Cheap Low-Income Car Insurance In New Jersey 2024

Residents of New Jersey who are probably going to find it even harder to obtain affordable coverage are the ones in the state’s low income demographic. Low income, in this sense, applies to families or individuals whose income is fifty percent or less than the average income of a region.

Unlike some states across the country, New Jersey hasn’t had a problem with car insurance carriers leaving the state. But, rates have risen a lot in the past year. A lot of New Jersey drivers are paying considerably more for coverage.

I have had insurance with some of the providers in this guide. Each car insurance provider in this review has superior ratings and a solid reputation for excellence in the car insurance industry.

Does New Jersey Have A Government-Sponsored Car Insurance Program?

Yes, it does have a government-sponsored auto insurance program for low income drivers, the New Jersey Special Automobile Insurance Policy.

The requirements for this program are:

• You must be enrolled in Federal Medicaid
• You must have a valid driver’s license.

You can apply for the SAIP program through a local insurance agent. This program is also known as dollar-a-day insurance.

Recommended Car Insurance Coverage For Low-Income Drivers In New Jersey

By law, New Jersey drivers are required to have liability car insurance that will help pay the cost of an auto accident. These are the minimum liability coverage amounts mandated by New Jersey:

• $25,000 for bodily injury for one person
• $50,000 for bodily injury liability per each accident
• $25,000 for property damage liability per each accident
• $15,000 for PIP (Personal Injury Protection) no-fault for driver

New Jersey’s minimum requirements for liability auto insurance are about the same as other states, with the exception of the PIP benefit which is a good one to have if you need it.

New Jersey requires every driver to have a minimum of liability vehicle insurance. However, many drivers opt to carry a bit more coverage in case the costs of the accident exceed the minimum amounts of coverage. If that happens, the insured, if at fault, must pay the difference.

Full Coverage Options

You’ll hear the term “full coverage,” a lot when the subject is vehicle insurance. Full coverage isn’t actually a real category of coverage, but is applied to having multiple sorts of car insurance included in one policy package. It gives drivers insurance protection from basically any driving accident because they have all three types: comprehensive, liability, and collision.

Liability insurance helps to cover costs of property damage or injuries that occur from an accident where the insured driver is at fault. Collision coverage helps pay costs if your vehicle is damaged in a collision—either with another vehicle, or with an object of some kind, like a wall.

Comprehensive coverage covers accidents that aren’t collisions, such as: natural disasters, vandalism, theft, and fire.  Full coverage auto insurance is inclusive of these three types of coverage, and gives peace of mind to a lot of drivers.

Having adequate auto insurance if you want to drive without worrying about the crippling financial burden you could incur without it in case of an accident, provides peace of mind and financial security. Besides that, it’s illegal in every state but two—New Hampshire and Virginia—to operate a vehicle on a public road without a minimum of liability insurance.

Affordable car insurance doesn’t equate to poor quality coverage. If you do a little research into vehicle insurance carriers in New Jersey, and compare rates between various providers, you can save a nice  amount on your car insurance and still have adequate coverage.

Cheapest Rates In New Jersey

A lot of car insurance carriers are of the opinion that a correlation exists between a low income and a low credit rating. This is bad news for drivers with poor credit or a low income, since premiums for  low income drivers and/or poor credit can be as much as twice that of drivers with a better income and good credit.

But, if you fall into the low income or poor credit part of the population, there are things you can do to help get a lower vehicle insurance premium. For instance, shop around for a car insurance carrier with discounts available that you might be able to get, which could mean a substantial savings. Another method of lowering your vehicle insurance rates is to be very careful and avoid moving violations. These two things can help decrease your premiums.

Cheapest Rates For Drivers With Poor Credit

Older drivers are often taken aback to see that their car insurance premiums have increased. This is common because a lot of auto insurance carriers have a perception of senior drivers as high risk, same as teenage drivers.

This high risk notion of older drivers isn’t only bias in the car insurance industry, though. Statistics and multiple studies have shown a higher risk for accidents in senior drivers. The causes for these findings are such factors as: the probability that injuries resulting from auto accidents will be of a more serious nature in older drivers, slower reaction times, and age-related health issues that could affect seniors being safe drivers. These findings account for the concept that older drivers are higher risk than younger drivers.

The Insurance Institute for Highway Safety (IIHS) conducted a study and found that the rates of fatalities occurring from auto accidents begin to rise sharply at the age of 70. Deaths from car accidents in drivers aged 85 years or older are the highest in all age groups.

So, it’s hardly surprising that older drivers are faced with paying steeper premiums for car insurance as they age. Insurance companies have to try and counteract the steeper claims with higher rates.

Senior drivers can still save money on their auto insurance if they’re willing to put in some effort checking rates and discounts offered by different companies. Rate comparisons and shopping around for discounts can mean lower rates for older drivers.

Cheapest Rates For Seniors In New Jersey

Does Income Affect Car Insurance Rates In New Jersey?

No, your income won’t influence your auto insurance premiums in New Jersey. Car insurance providers weigh factors such as: your location, the vehicle you drive, adding teenaged or senior drivers, age, and driving history, along with the amount of  coverage you want. They will then take all of these components into consideration, and calculate your rates accordingly.

How To Save On Car Insurance Costs In New Jersey

Making your way through the landscape of New Jersey car insurance can be a frustrating task, to say the least. However, if you go about it correctly, it can mean shaving a considerable amount off your car insurance rates. Here are 3 easy steps that will help save money on vehicle insurance in New Jersey:

Compare Rates from Different Providers

The first thing you need to do if you really want to trim your car insurance premiums is to compare rates between companies operating in your state. There can be a wide difference in premiums between providers. Vehicle car insurance carriers determine rates based on various components, such as: your age, your driving record, and your location, along with other things.

It will pay you to gather premium quotes and compare coverage amounts, as well as discounts, before you choose an insurer that suits your budget and coverage needs.

Leverage Discounts

A lot of auto insurance carriers have discounts available that can be money-savers by reducing your premiums. Here are some things that can influence vehicle insurance discounts: safety features of your vehicle, a good student discount, bundling more than one type of coverage with a company, safe driving discount, and more.

Always ask which, if any, discounts are available from the auto insurance companies you’re looking into. You might qualify for more than one.

Adjust Your Coverage and Deductibles

There are two major steps to reducing your car insurance rates: (1) Raise your deductible and (2) adjust the amount of coverage. These changes can make a big difference in your premium. For example, if you’re driving an older model vehicle, paying for expensive full coverage may not be the best financial move because the premiums could exceed the value of the car. Your deductible is what you are required to pay if a claim is filed.

One general rule is that the more deductible you pay, the less your premium will be. Decreasing your deductible will increase the price of your premium. It’s best to make sure you can comfortably pay a higher deductible, though, before changing it.

Compare Rates In New Jersey – By City

Auto insurance don’t just vary by state, they also vary by city. Each city comes with it’s own risk level, based on things like accident frequency, crime rates etc. Therefore, your rates will vary depending on the city in which you reside. Use our table below to find average rates by cities in New Jersey.