New Jersey drivers pay some of the highest car insurance rates in the nation: A full coverage policy averages $3,223 a year according to August data from Experian, or 29.8% more than the national average of $2,262 per year.
In part, that's because New Jersey is one of a handful of states that offer you a choice of no-fault auto insurance. With this, you'll have the option to add personal injury protection (PIP) coverage, which requires your insurer to pay your medical and other bills after a collision, regardless of who is at fault. The state also raised minimum car insurance liability requirements at the start of the year, and higher limits often lead to higher premiums.
Still, it's possible to find affordable coverage in the Garden State without sacrificing coverage or service.
CNBC Select has picked the best car insurance in New Jersey based on cost, coverage options, customer satisfaction and other factors. (See our methodology for more on how we made our selections.)
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Best car insurance in New Jersey
Best for affordability: Travelers
Who's this for? Travelers has the lowest quoted premiums for full coverage auto insurance among all drivers in New Jersey.
Standout benefits: The brand's Responsible Driver Plan enables you to avoid a premium increase following either your first covered accident or your first minor moving violation.
- Lower rates
- Discount for hybrids/EVs
- Not available in all states
- Some discounts not available in every state
- Below-average customer satisfaction scores
Best for families: Plymouth Rock Assurance
Who's this for? Adding a young driver can cause your premiums to soar, but Plymouth Rock Assurance has the most affordable rates for families with drivers between ages 16 and 25 in New Jersey, according to Experian data.
Standout benefit: Plymouth Rock Assurance's door-to-door valet service lets you file a claim and get your car repaired without leaving the house.
Plymouth Rock Assurance Auto Insurance
Policy highlights
Plymouth Rock Assurance offers four tiers of coverage, but even the basic Essential Assurance plan comes with door-to-door valet claim service, guaranteed repairs and a $50 taxi credit you can redeem once a year. Optional add-ons include new car replacement, pet injury coverage, key replacement and gap insurance.
Availability
Plymouth Rock Assurance issues auto insurance in Connecticut, Massachusetts, New Hampshire, New Jersey, New York and Pennsylvania
Accident forgiveness
Available as an upgrade
Pros
- All plans come with door-to-door valet claim service
- Add-ons include accident forgiveness and glass replacement
- Auto policies may be eligible for dividends
Cons
- Only available in six states
Best for bad credit: NJM
Who's this for? In New Jersey, your credit history can be considered when determining your car insurance premiums. NJM's rates are affordable in the state if you have bad credit.
Standout benefits: Drivers who bundle their home and auto policies with NJM, one of the best homeowners insurance companies in New Jersey, can save up to 20%.
NJM Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Full coverage policies with NJM come with several uncommon benefits, including new car replacement, reimbursement for a rental car while your vehicle is in the shop and coverage for pets injured in a covered accident There are also 10 discounts for drivers, including for bundling, owning a new car and for seniors who complete a defensive driving course
Terms apply.
Accident forgiveness
Accident forgiveness with NJM is only available in Pennsylvania
Pros
- Low average rates
- Highly ranked for claims satisfaction by J.D. Power
- Offers gap insurance and rideshare insurance
Cons
- Only available in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania
- Accident forgiveness only available in Pennsylvania
Best for military members and veterans: USAA
Who's this for? Available to military families, USAA is touted nationwide for its affordable coverage and first-rate customer service. Drivers who park their car on base can save up to 15% and, if you're deployed, you can suspend certain coverages and get up to 60% off.
Standout benefits: After five years of accident-free driving, USAA will automatically forgive your first at-fault accident.
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
- Limited to military families and veterans
- No physical branches
- Customer service not available 24/7
- Safe-driver discount not available in every state
How much is car insurance in New Jersey?
A full coverage car insurance policy in New Jersey averages $3,223 a year, or about 39% more than the national average.
However, factors like your driving record, age, ZIP code and even the make and model of your car can influence the exact price you'll pay for coverage.
Why is car insurance so expensive in New Jersey?
New Jersey has some of the highest average car insurance premiums in the U.S., thanks to a confluence of factors, including its high population density and the number of accidents.
In addition, drivers' minimum liability insurance requirements are higher than in many other states, and these requirements increased in early 2026.
New Jersey minimum liability insurance requirements
| 2022 | 2023 | 2026 |
|---|---|---|
| Bodily injury (per person): $15,000 | Bodily injury (per person): $25,000 | Bodily injury (per person): $35,000 |
| Bodily injury (per accident): $30,000 | Bodily injury (per accident): $50,000 | Bodily injury (per accident): $70,000 |
| Property damage coverage: $5,000 | Property damage coverage: $25,000 | Property damage coverage: $25,000 |
New Jersey is also a choice no-fault state, which means drivers have to carry $15,000 in personal injury protection (PIP) to pay for their medical expenses and other costs after an accident, regardless of who is responsible.
How to save on car insurance in New Jersey
There are a few simple ways to get the best price on car insurance.
1. Raise your deductible
Increasing your deductible, or the amount you have to pay before your insurer reimburses you for covered losses, usually lowers your monthly premiums. Raising your deductible from $200 to $1,000 can reduce the cost of collision and comprehensive coverage by up to 40%.
However, you'll want to be sure you could afford this expense out-of-pocket if you are in an accident before you make this change.
2. Shop for discounts
Regional and national car insurance companies offer discounts for a variety of drivers, including good students, homeowners, veterans, safe drivers and households with more than one car on a policy.
Bundling your car insurance with the same provider as your homeowners policy can save you as much as 25%
3. Consider pay-per-mile insurance
If you don't drive much, pay-per-mile car insurance can save you up to 40% over a traditional policy. Drivers pay a low flat monthly rate and a per-mile surcharge of between four and eight cents. There are typically mileage caps, though, so pay-per-mile is best if you work from home or otherwise don't drive much.
SmartMiles by Nationwide is on of our top picks for pay-per-mile car insurance and is available in New Jersey.
SmartMiles® by Nationwide
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
SmartMiles® is one of the more widely available pay-per-mile auto insurance options. It offers affordable coverage by the mile, tracked through a device plugged into your vehicle or through your vehicle's existing system for some models. For those who road trip often, only the first 250 miles of driving per day count towards mileage.
4. Work on improving your credit
Like most states, New Jersey allows car insurance providers to consider your credit history when calculating your premiums. Making on-time payments, keeping your debt-to-income ratio low and checking your credit report for errors can all help boost your credit score and lower your rates.
New Jersey car insurance FAQs
Who has the cheapest car insurance in New Jersey?
We found that Travelers has the cheapest premiums for car insurance in New Jersey for most types of drivers, based on quote data from Experian.
What are the minimum car insurance requirements in New Jersey?
As of Jan. 1, 2026, drivers in New Jersey must carry a minimum of $35,000 for bodily injury per person, $70,000 for bodily injury per accident and $25,000 for property damage per accident to meet standard car insurance requirements. Drivers must also carry a minimum of $15,000 in Personal Injury Protection (PIP) coverage.
What is no-fault car insurance?
No-fault car insurance means a driver's insurance company pays for their own medical expenses and certain other losses after an accident, regardless of who is held liable. New Jersey is one of a dozen U.S. states with no-fault laws.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select analyzed over a dozen car insurance companies offering policies in New Jersey, focusing on rates, coverage options, discounts, customer satisfaction and online experience.
We prioritized companies with strong customer satisfaction ratings from J.D. Power and the Better Business Bureau, and low scores on the National Association of Insurance Commissioners' complaint index. Rate data was gathered from Experian, based on June quotes.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our picks for the best car insurance in New Jersey are:
- Best for affordability: Travelers
- Best for families: Plymouth Rock Assurance
- Best for bad credit: NJM
- Best for military members and veterans: USAA
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