What New Jersey drivers actually pay for car insurance, from the National Association of Insurance Commissioners’ 2024 Auto Insurance Database (published September 2026) — plus the brand-new 35/70/25 minimums, choice no-fault, and the density behind the #7 ranking.
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New Jersey at a glance
The figures below are the NAIC’s combined average premium for New Jersey — the average cost of a policy carrying liability, collision, and comprehensive coverage, 2024 calendar year, published September 2026.
Average car insurance premium · New Jersey$1,878/yr~$157 a month · #7 of 51 states (1 = priciest) · 116% of the US average
$1,878/yrAverage annual premium (NAIC 2024)
~$157/moMonthly equivalent
116%Of the national average
#7 of 51Price rank (1 = priciest)
New Jersey$1,878/yrNew Jersey average · ~$157/mo
+$266/yrvs national average
National average$1,613/yrAll 50 states + DC
New Jersey vs the country
New Jersey · your state$1,878/yr
Pennsylvania · neighbor$1,396/yr
United States average$1,613/yr
Maine · cheapest state$1,000/yr
How it works: figures are the NAIC’s state combined average premiums — liability + collision + comprehensive written premiums divided by liability written car-years, 2024 calendar year, published September 2026. Monthly = annual ÷ 12. Rank is out of all 50 states + DC, priciest first. These are premiums paid, averaged across coverage amounts and driver profiles — a quote for your specific car, record, and ZIP will differ. Nothing you type leaves your device.
How this number is measured
The $1,878 figure isn’t a quote — it’s what New Jersey drivers actually paid on average for policies carrying liability, collision, and comprehensive coverage. The NAIC compiles written premiums from every insurer and divides by insured car-years, so the number reflects real policies, not advertised rates.
What the typical New Jersey driver pays per year: $1,878.
Monthly equivalent
annual ÷ 12
The monthly budget figure: about $157.
Index vs US average
state avg ÷ $1,613 × 100
New Jersey sits at 116% of the national average — 16 points above the typical state.
Price rank
sorted, priciest first
New Jersey is #7 of 51 — the seventh most expensive state, $297 behind Florida at the top.
3 things New Jersey drivers should know
New Jersey just finished a three-step minimum-limit increase. Forget the old 15/30/5 figures still floating around the internet: under P.L. 2022, c.87, standard policies issued or renewed on or after January 1, 2026 must carry 35/70/25 — $35,000 bodily injury per person, $70,000 per accident, $25,000 property damage (UM/UIM matches the bodily-injury minimums). The step-up pushed many drivers’ base premiums higher, which makes this a particularly good year to shop quotes. A stripped-down Basic Policy alternative exists, but it’s bare-bones by design.
New Jersey is one of only three “choice” no-fault states (with Pennsylvania and Kentucky): you pick a limited right to sue (the “verbal threshold” — you can only sue for pain and suffering with a permanent injury) or an unlimited/zero-threshold right. The limited version is the default and over 85% of policyholders carry it — it’s cheaper, but understand the trade before you accept it. PIP of at least $15,000 per person per accident is required either way.
The structural reason for the #7 ranking is density: New Jersey is the most densely populated state in the country (roughly 1,270 people per square mile), and corridors like the Turnpike and the Garden State Parkway mean relentless congestion and high crash frequency. Pair that with an estimated 14.1% of drivers uninsured (Insurance Research Council, 2023 data) and some of the harshest uninsured-driving penalties in the country — up to a $5,000 fine, mandatory 14-day jail on a second offense, multi-year license suspension, and MVC surcharges — and the picture is complete.
Who uses this page
Movers: budgeting a move to Newark or Jersey City — is ~$157/month about right for your car insurance?
Policyholders: checking whether the number your insurer quoted is anywhere near the state average.
Parents: understanding what coverage a teen driver actually needs beyond the 35/70/25 legal minimums.
Researchers & students: the NAIC figures are public statistics — cite them with the block below.
Accuracy & limitations
These are 2024-calendar-year averages published in September 2026 — the freshest official data available — and they largely predate the final 35/70/25 minimums step, so today’s minimum-coverage quotes may run a bit higher than the average suggests. Your 2026 quote will also differ by ZIP code (Hudson County vs. rural Warren County is a different universe), vehicle, driving record, coverage limits, deductible, and your lawsuit-option choice. Treat $1,878/yr as a benchmark, not a quote.
Cite this pageBright Side Kit. “Average Car Insurance Cost in New Jersey.” brightoolbox.com, 2026.Bright Side Kit. "Average Car Insurance Cost in New Jersey." https://brightoolbox.com/car-insurance-cost-new-jersey/ Accessed October 21, 2026.
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Frequently asked questions
How much is car insurance in New Jersey per month?
The state average premium is about $157 a month ($1,878 a year) according to NAIC 2024 data — 116% of the national average, ranking #7 of 51 states. Dense urban corridors typically pay well above the average; quieter western counties often pay below it.
Is New Jersey a no-fault state?
It’s a “choice” no-fault state — one of only three in the country. Your own PIP coverage ($15,000 minimum) pays your medical bills regardless of fault, and separately you choose a limited right to sue for pain and suffering (the default, held by over 85% of policyholders) or an unlimited right.
What are New Jersey’s new 2026 minimum car insurance limits?
For standard policies issued or renewed on or after January 1, 2026: 35/70/25 — $35,000 bodily injury per person, $70,000 per accident, $25,000 property damage — plus $15,000 PIP. That completed a phase-in from the old 15/30/5 (via 25/50/25 in 2023) under P.L. 2022, c.87. Pages still quoting 15/30/5 are out of date.
What’s the difference between the basic and standard policy in NJ?
The Basic Policy is a stripped-down legal-minimum option: $5,000 property damage and $15,000 PIP, with bodily-injury liability optional at $10,000. The Standard Policy carries the full 35/70/25 minimums and up to $250,000 in PIP. The Basic Policy is cheaper but leaves you thinly covered — most drivers are better served by the standard policy shopped competitively.
Should I pick limited or unlimited right to sue in New Jersey?
The limited (verbal threshold) option costs less and is the default — but you give up the right to sue for pain and suffering unless an injury is permanent. The unlimited option preserves full lawsuit rights at a higher premium. There’s no universally right answer; weigh the premium savings against how much you value that legal right, and revisit the choice at each renewal.
Why is New Jersey car insurance so expensive?
Density and congestion above all: the most densely populated state, with brutal Turnpike and Parkway traffic, produces high crash frequency. Add the new higher minimum limits, a litigious corridor, and about 14.1% of drivers uninsured (Insurance Research Council, 2023 data), and you get the #7 ranking.