Average Car Insurance Cost in New Jersey (2025)

New Jersey drivers pay an average of $1,936 per year for liability coverage and $2,699 per year for full coverage, Insurify data shows. The state’s averages are similar to the nationwide average annual rates of $1,246 for liability coverage and $2,211 for full coverage.

But a minimum-coverage policy in New Jersey is a bit more expensive than nationwide averages. This is likely because New Jersey requires additional coverages that other states don’t, such as personal injury protection (PIP) and uninsured/underinsured motorist coverage.1

Here’s what you should know about finding car insurance in New Jersey, including how different factors affect annual costs.

How much is car insurance in New Jersey?

The average annual cost of a liability car insurance policy in New Jersey is $1,936, and the annual cost of a full-coverage policy is $2,699. If you pay a monthly premium, the average cost is $161 for minimum coverage and $225 for a full-coverage policy.

Your rates will vary depending on your driving record, age, chosen coverage, deductible, and other factors.

You can see how New Jersey car insurance costs compare to the national averages in the table below.

How New Jersey car insurance rates have changed over the past two years

Average car insurance rates have been increasing in New Jersey and nationwide. Between 2023 and 2024, average full-coverage insurance costs increased by 8%. The Insurify car insurance report projects average car insurance rates in New Jersey will increase by an additional 6% during 2025.

Average New Jersey car insurance rates by city

Where you live in New Jersey has a big effect on the average cost of insurance. New Jersey drivers in some cities or ZIP codes face more risk factors than drivers in other areas. Insurance companies consider location-based risk factors when setting rates, like population density, accident rates, vehicle theft rates, traffic congestion, climate risks, and more.2

For example, if you live in an urban area near a busy intersection, you’ll probably pay higher rates than drivers in the suburbs.

Compare average insurance quotes for a few different New Jersey cities below.

Average New Jersey car insurance rates by age

Your age can affect how much you pay for car insurance.

Teenagers and young drivers pay a higher average cost for insurance than older drivers with more experience. Insurers consider teens the riskiest drivers to insure by age because they have higher rates of accidents and limited driving experience.

Drivers receive lower insurance rates with age, assuming they maintain a clean record. But senior drivers ages 70 and older tend to pay slightly higher rates due to aging-related risk factors.

Here’s how much New Jersey drivers typically pay for liability-only coverage by age.

Average cost to insure popular vehicles in New Jersey

Electric vehicles and SUVs are the most popular New Jersey cars, according to Edmunds.4

Of the five most popular cars in New Jersey, the Honda CR-V is the cheapest to insure. New Jersey drivers with a Tesla Model 3 pay some of the highest car insurance rates.

How your driving record affects car insurance rates in New Jersey 

Keeping a clean driving record is one of the best ways to lower your insurance rate. Any negative marks on your driving record — even just a speeding ticket — can increase annual costs for your policy. Insurers view you as more likely to cause bodily injury or property damage if you have past tickets, at-fault accidents, or DUIs, so they increase your insurance rate accordingly.

On average, New Jersey drivers with a past incident pay $254 per month for full-coverage insurance. Some types of driving offenses raise your insurance rates higher than others, though. New Jersey drivers with a DUI on their driving record pay a higher annual cost for insurance than drivers with a speeding ticket.

The following table shows average full-coverage insurance rates for people with various driving incidents on their records. New Jersey drivers with an accident pay an average of $250 per month for full-coverage insurance. New Jersey drivers with a speeding ticket pay $302 per month, and drivers with a DUI pay $274 per month.

How to lower your insurance costs in New Jersey

You have a lot of tools available to help you lower the cost of car insurance. Follow these tips to help you save money on car insurance: