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How to find the cheapest New Jersey car insurance

  • Auto Insurance
  • Renee Martin
  • 4 minutes

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Did you know that the average New Jersey driver has to pay up to $400 more for insurance than other drivers in the United States? Spending more on car insurance than any other state is not something New Jersey drivers are proud of, nor do they want to such a claim to fame. This being the state of things, finding the cheapest New Jersey car insurance is something NJ drivers take pretty seriously. Let us guide you on your way to finding affordable New Jersey car insurance that does not compromise on coverage.

How to find the cheapest New Jersey car insurance

Why is New Jersey car insurance so expensive?

New Jersey has the highest population density in the United States. New Jersey is home to over nine million people. The fact that so many drivers must share roads in congested areas with one another is troublesome in and of itself. Driving close to other drivers, a large population, and the consequent high incidence of car accidents are major reasons why New Jersey drivers pay more for auto insurance. Another contributing factor is that drivers in the state tend to purchase more high-end vehicles. Also, since New Jersey has a solid commuting population, more drivers are on the road for extended periods. All of this put together means a higher probability of accidents and higher repair costs and consequently higher insurance rates. New Jersey car insurance providers follow stringent personal injury prevention rules to ensure that no one is held responsible in the event of an accident resulting in injuries.

What type of car insurance is mandatory in New Jersey?

All drivers in New Jersey are required to have liability car insurance. This ensures that if you are involved in a car accident and injure or harm another person’s property, some of the financial costs will be covered. New Jersey, like most states, has its own minimums for how much coverage you need and what will suffice to comply with the rule. Unlike other states, New Jersey allows drivers to choose between two types of policies -Standard Policy and Basic Policy.

The Basic policy offers significantly lower payments while fulfilling minimum compensation criteria, with bodily injury coverage of $10,000 per person per accident and personal injury coverage of $15,000 per person per accident.

The Standard policy ensures minimum bodily injury coverage for any one person must be at least $15,000 per person per accident or $30,000 per accident; and personal injury coverage of at least $15,000 per person per accident. The insurance would cover at least $5,000 in property loss in a single accident.

Is New Jersey a no-fault car insurance state?

Yes, New Jersey is a no-fault state, which means that regardless of fault, each driver’s insurance pays for their own medical bills after an accident. Drivers in New Jersey need to carry $15,000 in personal injury insurance (PIP) per person and per accident to cover these costs. New Jersey is also one of three ‘choice no-fault’ states, which allow drivers to opt out of the no-fault scheme. This means there are no restrictions on filing a complaint following a car accident. If a driver does not opt-out, they can only prosecute the at-fault driver if they have lost a body part, suffered major disfigurement or scarring, suffered a displaced fracture, miscarried, sustained permanent damage, or died.

Is New Jersey car insurance cheaper than NY?

It depends on the area you live in. If you’re looking only at New York City, it might be more expensive. However, if you’re considering the state of New York, there might be cities like Syracuse and Rochester where the population is not as dense. Car insurance might be cheaper in these places. Similarly, in New Jersey, areas closer to cities like NYC and Philly might have higher premiums.

How can I find the cheapest car insurance in New Jersey?

How to find the cheapest New Jersey car insurance

There are several ways to find cheap New Jersey car insurance. Here are a few ideas:

  • You can increase your deductibles for a lower monthly payment.
  • You can take a defensive driving course to get a discount.
  • You can save money if you pay your annual fee in advance rather than monthly.
  • If you bundle several insurance policies (e.g., homeowners plus auto insurance) with the same insurer, you can save money on car insurance.
  • Improve your credit score to pay less for auto insurance.
  • Shop around online on sites like Way.com and get free quotes from different insurance providers to see who has the better deal.

 

How to find the cheapest New Jersey car insurance

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