How Much is Car Insurance in New Jersey?
Car insurance is always a necessity when you purchase a car. Along with it are other mandatory needs such as a driver’s license and registration.
And every month or year, you have to pay to keep coverage. And, the cost of car insurance differs in every state. If you live in the Garden State, you probably want to know “how much is car insurance in New Jersey?”
Below, we’ll take a look at the average costs of a policy in NJ along with the key factors that affect how much you’ll pay.
How Much Is Car Insurance In New Jersey?
The answer to that question depends. But, to give you a general idea, the average cost of car insurance premiums in the state of New Jersey in 2021 was a little under $1,600 per year.
New Jersey’s car insurance coverage is higher than the national average, which is just under $1,500 per year. This makes car insurance in New Jersey about 3 percent higher than the national average.
Now let’s go over the factors that impact these costs.
Type of Coverage
The type and amount of car insurance coverage you have is a major factor affecting your car insurance rates.
If you are only planning to have minimum coverage, your coverage will be much lower than the state average. In New Jersey, you will likely pay between $725 to $875 per year for minimum coverage.
On the other hand, the average cost of car insurance premiums in New Jersey in 2021 is right about $1,725 per year for a full coverage policy.
Insurance Provider
Your choice of a car insurance provider can also significantly affect the amount of car insurance premiums you will pay in New Jersey.
The car insurance company that offers the cheapest rates for the minimum coverage is NJM; their premiums per year are only around $370 for minimum coverage.
On the other hand, the most expensive car insurance minimum coverage comes from The Hanover. Their car insurance premiums cost over $2,100 per year for minimum coverage.
As for the cheapest full coverage car insurance policy, check out Selective, which costs a little under $1,110 per year. Meanwhile, the most expensive full coverage for car insurance also comes from The Hanover, which is over $4,600 annually.
Age
Another factor that affects car insurance rates in New Jersey is your age. The cheapest car insurance rates in New Jersey are premiums for drivers in their 50s.
Their yearly premiums are only around $1,470 on average. As is the case in most states, the younger the driver, the more expensive the premiums.
For example, the car insurance premiums for 17 years old in NJ are just under $6,600 per year, while for 30 years old, it is right under $1,600.
Driving History
The last factor we will mention that influences auto insurance premiums is the driver’s driving history.
One speeding ticket alone can increase the amount you pay for your premiums by almost $600 per year!
The average annual premium for drivers who have been involved in an accident at their fault is close to $800. Furthermore, if the driver is arrested and charged with a DUI, their vehicle insurance costs will also climb by almost $800 per year.