7 Best Car Insurance Companies in New Jersey of 2023

If you live in New Jersey and have a car, auto insurance is mandatory.

In fact, New Jersey has several automobile requirements that you need to have when you hit the road, more so than other states.

But if you are on a budget, you can get minimum coverage rather than full coverage, and the state of NJ will allow you to drive legally.

Most residents can’t afford to get full coverage because auto insurance policies are priced very high.

New Jersey car insurance is expensive because it’s a no-fault state with the highest population density of any state in the country.

With all the people on the road, it’s easy to get into an accident or be hit by another driver because of that density.

You may be tempted to drive without auto insurance, but that’s a huge risk if you get caught uninsured. You may get a fine or citation, have your license suspended, and even face jail time.

So, if you are looking for affordable auto insurance and the right coverages to fit your needs, we’ve gathered a list of the best car insurance companies that may help you decide on what you want as a driver.

We’ve also added a section dedicated to everything you should know about getting auto insurance.

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Liberty Mutual: Best Car Insurance for Necessary Add-ons

Liberty Mutual offers excellent car insurance and overall customer satisfaction.

Liberty Mutual is also known for its very useful and essential add-ons, which can cover your car in ways that other insurers of its size can’t.

Read a full Liberty Mutual car insurance review.

Allstate: Best Car Insurance for Benefits

With its massive reach, wide range of insurance products, and plenty of local agents, Allstate is a great choice for people who are looking for a trusted name brand and a financially stable company.

While Allstate has some useful apps, its greatest benefit is its claim satisfaction and rewards program.

For the claim guarantee, if you are not satisfied with your insurance, say, because the insurer mishandled your claim, Allstate will grant you a credit worth up to your six-month premium.

And for the rewards program, you can earn points if you have safe driving habits. You can redeem the points for shopping rewards and gift cards when the points add up.

Progressive: Best Car Insurance for High Customer Satisfaction

Progressive is best rated in its class due to many positive customer reviews.

For opening an auto policy with Progressive, over 50% of customer ratings were happy with how the service was treated.

Over 40% said they were completely satisfied with how easy it is to reach customer service.

For filing a claim with Progressive, nearly 45% of customers were completely satisfied with how easy it was to file a claim and how quickly it was to resolve their claim.

Read a full Progressive car insurance review.

Amica Mutual: Best Car Insurance with the Most Discounts

Amica is known for its various insurance products, such as condos, renters, and flood insurance, as well as marine, motorcycle, RV, and trailer insurance.

The company also stands out due to the insurance discounts it offers, which can offset your premium.

GEICO: Best Car Insurance for Mechanical Breakdown

With nationwide availability and tons of discounts, GEICO is a popular and often affordable choice for car insurance.

What’s great about the insurer is that it offers mechanical breakdown coverage.

If your car is less than 15 months old and has a mileage of fewer than 15,000, this coverage will pay for repairs, above all for new parts, to cover your new car.

While GEICO won’t pair for maintenance, such as tune-ups, the good thing is that this breakdown coverage can be renewed for up to seven years.

In addition, GEICO offers a handy virtual voice assistant on its mobile app that is designed to provide you with any questions about your policy.

You can also access your account through Amazon’s Alexa and Google Assistant, which is a feature that’s rare to other insurers.

Read a full GEICO car insurance editorial review.

State Farm: Best Car Insurance for Young Drivers

State Farm has the best online presence, with an intuitive website that anyone can use, even if you are slightly older and don’t use the internet.

A highlight for State Farm is that it’s the best car insurer for young drivers. You get a 25% savings for teenage drivers, but that discount is only available for smart students.

You need to have a GPA of 3.0 or higher.

If you do, you’ll get some enticing discounts for being a great student, or if you are away at school and not at your parent's home.

To get the discount, you also need to have driver training and good driving skills.

Also, if your car gets into an accident 50 miles from your home, State Farm will grant you travel expenses that pay for meals and transportation and a return trip home.

State Farm also has coverage for uninsured/underinsured drivers and roadside assistance.

Travelers: Best Car Insurance for Extensive Coverage

Travelers’ website and mobile app make it easy to file a claim, but if you want to speak directly with an agent, there are many in-person options as well.

So if you want to reach Travelers, you have two options.

In addition, Travelers is also known for its car insurance coverage options.

The following coverage options you can get on your auto policy include:

• Two levels of 24/7 roadside assistance.
• If you have a covered accident, you can get a rental car.
• If your car is totaled within the first five years, you can get a rental car replacement while you are shopping for a new car.
• Gap coverage covers what you owe on a loan or lease after your car is totaled.

Is Car Insurance Mandatory?

It always is, but in New Jersey, you need auto insurance coverage in addition to no-fault insurance, which is mandatory to have.

Because New Jersey is a no-fault state, this means that each driver's insurance pays for their own medical bills after an accident, regardless of fault.

With no-fault insurance, your insurer will pay for any hospital bills or medical expenses you may incur if you are injured due to having a car accident. Your insurer will also pay lost wages from an inability to work.

Notably, you don’t have to be responsible for the accident to get reimbursed.

But note that no-fault doesn’t cover any damage to your car.

Full Coverage Car Insurance in New Jersey

A basic policy provides property damage limits of $5,000 per accident and personal injury protection (PIP) of $15,000 per person.

But full coverage, although not mandatory, covers you more.

New Jersey sets minimum car insurance requirements for all drivers.

Here’s what you need to have to drive legally in New Jersey:

Liability Insurance

This pays for costs associated with an accident for which you’re found legally at fault. Liability includes bodily injury and property damage.

Bodily Injury

This pays for expenses when you are at fault that is related to injuries and related to the death of others, including another driver, as well as the driver’s passengers, a bystander, or a pedestrian.

Property Damage Liability Coverage

If you damage property that’s not your own when you are driving, such as another person’s house or fence, property damage covers any expenses related to repairs or replacements.

Personal Injury Protection (PIP)

PIP is mandatory for all drivers in New Jersey.

This means that your own insurance is responsible for paying certain damages from the accident, including medical treatment, regardless of fault.

It is supplied regardless of who is at fault in the accident.

To pay for these expenses, drivers in New Jersey are typically required to carry $15,000 in personal injury protection (PIP) per person and per accident.

Uninsured/Underinsured Motorist

This protects you when you have an accident where the motorist is at-fault and either doesn’t carry insurance or whose insurance limits are not enough to reimburse you for damages they caused.

The coverage will pay you the difference between your expenses and the policy limit of the other motorist.

In New Jersey, if you only have the standard insurance plan, you are legally required to get uninsured and underinsured coverage, with minimum coverage amounts of $15,000 for single person injuries and $30,000 for injuries of all persons involved in an accident.

Comprehensive / Collision

When a bank requires you to carry full coverage, this means it wants you to carry comprehensive and collision coverage in your auto insurance policy.

Comprehensive

This pays for your car when you have physical damage due to a non-collision-related incident. These include theft, fire, vandalism, glass breakage, contact with animals (like a deer that you may have hit), hail damage, falling objects, and more.

Collision

If you incur physical damage from a collision with another car or object or property, collision coverage will repair your car minus your deductible.

What are New Jersey Requirements to Drive?

In sum, you must have:

• The minimum coverage or a standard policy.
• Liability (Property damage and bodily injury)
• PIP, or personal injury protection.
• Uninsured/Underinsured Motorist

In New Jersey, comprehensive coverage, and collision aren’t required but can be added to your policy.

Are There Optional Coverages I Can Add to My Policy?

Yes, and your auto insurance coverage will become more comprehensive, although your premium will increase.

Accident Forgiveness

Your insurer won’t raise your policy rate after you get in an accident and are at fault.

Roadside Assistance

You can get help for a tire change, a jump-start, and even fuel delivery, for example.

Greater Coverage

Offers greater coverage if you have a new car.

Loss of Use

If you can’t drive due to a covered loss, loss of use will help pay for a rental car.

Are There Factors that Affect My Car Insurance Rate?

The most common rating factors in New Jersey that are used to determine your rate are as follows:

Type of the Car

The type of car you drive can affect your rate, which includes having in your car some safety features, whether your car is new, and the year and make of your car.

Demographics

Your demographics such as your age, gender, marital status, credit score, and even your profession can determine your rate.

Driving History

Your rates are in part determined by your driving record, the amount you drive on any given day, and your years of driving experience.

What Will Auto Insurance Not Cover?

Property Inside Your Car

Most insurers will not cover any personal property in your car in the event that the car was broken into and your property gets stolen.

Wear and Tear and More

If you damage your car intentionally or if there’s wear and tear, or if there is mechanical failure unrelated to a covered event such as if you failed to upkeep your car, your negligence will not be covered.

How Much Does Car Insurance Cost?

The cost of your auto policy varies depending on different factors.

An auto insurer will look at where you live and the type of car you drive, as well as the factors listed above.

While auto insurance won’t break your bank, it’s good to know that some insurers offer discounts that can help you save money.

For example, if your car has anti-theft devices, or if you are young and have good grades, you’ll get a discount.

And if you drive safely, keep a clean driving record, and obey all traffic laws, you can also get a discount that can drive your rates down.

That said, the average cost of full coverage insurance in the US is $1,675 per year or $140 per month.

The average cost of full coverage car insurance in New Jersey is $1,755 per year or $145 per month.

The average annual minimal coverage is $845 per year.

This is New Jersey’s state-minimum required coverage.

If you are covered by that minimum coverage, that’s all you need to drive legally in New Jersey.

Why is New Jersey Car Insurance So Expensive?

Population dense cities and suburbs in New Jersey have higher rates because living in a city means you are more susceptible to having an accident and becoming a victim of property crime, which can lead to more frequent claims.

Insurers do not like claims because this means to them that you are statistically more likely that you will make a claim in the future if you already have filed a claim in the past. And this means your insurer will raise your rate; all claims, in fact, impact your rate.

Methodology

How We Picked and Ranked the Best Car Insurance Companies in New Jersey

We researched auto insurers to find the best companies by category, using such factors as discounts, coverage, technology, customer reviews, and price.

Discounts

We looked at companies with the most discounts so you can save on your policy.

Coverage

We also looked at an insurer with extra or unique coverages so that you could choose which ones to add on to customize or tailor your policy.

Technology

We considered whether an insurer had a website and mobile app that could provide you with convenience.

If you could easily get a quote, file a claim, check up on your policy, and more on the website and app, that was a company worth looking into.

Customer Satisfaction

We recommend checking out customer reviews. If you do, you may find an insurer you like, and if you don’t, you may later find a defect in your policy due to, say, negative reviews that you failed to read.

We also looked at third-party rating sites such as JD Power, BBB, and AM Best. Those with the highest grades made our list.

Price

There are many auto insurers out there, so the cost of a policy helped us minimize our list when we chose only the most affordable.