Finding cheap car insurance in New Jersey can be challenging as the Garden State has some of the highest auto insurance rates in the nation. NJ's high population density, heavy traffic, and high cost of living contribute to elevated premiums. However, smart shopping and understanding your options can help reduce costs.
New Jersey's unique insurance system offers multiple coverage options. Understanding New Jersey car insurance and choosing the right policy type can significantly impact your rates.
New Jersey Car Insurance Requirements
New Jersey requires minimum liability coverage of 15/30/5—$15,000 for bodily injury per person, $30,000 per accident, and $5,000 for property damage. PIP coverage of $15,000 and uninsured motorist coverage are also required.
New Jersey offers a choice between "Basic" and "Standard" policies. Basic policies have very low limits but cost less, while Standard policies provide better protection for cheap car insurance in New Jersey seekers who want adequate coverage.
What Affects New Jersey Car Insurance Rates
Your location within New Jersey significantly impacts your car insurance rates. Newark, Camden, and other urban areas have the highest premiums. Suburban and shore communities may have more moderate rates.
New Jersey's dense population, traffic congestion, and high uninsured driver rate affect New Jersey auto insurance pricing statewide. The state's no-fault system also impacts how claims are handled.
How to Save on New Jersey Auto Insurance
Comparing quotes from multiple insurers is essential for finding cheap car insurance in New Jersey. Given the state's high rates, shopping around can yield significant savings.
Consider the "Basic" policy if you have limited assets, but understand its limitations. Take advantage of discounts including safe driver, multi-policy, good student, and anti-theft device credits.