Car insurance is mandatory in New Jersey, but the cost varies based on various factors. Some of the most influential are your driving record, vehicle type and coverage options – these will have the greatest influence. Drivers considered high-risk due to traffic violations or at-fault accidents will pay more. Furthermore, your make and model vehicle can have an impact on premium costs; some models offer lower premium rates while others require costly parts and repairs which could increase costs significantly.
In 2023, New Jersey car insurance costs on average were approximately $257 for liability-only policies and an estimated monthly full coverage policy cost $314 on average. Companies such as GEICO, Amica, Plymouth Rock and NJM provide both policies at prices significantly below national averages.
Drivers should consider including uninsured/underinsured motorist coverage to their policies, and increasing bodily injury liability limits to increase protection if involved in an accident with someone who lacks insurance. This step may prove especially important should an incident occur with someone without coverage.
Age can also play an impactful role on rates; younger and teen drivers often pay more than those aged 20 or above due to having less driving experience than their counterparts and experiencing higher crash rates than adults aged 20+.
Your credit score also plays a part in your auto insurance rate, with drivers with excellent credit saving more money on premiums compared to those with poor credit. Finally, location can play a factor; certain areas have higher or lower premiums depending on factors like crime rates, traffic congestion or weather patterns.
To ensure you’re receiving the most cost-effective rates, it’s a wise idea to conduct regular comparisons of quotes using an online comparison site. Once you find what’s suitable, keep in mind that insurers tend to increase rates upon receiving one single moving violation like DUI or speeding tickets.
Compare rates by considering coverage amounts and deductibles as well as discounts available. Also compare how easy it is to file claims quickly; generally speaking it would be ideal to find a company offering both an online and mobile app for filing claims and payments. Finally consider multi-policy and safe driver discounts which could save even more.