Best Car Insurance in New Jersey of 2025

New Jersey drivers pay some of the highest rates for car insurance in the nation: A full coverage policy averages $3,008 a year, compared to a national average of $2,680.

Minimum coverage in the Garden State is even more expensive at an average of $1,303 a year, or a whopping 63% more than the national average of $802.

In part, that’s because the state’s minimum liability coverage requirements are higher than other states. New Jersey is also a no-fault state, so your insurer pays for your medical bills after a collision, regardless of who is at fault.

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.)

Average rates from Bankrate analysis of Quadrant Information Services data from June 2025.

Who’s this for? Geico has the lowest premiums for both full coverage and minimum liability insurance for almost all kinds of drivers in New Jersey.

Standout benefits: Geico offers mechanical breakdown coverage, which covers the cost of repairs to the transmission, engine, A/C and other mechanical parts and systems due to normal wear and tear.

Who’s this for? If you think you might get into a fender bender, Travelers’ Responsible Driver Plan enables you to avoid a premium increase following either your first covered accident or your first minor moving violation.

Standout benefit: The Premier Responsible Driver plan adds a decreasing deductible to the accident forgiveness benefit. For every six months you’re accident-free, you can earn a $50 credit toward your deductible after a covered loss, up to $500. It also waives your deductible if your car is totaled.

Who’s this for? If you just bought a new car, Plymouth Rock Assurance has optional gap insurance, which can help cover the difference between your car’s depreciated value and your the balannce on your loan or lease. The regional insurer also has a new car replacement add-on for cars up to two model years old.

Standout benefits: Plymouth Rock Assurance’s door-to-door valet service means you can file a claim and get your car repaired without having to leave the house.

Who’s this for? Adding a young driver can cause your premiums to soar, but State Farm has some of the most affordable rates for families with teens in New Jersey. Plus, there’s a generous 25% discount for students who maintain a B average.

Standout benefits: Rental car coverage includes meals, lodging and transportation if you’re stranded more than 50 miles from home. If you drive for Uber or Lyft, State Farm also offers rideshare insurance.

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.

A full coverage car insurance policy in New Jersey averages $3,008 a year in 2025 (or around $250 a month). That’s roughly 12% higher. than the national average of $2,680 a year.

For a minimum liability insurance policy, New Jersey drivers pay an average of $1,303 a year (about $109 a month), or nearly 63% more than the nationwide average.

New Jersey has some of the highest average premiums for car insurance in the U.S., thanks to a confluence of factors, including its high population density and number of accidents.

In addition, drivers’ minimum liability insurance requirements are higher than in many other states, and increasing all the time.

New Jersey is also a 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.

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%.

Just be sure you can afford the additional out-of-pocket expense if you are in an accident.

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 result in a discount of 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 small 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 and Metromile are two of our top picks for pay-per-mile car insurance and both are available in New Jersey.

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.  

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. 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.  

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.

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:

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.