How Much Is Car Insurance In New Jersey?

When it comes to car insurance, one of the most important factors to consider is the cost. If you’re a driver in New Jersey, you’re likely wondering: How much does car insurance cost in the Garden State?

Full-coverage car insurance rates in New Jersey average $2,647 per year. Compared to the national average of $2,388. Minimum coverage costs $1,080 per year, which is above the national average of $664.

While New Jersey is known for its relatively high car insurance premiums, understanding the factors that influence rates can help you make informed decisions and potentially save money. In this guide, we’ll dive into what shapes car insurance costs in New Jersey and offer some tips for finding the best deals in the state. With over 12 years of experience navigating the car insurance market as a licensed insurance agent, I’ll help you make an informed decision.

New Jersey drivers face a relatively long commute, with an average travel time of over 31 minutes. Additionally, the state’s coastal regions are vulnerable to severe weather conditions, including strong winds, storms, and flooding.

The high population density and heavy traffic, all contribute to the higher-than-average cost of car insurance in the state.

Moreover, New Jersey’s high rate of accidents and the frequent need for comprehensive coverage to protect against natural disasters further push insurance premiums up. The state also has one of the highest rates of uninsured drivers, which can affect the overall cost of coverage for everyone. All of these elements combined make car insurance in New Jersey notably more expensive compared to many other states.

Cost Of Car Insurance In New Jersey By Age

Young drivers often face higher insurance rates because of their lack of experience behind the wheel, while older drivers tend to pay more due to slower reflexes. In general, the younger or older you are, the higher your insurance costs may be.

A driver’s skill and history also play a big role in determining their risk of accidents. More experienced drivers are usually seen as less risky, which can lead to lower insurance premiums.

Here is a table displaying the average car insurance costs by age:

Average New Jersey Auto Insurance Rates By Insurance Company

Car insurance rates can differ greatly between providers, even in the same state. In New Jersey, GEICO has the lowest average annual premium for full coverage, costing around $1,049. Additionally, only 39% of drivers in the state opt for liability-only coverage.State Farm is one of the top choices for liability insurance in New Jersey, with low premiums for drivers seeking basic coverage.

Rates vary based on several factors, including your driving history, credit score, the type of coverage you choose, and even your location within the state. To get the best deal, it’s recommended to compare quotes from multiple insurers.

Here is a table displaying average auto insurance rates by six national carriers in New Jersey:

Average New Jersey Car Insurance Premiums By Credit Score

In New Jersey, using credit scores to set car insurance rates is a debated issue.The idea behind this practice is that people with lower credit scores are more likely to make inflated claims, or even commit insurance fraud.

As a result, auto insurance companies tend to charge higher premiums for drivers with poor credit scores. Additionally, payment options can be influenced by a person’s credit history, as those with low scores are statistically more likely to miss payments.

In New Jersey, residents with poor credit typically pay an average of 125% more for their car insurance. However, improving your credit score by paying bills on time and maintaining a low credit usage ratio can help lower your insurance rates over time.

Here is a table displaying average car insurance premiums based on different credit score categories in New Jersey:

Average Car Insurance Costs In New Jersey By Gender

In New Jersey, your gender can impact your car insurance rates. Statistically, men are more likely to be involved in accidents than women, whether they are young or older.

Men also tend to drive more miles than women, which raises their chances of being in an accident or getting a traffic violation. According to the U.S. Federal Highway Administration, in 2018, men drove an average of over 16,500 miles per year, while women drove just over 10,000 miles. However, there is little variation in New Jersey car insurance rates.

Here is a table displaying average car insurance costs by gender in New Jersey:

Cost Of New Jersey Car Insurance By Driver Record

In New Jersey, traffic violations can cause your car insurance premiums to rise anywhere from 7% to 76% above the state’s average, depending on the offense. If you have a record of driving incidents, insurance companies may consider you a high-risk driver. As a result, they typically raise your premiums to account for the higher likelihood of needing to pay out claims.

Here is a table displaying average car insurance costs based on different driving records in New Jersey :

Average New Jersey Auto Insurance Costs By Marital Status

In New Jersey, married drivers often pay slightly less for car insurance than single or divorced drivers. On average, married drivers pay around $1,566 per year, while single or divorced drivers pay about $1,605 annually.

The reason for this difference is that insurers tend to view married drivers as more stable and responsible. Studies suggest that married people are less likely to be involved in accidents or file claims, making them less risky to insure. As a result, insurance companies often offer them lower rates.

Here is a table displaying average car insurance costs by marital status in New Jersey:

Cost Of Car Insurance In New Jersey By Coverage Type

In New Jersey, the level of coverage you select for your car insurance policy directly impacts your rates. If you increase your liability limits or add full coverage, your premium will go up. However, opting for a higher deductible can help reduce your monthly payments.

Here is a table displaying average car insurance costs by coverage type in New Jersey:

Average New Jersey Car Insurance Rates By City

When it comes to car insurance rates, your location plays a big role. Insurance companies look at where you typically park your car and how busy the area is.

If you live in a rural or less populated area, your rates are usually lower because the risk of accidents, theft, and vandalism is smaller compared to busy, urban areas. In contrast, drivers who live in cities with heavy traffic and higher crime rates generally face higher premiums.

In addition, living in areas with frequent extreme weather or high accident rates can also drive up your insurance costs. Insurance companies factor in all these risks when determining your rate, so your location can have a significant impact on how much you pay for coverage.

In the following table, we explore the average car insurance costs in ten different New Jersey cities to illustrate these differences.

Average New Jersey Car Insurance Rates By ZIP Code

Car insurance rates in New Jersey can vary widely depending on your ZIP code. This is because insurance companies take into account factors like traffic density, accident rates, crime levels, and even the frequency of weather-related incidents in your area.

ZIP codes in densely populated areas like Jersey City, Newark, and Paterson tend to have higher car insurance rates. The higher traffic volume, greater risk of accidents, and increased likelihood of theft or vandalism in these areas make insurance premiums more expensive.

In more rural or less populated zip codes, such as those in Sussex County or Warren County, car insurance rates are usually lower. These areas have fewer cars on the road and lower crime rates, meaning insurers view them as less risky.

ZIP codes along New Jersey’s coastline, like those in Atlantic City or Cape May, can have higher premiums due to the increased risk of damage from storms, flooding, and hurricanes, which are more common in these areas.

In the following table, we look at average car insurance costs for ten diverse zip codes across New Jersey, highlighting these localized variations.

New Jersey Car Insurance Prices Compared To Other U.S. States

Car insurance prices in New Jersey are notably higher compared to many other states, making it an important factor for residents to consider when shopping for coverage. The state’s high premiums are influenced by several factors, including dense population, heavy traffic, a higher rate of accidents, and vulnerability to weather-related damage such as flooding and storms.

Compared to other states, New Jersey has one of the highest average car insurance rates in the country. For instance, states like Maine, Ohio, and Idaho typically have much lower insurance costs due to less traffic, lower accident rates, and fewer weather-related risks. In contrast, states like Michigan and Louisiana also have high insurance rates, but New Jersey’s costs are still on the higher end due to its unique combination of factors.

In the following table, we provide you with a comprehensive comparison of average car insurance rates across all U.S. states, providing a clearer picture of how New Jersey fares on the national stage.