Summary
- NJM is the cheapest car insurance company in New Jersey, averaging $119/month for liability-only and $147/month for full coverage, per Insurify rate data updated August 2026.
- New Jersey's statewide averages — $182/month liability, $256/month full coverage — run well above the national averages of $98 and $187.
- Rates here rose 20% in 2025, the biggest jump of any state, and Insurify projects another 1.4% increase by year-end 2026.
- New Jersey is one of the only states with three legal policy tiers: Standard, Basic, and the Medicaid-linked SAIP ("dollar-a-day") policy.
- Rates are moving fast in the Garden State — see what carriers quote for your profile before your next renewal prices the increase in for you.
Cheapest Car Insurance Companies in New Jersey
NJM, Plymouth Rock, and AAA post the lowest average rates in New Jersey, according to Insurify, whose figures reflect real quotes for drivers ages 20–70 with clean records and average or better credit.
| Insurance company | Liability only (mo.) | Full coverage (mo.) |
|---|---|---|
| NJM | $119 | $147 |
| Plymouth Rock | $132 | $203 |
| AAA | $137 | $203 |
| Bristol West | $180 | N/A |
| Progressive | $180 | $258 |
| Mercury | $219 | $301 |
| GEICO | $221 | $283 |
| Liberty Mutual | $263 | $323 |
| State Farm | $278 | $342 |
| Travelers | $359 | $443 |
Source: Insurify New Jersey rate data, current as of August 16, 2026. Actual quotes vary by driver profile.
NJM (New Jersey Manufacturers) deserves its reputation: beyond the lowest averages in the state, it holds J.D. Power's top customer satisfaction ranking for the Mid-Atlantic region and an A+ financial strength rating from A.M. Best. The catch is limited digital tooling — no mobile policy app — and no 24/7 phone support. Plymouth Rock is worth a look for educators specifically: its Teachers' Insurance Plan waives comprehensive and collision deductibles for covered losses on school property.
How Much Is Car Insurance in New Jersey?
Full coverage averages $256 per month in New Jersey and liability-only averages $182, per Insurify — compared with national averages of $187 and $98. That makes New Jersey one of the most expensive states in the country for the minimum-coverage driver especially: the liability average alone nearly doubles the national figure.
Where you live inside the state moves the number dramatically. Average monthly premiums run about $175 in Brick and $185 in Toms River down the shore, climb through Central Jersey, and top out in the dense North Jersey corridor — $301 in Paterson and $317 in Newark. If you're comparing a move within the state (or into it — our moving-states guide covers the mechanics), the region you land in matters nearly as much as the carrier you pick.
Why New Jersey Rates Jumped 20% — and What's Next
New Jersey drivers absorbed the largest rate increase in the nation in 2025: 20%, per Insurify's rate-tracking data. Three forces stacked up:
- Higher mandated limits. The state raised Standard Policy bodily injury minimums to $35,000/$70,000 effective January 1, 2026 — the second phase of increases that began in 2023. More required coverage means higher base premiums.
- Density. New Jersey is the most densely populated state in the country, and more cars per square mile means more claims.
- No-fault requirements. Every standard policy must include personal injury protection and uninsured/underinsured motorist coverage, which most states don't require together.
Insurify projects New Jersey full-coverage costs will rise another 1.4% by the end of 2026, reaching roughly $3,024 per year. When the floor is rising, the gap between carriers is where your money is — the table above shows a $240/month spread between the cheapest and priciest carrier for the same clean-record profile, which is exactly why it pays to compare quotes across carriers rather than renew on autopilot.
New Jersey's Three Policy Choices
Most states offer one question: minimum coverage or full coverage. New Jersey offers three distinct policy types, per the New Jersey Department of Banking and Insurance:
| Coverage | Standard Policy | Basic Policy | SAIP (Dollar-a-Day) |
|---|---|---|---|
| Bodily injury liability | $35,000/$70,000 | Optional ($10,000) | Not included |
| Property damage liability | $25,000 | $5,000 | Not included |
| Personal injury protection | $15,000 | $15,000 | Not included (medical-only coverage) |
| UM/UIM | Matches liability limits | Not included | Not included |
| Who it fits | Most drivers | Few assets, tight budget | Medicaid-with-hospitalization enrollees |
The Standard Policy is what most drivers should carry — and it includes a choice between a limited right to sue (cheaper) and an unlimited right to sue. The Basic Policy is legal but thin: $5,000 in property damage disappears fast in any multi-car accident, and skipping bodily injury coverage entirely puts your future wages on the table. The SAIP costs about $365 a year and covers emergency medical only — it keeps you legal, not protected.
High-Risk and DWI Drivers in New Jersey
New Jersey prices violations steeply. Drivers with a DWI pay an average of $353 per month, per Insurify, and SR-22 filings average $346 per month. NJM is, unusually, also the cheapest option Insurify found for high-risk profiles (about $149/month) — regional carriers don't always flee bad records. Drivers who can't find coverage on the open market can turn to NJPAIP, the state's assigned-risk pool, though rates there run higher than standard policies. Our high-risk driver guide and SR-22 explainer cover the mechanics of both.
How to Save on Car Insurance in New Jersey
- Quote the regional carriers first. NJM, Plymouth Rock, Selective, and CURE are headquartered in New Jersey and consistently undercut the national brands here — the national names that win in Pennsylvania or New York often lose in New Jersey.
- Reconsider full coverage on older cars. About 74% of New Jersey policyholders own their vehicles outright, per Insurify — on a low-value car, collision and comprehensive premiums can outrun the car's worth.
- Bundle and stack discounts. Multi-policy and multi-vehicle discounts apply here like everywhere; over 12% of New Jersey households run multiple vehicles.
- Check pay-per-mile. New Jersey's small footprint keeps annual mileage low; low-mileage drivers can beat flat-rate pricing.
- Mind your credit. New Jersey allows credit-based insurance scoring, and the state's average score is a solid 724 — if yours trails it, improving it moves your premium.
- Compare before every renewal. Rates are repricing across the state right now; a fresh set of quotes is the only way to know whether your carrier is still the right one. Our cheapest companies guide shows how carriers stack up nationally and state by state.
Rate data from Insurify's New Jersey car insurance analysis, current as of August 16, 2026, based on real-time quotes from 500+ partner insurers for drivers ages 20–70 with clean records and average or better credit. Policy requirements from the New Jersey Department of Banking and Insurance. Actual quotes vary by driver profile.
Frequently Asked Questions
Which company has the cheapest car insurance in New Jersey?
NJM has the cheapest car insurance in New Jersey, with liability-only coverage averaging $119 per month and full coverage averaging $147 per month, according to Insurify rate data updated August 2026. Plymouth Rock and AAA also post below-average rates in the state.
How much is car insurance in New Jersey in 2026?
New Jersey drivers pay an average of $182 per month for liability-only coverage and $256 per month for full coverage, according to Insurify — well above the national averages of $98 and $187. Location matters: average premiums run about $175 in Brick and over $300 in Newark.
What are New Jersey's minimum car insurance requirements?
New Jersey lets drivers choose between two policy types. The Standard Policy includes bodily injury liability of $35,000 per person and $70,000 per accident (limits that took effect January 1, 2026), $25,000 in property damage liability, $15,000 in personal injury protection, and uninsured/underinsured motorist coverage. The Basic Policy legally satisfies the requirement with just $5,000 in property damage liability and $15,000 in PIP, with bodily injury coverage optional.
Why is car insurance so expensive in New Jersey?
New Jersey is the most densely populated state in the country, is a no-fault state requiring personal injury protection, and raised its Standard Policy liability minimums in phases through January 2026. Average full-coverage rates rose 20% in 2025 — the largest increase of any state, according to Insurify.
What is dollar-a-day car insurance in New Jersey?
The Special Automobile Insurance Policy (SAIP) costs about $365 per year and provides emergency medical coverage only. It's available to New Jersey drivers enrolled in federal Medicaid with hospitalization. It includes no liability coverage, so it protects your license, not your assets.