Car Insurance in New Jersey
One of the smallest states in the country, New Jersey does not fall short on rich cultural and entertainment opportunities. Its claim to fame is the Atlantic Coast, home to Atlantic City, with its famous four-mile-long Boardwalk and countless casinos dotting the coastline. For a quieter time, take a trip to the southernmost tip of the state and visit Cape May, a bustling resort town that is home to the Cape May Point Lighthouse and the antique Emlen Physick Estate.
For something close to New York, another option is Liberty State Park, with views of Upper New York Bay, Liberty Island, and the Statue of Liberty. More than 1,200 acres of trails, tidal salt marshes, and nature preserves also exist within this ecosystem. It is also one of the best-preserved environments in the state, with plenty of picnic and sports opportunities.
Quick Facts
- There were 549 fatal crashes in 2020 that resulted in 587 deaths.
- New Jersey is a no-fault state, meaning your own insurance provider covers the cost of your medical bills and other income-related losses regardless of who is at fault.
How Much Is the State Required Minimum or Liability Insurance for Car Insurance in New Jersey?
The average cost of car insurance in New Jersey is $1,757 per year, which is slightly higher than the U.S. national average of $1,674. Your age, gender, driving history, claims record, and more than a dozen other qualifiers help determine the price of premiums you pay.
Even a single claim on your record can skyrocket your premiums by over 100%, which can stick for the next three to five years. Be sure to practice safe driving habits and make no claims to remain in an insurer’s good graces.
What Is the Average Premium in New Jersey for Full Coverage Car Insurance?
New Jersey drivers pay an average monthly rate of $146 a month for full coverage car insurance. Factors that go into determining the price of premiums paid include age, gender, zip code of residence, driving history and enrollment in loyalty programs, defensive driving courses, and other good driver classes.
Full coverage car insurance is typically split into three liabilities: comprehensive, collision, and property damage. Comprehensive liability covers non-collision-related events, such as theft, hail, vandalism, and fallen objects on your vehicle. Collision liability pays for your vehicle and other affected vehicle damage. Property damage liability covers the cost of repairs to another person’s vehicle or property.
Note, higher deductibles and lower liability limits result in lower premiums. For $50 extra a month, you may be able to cut a $1,000 deductible to $500 and a $25,000/$50,000/$5,000 to considerably high liability limits. Keep that in mind when shopping around for car insurance.
How Much Is It for Just the Minimum Required Car Insurance in New Jersey?
The state-required minimum or liability car insurance in New Jersey is roughly $71 a month. However, state minimums may be inadequate in the event of a serious car accident.
For greater peace of mind, we highly recommend seeking more than the minimum required car insurance. A single accident can set you back several years, resulting in absurdly high out-of-pocket costs and endless headaches.
How Do Rates Compare Across Major Cities in New Jersey?
New Jersey rates vary from city to city. For example, the city of Burlington sees an average monthly rate of $150 for full coverage versus the city of Orange, which sees an average monthly rate nearly double that ($247).
Rates in different cities are variable based on factors such as population and incident numbers. Those who live in rural areas will likely pay less than those who live in a congested city – the possibility of an accident (and a claim) diminishes if you don’t meet a lot of other people out driving.
Methodology: We use the following methodology to arrive at our average cost: male, age 30, lowest possible legal coverage allowed by the state. Your rates will be determined by several factors, including your age, gender, and the amount of coverage you want to purchase.
Are There Good Driver Discounts in New Jersey?
Many discounts are available to New Jersey residents. They usually fall into four categories: defensive driving, accident-free, safe driver, and low mileage discounts.
Defensive driving discounts reward drivers who attend classes to be a better driver. Accident-free (also referred to as good driver discounts) drivers may be rewarded if their record is accident-free anywhere from three to five years. Low mileage discounts cover drivers with lower-than-average annual mileage rates, with discounts kicking in for drivers driving 7,500 or fewer miles a year.
Note, these are not all-inclusive. Other discounts exist for good students, members of select professional organizations, seniors, and military personnel.
Be sure to consult with your insurance company regularly to see if you qualify for any discounts. One phone call could mean the difference between an unmanageable monthly expense and a walk in the park.
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New Jersey Car Insurance Laws
New Jersey car insurance laws require that all drivers carry the state-required minimum insurance limits. Any lapse in insurance will force insurance companies to pass that information to the state, which may impose fees and penalties.
New Jersey offers two options, standard and basic, to its residents that meet the state-required minimum. Most people choose the standard option since it offers more protection at just a little more cost.
What Are the Mandatory Car Insurance Requirements in New Jersey?
Here are the state minimum liability coverage requirements for New Jersey under the basic and standard options.
Basic:
- Property damage liability per accident: $5,000
- Personal injury protection per person or accident: $15,000
Standard:
- Bodily injury coverage per person/accident: $15,000/$30,000
- Property damage per accident: $5,000
- Personal injury protection per person or accident: $15,000
New Jersey is a no-fault insurance state, meaning auto insurance carriers for each affected party are responsible for paying damages up to coverage limits, regardless of who is at fault. This is in stark contrast to at-fault states, where the driver determined to be at fault is expected to pay for the other driver’s damages.
We highly recommend liability coverage well above state minimums for greater peace of mind. State minimums may not be enough to pay for all damages incurred in a severe accident.
All registered New Jersey drivers are required to carry proof of insurance. Additional, leased vehicle drivers may be subject to comprehensive, collision, and property damage limits well above state minimums. If you are thinking of leasing a vehicle, be sure to consult with the finance company to ensure your monthly auto expenses are manageable.
What Factors Does New Jersey Law Allow in Determining Your Premiums?
New Jersey sets insurance rates for companies, but the law allows insurance companies to determine the amount of premiums you pay based on several factors. Some of the most important factors include your age, gender, zip code of residence, and claims record.
Other factors determining how much a person pays for auto insurance include enrollment in defensive driving courses, paperless billing/auto-pay, credit score, marital status, and the make and model of the vehicle you drive. Remember, some vehicles are cheaper to insure than others.
Note, premiums are also affected by coverage. To qualify for lower premiums, opt for state minimums or higher deductibles and higher coverage limits.
Luckily, there are many ways drivers can qualify for lower auto insurance premiums, including driving an older make and model vehicle, maintaining a clean driving record, and opting for higher deductibles and lower coverage limits while meeting minimum state liability requirements.
What Is the Penalty for Driving Without Insurance in New Jersey?
Penalties for driving without insurance in New Jersey are very high, even for first-time offenders. First-time offenders can expect a suspended license (up to one year) and a fine of at least $300. Subsequent offenders face higher fines not exceeding $5,000, as well as a mandatory jail term of 14 days. In addition, the New Jersey Motor Vehicle Commission requires paying a surcharge of $750, split into three annual payments.
With regards to points, a first offense does not add points to your record. However, a second offense can add nine points, skyrocketing your insurance premiums.
Note, all police officers can tell if your vehicle is not insured by running your license plate number during a traffic stop.
Do not forget the hidden costs of taking public transportation or paying for a friend’s gas to take you around. On top of suspended licenses, fines, and reinstatement costs, driving without insurance in New Jersey is a guaranteed headache.
Am I Required to Report an Accident in New Jersey to Authorities?
It depends. New Jersey requires all drivers to report car accidents based on certain conditions. These conditions include any accident resulting in injury/death and damages over $500. Written accident reports must be filed at the nearest police station within 10 days following the accident.
To corroborate your case, be sure to take in all possible evidence, including photos and videos. Failing to report an accident can result in a suspended license, vehicle registration, fines, and court costs.
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What Is Driving Like in New Jersey?
How Many Car Accidents Happen in New Jersey?
According to the New Jersey Department of Transportation, there were 549 fatal crashes in 2020, which resulted in 587 deaths. Of the fatalities, 29.1 had consumed alcohol.
This represents a modest increase over 2019, which saw 524 fatal crashes and 558 fatalities.
For more information on NJSP fatal accident statistics, visit NJSP Fatal Accident Statistics.
How Many Uninsured/Underinsured Motorists Are in New Jersey?
Although there are no official records as to the exact number of uninsured and underinsured motorists in New Jersey, the Insurance Information Institute estimates that New Jersey has the lowest percentage of uninsured drivers in the nation (2019) at only 3.1%. Compared to the highest percentage state for uninsured drivers (Mississippi at close to 30% and Michigan at 26%), 3.1% is an exceptional figure.
Note, any drivers who are caught driving without insurance are subject to stiff penalties, including revocation of driver’s licenses and registration, steep fines, and plenty of headaches facing administrative work and court costs.
FAQs about New Jersey Car Insurance
Low-income drivers can choose to purchase the basic plan. One way to reduce premiums is to seek the state’s minimum insurance requirements, drive an older vehicle, and take advantage of discounts. These discounts include loyalty discounts (remaining in good standing for three to five years), defensive driving discounts, installation of anti-lock brakes and anti-theft devices, and administrative-related discounts (enrollment in paperless billing and autopay).
If you are a low-income driver, we highly recommend finding out what discounts you may qualify for by calling your insurance company every six months to a year. A quick phone call may shave $50 off your monthly rate.
New Jersey undocumented workers cannot apply for a driver’s license. No driving privileges are available for undocumented workers. However, in recent years many state legislatures have advocated for driving privileges laws to extend to undocumented immigrants.
For example, since 2010, the District of Columbia and 16 states passed into law driving privilege licenses and IDs for undocumented workers.
New Jersey has one of the stiffest attitudes toward drivers with a DUI on record in the nation. Although New Jersey drivers can obtain car insurance, it operates under a 10-year “step-down “ provision, where any second DUI offense is treated as if it were the first offense if more than 10 years have passed between the first and second offenses.
First-time DUI offenders can expect revocation of driver’s license for three months, fines up to $400, fees up to $504, and jail time of up to 30 days, depending on severity. Second and third offenses within 10 years of the first offense can increase penalties (e.g., higher fines/fees, revocation of driver’s license for two years, and jail time up to 90 days).
In addition, New Jersey drivers with a DUI on record may be required to attend alcohol education programs.
Get a New Jersey Cheap Car Insurance Quote Today!
Whether abiding by state minimums or purchasing higher comprehensive, collision, and property damage limits, Freeway Insurance can work with you to evaluate your needs and pair you up with any applicable discounts.
To request a free no-obligation quote, visit us online, at a New Jersey office near you, or call (800) 777-5620 to speak to one of our friendly agents.
