Car insurance in New Jersey comes with specific requirements and rate factors that every driver should understand. This guide covers minimum coverage, average costs, the cheapest insurers, and how to save.
New Jersey Minimum Car Insurance Requirements
New Jersey requires all drivers to carry 25/50/25 liability coverage:
| Coverage Type | Minimum Limit | What It Covers |
|---|---|---|
| Bodily Injury Liability | \,000 per person / \,000 per accident | Medical expenses for others you injure |
| Property Damage Liability | \,000 per accident | Damage you cause to others' property |
Is New Jersey a No-Fault State?
Yes. New Jersey is a no-fault state with PIP (Personal Injury Protection) required.
Average Car Insurance Costs in New Jersey
| Coverage Type | Average Annual Cost | Average Monthly Cost |
|---|---|---|
| Liability Only | \–\,000 | Approx. \–\/month |
| Full Coverage | \,700–\,200 | Approx. \–\/month |
New Jersey's average full coverage rate is about 10–15% above the national average (,674).
Cheapest Car Insurance Companies in New Jersey
- GEICO
- State Farm
- Progressive
- NJ Manufacturers (NJ only)
New Jersey Insurance Laws You Should Know
New Jersey is a no-fault state requiring PIP. Drivers choose between Basic and Standard policies. Standard offers more coverage but costs more. UM coverage is required. New Jersey has some of the highest insurance rates in the country.
Discounts Available to New Jersey Drivers
- Multi-policy
- good driver
- good student
- anti-theft
- defensive driving
- low mileage
Frequently Asked Questions
What are the minimum car insurance requirements in New Jersey?
25/50/25 minimum liability coverage plus PIP (Personal Injury Protection).
Is New Jersey a no-fault state?
Yes. New Jersey is a no-fault state requiring PIP coverage.
How much is car insurance in New Jersey?
Average full coverage in New Jersey is \,700–\,200 per year, about 10–15% above the national average.