15 Best Cheap Car Insurance In New Jersey | 2023

Insurance is mostly taken out to cover the cost of any damage that may occur to your property. When you cannot afford the top-tier insurance companies, it’s best to go for the cheap ones rather than not have them at all. 

However, you should know that most cheap car insurance in NJ does not cover all damages to your property.

In this article, you will understand why you need cheap car insurance in NJ, how much cheap car insurance costs in NJ; and the best cheap car insurance in NJ.

Check Out: How to Get Cheap Car Insurance

What are the Car Insurance Options in New Jersey?

There are some coverage options in New Jersey. Some of them are-

  • Comprehensive- This insurance covers damage from events considered out of the driver’s control, such as weather, theft, vandalism, fire, and striking an animal on the roadway.
  • Collision- Collision coverage pays to repair or replace your vehicle if you collide with another vehicle or a static object such as a tree or fence.
  • Rental car reimbursement- If your car is being repaired for over 24 hours, this coverage will reimburse you for a rental vehicle.
  • Roadside assistance- Roadside assistance is a service that includes flat tire replacement, refueling, towing, and locksmiths.
  • Income continuation- If you were injured in an accident and can no longer work, this coverage will continue to pay you as if you were still employed.
  • Funeral expense insurance- If you or a passenger of yours is killed in a traffic accident, this coverage pays for the cost of their funeral.
  • Death benefit- This coverage ensures your family receives a death benefit similar to a life insurance policy if you were to die from a traffic-related accident.

Check Also: 10 Best Cheap Car Insurance in New York (NY)

How Much Does Car Insurance Cost in New Jersey?

Study shows that on average, car insurance costs $1,600 a year in New Jersey. Among the top eight insurers in the state, this can range from an average of $1,070 at Geico to nearly $2,900 at Farmers Insurance.

An average driver can save 33% with Geico (the cheapest insurer in New Jersey) when compared to the state average. On the other hand, drivers insured through the most expensive auto insurance company (Farmers) might pay an average of 81% more than the state average. 

The difference between Geico and Farmers Insurance average rates in New Jersey is 170%, which adds up to about $1,825 annually.

Read Also: How to Get Car Insurance without a License in 2023

15 Best Cheap Car Insurance in New Jersey

#1 State Farm Insurance

With great coverage options, affordability, customer service, locations, and claims processing. They have held state farm insurance to offer some of the best auto insurance rates with low average premiums.

Besides the low premiums, it has provisions for many discounts, available for talented students, safe drivers, customers who bundle multiple policies, and more. 

If you’re looking for the cheapest car insurance for new drivers, State Farm is a good option because it has programs to help inexperienced drivers stay safe throughout their first years of driving.

See Also: Allstate vs State Farm Insurance: Everything You Need To Know

#2 Geico Insurance

Ranked #2, Geico is one of the best cheap car insurance in NJ. In the past, this company offered to save you 15 percent or more when compared to other big-name insurers. 

However, now, it is known for its reasonable costs and is backed by a strong financial base. This means your claims are more likely to be approved and fulfilled.

The company also has a user-friendly mobile app, with which you can manage your account settings and file a claim. 

This company also has some good discounts to help you lower your premium, like having certain safety features installed on your car.

Don’t Fail to Check-Out: GEICO Insurance Reviews 2023: Everything You Need To Know

#3. New Jersey Manufacturers

NJM, which stands for New Jersey Manufacturers, sells auto insurance coverage in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. 

Besides having the second-lowest average full coverage premium on our list, the company also earned the top spot in the 2021 J.D. Power U.S. Auto Insurance Study in the mid-Atlantic region, meaning many of NJM’s customers are satisfied with the company’s customer service.

As a smaller company, NJM’s digital tools are not quite as robust as the tools provided by other companies, so it may not be the best choice for you if you prefer to handle your insurance online or via a mobile app.

See Also: Classic Car Insurance: What is it? And how does it work?

#4. Progressive

If you are looking for coverage, you can personalize to a high degree, Progressive may be a good place to start. 

The company offers a variety of optional coverage types, including loan or lease payoff, custom parts and equipment, rideshare coverage, and roadside assistance.

The company also has several discounts to help you lower your premium, including savings for good students, safe drivers, teen drivers, and homeowners. 

It may be worth noting that Progressive’s customer satisfaction score from J.D. Power is below the industry average, so if you are looking for a company with highly-rated service, Progressive might not be the best fit.

#5. Allstate

Although its average full coverage premium is the highest on the list, potentially turning away drivers looking for cheap car insurance, Allstate’s rate still comes in lower than New Jersey’s average. 

The company offers several endorsements like sound system equipment coverage and roadside assistance to help you build a policy that works for you. 

And you might be able to lower your premium with the company’s discounts, including the Drivewise telematics program, which might save you money and help you learn safer driving habits. It is one of the best cheap car insurance in New Jersey.

#6. Travellers

Drivers who are willing to search for applicable discounts might find Travelers to be well worth it for auto insurance. 

Travelers offer some of the best discounts and coverage options to their auto insurance customers. Unfortunately, its homeowner’s insurance policies are stifled by high rates and a lack of meaningful discounts.

Furthermore, Travelers doesn’t have favorable reviews for auto or homeowner’s insurance. If you value a smooth claims process and great customer service above all else, other insurance companies may be well-suited for your needs.

#7. Amica Mutual

They found Amica car insurance in 1907 and is one of the oldest auto insurance companies in the U.S. It has a relatively small market share but is known for its excellent customer service. 

J.D. Power has recognized its high customer satisfaction levels for 17 successive years. Amica consistently ranks highly for customer satisfaction. 

These achievements make it a provider worth considering for your auto insurance needs.

#8. MetLife

While MetLife’s home insurance is highly rated, its auto insurance options are harder to recommend without certain conditions. 

A noteworthy downside is the company’s inconsistent customer experience ratings from region to region.

On the flip side, MetLife offers quite a few interesting features that can be hard to find with other providers. 

You can look into MetLife auto insurance policies if you want specific features or qualify for affinity or employer discounts.

#9. Progressive

Progressive provides coverage to over 20 million drivers in the country and offers a wide range of insurance services. While Progressive car insurance may be a good option for tech-savvy and high-risk drivers, their customer reviews fall a little below average.

If you’re looking for a large, reputable insurance carrier with innovative features, Progressive car insurance might be a good fit for you. 

However, those seeking cheaper options and stellar customer support might be better served elsewhere.

#10. Esurance

Individuals looking for a tech-savvy auto insurance provider should consider Esurance car insurance. 

This insurer, which is an Allstate subsidiary, allows online transactions and offers a cutting-edge mobile app. This online-based insurer is a good option for people who are always on the go. 

However, their customer satisfaction ratings are mediocre, and customer complaint ratings are much higher than average.

#11. USAA

Designed for military members and their families, USAA stands out for its low rates, opportunities for discounts, and exceptional customer service. 

USAA insurance reviews are overwhelmingly positive, and in our research into the best car insurance on the market, USAA was the only insurance company that we rated 5.0 out of 5.0 stars.

If you qualify for USAA insurance, a closer look at the provider’s coverage options, cost, and reviews will help you determine whether an auto policy with USAA is right for you.

#12. Palisades Insurance Company

Palisades Insurance Company provides one of the best cheap car insurance in NJ. The company also offers vehicle, property, and umbrella insurance services. 

Palisades insurance company mostly serves customers in New Jersey. It has also been ranked quite high.

#13. Farmers insurance group

Farmers Insurance Group is an American insurer group of automobiles, homes, and small businesses and also provides other insurance and financial services products. 

Basically, Farmers Insurance has over 48,000 exclusive and independent agents and approximately 21,000 employees. It is one of the best deals for cheap car insurance in New Jersey.

#14. NJPAIP insurance

NJPAIP is an independent insurance agency with the best insurance rates around. 

The producers of this cheap car insurance specialize in high-risk auto insurance but can write any type of policy to fit your needs.

#15. CURE auto insurance

CURE is a provider of private passenger auto insurance in Michigan, New Jersey, and Pennsylvania. 

Originally heralded as the “cure” for the auto insurance crisis in New Jersey, CURE functions in a not-for-profit manner with an obligation to keep any unused premiums solely for the benefit of its insureds. 

It is one of the best cheap car insurance in New Jersey.

How to Cut Costs on the Best Cheap Car Insurance in New Jersey?

Compare car insurance quotes for cheaper car insurance

When you’re determining how to get cheap car insurance, you must remember to avoid strictly comparing your premium to someone else’s. 

You can’t always compare rates, even if you live in the same neighborhood. What you can do, though, is get auto insurance quotes from several providers and compare your quotes to ensure you’re paying the best price for your coverage.

Consider the cost of coverage before you buy a car.

Before you purchase a car, it’s important to know that some cars are more expensive to insure than others. 

This is crucial to keep in mind, especially if you’ve been eyeing that luxury sports car.

The cost of insurance will depend on the year they made the car, its make and model, the cost of repairing it, and the likelihood of theft and vandalism.

Look into usage-based car insurance

The next step for how to get cheaper car insurance is to consider trying out a usage-based discount.

If you drive fewer miles than the carrier’s limit, you can get a deduction for your insurance rate. This can be beneficial if you drive less than 10,000 miles per year.

Pay your bill on time

An often overlooked step on how to get cheap car insurance is the credit score. Having good credit is a crucial factor that determines your car insurance premium in most states.

Research shows that people who maintain good credit often file fewer insurance claims.

Improve your driving habits for cheap auto insurance 

One of the best ways to get affordable rates on car insurance is to keep a clean driving record.

Safe drivers prove to auto insurance companies they are not at high risk for getting into an accident. This means they will most of the time be cheaper to insure.

Frequently Asked Questions

What state has the least amount of uninsured motorists?

About 3% of New Jersey’s drivers have no auto insurance, making it the state with the least amount of uninsured motorists on the road, according to the Insurance Research Council. That’s well below the national average of 13%, and nearly three times lower than Mississippi, the state with the highest uninsured driver, which is 29%.

What is New Jersey’s law on canceling auto insurance?

New Jersey law says auto insurance can be canceled for these reasons: You didn’t pay the premium. You made a material misrepresentation or didn’t disclose a fact that increases the risk you’ll make a claim. You had a lack of cooperation in matters that could substantially increase the risk. You failed to provide reasonable and necessary information to the insurance company.

Can my auto insurance company decide it’s “economically impractical” to repair your car in New Jersey?

Under New Jersey law, your auto insurance company can decide if it’s “economically impractical” to repair your car. This generally happens when repair costs are almost as high as the value of the vehicle.

Is Auto insurance mandatory in New Jersey?

Auto insurance is mandatory in New Jersey, but the type and cost of that coverage can vary significantly. Every day, consumers are finding that there are options available to make it easier to comply with the law. The Automobile Insurance Cost Reduction Act mandated that a Basic Policy be available to all drivers.

How are Car insurance premiums developed?

Car insurance premiums are developed based on the statistical likelihood that a driver will get into accidents or have a vehicle become damaged. Many personal qualities determine how much you pay. Your rate will depend on your age, sex, driving record, marital status, credit score, zip code, car model, and more. And because you can’t change any of these personal factors, it’s difficult to compare one person’s auto policy to another’s. So, what’s right for someone else may not be right for you.


This article has provided a list of the best cheap car insurance in NJ. Ensure to look through other quote lists before you pick the best insurance for you.


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