Car Insurance in New Jersey
New Jersey drivers spend an average of $1,573 a year on auto insurance according to the NAIC — ▲ +23% versus the national average of $1,282, ranking 5th most expensive of 51. The state requires 35/70/25 liability coverage and follows a choice no-fault system.
Average car insurance cost in New Jersey
The NAIC average expenditure is what insured drivers actually paid on average, including people who carry only liability. For those who buy each coverage, the average premium was $1,033 for liability, $491 for collision and $170 for comprehensive ($1,693 combined, versus $1,439 nationally). That average expenditure is 11% higher than the NAIC's previous data year ($1,411). Comprehensive coverage is cheaper than average here, a sign of lower weather and theft losses.
Minimum car insurance requirements in New Jersey
New Jersey's minimum is written as 35/70/25: $35,000 per person / $70,000 per accident in bodily injury liability and $25,000 in property damage liability. Those limits are low compared with the cost of a serious injury claim, so many drivers choose 100/300/100 — we estimate that "standard" level at about $1,250 a year here, $315 more than the minimum.
| Coverage | Required? | Minimum | What it pays for |
|---|---|---|---|
| Bodily injury liability | Yes | $35,000 per person / $70,000 per accident or $95,000 combined single limit | Injuries you cause to other people |
| Property damage liability | Yes | $25,000 | Damage you cause to other vehicles and property |
| Personal injury protection (PIP) | Yes | $15,000 Personal injury protection of at least $15,000 per person is required, with up to $250,000 for certain serious injuries. | Your own medical bills and lost wages, regardless of fault |
| Uninsured motorist (UM) | Yes | 35/70/25 Standard policies must include uninsured motorist coverage at no less than the minimum liability limits; the Basic Policy has none. | Your injuries when the at-fault driver has no insurance |
| Underinsured motorist (UIM) | Yes | 35/70/25 Standard policies include underinsured motorist coverage at no less than the minimum liability limits. | The gap when the at-fault driver’s limits are too low |
| Medical payments (MedPay) | No | — Medical expenses are covered through required PIP. | Medical bills for you and your passengers |
A low-cost Basic Policy is available with $5,000 property damage, $15,000 PIP and optional $10,000 bodily injury coverage; the limits shown are for the Standard Policy.
Standard policy minimums were raised recently from 25/50/25.
Compare with another state
Is New Jersey a no-fault state?
It's a "choice" state. New Jersey is a choice no-fault state: PIP pays first, and drivers pick either unlimited right to sue or the Limitation on Lawsuit option, which allows pain-and-suffering suits only for permanent injuries such as a displaced fracture or significant disfigurement.
Uninsured drivers in New Jersey
The Insurance Research Council estimates 14.1% of New Jersey drivers are uninsured — 20th highest in the country, compared with 15.4% nationally. That's roughly one uninsured driver in every 7 on the road. New Jersey requires uninsured motorist coverage, which pays your injury costs when the at-fault driver has no insurance.
SR-22 requirements in New Jersey
Drivers who must prove financial responsibility after a DUI, an uninsured crash or a serious violation file proof of insurance through their insurer. Confirm the exact form and how long it must be kept with the New Jersey Department of Banking and Insurance or your state motor vehicle agency.
By our model, a driver in their 30s with a DUI would pay about $1,755 a year for minimum coverage in New Jersey, versus $935 with a clean record. What is SR-22 insurance?
Estimate your premium in New Jersey
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Car insurance by city in New Jersey
We cover 8 New Jersey cities. Estimates are for full coverage for a driver in their 30s with a clean record; hover a city to find it on the map. The lowest estimate is in Paterson ($1,990) and the highest in Jersey City ($2,285).
- NewarkPop. 317,303 · Essex County$2,150+13% vs state
- Jersey CityPop. 302,824 · Hudson County$2,285+20% vs state
- PatersonPop. 160,463 · Passaic County$1,990+4% vs state
- ElizabethPop. 140,413 · Union County$2,015+5% vs state
- TrentonPop. 91,193 · Mercer County$2,025+6% vs state
- CliftonPop. 90,322 · Passaic County$2,000+5% vs state
- BayonnePop. 74,532 · Hudson County$2,165+13% vs state
- East OrangePop. 71,850 · Essex County$2,240+17% vs state
Estimated cost by driver profile in New Jersey
Age and driving record move premiums more than almost anything else. A teen on their own policy pays about 2.7× what a driver in their 30s pays for the same full coverage in New Jersey.
| Driver | Minimum | Standard | Full coverage | Full / month |
|---|---|---|---|---|
| Teen driver (18, own policy) | $2,575 | $3,430 | $5,250 | $438 |
| Young adult (22) | $1,495 | $1,995 | $3,055 | $255 |
| Adult in their 30s | $935 | $1,250 | $1,910 | $159 |
| Adult in their 50s | $860 | $1,150 | $1,755 | $146 |
| Senior (72) | $1,050 | $1,395 | $2,140 | $178 |
| 30s, one at-fault accident | $1,355 | $1,810 | $2,765 | $230 |
| 30s, DUI on record | $1,730 | $2,310 | $3,530 | $294 |
By coverage level
| Coverage level | What it includes | Per year | Per month | Typical range |
|---|---|---|---|---|
| State minimum liability | Only the liability (and PIP/UM where required) limits your state mandates. No coverage for your own car. | $935 | $78 | $765–$1,105 |
| Standard liability (100/300/100) | Higher liability limits plus uninsured motorist coverage. Still no coverage for damage to your own car. | $1,250 | $104 | $1,025–$1,470 |
| Full coverage | Standard liability plus collision and comprehensive, typically required on a financed or leased car. | $1,910 | $159 | $1,565–$2,250 |
Cheapest and most expensive cars to insure in New Jersey
Full-coverage estimates for current models, using HLDI insurance-loss data where available. Vehicle choice alone can swing the premium by more than $3,570 a year here.
| Model | Segment | Est. / year |
|---|---|---|
| GMC Acadia | Midsize SUV | $1,185 |
| Chevrolet Traverse | Midsize SUV | $1,290 |
| Subaru Forester | Small SUV | $1,380 |
| Honda Pilot | Midsize SUV | $1,415 |
| Subaru Outback | Wagon | $1,420 |
| Subaru Crosstrek | Small SUV | $1,420 |
| Honda CR-V | Small SUV | $1,460 |
| Toyota Land Cruiser | Large SUV | $1,460 |
| MINI Cooper | Subcompact car | $1,465 |
| Volvo XC60 | Luxury SUV | $1,485 |
| Model | Segment | Est. / year |
|---|---|---|
| BMW M4 | Luxury sports car | $4,755 |
| BMW M3 | Luxury car | $4,610 |
| Lamborghini Urus | Luxury SUV | $4,140 |
| BMW 7 Series | Luxury car | $4,080 |
| Mercedes-Benz S-Class | Luxury car | $3,255 |
| Lucid Air | Luxury car | $3,215 |
| Audi RS 7 | Luxury car | $2,760 |
| Alfa Romeo Giulia | Luxury car | $2,695 |
| Lexus LS | Luxury car | $2,665 |
| Mercedes-Benz G-Class | Luxury SUV | $2,660 |
Cheap car insurance in New Jersey: how to lower your rate
- Raise your deductible. Going from $500 to $1,000 on collision and comprehensive saves about $95 a year on a typical New Jersey full-coverage policy.
- Match coverage to your car's value. On a 10-year-old car, dropping collision and comprehensive could cut the bill from about $1,610 to $1,250.
- Drive less, pay less. Low-mileage and usage-based programs can save around $135 a year if you drive under 7,500 miles.
- Protect your record. A single speeding ticket adds roughly $420 a year in our model; an at-fault accident adds much more.
- Shop at renewal. Rates for the same driver differ widely between insurers. Compare identical limits and deductibles.
- Ask about discounts — bundling home and auto, good student, safe-driver, paid-in-full and defensive-driving course discounts. See common discounts.
Complaints and help: New Jersey Department of Banking and Insurance
The New Jersey Department of Banking and Insurance licenses insurers and agents, reviews rates and handles consumer complaints about claims, cancellations and billing — free of charge.
- Website
- www.nj.gov
- File a complaint
- Consumer complaint page
- Consumer helpline
- 1-800-446-7467
New Jersey vs. neighboring states
| State | NAIC avg. | Minimums | System | Uninsured |
|---|---|---|---|---|
| New Jersey | $1,573 | 35/70/25 | Choice no-fault | 14.1% |
| Delaware | $1,462 | 25/50/10 | At-fault (tort) | 17.6% |
| New York | $1,753 | 25/50/10 | No-fault | 8.6% |
| Pennsylvania | $1,155 | 15/30/5 | Choice no-fault | 11.0% |
Frequently asked questions
How much is car insurance in New Jersey?
NAIC data puts the average New Jersey auto insurance expenditure at $1,573 a year, 23% more than the national average of $1,282 (rank 5 of 51, where 1 is the most expensive). Our estimate for full coverage for a driver in their 30s with a clean record is about $1,910 a year ($159 a month); state-minimum liability is about $935.
What is the minimum car insurance required in New Jersey?
New Jersey requires at least 35/70/25 liability coverage: $35,000 per person / $70,000 per accident for bodily injury and $25,000 for property damage, plus personal injury protection (PIP) of 15,000, uninsured motorist coverage, and underinsured motorist coverage.
Is New Jersey a no-fault state?
Partly. New Jersey is a choice no-fault state: PIP pays first, and drivers pick either unlimited right to sue or the Limitation on Lawsuit option, which allows pain-and-suffering suits only for permanent injuries such as a displaced fracture or significant disfigurement.
How many drivers in New Jersey are uninsured?
The Insurance Research Council estimates that about 14.1% of New Jersey drivers are uninsured, ranking 20th in the nation (national estimate: 15.4%).
Which New Jersey city has the cheapest car insurance?
Among the 8 cities we cover, Paterson has the lowest full-coverage estimate at about $1,990 a year, while Jersey City is the highest at about $2,285. Differences come from population density, commute length and local weather risk.
How much does car insurance cost for a teen driver in New Jersey?
An 18-year-old on their own full-coverage policy would pay roughly $5,250 a year in New Jersey by our estimate, or about $2,575 for minimum coverage. Joining a parent's policy usually costs less.
How do I file a complaint against a car insurance company in New Jersey?
Contact the New Jersey Department of Banking and Insurance (consumer line 1-800-446-7467). It handles consumer complaints about claims, cancellations and rates at no cost.
How we estimate this
We start from the state's average liability, collision and comprehensive premiums published by the NAIC, then apply a location factor (population density and commute time from the Census ACS, weather hazard scores from FEMA's National Risk Index), a vehicle factor (HLDI insurance-loss data where available, otherwise vehicle segment), and a driver-profile multiplier. Results are rounded ranges for comparison, not quotes. Read the full methodology.
- NJDOBI: Auto Insurance New Jersey Buyer's Guide
- NJDOBI: Auto insurance shopper's workbook
- NJDOBI Bulletin 25-06 (minimum limits for standard policies)
- P.L. 2022, c.87 (increase of minimum liability limits)
- NJDOBI: Standard Auto Insurance Policy
- NJDOBI: How to Request Assistance
- NAIC 2022/2023 Auto Insurance Database Report
- NAIC Homeowners Insurance Report: Data for 2023
- Insurance Research Council uninsured motorist estimates (via Triple-I)
- IIHS Fatality Facts: state by state
- FBI Crime Data Explorer: Crime in the United States 2025 (Table 4)
- NICB 2022 Vehicle Theft Data: top 10 stolen vehicles by state
- FHWA Highway Statistics 2024, Table DL-1C (licensed drivers)
- FHWA Highway Statistics 2024, Table MV-1 (registrations)
- FHWA Highway Statistics 2024, Table VM-2 (vehicle-miles traveled)
- U.S. Census Bureau Vintage 2024 population estimates
- U.S. Census Bureau: population estimates and American Community Survey
- FEMA National Risk Index