If you’re looking for cheap car insurance you can use our free quotes tool above to find and compare the best insurance companies in your state, and city. Looking for more information? Read on below to get a state by state insurance guide.
Cheap Car Insurance – Easiest Way to Save Money
By far the easiest way to get cheap car insurance is to compare as many car insurance companies as you can. Comparing multiple insurance companies is a lot easier than most people think. All you need to do is enter your zip code above and we’ll compare car insurance companies for you! This is by far the best way to find cheap auto insurance. You can save up to 50% on car insurance in under 3 minutes.
Cheap Car Insurance By State
Getting The Cheapest Car Insurance in NJ
NJ has some of the most expensive auto insurance in the country unfortunately.
Fortunately there is a few things we can to do lower our insurance rates. Here’s some tips for getting the cheapest auto insurance in NJ:
Get all your insurance from the same company. Getting home, life, health & auto insurance from the same company can get your major discounts.
Finish a defensive driving course. There are a lot of defensive driving schools out there that will teach you to drive safer. Getting a certificate from one of these driving schools can decrease your insurance premiums. Before you register for a course, we highly recommend you contact your insurance company and see how big of a discount they offer. All insurance companies offer discounts because it is New Jersey law, but how much of a discount depends on the insurance company. You must go to an approved course: http://www.state.nj.us/mvc/index.htm
Get multiple quotes. The best way to lower your insurance premiums is to get multiple quotes. Getting quotes from multiple companies takes almost no time or money, but can decrease your insurance premiums more than any other suggested tip! Seriously we can’t stress this enough, most people will get 2-3 auto insurance quotes and pick an insurance company. We recommend contacting at least 6 companies and getting quotes.
Pay per year. Most people pay monthly for car insurance, if you pay for the whole year upfront you can save up to 20%. Paying ahead is one of the easiest ways to save money on car insurance, but often overlooked.
Are you a student? If so you can get cheaper car insurance by having good grades! If you have a B average or higher a lot of insurance companies will give you a discount on your insurance.
Choose a higher deductible. Think you’re a safe driver? Prove it to the insurance companies by taking a bigger risk and paying a higher deductible. While having a higher deductible will increase your out pocket cost in an accident, you save a lot of money on your monthly premiums.
Company loyalty is bad. In general sticking with one company a long time is going to cost you, people who switch insurance companies often generally save more money. Insurance companies often have special discounts or offers for new members; so switching can actually get you better deals then what long-term customers have!
Vehicle Safety Features. Owning a vehicle with safety features such as anti-lock brakes, air bag, etc will decrease your insurance premiums.
Anti-theft features. Having anti-theft features installed in your car can dramatically decrease your premiums; especially if you drive and park your car in an area with a high rate of car thefts.
How it’s calculated
There is no such thing as the best car insurance. How much you pay for car insurance is going to depend on a lot of factors, such as:
- Your location
- Your vehicle type
- Your driving record
- Your gender
- Your coverage level
- Your marital status
Determining how you much you’ll pay for insurance isn’t easy. The best way to figure out how much you’ll end up paying for car insurance is by getting quotes from companies. Most car insurance companies have their own specialized formula for calculating insurance rates, that’s why insurance premiums can vary wildly.
Other factors affecting your insurance premiums in New Jersey
- Bankruptcy. If you’ve ever went bankrupt you may have to pay higher premiums, since you’re a higher risk to the insurance companies.
- Length of credit history. Having no credit history can be a negative sign for auto insurance companies, this generally affects younger drivers.
- Outstanding debt. Insurance companies will look at your debit to your available credit to assess how much of a risk you may be.
- Past Payment history. If you have a history of late payments you will be negatively affected.
The 4 points above are the main thing’s used in determining your insurance score, and have been used by NJ insurance companies since 2003. Your insurance score is used to help determine your risk as a driver and insurance payee, which is then used to help determine your insurance rate. It’s important to note that while your insurance score is important it is not the only thing that matters. Companies treat insurance scores differently and assign value to other things not listed above. If all insurance companies used the exact same formula to calculate rates, then their wouldn’t be a point in ever switching companies. Since companies use the insurance score in conjunction with their own formulas we’re able to get better deals by switching companies ( most of the time!)
Another point not listed above, but is taken into account is your credit score.
New Jersey Car Insurance Policies Explained
In new jersey there is two types of policies: Standard and Basic.
Standard: Most commonly purchased policy by New Jersey drivers. This policy allows you to buy extra protection and pick and choose your coverage options.
Basic: This policy provides the bare minimum protection required by New Jersey law. The basic policy is ideal for people with little assets to protect and no family responsibilities.
Here’s a breakdown of coverage provided:
Here is a list of coverage available & what most people will choose:
Auto Insurance Quotes in NJ
We’ve partnered up with some of the best car insurance companies in NJ, by filling the information in the form above you’ll be able to get quotes from up to 12 insurance companies in NJ.
We recommend you get as many quotes as you can. Getting multiple quotes is the easiest way to get low-cost car insurance in NJ.
The majority of people will compare only 2-3 companies, which is not enough. Comparing multiple companies will take only minutes, but can SAVE you thousands of dollars!
NJ Minimum Liability Coverage
NJ’s minimum liability coverage is
- $15,000 per person
- $30,000 per accident
- $5,000 for property damage
The coverage above is the absolute minimum required by law. It is highly recommend you get more coverage than the minimum. Property damage alone can easily exceed $5,000.
The coverage we recommend.
- $100,000 worth of bodily injury protection (also know as PIP) per person
- $300,000 per accident
The above is commonly known as 100/300, and is recommended by the Insurance Information Institute.
Optional Insurance Coverage in NJ
- Extended medical insurance
- Uninsured/Underinsured Motorist Coverage
Comprehensive Auto Insurance NJ
Most people have a hard time understanding comprehensive auto insurance coverage, so we’d let’s talk about it quickly!
Comprehensive car insurance is coverage covers you in a situation where damage is done to your car, but not in an accident. For example, if your car was vandalized or if a hail storm damaged it. Comprehensive coverage is not required by law, but can be very usefully especially if you live in an area where whether can damage your car, or if the crime rate is high.
NJ is not a no fault state. No fault insurance in NJ means when an accident occurs you use your own insurance to cover for damages medical bills.
Limited Right to Sue vs Unlimited
New Jersey has an interesting take on lowering court costs associated to suing for damages when an accident occurs. Insurance companies offer two options:
Limited right to sue: Allows you to sue only under special conditions, such as a loss of a body part, permanent injury, disfigurement or any other extreme damage to your body.
Unlimited right to sue: Allows you to sue for non physical damages that fall under “pain and suffering”. For example if the accident causes you to miss 60 days of work you can sue for the missed income.
Unlimited right to sue gives you more options, but because of this you’ll pay a higher premium; as much as 30% higher. It’s important to consider both options when buying auto insurance in NJ, since picking either will affect your monthly premiums dramatically.
Tips for finding the best auto insurance company:
The first tip is, there isn’t a perfect auto insurance company out there. The coverage you get, your car, your experience and where you live is going to affect the quality of service you get and how much you pay. The best insurance company for you may not be the best for your friends or family. We recommend getting multiple quotes from different insurance companies.
Ask for discounts. A lot of people are eligible for discounts they may not be aware of. Asking an insurance agent if your eligible for a discount is the easiest way to find out!
Check how good their customer service is. You can do a quick Google search, but we’ve something better. State.NJ has compiled customer service reports on all the big car insurance companies in NJ, so you can see good each one is. Check it out: http://www.state.nj.us/dobi/division_consumers/pdf/autoconsumerrpt14.pdf
That’s it! Follow the two tips above and you shouldn’t have trouble finding a good insurance company in New Jersey.
NJ Car Insurance by City
Where you live in NJ is the single most important factor in determining your insurance rate. Here’s a list of major cities in NJ and what you can expect to pay for car insurance. Since car insurance rates are determined by many factors it’s hard to get a specific estimate. The estimates below are an average rate for a mix of drivers, such as: married couples, teenagers, senior drivers, etc. You can expect wildly different insurance rates depending on your experience, age, gender, car and more. The only way to know how much you should be paying is by getting a quote.
Newark Car Insurance
Newark is the biggest city in NJ, and because of that you can expect some of the highest insurance premiums. The average car insurance rate in Newark is around $2600. Younger drivers can expect to may much more, while older couples can expect to pay less. How much you pay for car insurance in Newark is depend on many factors so the estimate above is just that, an estimate.
Jersey City Car Insurance
Jersey city makes our list of most expensive places to get car insurance in NJ. With a similar population to Newark it’s to be expected. The average car insurance rate in Jersey city is $2,300, which is slightly cheaper than Newark but not by much.
Paterson Car Insurance
Most would think that car insurance in Paterson would be much cheaper than in Newark or Jersey, unfortunately that’s not the case. The average auto insurance cost in Paterson is around $2,500. Although Paterson has a much lower population than Newark & Jersey, factors such as property crime cause insurance premiums to rise.
Elizabeth Car Insurance
Car insurance in Elizabeth is cheaper than the top 4 cities listed above, but not by much. The average auto insurance rath in Elizabeth is somewhere around $2,300. Which is to be expected because of it’s lower crime rate and population when compared to cities like Jersey & Newark.
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