- New Jersey government car insurance for low-income drivers
- Best low income car insurance in New Jersey
- Cheap car insurance in New Jersey for low-income families
- Car insurance discounts in New Jersey for low-income drivers
- Compare auto insurance rates by city in New Jersey
- Methodology
- Source:
- Auto insurance FAQs
- Compare low-income car insurance rates in New Jersey with other states
New Jersey government car insurance for low-income drivers
Low-income drivers can apply for New Jersey's Special Automobile Insurance Policy (SAIP) to get affordable car insurance and meet legal requirements.
The requirements for the New Jersey low-income program are:
- Have a valid driver’s license
- Be currently enrolled in Federal Medicaid with Hospitalization
Note that not all Medicaid programs qualify for New Jersey’s SAIP program. You can purchase a SAIP policy through most local insurance agents. The program is also known as New Jersey’s dollar-a-day car insurance because the policy costs $365 a year, or one dollar a day.
The minimum car insurance requirements in New Jersey are as follows:
| Minimum liability coverage limits | Average annual premium | Other types of insurance required (if any) |
|---|---|---|
| 25/50/25 | $853 | UIMPD, UMBI, UMPD and PIP |
Remember that if you have a loan on your car, you’re required to carry full coverage, which includes collision and comprehensive.
Best low income car insurance in New Jersey
People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in New Jersey and compared them on rates for state-minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.
New Jersey Manufacturers came out on top as the best pick for low-income car insurance.
These are the best low-income car insurance companies in New Jersey.
| Company | Average annual premium | J.D. Power | AM Best | NAIC | Insurance.com score |
|---|---|---|---|---|---|
| New Jersey Manufacturers | $560 | 834 | A+ | 0.14 | 4.19 |
| Geico | $588 | 818 | A++ | 0.91 | 3.33 |
| Plymouth Rock Assurance | $618 | 807 | A- | 0.45 | 2.69 |
| Travelers | $983 | 822 | A++ | 0.49 | 2.67 |
| State Farm | $1,089 | 843 | A++ | 0.7 | 2.61 |
| Progressive | $952 | 814 | A+ | 0.65 | 2.47 |
| Allstate | $936 | 825 | A | 0.65 | 2.4 |
| Farmers | $1,073 | 803 | A | 0.8 | 2.27 |
Cheap car insurance in New Jersey for low-income families
Price is the number one consideration when working with a tight budget. We gathered rates from car insurance companies in New Jersey to find the cheapest options on average.
Based on state-minimum coverage, we found that the cheapest car insurance company in New Jersey is NJM at an average rate of $560 a year.
| Company name | Average annual premium | Average monthly premium |
|---|---|---|
| NJM | $560 | $47 |
| Geico | $588 | $49 |
| Plymouth Rock Assurance | $618 | $51 |
| Selective Insurance | $895 | $75 |
| Allstate | $936 | $78 |
| Progressive | $952 | $79 |
| Travelers | $983 | $82 |
| Farmers | $1,073 | $89 |
| State Farm | $1,089 | $91 |
Car insurance discounts in New Jersey for low-income drivers
Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in New Jersey can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.
| Discount type | % Discount |
|---|---|
| Air Bags | 4% |
| Anti-Theft Device | 1% |
| Daily Commute | 8% |
| Days Advanced Purchase | 7% |
| Days Per Week Driven | 2% |
| Education | 3% |
| Electronic Funds Transfer | 3% |
| Electronic Signature | 10% |
| Homeowner | 10% |
| Lower Annual Mileage | 3% |
| Loyalty - Years Renewal With Company | 8% |
| Marital Status | 4% |
| Multi Policy | 9% |
| Paperless/Electornic Documents | 2% |
| Payment Type | 5% |
| Primary Use | 9% |
| Profession | 8% |
| Purchase Status | 6% |
| Safety Devices | 4% |
| Telematics | 8% |
| Vehicle Ownership | 11% |
| Years Insured | 24% |
| Years Licensed | 28% |
Compare auto insurance rates by city in New Jersey
Auto insurance rates vary not just by state, but also by city. Cities have different levels of risk based on factors like accident rates, claim costs, weather and more. That means where you live in New Jersey will impact what you pay. Below, we've gathered New Jersey car insurance rates by city for comparison.
| City | Annual insurance premium |
|---|---|
Clifton | $2,344 |
East Brunswick | $1,878 |
Jersey City | $2,331 |
Methodology
Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.
Source:
State of New Jersey Department of Banking and Insurance. “Special Automobile Insurance Policy.” Accessed August 2024.
Auto insurance FAQs
What is the cheapest car insurance company for low-income people?
In New Jersey, the cheapest car insurance company is NJM. However, that’s based on average rates and may differ for you, so it’s important to shop around.
Does New Jersey have car insurance for low-income individuals?
Yes, New Jersey has a car insurance program for low-income individuals. It’s called New Jersey's Special Automobile Insurance Policy (SAIP).
Compare low-income car insurance rates in New Jersey with other states
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