Auto Insurance in New Jersey — Average Cost 2026
Average auto insurance in New Jersey: $2,050/year ($171/month). New Jersey ranks #42 out of 51 states — above the national average.
Average annual
$2,050
Average monthly
$171
National rank
#42
of 51 states
vs national avg
+15.2%
New Jersey vs national average
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State averages are the starting point. Your actual rate depends on your individual profile. Use our calculator for a detailed estimate.
Why is auto insurance expensive in New Jersey?
New Jersey sits 15% above the national average for auto insurance, driven by factors including higher rates of uninsured drivers, dense urban traffic, frequent accident claims, and litigation costs that push insurer payouts up. The state minimum coverage requirements and local injury protection laws also shape the baseline rate.
Drivers in New Jersey can still find competitive rates by shopping multiple insurers, maintaining a clean driving record, and considering telematics programs from Progressive or State Farm that reward safe driving with discounts of up to 30%.