Palisades offers the cheapest auto insurance rates in New Jersey at about $1,073 a year or $89 monthly. That’s below the average New Jersey car insurance rate of $1,910 a year.
Cheap isn’t everything, and an Insurance.com analysis of rates, complaints, and financial stability found Geico to be the best insurance company in New Jersey.
Many factors go into your insurance premium. Insurance companies use your driving record, the type of car you drive and the coverage you select to determine your annual car insurance rate.
Read on to compare New Jersey insurance rates by company, age and more.
Key takeaways
- Geico is the best car insurance company in New Jersey overall, with below-average rates and a low complaint ratio.
- Palisades is the cheapest car insurance company in New Jersey at $1,073 per year.
- Geico has the cheapest rates for teen drivers in New Jersey.
- Average cost of car insurance in New Jersey
- Best car insurance companies in New Jersey
- Cheapest car insurance companies in New Jersey
- Cheapest car insurance cost in New Jersey by age
- Cheapest car insurance companies in New Jersey by driver profile
- Methodology
- Compare auto insurance rates by city in New Jersey
Average cost of car insurance in New Jersey
The average car insurance rate in New Jersey is $1,910 a year for a full coverage policy with a coverage level of 100/300/100 for a driver age 40, according to a rate analysis by Insurance.com. For the state minimum coverage, the average annual cost in New Jersey is $994.
Best car insurance companies in New Jersey
Geico is the best car insurance company in New Jersey, based on a 2023 analysis by Insurance.com, with an overall rating of 4.12. State Farm is the second-best auto insurance company in New Jersey, with an overall rating of 3.8.
Below is a full list of the top New Jersey insurance companies based on price, NAIC complaint ratio, and AM Best financial ratings. The total Insurance.com score is calculated out of five using these factors.
| Insurance company | AM Best | Average annual rate | NAIC Complaint ratio | Insurance.com score |
|---|---|---|---|---|
| Geico | A++ | $ 1,250 | 0.77 | 4.12 |
| State Farm | A++ | $ 1,688 | 0.52 | 3.8 |
| Travelers | A++ | $ 1,791 | 1.03 | 3.46 |
| Allstate | A+ | $ 1,798 | 0.95 | 3.25 |
| Mercury Insurance | A | $ 2,103 | 0.67 | 3.05 |
| Progressive | A+ | $ 3,135 | 0.73 | 2.59 |
| Farmers | A | $ 3,064 | 0.77 | 2.29 |
Cheapest car insurance companies in New Jersey
Don't just go with the first insurer you come across. Comparison shopping is the key when it comes to finding the best deal on auto insurance. Get quotes from several different insurers and compare their rates. You may be surprised at how much difference there can be in rates from one company to another.
We have gathered price quotes from all the major insurance providers in New Jersey and put together a list of the cheapest car insurance companies. Based on a rate analysis by Insurance.com, Palisades is the cheapest auto insurance company in New Jersey with average rates of $1,073 annually or $89 a month, on average, for full coverage.
| Company | State minimum | 50/100/50 liability only | 100/300/100 liability with $500 comp/coll deductible |
|---|---|---|---|
| Palisades | $ 535 | $ 638 | $ 1,073 |
| Geico | $ 427 | $ 537 | $ 1,250 |
| New Jersey Manufacturers | $ 494 | $ 585 | $ 1,284 |
| State Farm | $ 870 | $ 1,009 | $ 1,688 |
| Travelers | $ 984 | $ 1,092 | $ 1,791 |
| Allstate | $ 611 | $ 754 | $ 1,798 |
| Mercury Insurance | $ 939 | $ 1,124 | $ 2,103 |
| Farmers | $ 1,258 | $ 1,533 | $ 3,064 |
| Progressive | $ 2,825 | $ 2,933 | $ 3,135 |
Cheapest car insurance cost in New Jersey by age
In New Jersey, car insurance rates are higher for teenagers as they are more prone to accidents due to their lack of experience.
Geico offers the cheapest car insurance for teen drivers in New Jersey at $2,681 per year for a full coverage policy.
Car insurance rates will decrease as teens age and keep a good driving record. Car insurance rates for adults 25+ and seniors 60+ are lower than those for teens and young adults.
In New Jersey, Palisades offers the cheapest full coverage car insurance for adult drivers (25-55 year-olds) at $1,131 per year, and New Jersey Manufacturers offer the cheapest full coverage for senior drivers (60-75 year-olds) at $1,170 per year.
| Age (group) | Company Group | Avg. Annual Premium |
|---|---|---|
| Teens (16-19) | Geico | $ 2,681 |
| Teens (16-19) | New Jersey Manufacturers | $ 3,713 |
| Teens (16-19) | State Farm | $ 4,295 |
| Teens (16-19) | Travelers | $ 4,814 |
| Teens (16-19) | Allstate | $ 5,681 |
| Teens (16-19) | Palisades | $ 6,350 |
| Teens (16-19) | Farmers | $ 9,218 |
| Teens (16-19) | Progressive | $ 10,872 |
| Teens (16-19) | Mercury Insurance | $ 12,657 |
| Young Adults (20-24) | Geico | $ 1,944 |
| Young Adults (20-24) | New Jersey Manufacturers | $ 2,005 |
| Young Adults (20-24) | Palisades | $ 2,178 |
| Young Adults (20-24) | Travelers | $ 2,405 |
| Young Adults (20-24) | State Farm | $ 2,776 |
| Young Adults (20-24) | Allstate | $ 2,969 |
| Young Adults (20-24) | Mercury Insurance | $ 3,420 |
| Young Adults (20-24) | Farmers | $ 4,170 |
| Young Adults (20-24) | Progressive | $ 4,331 |
| Adults (25-55) | Palisades | $ 1,131 |
| Adults (25-55) | Geico | $ 1,278 |
| Adults (25-55) | New Jersey Manufacturers | $ 1,295 |
| Adults (25-55) | State Farm | $ 1,714 |
| Adults (25-55) | Allstate | $ 1,743 |
| Adults (25-55) | Travelers | $ 1,823 |
| Adults (25-55) | Mercury Insurance | $ 2,134 |
| Adults (25-55) | Farmers | $ 3,168 |
| Adults (25-55) | Progressive | $ 3,217 |
| Seniors (60-75) | New Jersey Manufacturers | $ 1,170 |
| Seniors (60-75) | Geico | $ 1,202 |
| Seniors (60-75) | Palisades | $ 1,303 |
| Seniors (60-75) | State Farm | $ 1,624 |
| Seniors (60-75) | Allstate | $ 1,750 |
| Seniors (60-75) | Travelers | $ 1,835 |
| Seniors (60-75) | Mercury Insurance | $ 2,037 |
| Seniors (60-75) | Progressive | $ 3,171 |
| Seniors (60-75) | Farmers | $ 3,285 |
Cheapest car insurance companies in New Jersey by driver profile
Drivers who have accidents or tickets are considered a higher risk and will pay more.
However, the severity and frequency of the incidents also play a role in the insurance rates. For instance, drivers with a single minor accident will see a smaller increase in their rates compared to those with multiple major accidents.
Below are average New Jersey rates by company for drivers with accidents and tickets on their driving record.
| Company | Clean record | Accident | Ticket |
|---|---|---|---|
| Palisades | $ 1,341 | $ 1,440 | $ 2,289 |
| Geico | $ 1,349 | $ 1,883 | $ 1,349 |
| New Jersey Manufacturers | $ 1,421 | $ 1,421 | $ 1,704 |
| State Farm | $ 2,060 | $ 3,383 | $ 2,976 |
| Travelers | $ 2,066 | $ 3,551 | $ 2,814 |
| Allstate | $ 2,217 | $ 5,080 | $ 2,663 |
| Progressive | $ 2,306 | $ 3,442 | $ 2,922 |
| Mercury | $ 2,499 | $ 4,373 | $ 3,700 |
| Farmers | $ 3,795 | $ 8,466 | $ 5,609 |
Methodology
Insurance.com commissioned Quadrant Information Services in 2022 to field rates from up to six major insurers in every state across most ZIP codes. Driver profile: male, age 40, driving 2021 Honda Accord LX with full coverage of 100/300/100 with comprehensive and collision; $500 deductible.
The car insurance rates for drivers with accidents and tickets are averaged based on rates for the following accidents and tickets:
Accidents:
- 1 at-fault property damage accident over $2k
- 1 at-fault property damage accident under $2k
- At-fault bodily injury accident
- Single vehicle accident
Tickets:
- Distracted driving ticket
- Speeding ticket 1- 10 MPH over limit
- Speeding ticket 11- 29 MPH over limit
- Talking on cellphone ticket
- Texting ticket
Insurance.com analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Data Services are for comparison purposes only; your rates may differ.
