It is a highly popular and nice state but one of the most expensive places to live in the country too. New Jersey drivers can benefit from a few tips on how to get cheap auto insurance because the Garden State has one of the most expensive premiums in the US. You have a better chance of reducing your premium a lot when it is pretty high. If you can save some money on premiums this money can be channelled to other household expenditures and perhaps some for pleasure as well.
Uninsured Drivers (11%) in the state is below national average. That is probably due to the fact that NJ is one of the richest states and this reduces driving without insurance due to money issues. This does not mean that you don’t need Uninsured Driver coverage. You should look into protecting yourself properly with additional coverage options as well as the basic coverage.
New Jersey Requirements
Here are the minimum liability car insurance requirements in NJ;
- $15,000 for bodily injury or death per person.
- $30,000 total for bodily injury or death per accident.
- $5,000 for property damage.
State website is the best place to check for the latest changes in the laws and enforcement. There are tough fines and penalties for not having the mandatory cover in NJ. You can get hefty fines, license suspensions and vehicle registration suspensions. Also, jail sentence may be on the cards if you cause accidents while uninsured or for repeat offence. This is another reason why drivers are not taking chances with their automobile insurance.
The Garden State is the most densely populated state in the US with nearly 9 million residents. This naturally results in road congestion and higher vehicular crimes that in turn increase average auto insurance costs. Some zip codes in New Jersey would have higher premiums, especially highly populated and high crime areas. This is generally the case in the rest of the USA as well. Larger cities and cosmopolitan residents face higher premiums. In some cases they may have to pay twice more than the suburban drivers.
Being a good driver with no traffic violation conviction or claim will certainly help you find lower quotes. If you are facing high rates because you live in a densely populated zip code there are a few things you could do to reduce city car insurance rates. You should have a quick look at these tips to see if any of them will apply to you.
Generally there are a few ways of reducing premiums regardless of your age, gender, zip code and driving experience. There are a few more automobile insurance discounts that have nothing to do with driving at all like having a good credit score, paying the premium in full or driving fewer miles. It would be nice not to wait a few years until premiums start coming down? Knowing a few things about how your policy works, what insurers take into account when they are calculating quotes and what you need to do to get the best rates will put you in a much better position.
Perhaps these will change the way you look at getting better policies and lower prices. You will see that rates are not black and white anymore. Ask around how many of your friends and colleagues know that they can save around twenty percent by having good credit score? These savings will be extra appreciated when you are struggling to pay the premium as a result of recent accident, claim, ticket or move. See how much will insurance increase after an accident? Have a good look at your renewal terms next time and see if you can improve your coverage and premium with another insurer.
How Much Does Car Insurance Cost in New Jersey?
Recent premiums increases in the Garden State placed it within the top three most expensive states. Probably high number of accidents due to congestion is to blame for this recent surge in costs. Other factors to blame are high medical costs, large numbers of auto and medical fraud along with the litigious nature of the residents. New Jersey allows up to $250,000 Personal Injury Protection coverage, which is the second highest after Michigan. Increased number of PIP frauds have the affect of increasing costs for everyone.
Average cost can be described as average premium expenditure per vehicle and it is $1,254 in New Jersey. That makes NJ the most expensive state in the US. It is $413 (49%) higher than the US average expenditure.
The story is not much different when it comes to full coverage vehicle insurance quotes. The average estimated full coverage premium in NJ came in at $1,905, which is 44% higher than the country average. Both numbers put NJ firmly in the most expensive car insurance states club.
Cheapest Car Insurance Companies in New Jersey
There is not much an individual policyholder can do about the external factors that affect premiums. However, premium burdens can be reduced by finding the most competitive insurer. If you find the most economical insurer you can save as much as 80% in comparison to the most expensive insurer. In other words, you would spend 4 years worth of premium in just one year if you end up with the most expensive insurer. Don’t you think you need to make sure this doesn’t happen by checking competing quotes from different companies?
- AAA, $1,187
- NJ Skylands, $1,213
- Farmers, $1,301
The average premiums across the cities of NJ are widely spread on both sides of state average. Generally, the larger and more densely populated the city, such as Newark, the higher the average yearly costs to insure a vehicle. The premium difference between the cheapest city (Hillsborough) to insure a car and the most expensive city (Newark) can be as much as $1,200 on average. So, where you live makes a much bigger difference in terms of vehicle insurance premiums in New Jersey than most other states in the US.