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Best Car Insurance in New Jersey
Nothing beats the feeling of rolling off a dealership lot with a swanky new car. But before you can do that, you need insurance. Finding optimal car insurance rates can sometimes take longer than choosing the actual car. We want to help New Jersey’s drivers hasten this process with our rundown of the leading car insurance companies in the state.
Best Car Insurance Offers in NJ for November 2024
GEICO
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
GEICO has the largest share of New Jersey’s auto insurance market thanks to its unbeatable rates and generous discounts. If you’re in the military or you have a good driving record, you can get up to 15% off your policy. The company offers great prices for a range of drivers, including those with bad credit. Read more
NJM
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
The New Jersey-based NJM has a great offer for policyholders who reside in the state. Customers in New Jersey are eligible to receive dividends that drive down the overall cost of their insurance. Since its founding in 1913, the company has expanded its operations to other states, but it continues to look after its fellow New Jerseyites. Read more
Progressive
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Progressive is a large insurance company that offers a variety of affordable auto coverage options. In addition to high customer satisfaction with how Progressive handles claims, the insurer is also praised for providing quotes in just a few minutes. Moreover, the company offers clients a number of unique ways to save their money. Read more
State Farm
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
State Farm is the biggest auto insurer in the US, and just like anywhere else in the country, it offers highly competitive prices in New Jersey. It has an impressive range of coverage options and some fantastic discounts available. Read more
Best Car Insurance in NJ for 2024:
- GEICO - Best for military service members
- NJM - Best customer experience
- Progressive - Best for fast services
- State Farm - Best for coverage variety
How We Evaluate Car Insurance Companies in New Jersey
Minimum auto insurance requirements in the state of New Jersey are some of the lowest in the country. But if you want to be properly protected on the road, you should purchase additional coverage. In order to pick the right insurer, you need to consider your budget and a number of other important factors.
Coverage
New Jersey law requires all vehicle owners to have at least $5,000 in property damage insurance and another $15,000 per person as well as $30,000 per accident to cover injuries you cause to others. In addition, drivers need uninsured motorist coverage, which pays for their medical bills or car damage if someone without insurance hits their vehicle.
But don’t assume you’re adequately covered by getting the bare minimum. If you’re involved in an accident that causes extensive property damage and multiple injuries, the minimum simply isn’t enough.
You should always have collision and comprehensive coverage. Even though it costs more, these coverage types can save you substantial amounts of money in the long run and protect you from potential lawsuits. In addition to accidents, you’ll also be protected from things like theft and natural disasters.
Size and Stability
It’s always good to consider the size of the insurer. Here, we’re talking about financial stability. If the insurer is financially stable, then the company is capable of settling all its claims. So, make sure to choose an insurance provider that will be there for you when you need them most.
Customer Experience
Another important component to consider when picking an auto insurer is the feedback from former and existing customers. When you come across companies that enjoy high customer satisfaction with claims, you can be more confident in your own choice. This means that the company in question offers a comprehensive service that focuses on the consumer.
Pricing
The price of car insurance often determines which company you choose. There are a variety of factors that affect the overall cost. For example, some companies tailor their services to more experienced drivers who spent a few years behind the wheel.
In addition, companies look at the type of car you drive, your driving record, and your credit score. If all of these are in relatively good shape, you can expect some pretty sweet deals and discounts.
Of course, we can’t tell you what the exact price is going to be. You’ll receive a quote based on your record and requirements. Still, we can make some valuable suggestions about where to look for the best deals.
Detailed Reviews of NJ Car Insurance Companies
GEICO
- • Industry-leading online tools
- • High customer satisfaction rates
- • Discounts for multi-policy owners
GEICO is short for the Government Employees Insurance Company. But don’t let the name confuse you. This is a private corporation with no links to the government. It was founded in 1936 to provide auto insurance to employees of the federal government and their families.
Since then, the company expanded its service and now covers millions of motor vehicles across the US.
Coverage
GEICO offers the minimum coverage requirements for New Jersey, including bodily injury, property damage, and uninsured motorist coverage. In addition, you can get collision, comprehensive, medical, reimbursement for rentals, and emergency roadside assistance.
Customers can use the Coverage Calculator on the company’s website to help them figure out the right deductible for their budget.
Some of the things we liked most about GEICO include its additional insurance coverages like the mechanical breakdown option and emergency roadside assistance. For just a few extra bucks, you can protect yourself from any breakdowns that may occur in the future.
If your car does break down, you can request roadside assistance, which is available 24/7.
Size and stability
GEICO is the second-largest auto insurer in the US and covers more than 27 million vehicles. Given its vast resources, you can be sure that it has the capital to cover you in the event of an accident. The company is among the best in the business when it comes to customer satisfaction with claims.
Customer experience
Online testimonials from customers applaud GEICO for making them feel at ease while filing their claims and for providing them with regular updates. One of the best things about the company is the affordability of the service.
Another thing that customers tend to enjoy is the ease of use. GEICO has a mobile app that makes everything from filing claims to getting roadside assistance a lot more convenient. The app also makes it easier to manage your policy wherever you are. This explains why customer reviews are a lot more positive than expected for a company of this size.
Pricing
The company is proud of its long history of serving military personnel over the last eight decades and continues to provide great rates and generous discounts.
Both current members of the armed forces as well as veterans are eligible for a 15% discount on their total insurance premium. Emergency Deployment Discounts are also available if you’re called up to serve in a combat zone.
Active and retired federal government employees can also save as much as 8% with the GEICO Eagle Discount.
NJM
- • Local insurance company
- • New car replacement
- • Transportation expense reimbursement
Based in New Jersey, NJM provides reliable and cost-effective insurance options for local motorists. The company started operating more than 100 years ago by offering personal injury protection to workers in New Jersey before moving onto the automobile industry.
Coverage
NJM offers all of the standard auto insurance options, including New Jersey’s minimum requirements. But there is also a variety of add-on options such as collision, comprehensive, new car replacement, loan coverage, extended medical coverage, and limited pet coverage.
In addition, clients who have a physical damage coverage policy will be reimbursed for their transportation expenses while their vehicle is being repaired. NJM offers expense reimbursements for car rentals, taxis, and ride-sharing services.
NJM also offers insurance coverage for classic and collector cars. If you have an old Mustang or something you tinker with on weekends, NJM can make sure it's protected.
Size and stability
Although it's a mid-size company, NJM certainly holds its own and is one of the most stable and secure carriers. AM Best rates NJM as having “Superior” financial strength, which equates to an A+ rating.
Customer experience
According to J.D. Power, the company provides an “outstanding” claims experience to its customers. Another strong indicator that NJM treats its customers well is its 93% renewal rate.
Pricing
NJM provides affordable and safety-focused auto insurance with a range of coverage options. You can further reduce your costs with some of the discounts on offer, which can be especially beneficial for good students, mature drivers, or those who have two or more vehicles insured on the same policy. Meanwhile, policyholders in New Jersey are eligible to receive dividends up to 5%.
Progressive
- • Variety of coverage options
- • Discounts for safe drivers
- • Reputable customer service
tIn addition to extensive coverage options and generous discounts, Progressive provides potential customers with quotes in a matter of minutes.
Coverage
Aside from the minimum liability coverage, there is comprehensive coverage, collision coverage, motorist property damage, as well as medical and funeral costs.
On top of this, there are extra options that you can add to your premium including roadside assistance, car loan pay-off, rental car reimbursement, damaged custom parts, rideshare coverage, and deductibles assistance.
Size and stability
Progressive has more than 20 million policyholders. If you couple this with its A+ rating from AM Best, you get a clear picture of a stable firm. Progressive doesn't have a reputation for mishandling claims or dragging its feet when it comes to the payment process.
Customer experience
The company was rated 6 out of 23 auto insurers by J.D. Power’s 2024 review. While there certainly seems to be room for improvement, Progressive is still a great destination for those who are looking for decent rates and a straightforward claims process.
Pricing
Progressive’s Snapshot program rewards you for good driving by reducing the cost of insurance. You’ll need to install a monitoring device into your car’s on-board diagnostic port from where it collects information about your driving habits. Progressive monitors your accelerating, breaking, nighttime driving, mileage, and whether you answer your phone while driving.
Drivers who signed up for the program saved an average of $145 per year. Note that if you drive poorly while on the program, your premium could increase. However, this only happens to one-fifth of the drivers.
There are other discounts available for safe driving. You’ll also receive a 5% discount over a period of three years for completing an online or classroom course on defensive driving.
If you are under 21 and undergo 30 hours of classroom training and six hours of driving courses, you’ll be eligible for a unique discount. Good students and teen drivers can also get discounts.
State Farm
- • Drive Safe & Save program
- • Superior rental car and travel expenses coverage
- • Pocket Agent mobile app
State Farm is the largest auto insurer in the US. Established nearly a hundred years ago, the company now offers a multitude of affordable coverage options, which are matched by an equally impressive list of discounts.
Coverage
In addition to mandatory coverage, you can get collision and comprehensive insurance to protect your car from fires, natural disasters, and theft.
If you drive for Uber or another ridesharing company, State Farm is one of the better options on the market for you. In addition, the company’s travel and rental insurance options are also superb.
It goes the extra mile by covering your accommodation and meals if you get stuck more than 50 miles from home when you’re on the road.
Size and stability
State Farm’s 83 million policies and 58,000 staff members are a testament to the company’s size. On top of that, it has over $241 billion in assets. With that sort of capital, State Farm enables you to save money through great offers and guarantees that all your claims will be settled.
Customer experience
Large companies find it difficult to please everyone, and State Farm is no exception. Although many customers are more than satisfied with the service, the insurer has its share of complaints.
Most of these are related to costs. Nevertheless, State Farm’s prices don’t exceed the average cost in New Jersey, especially when you factor in the discounts.
Pricing
In addition to its wealth of experience and coverage options, State Farm stands out thanks to its competitive rates. There are also generous discounts for safe driving, having a clean record, and being a good student.
The Drive Safe & Save mobile app can save drivers up to 30% on insurance premiums. All they have to do is avoid quick acceleration, hard braking, fast cornering, speeding, and of course distracted driving.
The Steer Clear program can save drivers under 25 up to 15% if they don’t have any accidents on their record and haven’t made any traffic violations for three years. You can discuss the details with a State Farm agent and complete the mobile app’s short course. Good students can get discounts of up to 25%.
FAQ
What is the average cost of car insurance in New Jersey?
The average cost of car insurance in New Jersey is $1,592 per year, which is slightly higher than the national average.
Why is car insurance so expensive in NJ?
Car insurance is expensive in New Jersey for two reasons: it’s a no-fault state, and it’s densely populated, meaning that roads are busier. But you can still get exceptional rates from all of the companies on our list.