Auto Insurance Companies in New Jersey 2023 (Overview)

Auto Insurance Companies in New Jersey – Auto insurance is a legal requirement for drivers in New Jersey, as well as a way to protect yourself and your vehicle from the financial consequences of accidents, theft, vandalism, and other risks. However, finding the best auto insurance company in New Jersey can be challenging, as there are many factors to consider, such as coverage options, rates, discounts, customer service, and claims handling.

To help you with your search, we have compiled a list of some of the best auto insurance companies in New Jersey, based on their market share, customer satisfaction ratings, financial strength ratings, and other features. We have also included some tips on how to save money on your auto insurance premiums in New Jersey.

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Best auto insurance companies in New Jersey

Geico

Geico is the largest auto insurance company in New Jersey, with a 20% market share. Geico offers competitive rates, a variety of discounts, and online tools and resources for customers. Geico also has five locations in New Jersey where you can purchase auto coverage in person. Geico received a 4.4 out of 5 rating from J.D. Power for overall customer satisfaction in the Mid-Atlantic region, which includes New Jersey. Geico also has an A++ (Superior) financial strength rating from A.M. Best, which indicates its ability to pay claims.

State Farm

State Farm is the fifth-largest auto insurance company in New Jersey, with an 8% market share. State Farm offers comprehensive coverage options, personalized service from local agents, and a Safe Driving Bonus program that rewards drivers for avoiding accidents. State Farm received a 4.2 out of 5 rating from J.D. Power for overall customer satisfaction in the Mid-Atlantic region, and an A++ (Superior) financial strength rating from A.M. Best.

NJM Insurance

NJM Insurance is a regional insurance company that is exclusive to New Jersey residents and employees of certain organizations. NJM Insurance offers low rates, dividend payments to policyholders, and free roadside assistance. NJM Insurance received a 5 out of 5 rating from J.D. Power for overall customer satisfaction in the Mid-Atlantic region, the highest score among all auto insurance companies in the region. NJM Insurance also has an A+ (Superior) financial strength rating from A.M. Best.

Selective Insurance

Selective Insurance is another regional insurance company that operates mainly in New Jersey and neighboring states. Selective Insurance offers flexible coverage options, customized pricing, and a mobile app that allows customers to access their policy information and file claims. Selective Insurance received a 4 out of 5 rating from J.D. Power for overall customer satisfaction in the Mid-Atlantic region³, and an A (Excellent) financial strength rating from A.M. Best.

Travelers

Travelers is the ninth-largest auto insurance company in New Jersey, with a 4% market share. Travelers offer competitive rates, a wide range of discounts, and optional coverages such as gap insurance, rental reimbursement, and roadside assistance. Travelers received a 3 out of 5 rating from J.D. Power for overall customer satisfaction in the Mid-Atlantic region, and an A++ (Superior) financial strength rating from A.M. Best.

How to save money on auto insurance in New Jersey

Auto insurance rates in New Jersey are influenced by many factors, such as your age, driving record, credit score, vehicle type, location, mileage, and coverage choices. However, there are some ways you can lower your auto insurance premiums in New Jersey, such as:

• Shop around: Comparing quotes from different auto insurance companies can help you find the best deal for your needs and budget. You can use online tools to search for auto insurance companies in New Jersey and compare their rates and coverages.
• Bundle your policies: Many auto insurance companies offer discounts if you buy more than one policy from them, such as home, renters, or life insurance. This can help you save money and simplify your billing process.
• Increase your deductible: Your deductible is the amount you have to pay out of pocket before your auto insurance kicks in when you file a claim. By choosing a higher deductible, you can lower your premium, but you should make sure you can afford to pay it in case of an accident.
• Maintain a good driving record: Your driving record is one of the most important factors that affect your auto insurance rates. By avoiding tickets, accidents, and violations, you can qualify for lower rates and safe driver discounts.
• Improve your credit score: Your credit score is another factor that auto insurance companies use to determine your risk level and premium. By paying your bills on time, reducing your debt, and checking your credit report for errors, you can improve your credit score and lower your auto insurance rates.
• Take advantage of discounts: Most auto insurance companies offer various discounts to their customers, such as for being a good student, having low mileage, having a safe vehicle, taking a defensive driving course, or being a loyal customer. You should ask your auto insurance company about the discounts they offer and see if you qualify for any of them.

How to choose the best auto insurance company in New Jersey

Choosing the best auto insurance company in New Jersey can be a daunting task, but there are a few things you can do to make the process easier. Here are some tips to help you find the best auto insurance company for your needs:

1. Compare rates: Get quotes from multiple insurance companies to compare rates and coverage options. This will help you find the best deal for your specific needs.
2. Check customer satisfaction: Look for customer reviews and ratings to see how satisfied other customers are with the service provided by the insurance company.
3. Consider discounts: Many insurance companies offer discounts for things like good driving records, multiple cars, and bundling policies. Be sure to ask about any discounts that may be available to you.
4. Evaluate financial stability: Check the financial stability of the insurance company to ensure that they will be able to pay out claims in the event of an accident.

Some of the best car insurance companies in New Jersey according to Reviews.com and Bankrate are Geico, State Farm, NJM, Selective, and Travelers. You might want to consider getting quotes from these companies if you are searching for the best auto insurance in New Jersey.

Frequently Asked Questions (F&Qs)

What is the minimum NJ car insurance?

New Jersey law requires all drivers to carry auto insurance that includes both liability and personal injury protection (PIP) coverages. The state minimums for auto insurance in New Jersey depend on what type of policy you choose. There are two types of policies: a Standard Policy and a Basic Policy.

For a Basic Policy, the minimum limits are:

• Bodily injury (BI) liability: Coverage is not included, but $10,000 per accident is available as an option.
• Property damage liability: $5,000 per accident.
• Personal injury protection (PIP): $15,000 per person, per accident.

For a Standard Policy, the minimum limits are:

• Bodily injury (BI) liability: Minimum of $25,000 per person and $50,000 per accident.
• Property damage liability: Minimum of $5,000 per accident.
• Personal injury protection (PIP): Minimum of $15,000 per person or accident.

Uninsured motorist and collision and comprehensive coverages aren’t required in New Jersey but can be added to your policy.

What are the 3 types of insurance in NJ?

There are many types of insurance available in New Jersey, but the three most common types are:

1. Health insurance: Health insurance helps cover the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs. Some popular health insurance companies in New Jersey include Horizon Blue Cross Blue Shield, Oscar, Humana, and Ameritas.
2. Auto insurance: Auto insurance helps protect you financially in the event of a car accident. It can cover damages to your vehicle, medical expenses, and liability for any injuries or property damage you may cause to others. In New Jersey, all drivers are required to carry auto insurance that includes both liability and personal injury protection (PIP) coverages.
3. Homeowners insurance: Homeowners insurance helps protect your home and personal property from damage or loss due to events like fire, theft, or severe weather. It can also provide liability coverage in case someone is injured on your property.

How much is car insurance in NJ monthly?

The average cost of car insurance in New Jersey varies depending on the level of coverage you choose. According to MoneyGeek, the average cost of car insurance in New Jersey is $1,674 per year, which is $250 more than the national average of $1,424. However, a minimum coverage policy is significantly cheaper, averaging $1,018 per year. Bankrate reports that the annual average cost of car insurance in New Jersey is $1,754 for full coverage and $782 for minimum coverage.

If we take the average of these two sources, the monthly cost of car insurance in New Jersey would be around $139 for full coverage and $75 for minimum coverage. Keep in mind that these are just averages and your actual cost may vary depending on factors such as your age, driving record, credit score, and the type of vehicle you drive.