7 Best Car Insurance Companies in New Jersey of 2023

Auto insurance is mandatory if you live in New Jersey and have a car.

New Jersey has several automobile requirements that you must 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 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 considerable risk if 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.

Compare Car Insurance Rates in NJ

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.

Liberty Mutual Car Insurance Add-ons

Besides Comprehensive Coverage and Collision Coverage, you can opt for these other add-ons.

Better Car Replacement

This add-on will replace your car with a one-year newer model if your car is totaled in an accident.

Gap Coverage

Gap coverage helps bridge the gap if your car is totaled or stolen and you have a remainder left on your car loan.

Rental Car Reimbursement

You can get reimbursed with this option if you need to rent a car while yours is in the shop. You must need damage coverage to add this to your policy.

New Car Replacement

If you totaled your new or under one-year-old car with fewer than 15,000 miles, you can get a brand-new car, regardless of depreciation.

OEM New Replacement Parts

It helps pay for the highest quality replacement parts for your vehicle.

24-Hour Roadside Assistance

Optional coverage for vehicle assistance on the road, which pays for towing services.

Lifetime Repair Guarantee

Paying for this add-on guarantees that Liberty Mutual will handle all repairs to your car after an accident for as long as you are insured through them.

Mexico Car Insurance

This is a good idea if you travel by car to Mexico semi-frequently or need to be on the road with your car in Mexico for some time.

Accident Forgiveness

This is not an ordinary buy-in like the other endorsements, but a program Liberty Mutual runs for qualified people. You can get an accident "forgiven" if you haven't had an accident or traffic violation in the last five years and are enrolled in the program. This means your rates won't increase if you have an accident. You can get further discounts if you don't have any accidents for an additional five years.

Teachers Auto Insurance

This is a customized auto insurance policy for those in the teaching profession. It helps teachers save on deductibles as well as provides extra coverage for teaching materials.

Liberty Mutual Car Insurance Discounts

Because there are many discounts offered for car insurance, we've broken them into three main categories.

• Driver-based discounts: These discounts are offered for qualifying households and drivers. They include homeowners, members of the military, and households with students. Early shoppers can also garner a discount.
• Policy discounts: Bundling policies or insuring more than one car can help you save. Also, buying a policy online, automatic payments, and paperless policies can earn extra discounts.
• Driving record discounts: These are discounts for violation-free, claims-free drivers and/or enroll in the RightTrack program.

Allstate: Best Car Insurance for Benefits

With its massive reach, a wide range of insurance products, and plenty of local agents, Allstate is a great choice for people 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 unsatisfied 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.

Allstate Car Insurance Discounts

Allstate offers discounts in four major areas.

• Policy purchase discounts: Bundling, policies for multiple cars, paying in full upfront, shopping early, being a good payer, electing paperless billing, and/or an auto-pay plan are all ways to get a discount under this category.
• Vehicle-based discounts: Allstate discounts for new cars and cars with anti-lock brakes and anti-theft devices.
• Smart Student discount: This discount pertains to new and young drivers under 25 years old who maintain a GPA of 2.7 or higher, complete the teenSMART program, or live 100 miles away from their car.
• Safe driver discount: If you become an Allstate's Safe Driving Club member, you could save on your premium.

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.

Progressive Car Insurance Discount

You can divide Progressive's discounts into three main categories: online purchase discounts, driver-based discounts, and policy-related discounts.

• Online discounts: Some easy discounts are getting a quote online, purchasing your policy online, and/or enrolling in paperless billing or digital documents. Other ways to save are paying your policy in full or signing up for auto-pay.
• Driver-based discounts: Safe drivers save through their Snapshot Road Test. These savings can carry over to your homeowners insurance as well. Progressive also helps you save when young students drive in your household.
• Policy-related discounts: You get a discount for purchasing multi-policies or insuring multiple cars and for having continuous coverage without a lapse, even between insurers.

Amica Mutual: Best Car Insurance with the Most Discounts

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

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

Amica Car Insurance Discounts

• Loyalty: For staying with Amica for at least two years.
• Claims-Free: Discount if you’ve never claimed in the past three years.
• Auto-Pay: If you enroll in autopay, you’ll get a discount
• Paid in Full: You can get a discount if you pay your entire premium upfront or all at once.
• E-Discount: If you opt to receive bills and policy info electronically, you’ll get a discount.
• Legacy Discount: If your parents have had Amica auto insurance for five years and you’re younger than 30, you’ll get a discount.
• Anti-Theft: If your car has an anti-theft system, you qualify for a discount.
• Electronic Control: If your car has an electronic stability control feature, you’ll also receive a discount.
• Passive Restraint: If your automobile has automatic restraints like airbags, you’re eligible for a discount.
• Adaptive Headlights: You'll get a discount if you have adaptive headlights.
• Multi-Policy: Bundling auto with home or renters insurance and other products gets you a 30% discount
• Multi-Car: Save up to 25% when you insure two or more cars.

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 designed to answer any questions about your policy.

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

Read a full GEICO car insurance editorial review.

GEICO Car Insurance Discounts

• Vehicular-related discounts: Your car's safety features can benefit your rates. Discounts exist for features like anti-theft systems, anti-lock brakes, airbags, daytime running lights, and cars less than three years old.
• Driver habit discounts: You can save on your premium if you have a clean, accident-free driving record for five years and/or always wear a seatbelt.
• Driver education discount: Taking a defensive driving course can result in savings. In addition, young drivers in your household who complete a driver's ed course and maintain good grades can help you get another discount.
• Policy discounts: Insuring more than one car or bundling your auto with another policy may qualify you for a discount.
• Driver affiliation discount: Active and retired members of the military, government employees, and people from various associations or companies may be eligible for additional discounts.

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.

You also need to have driver training and good driving skills to get the discount.

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

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

State Farm's Car Insurance Discounts

State Farm offers a plethora of other discounts that we've sorted into the following categories:

• Policy-based discounts: If you need to insure more than one vehicle or bundle your auto with another policy, you will save.
• Driver-based discounts: State Farm offers for seniors, young drivers who are good students and/or completed an eligible driver's ed course, and drivers who've taken a defensive driving course. Drivers who are the sole drivers without any other qualified drivers in their household can also qualify for a discount.
• Vehicle-related discounts: Newer vehicles, along with a list of safety features that come with the vehicle can help you rack up savings.

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.

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 replacement rental car while shopping for a new one.
• Gap coverage covers what you owe on a loan or lease after your car is totaled.

Travelers Car Insurance Discounts

Travelers offers a generous number of discounts that are divided into a number categories.

• Affinity discount: Members of certain businesses, associations, and credit unions can qualify for special savings with Travelers.
• IntelliDrive® program: Participating in Travelers IntelliDrive® program gets good driving rewarded.
• Policy-based discounts: Bundle your auto policy with another or buy policies for multiple cars and get a discount. What's more, is that drivers who don't let their coverage lapse even in between insurers get a discount.
• Driver-based discounts: Homeowners may be eligible for a discount, as well as drivers with no violations or claims in recent years.
• Student/youth discounts: New and young drivers in your household can help you qualify for discounts. Find out the three ways you can save by speaking with an agent or visiting their website.
• Vehicle-based discounts: Drivers of hybrid/electric cars and new cars may earn savings.
• Payment discounts: Opting for paperless policies or billing, paying in full, or signing up for auto-pay can help you save, as well as get a quote before your previous policy expires.

Is Car Insurance Mandatory?

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

Because New Jersey is a no-fault state, each driver's insurance pays for their 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 related to injuries and the death of others, including another driver and the driver’s passengers, a bystander, or a pedestrian.

Property Damage Liability Coverage

If you damage property that’s not your own when 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 your 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 accident.

Uninsured/Underinsured Motorist

This protects you when you have an accident where the motorist is at fault, either doesn’t carry insurance or whose insurance limits are insufficient 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 a minimum coverage 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 full coverage, 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 you may have hit), hail damage, falling objects, and more.

Collision

If you incur physical damage from a collision with another car 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?

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

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

Greater Coverage

It 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 driving record determines your rates, the amount you drive on any 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 is broken into and your property gets stolen.

Wear and Tear and More

If you damage your car intentionally, 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, the type of car you drive, and 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 is young and has good grades, you’ll get a discount.

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 that minimum coverage covers you, 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 that you are statistically more likely to claim in the future if you have already filed a claim. This means your insurer will raise your rate; all claims 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; if you don’t, you may later find a defect in your policy due to 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.