per month for minimum coverage.

NJM Insurance, a state-based provider, is also one of the most affordable options in New Jersey, with full coverage policies averaging around $125 per month.

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Selective Insurance, another local insurer, provides highly competitive rates, making it a top choice for New Jersey drivers seeking cost-effective coverage.

The average cost of car insurance in New Jersey is significantly higher than the national average, with annual premiums around $1,595, ranking the state among the most expensive in the U.S.

for auto insurance.

Minimum coverage quotes in New Jersey average $108 per month, highlighting the substantial difference in pricing between Geico's low rates and the state's overall insurance costs.

Factors such as driving history, location, and personal characteristics can greatly influence the car insurance rates an individual receives in New Jersey, underscoring the importance of comparing quotes from multiple providers.

From 2018 to 2019, the average annual car insurance rates in New Jersey dropped from $1,780 to $1,419, indicating a recent trend toward slightly cheaper coverage costs in the state.

New Jersey's high insurance costs are partially attributed to the state's densely populated urban areas, which contribute to increased accident rates and claim frequencies.

The state's unique "no-fault" insurance system, which requires drivers to carry personal injury protection (PIP) coverage, can also contribute to the elevated insurance premiums in New Jersey.

Drivers in New Jersey with clean driving records and good credit scores are more likely to qualify for the lowest car insurance rates, as these factors are often used by insurers to assess risk.

Bundling car insurance with other policies, such as homeowner's or renter's insurance, can help New Jersey drivers save money on their overall insurance costs.

Utilization of telematics-based insurance programs, where drivers' behavior is monitored through a mobile app or in-vehicle device, can potentially lead to further discounts in New Jersey.

The state's high population density and urban traffic congestion can amplify the risk of accidents and claims, contributing to the elevated car insurance prices in New Jersey.

New Jersey's no-fault insurance system requires drivers to carry a minimum of $15,000/$30,000 in bodily injury liability coverage, which can add to the overall cost of insurance premiums.

Insurers in New Jersey often consider an individual's credit history when determining rates, as studies have shown a correlation between credit scores and the likelihood of filing insurance claims.

Younger drivers and those with a history of traffic violations or accidents typically face higher car insurance rates in New Jersey due to the increased risk they pose to insurers.

Drivers in urban areas of New Jersey, such as Newark and Jersey City, generally pay higher car insurance premiums compared to those living in suburban or rural parts of the state.

Consumers in New Jersey can potentially save money on car insurance by opting for higher deductibles, which can lower the overall cost of their policies.

The state's strict regulations and oversight of the insurance industry in New Jersey may contribute to the relatively higher car insurance costs compared to other states with more lax regulatory environments.

New Jersey drivers who are members of certain organizations, such as professional associations or alumni groups, may be eligible for additional discounts on their car insurance premiums.

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