Best Car Insurance Companies in New Jersey

If you own a vehicle in New Jersey, you’ve probably noticed the higher auto insurance premiums. Between New Jersey’s no-fault laws and the high-population, average premiums are unlikely to decrease anytime soon. But this doesn’t mean you can’t access the best car insurance in New Jersey. Using our SimpleScore methodology, we compared the best companies based on coverage options, discounts, customer service, support and website accessibility to determine the best auto insurance for The Garden State.

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    In this article

      The best car insurance companies in New Jersey

      Best for customer service – State Farm

      State Farm is the next door neighbor we dream of — steady, capable and budget-conscious.

      J.D. Power Rating
      4/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA
      SimpleScore
      4.6 / 5.0
      close
      SimpleScore State Farm 4.6
      Affordability 4
      Coverage Options 5
      Customer Satisfaction 4
      Support 5
      Accessibility 5

      State Farm is a financial ratings powerhouse with its A++ Superior rating from AM Best and AA rating from S&P Global. State Farm has favorable customer service ratings with the BBB. However, it still scores fifth overall in the 2019 J.D. Power U.S. Auto Claims Satisfaction survey. State Farm offers competitive rates for premiums, a long and inclusive list of discounts and multiple policy coverage options — making it a strong contender for many consumers.

      Best mobile app – Esurance

      Esurance promises a painless purchase experience, and all indications are that it can deliver on that promise.

      J.D. Power Rating
      2/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA-
      SimpleScore
      4.4 / 5.0
      close
      SimpleScore Esurance 4.4
      Discounts 5
      Coverage Options 5
      Customer Satisfaction 2
      Support 5
      Accessibility 5

      Esurance, owned by Allstate, pioneered selling direct to consumers online. Esurance has relied on innovative technology since the first day of operation. You can get a quote online or through the highly-rated app and purchase a policy within minutes. You can choose from numerous policy add-ons, such as gap coverage, to customize a policy for your driving needs. The Pay Per Mile service is a unique usage-based option designed for those who need low-mileage coverage.

      Best for budgeting – Progressive

      You might have a love/hate relationship with television commercials from Progressive, but you’ll adore the discounts you can get.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Progressive 4.2
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 4

      If budget is a top concern with your auto insurance, Progressive offers a variety of discounts to lower your premiums. You can bundle other policies like renters or homeowners for more savings. You can enroll in the Snapshot™ safe driver program for a greater discount on good driving habits. Progressive also offers the Name Your Price® Tool to customize your auto policy based on your current budget while still offering all the coverage options you’d expect from a national carrier.

      Best for accident forgiveness – Allstate

      Hey, we all make mistakes and Allstate knows this.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      A-
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Allstate 4.2
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      Not only does Allstate offer a variety of coverage options such as Accident Forgiveness and Deductible Rewards®, but you can also find unique policy options not all carriers offer. For instance,  if you need a classic car policy or custom sound equipment coverage, then Allstate can work with you. While the premiums tend to be higher, Allstate is known for policy customization. Allstate performs well with customer ratings too, earning

      Wide variety of discounts – NJM Insurance

      From the Turnpike to the Jersey Shore, NJM provides the coverage you need with the discounts you want.

      J.D. Power Rating
      5/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore NJM Insurance 4.2
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 5
      Support 3
      Accessibility 4

      Since 1913, New Jersey Manufacturers Insurance Company has been selling insurance products to residents of New Jersey. The auto insurance division operates under the name of NJM and is now a regional provider to numerous states, from Connecticut to Maryland. NJM not only offers the standard and optional coverages for auto, but a long list of discounts to make premiums work with almost any budget. NJM has an A+ Superior rating with AM Best, further highlighting its financial strength.

      Compare Affordable Auto Insurance Rates in New Jersey

      Save money on auto coverage with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        Choosing your provider 

        When it comes to choosing the best car insurance in New Jersey, it’s important to review a mix of local and national carriers. This not only gives you prices to compare, but you’ll see coverage options side by side. Look for carriers that provide you with numerous options, such as emergency roadside assistance and car rental reimbursement, to customize your policy and fit your lifestyle. And researching financial ratings and customer service reviews provides insight as well.

        Local carriers

        Pros 

        • Good reputation for outstanding customer service
        • Large agent networks
        • Understand the local market and challenges facing local drivers

        Cons 

        • Usually a limited geographical area
        • Doesn’t always have the latest technology, such as an app
        • Often forces you to work with an agent

        National carrier 

        Pros

        • Likely uses the latest technology, including apps and telematics
        • Long history of financial strength and stability
        • Can go online or through the app for quotes, purchase policies and policy management

        Cons 

        • Higher number of customer service complaints

        [ Read: How Much Car Insurance Do You Need? ]

        New Jersey’s minimum car insurance requirements 

        Auto insurance is required by vehicle owners registered in New Jersey, and the requirements are different from other states.

        New Jersey requires drivers at a minimum to choose between a standard or basic policy for coverage. The standard policy includes bodily injury liability, while the basic policy does not, but gives you the option to purchase $10,000 per accident to add to your basic policy.

        The standard and basic policy both include $5,000 per accident in property damage liability. Uninsured and underinsured motorist coverage not available under the basic policy but uninsured motorist coverage is required under the standard policy. Personal Insurance Protection (PIP) is required for both the standard and basic policy.

        New Jersey also offers the Special Automobile Insurance Policy which is available for certain drivers meeting income requirements, and only covers emergency treatment and a $10,000 death benefit.

        How much does car insurance cost in New Jersey?  

        According to the Insurance Information Institute, the average price for a full auto insurance policy in New Jersey was $1,350 in 2017 (the latest data available). Not only is this higher than the national average of $1,004, but New Jersey ranks the fourth highest in premiums in the country.

        Many factors influence the cost of your premiums. The biggest factors are your age, location, driving history, vehicle and credit score. If you have a specific budget in mind, the best strategy is to compare the same coverage options among multiple companies. And don’t forget to ask about discounts — each carrier has its own assortment of available discounts, yet another reason  to gather multiple quotes.

        Compare the best auto insurance companies in New Jersey

        CompanyFull coverage avg annual premiumMin. coverage avg annual premium
        Allstate$2349.99$1392.58
        Esurance$2618.98$1720.51
        NJM Insurance$2057.72$853.16
        Progressive$2219.93$1110.11
        State Farm$2465.15$1798.62

        *Powered by Coverage.com

        [Read: What’s the Average Cost of Car Insurance In the U.S.?]

        New Jersey car insurance FAQs

        The high rates in New Jersey are likely a combination of several factors. One of which is the high population in the state and densely populated areas. 

         

        Another contributing factor is New Jersey is one of 12 states in the country with no-fault laws, which tend to drive up auto insurance premiums due to lawsuits filed within the state. 

        Adequate insurance coverage is essential to your financial well-being. Without enough coverage, you could be on the hook for additional financial responsibility you’d be forced to pay out of pocket. For instance, the minimum bodily injury liability requirement in New Jersey is $0, with an option to add $10,000 per accident to your policy. If you’re in an accident that’s your fault and involves two or three cars with multiple injuries, then $10,000 may not cover everyone.

        Comprehensive and collision cover two different types of damage. Comprehensive covers you if your vehicle is damaged by an accident other than a collision. For instance, a pothole or a deer hits your car. Collision coverage kicks in if you have damage due to collision with another vehicle, and is typically required if you have a car you don’t own outright.

        We welcome your feedback on this article and would love to hear about your experience with the car insurance companies we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

        Methodology

        SimpleScore

        The SimpleScore makes it easy to compare products and services featured here on The Simple Dollar in a transparent, open and honest way. We rate these products and services using five factors and average them to calculate a single SimpleScore. For auto insurance, we compare:

        • Discounts
        • Coverage options
        • Support
        • Customer satisfaction
        • Accessibility

        You can read more about each factor and the details of each score in our auto insurance methodology. Use our ratings and editorial recommendations as you shop for the best auto insurance that fits your coverage needs.

        Car insurance rates: We used insurance rates from Quadrant Information Services. This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record. Full Coverage premiums assumed a $500 collision and comprehensive deductible, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ.

        Why do some brands have different SimpleScores on different pages?

        To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
        However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

        Discounts

        We looked at the number of discounts each company offers — more discounts mean a higher score.

        Coverage Options

        We awarded higher scores to the companies that have the most coverage options.

        Support

        We awarded higher scores to lenders with the most channels for customer support.

        Customer Satisfaction

        We leveraged the J.D. Power 2019 Auto Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

        Accessibility

        We looked at the level of accessibility of each company –– the more resources they have the higher their score.

        Sara Coleman

        Contributing Writer

        Sara Coleman is a personal finance journalist based in Charlotte, NC. A journalism major who studied at the University of Georgia, she enjoys creating approachable content. She’s written for sites such as The Simple Dollar, Interest.com, WorkingMother, BetterYouMag and SmartMoneyMamas. She loves spending time with her husband and three kids, and has a healthy obsession with coffee.

        Reviewed by

        • Nashalie Addarich
          Nashalie Addarich
          Insurance Editor

          Nasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to Reviews.com.