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Fortunly's Guide

Best Car Insurance in New Jersey

By
Julija A.

October 14,2021


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 best car insurance in NJ.

Read on to find out more about the state’s top car insurance companies.

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4 Best Car Insurance Companies in NJ

GEICO Logo
GEICO
Our Rating
4 stars
Overview

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 has been selling auto insurance for more than 80 years and offers great prices for a range of drivers, including those with bad credit. In addition to having the cheapest car insurance rates in New Jersey, GEICO has high claims satisfaction.

Read Full Review
Coverage: Very Good
Pricing: Excellent
Size and Stability: Excellent
Customer Satisfaction: Very Good

AVERAGE MONTHLY PREMIUM:

$112

Get a Quote
NJM Logo
NJM
Our Rating
4 stars
Overview

The New Jersey-based NJM offers some of the best car insurance to policyholders who reside in the state. Customers in New Jersey are eligible to receive dividends that drive down the overall cost of their auto 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 with some of the best car insurance in NJ.

Read Full Review
Coverage: Very Good
Pricing: Very Good
Size and Stability: Good
Customer Satisfaction: Excellent

AVERAGE MONTHLY PREMIUM:

$170

Get a Quote
Progressive Logo
Progressive
Our Rating
4.5 stars
Overview

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 with some of the best auto insurance discounts in NJ.

Read Full Review
Coverage: Excellent
Pricing: Very Good
Size and Stability: Very Good
Customer Satisfaction: Very Good

AVERAGE MONTHLY PREMIUM:

$190

Get a Quote
State Farm Logo
State Farm
Our Rating
4 stars
Overview

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. This industry leader offers free quotes, allowing you to learn more about its NJ auto insurance rates before signing up for the service.

Read Full Review
Coverage: Excellent
Pricing: Good
Size and Stability: Excellent
Customer Satisfaction: Good

AVERAGE MONTHLY PREMIUM:

$150

Get a Quote
Evaluation Criteria

How We Evaluate The Best Car Insurance Companies in NJ - Our Methodology

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. That’s why we developed our own methodology for identifying the best NJ car insurance companies on the market.

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.  

Having the best NJ auto insurance means having 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

When looking for the best car insurance companies in NJ, it’s important 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 confidently say you found the best auto insurance in NJ. 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.

Other companies offer the best car insurance in NJ for new drivers. 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. 

Quick Breakdown

Best Car Insurance in NJ for 2021:

  • GEICO - Best for military service members
  • NJM - Best customer experience
  • Progressive - Best for fast services
  • State Farm - Best for coverage variety

Detailed Reviews

GEICO Car Insurance Review
GEICO Car Insurance Review Logo Get a Quote

On Official Website

Average monthly premium:
$112
Discounts and bundles:
Yes
Online application:
Yes
Financial strength:
A++ (A.M. Best)
  • 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. While it remains one of the best NJ car insurance companies for members of the military, it also offers great rates for many other drivers.

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. 

Widely regarded as one of the top car insurance companies in NJ, GEICO provides just the right amount of coverage. 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. For many, GEICO is one of the best car insurance companies in NJ because it offers its customers peace of mind.

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 reviews applaud GEICO for making customers 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, which includes some of the best car insurance rates in NJ. 

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

GEICO offers some of the most affordable car insurance in NJ. This is especially true when it comes to members of the military. 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 receive cheap auto insurance in NJ by saving as much as 8% with the GEICO Eagle Discount.

Reasons to Apply:

  • Low rates
  • Generous discounts
  • Easy-to-manage insurance
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NJM Car Insurance Review
NJM Car Insurance Review Logo Get a Quote

On Official Website

Average monthly premium:
$170
Discounts and bundles:
Yes
Online application:
Yes
Financial strength:
A+ (A.M. Best)
  • 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.

If you’re a New Jersey native, maybe NJM even insured one of your ancestors back in the day. Today, NJM is one of the top auto insurance companies in NJ, providing many coverage options and competitive rates.  

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. As one of the top auto insurance providers in New Jersey, 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 companies that provide car insurance in NJ. AM Best, one of the country’s most reputable rating agencies for the insurance industry, rates NJM as having “Superior” financial strength, which equates to an A+ rating.

Customer experience

NJM’s online customer reviews are largely positive. 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, which highlights its status as one of the best auto insurance companies in NJ.  

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%.

Reasons to Apply:

  • Local insurance company
  • Affordable premiums
  • Top customer experience
+ Show more
Progressive Car Insurance Review
Progressive Car Insurance Review Logo Get a Quote

On Official Website

Average monthly premium:
$190
Discounts and bundles:
Yes
Online application:
Yes
Financial strength:
A+ (A.M. Best)
  • Variety of coverage options
  • Discounts for safe drivers
  • Reputable customer service

Progressive is another reliable and trusted auto insurance company on our list. In addition to extensive coverage options and generous discounts, the company provides potential customers with quotes in a matter of minutes.    

Coverage

A quick overview of Progressive’s coverage policy reveals why it’s one of the top car insurance companies in NJ. 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 auto insurance policyholders. That means it’s not only one of the biggest car insurance companies in New Jersey but in the entire country. 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 16 out of 23 auto insurers by J.D. Power’s 2019 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 NJ car 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.

Moreover, Progressive offers some of the best car insurance in NJ for young drivers. 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.

Reasons to Apply:

  • Variety of coverage options
  • Discounts for safe drivers
  • Reputable customer service
+ Show more
State Farm Car Insurance Review
State Farm Car Insurance Review Logo Get a Quote

On Official Website

Average monthly premium:
$150
Discounts and bundles:
Yes
Online application:
Yes
Financial strength:
A++ (A.M. Best)
  • 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

State Farm offers a wide range of car insurance quotes for NJ drivers. 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 offers you some of the best auto insurance on the market. 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. All of these coverage options make State Farm one of the best car insurance providers in NJ.

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 car insurance 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 NJ 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.  

State Farm also provides some of the best NJ car insurance rates for teens and young drivers. 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%.

Reasons to Apply:

  • Great variety of coverage options
  • Fantastic rideshare policy offer
  • Top-class discounts
+ Show more

Guide to the Best Car Insurance in NJ

There are a number of things that you need to know before you take out car insurance in New Jersey. Start by familiarizing yourself with the state’s rules and regulations regarding minimum car insurance requirements. 

One of the critical things to know is that NJ is a no-fault state.  No-fault coverage means that even if you weren’t at fault for an accident, you are still required to file a claim with your insurance provider. While this can be a life-saver if you make a mistake and cause an accident, you will lose some of your rights to sue if you are the victim of dangerous driving. This pushes the costs up, making it essential to find the lowest car insurance rates in NJ. 

Some NJ drivers may find themselves frustrated at the cost of auto insurance in the state, as it’s among the highest in the US. This is because Jersey is the busiest state by proportion, raising the likelihood of an accident. Although it’s higher on average, you can still find excellent deals and pay below-average prices if you look hard enough.

FAQ
Who has the best auto insurance rates in NJ? +

GEICO has some of the most affordable auto insurance rates in NJ. But just because it provides some of the cheapest car insurance in NJ, doesn’t mean that it lacks quality. GEICO is the second-largest auto insurance company in the US and its affordability is coupled with an excellent range of coverage options.

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 NJ 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 that provide the best car insurance in NJ.

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