Auto Insurance: How to Find the Best Companies in New Jersey

New Jersey is one of the most expensive states for auto insurance in the U.S., with an average annual premium of $1,754 for full coverage and $782 for minimum coverage¹. However, the price you pay for your car insurance can vary significantly depending on the company you choose, the coverage you need, and your personal factors such as your driving record, credit score, and vehicle type.

To help you find the best auto insurance company in New Jersey, we have analyzed 24 insurance companies based on their pricing, discounts, customer satisfaction, and ease of use. Based on our research, here are our top picks for the best car insurance companies in New Jersey:

• Geico: Best for budget-conscious drivers who want low rates and a variety of discounts.
• State Farm: Best for drivers who prefer to work with a local agent and get personalized service.
• Selective: Best for drivers who want cheap rates and flexible coverage options.
• NJM: Best for drivers with a clean driving record who value customer satisfaction and loyalty rewards.
• Travelers: Best for drivers who want comprehensive coverage and extra features such as roadside assistance and rental car reimbursement.

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How to compare auto insurance quotes in New Jersey

The best way to find the best auto insurance company in New Jersey is to compare quotes from multiple providers. You can use online tools such as Compare.com or NerdWallet to get personalized rates from different companies based on your information and preferences. You can also contact the companies directly or work with an independent agent to get quotes.

When comparing quotes, make sure you are comparing the same types of coverage and limits. New Jersey drivers have the choice between a bare-bones “Basic” policy and a “Standard” policy with better coverage¹. The Basic policy includes:

• $5,000 of property damage liability per accident.
• $15,000 of personal injury protection (PIP) per person, per accident.
• An option to add $10,000 of bodily injury liability per accident for all persons.

The Standard policy includes:

• $15,000 of bodily injury liability per person, per accident, up to $30,000 per accident.
• $5,000 of property damage liability per accident.
• $15,000 of PIP per person, per accident, with an option to increase up to $250,000.
• An option to add uninsured/underinsured motorist coverage and collision and comprehensive coverage.

The Basic policy is cheaper, but it offers very limited protection and may not meet your needs. The Standard policy is more expensive, but it offers more coverage and options. You can also customize your Standard policy by choosing different deductibles, limits, and optional coverages.

How to file a claim with your auto insurance company in New Jersey

If you are involved in an accident or suffer a loss involving your vehicle, you may need to file a claim with your auto insurance company. The process of filing a claim may vary depending on the company, but here are some general steps to follow:

• Contact your insurance company as soon as possible after the incident. You can call their toll-free number, visit their website, or use their mobile app to report the claim. Provide them with the details of the incident, such as the date, time, location, and cause of the accident, the names and contact information of the other parties involved, the police report number, and any photos or videos of the damage.
• Cooperate with your insurance company and provide them with any additional information or documents they may request, such as your driver’s license, registration, proof of insurance, medical bills, repair estimates, and receipts.
• Review your policy and understand your coverage and deductibles. Your insurance company will assign an adjuster to evaluate your claim and determine the amount of compensation you are entitled to. You may also have the option to choose your own repair shop or use one recommended by your insurance company.
• Follow up with your insurance company and track the status of your claim. You can contact your adjuster or your agent to get updates on your claim and ask any questions you may have. You can also check the status of your claim online or through the mobile app. Once your claim is approved, you will receive a settlement check or a direct deposit from your insurance company.

How to switch auto insurance companies in New Jersey

If you are not satisfied with your current auto insurance company or you find a better deal elsewhere, you may want to switch to a new provider. However, before you make the switch, you should consider the following factors:

• Compare the coverage and price of your current policy with the new policy. Make sure you are getting the same or better coverage for a lower or similar price. You can use online tools such as [Compare.com] or [NerdWallet] to get quotes from different companies and compare them side by side.
• Check the cancellation policy and fees of your current company. Some companies may charge you a penalty or a pro-rated fee for canceling your policy before the end of the term. You should also check the refund policy and see if you are eligible for a partial or full refund of your unused premium.
• Choose the best time to switch. The best time to switch is usually when your current policy is about to expire or renew. This way, you can avoid paying extra fees or losing your coverage. You should also make sure you have a gap-free coverage, meaning that your new policy starts on the same day or the day after your old policy ends.
• Notify your current company and your new company. Once you have decided to switch, you should inform your current company in writing and request a cancellation confirmation. You should also provide them with the effective date of your cancellation and the reason for switching. You should also contact your new company and confirm your application and payment. You should also request a proof of insurance and keep it in your vehicle.

How to save money on auto insurance in New Jersey

There are several ways to save money on your auto insurance in New Jersey, such as:

• Shopping around and comparing quotes from different companies.
• Choosing a higher deductible and a lower limit for your collision and comprehensive coverage, if you have them.
• Taking advantage of discounts offered by your insurance company, such as multi-policy, good driver, good student, defensive driving, anti-theft, and low mileage discounts.
• Improving your credit score, as it may affect your insurance rate in New Jersey.
• Driving safely and avoiding accidents and violations, as they can increase your insurance rate.
• Choosing a vehicle that is cheap to insure, such as a sedan, minivan, or SUV, rather than a sports car, luxury car, or truck.

Frequently asked questions

What is the cheapest car insurance company in New Jersey?

According to our analysis, Geico is the cheapest car insurance company in New Jersey, with an average rate of $1,348 per year for full coverage and $494 per year for minimum coverage¹. However, your actual rate may vary depending on your personal factors and the coverage you choose.

What is the best car insurance company in New Jersey for customer satisfaction?

According to the J.D. Power 2023 U.S. Auto Insurance Study, NJM is the best car insurance company in New Jersey for customer satisfaction, with a score of 834 out of 1,000¹. NJM is also the only company in New Jersey that received the highest rating of five stars for overall satisfaction, policy offerings, price, billing process, interaction, and claims.

What are the minimum car insurance requirements in New Jersey?

New Jersey drivers are required to have at least a Basic policy, which includes $5,000 of property damage liability per accident, $15,000 of PIP per person, per accident, and an option to add $10,000 of bodily injury liability per accident for all persons¹. However, most drivers opt for a Standard policy, which offers more coverage and options.

What are the penalties for driving without car insurance in New Jersey?

Driving without car insurance in New Jersey is a serious offense that can result in fines, license suspension, community service, and jail time. The penalties depend on the number of offenses and the severity of the situation. For example, a first offense can result in a fine of $300 to $1,000, a one-year license suspension, and up to 30 days of community service. A second offense can result in a fine of up to $5,000, a two-year license suspension, 14 days of jail time, and 30 days of community service¹.