Who Has the Lowest Car Insurance Rates in New Jersey?

We conducted a research to find out which car insurance companies provides the cheapest car insurance rates in New jersey. Not surprisingly, rates differed quite a bit among auto insurance companies and from zip code to zip code. Although large companies like GEICO and Progressive had some of the lowest rates, we found that other companies like Esurance and Liberty Mutual also provided very low car insurance in new jersey. Below is a table of what we found to be the average car insurance rates in new jersey by top rated companies we surveyed.

Cheapest Car Insurance Companies in New Jersey

Rank Auto Insurance Company Average Annual Insurance Rates (Dollars)
1 Progressive 1178
2 Esurance 1217
3 Liberty Mutual 1287
4 GEICO 1376
5 Farmers 1484
6 Plymouth Rock 1537
7 Teachers Auto Ins 1612
8 Encompass 1658
9 21st Century 1743
10 Amica 1813

 

Obviously, above is the average car insurance rates for all age groups and marital status. So we dug a little deeper and found that the young drivers in New Jersey paid on average about $3,124 a year whereas, married couple in their mid to late 30’s paid only $1,120 per person. So, as expected the rates for young drivers in new jersey were quite high but not as high as some of the other states we had also conducted study in.

Another interesting stat we learned from this study was that the car insurance rates varies quite a bit from one area to the next by the same company. For instance, Progressive had the best rates in Newark, but not that low in Patterson, a town very close to Newark. We noticed the same thing with GEICO. They had very competitive rates in Marlboro, NJ but not that low in the next town over in Matawan, NJ.

New Jersey Car Insurance Requirements

car-insurance-quotes-njNew Jersey has a system in which you can choose to either use the No-Fault system or the Tort system. The difference is with the No-Fault system each person’s car insurance company pays for the injuries and damages sustained in the accident. The Tort system allows you to sue a person for these same expenses.

New Jersey car insurance requirements also stipulate that you must have Personal Injury Protection. This pays for the medical expenses arising from your incident regardless of who is at fault. You must have a minimum of $15,000 of coverage.

Another requirement is uninsured/underinsured motorist coverage. This makes sure that your costs are covered in case the other party either does not have insurance, or does not have enough insurance to pay for the total damages that are the results of a said accident. The requirement for your New Jersey car insurance coverage is $15,000 per person, and $30,000 per incident.

If you live in New Jersey, the penalties for not carrying car insurance far outweighs the money you think you are saving by not purchasing at least a basic policy. You will not only have to pay the fines, but you will have to purchase the insurance after you get done satisfying the courts. It does not matter if you have a perfect driving record or if you are a high-risk driver, you can still find lower rates because car insurance prices are not flat across the board and there are significant discrepancies in prices that can save you tremendous amount of money.

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