Auto Insurance In Nj: How Much?

The average cost of car insurance in New Jersey varies depending on the type of coverage, age, gender, driving record, and credit score. For full coverage, the average cost is around $1,680 annually or $140 monthly, while the state minimum coverage costs approximately $960 per year or $80 per month. The cost of car insurance in New Jersey is relatively higher than the national average due to factors such as densely populated urban areas, high medical and car repair costs, and mandatory personal injury protection.

Average cost of auto insurance in New Jersey

The average cost of auto insurance in New Jersey varies depending on factors such as age, gender, location, driving record, and credit score. The type of coverage also plays a significant role, with full coverage costing more than minimum liability coverage.

Average Cost by Coverage Level

According to Bankrate, the annual average cost of car insurance in New Jersey is $1,754 for full coverage and $782 for minimum coverage. The monthly average cost translates to approximately $200 for full coverage and $82 for minimum coverage. However, these figures can vary based on personal factors.

Another source, US News, reports a slightly lower average annual cost for full coverage at $1,706, while CarInsurance.com places the average at $1,910. The discrepancy in these figures could be due to differences in methodology and the factors considered in the calculations.

For minimum liability coverage, the average annual cost in New Jersey is estimated to be around $960, according to MoneyGeek. This translates to a monthly cost of about $80.

Average Cost by City

The cost of auto insurance in New Jersey also varies by city. For example, according to MoneyGeek, the full coverage rate in Jersey City is $1,873, while in Newark, it jumps to $2,145. Brielle is one of the cheapest cities for auto insurance, with an average annual rate of $1,635.

Average Cost by Age and Gender

Age and gender also impact auto insurance rates in New Jersey. Teenagers, especially male teenagers, tend to pay the highest premiums. For example, adding a 16-year-old male driver to a family policy can cost around $4,683 annually. If the teen opts for an individual policy, the premium can surge to $8,072.

On the other hand, seniors aged 60 and above benefit from lower rates, with an average annual cost of around $1,625. Middle-aged drivers, aged 30 to 59, also see more affordable rates, with an average annual cost of $1,680.

Average Cost by Driving Record

A clean driving record can significantly lower insurance premiums. According to MoneyGeek, the average cost of full coverage in New Jersey is $1,680 for a driver with a clean record. However, this increases to $2,530 if the driver has been in an at-fault accident and $2,997 if they have a DUI on their record.

Average Cost by Credit Score

Credit score is another factor that influences auto insurance rates in New Jersey. Drivers with excellent credit scores (800 and above) can expect lower premiums, while those with poor credit scores (579 and below) may face higher costs. According to MoneyGeek, the average monthly cost of full coverage for drivers with excellent credit is around $90, while those with poor credit could pay up to $213 per month.

Cheapest auto insurance in New Jersey

The cost of car insurance in New Jersey varies depending on factors such as age, location, marital status, type of car, and driving history. The average cost of car insurance in the state is $1,754 for full coverage and $782 for minimum coverage annually. However, the cheapest car insurance company in New Jersey is Geico, with an average annual rate of $1,163.

Cheapest Car Insurance Companies in New Jersey

• Geico: $1,163 per year
• New Jersey Manufacturers: $1,342 per year
• Selective: $1,527 per year
• Amica: $1,844 per year
• Allstate: $2,238 per year

Cheapest Car Insurance for Different Age Groups in New Jersey

Cheapest Car Insurance for Teen Drivers in New Jersey

Geico: $2,264 per year for females, $2,281 per year for males

Cheapest Car Insurance for Young Adults in New Jersey

Geico: $1,279 per year for females, $1,258 per year for males

Cheapest Car Insurance for Adults in New Jersey

Geico: $1,164 per year for females, $1,148 per year for males

Cheapest Car Insurance for Seniors in New Jersey

Geico: $1,065 per year

Cheapest Car Insurance for Drivers with Prior Incidents in New Jersey

Cheapest Car Insurance for Drivers with a Ticket in New Jersey

Geico: $1,163 per year

Cheapest Car Insurance for Drivers with an At-Fault Accident in New Jersey

New Jersey Manufacturers: $1,342 per year

Cheapest Car Insurance for High-Risk Drivers in New Jersey

Selective: $1,527 per year

Cheapest Car Insurance for Drivers with a DUI in New Jersey

New Jersey Manufacturers: $1,527 per year

Auto insurance costs by age and gender

The cost of auto insurance in New Jersey varies depending on age and gender. Here is a breakdown of the average costs for different age groups and genders:

Teen Drivers (16-19 years old)

Teens can expect to pay significantly more for car insurance than older, more experienced drivers. The average cost of a full coverage policy for this age group is around $7,165 per year.

When focusing on 17-year-olds, the average annual rates are $6,240 for female drivers and $7,008 for male drivers.

Young Adults (20-25 years old)

Drivers in this age bracket can expect a slight decrease in their premiums compared to teens. On average, a full coverage policy for 20-25-year-olds costs around $2,944 per year.

For a 25-year-old single female, the average annual rate is $1,863, while for a 25-year-old single male, it's $1,967.

Average-Aged Drivers (30-60 years old)

Drivers aged 30 to 60 benefit from the lowest average auto insurance costs across all age groups in New Jersey, paying around $1,885 per year for full coverage.

Senior Drivers (60 years old and above)

Seniors can expect to pay slightly more than the average-aged drivers, with an average annual rate of $1,980 for full coverage.

Gender Differences

On average, female drivers tend to pay less for car insurance than male drivers, as they are considered less likely to be involved in accidents that result in expensive claims. This difference is particularly notable for teen drivers, where a 17-year-old male's monthly premium is $382, while a female of the same age pays $329.

Other Factors Influencing Costs

While age and gender play a role in determining auto insurance premiums in New Jersey, other factors also come into play, including driving record, credit score, location, type of car, and marital status.

Drivers with a clean record and good credit history are likely to pay lower rates than those with accidents, speeding tickets, or a DUI on their record. Urban areas with higher traffic congestion and higher accident rates, such as Newark, tend to have higher insurance premiums.

The make and model of the car also matter, with luxury and sports cars typically costing more to insure due to higher repair costs.

Additionally, married drivers often qualify for lower insurance rates than single drivers, as they are perceived as less likely to file costly claims.

Auto insurance costs by driving record

The cost of auto insurance in New Jersey varies depending on a driver's record. Here's what drivers can expect to pay on average:

• With a clean record: $124.33 per month or $1,492 per year.
• With a speeding ticket: $137.25 per month or $1,647 per year.
• With an at-fault accident: $190.33 per month or $2,284 per year.
• With a DUI: $176.50 per month or $2,118 per year.

These figures are based on full coverage insurance with a $1,000 deductible. The cost of insurance in New Jersey is also influenced by factors such as age, gender, location, and credit score.

Auto insurance costs by credit score

Auto insurance costs can vary depending on several factors, including age, location, driving history, and credit score. In New Jersey, the average cost of car insurance is $1,754 for full coverage and $782 for minimum coverage annually. However, individual premiums can differ based on factors such as age, gender, and location.

Now, let's focus on auto insurance costs by credit score:

How Credit Score Impacts Auto Insurance Costs

Your credit score can significantly impact your auto insurance rates. Insurance companies often view a lower credit score as an indicator of increased risk, which may result in higher premiums. This is because insurers use credit-based insurance scores to predict the likelihood of filing an insurance claim. Maintaining a high credit score can help you secure more favorable insurance rates.

According to Bankrate's 2024 data, drivers with poor credit pay approximately 118% more for full coverage car insurance than those with excellent credit. Here's a breakdown of the average annual full coverage premium by credit rating:

• Poor credit: $4,801
• Fair credit: $3,402
• Good credit: $2,435
• Excellent credit: $2,200

Improving Your Credit Score to Reduce Auto Insurance Costs

If you're looking to reduce your auto insurance costs, improving your credit score is a crucial step. Here are some strategies to achieve that:

• Pay your bills on time: Make it a habit to pay all your bills on time to demonstrate responsible financial management.
• Minimize hard credit inquiries: Limit your applications for new credit lines as these can negatively impact your score.
• Monitor your score regularly: Keep track of your credit score to identify errors and take proactive measures for improvement.
• Maintain old lines of credit: Keeping long-standing credit accounts can positively impact your score, reflecting your credit history.
• Manage your credit utilization ratio: Aim to utilize no more than 30% of your total available credit to maintain a healthy credit utilization ratio.

By implementing these strategies, you can work towards improving your credit score, which may result in lower auto insurance costs over time.

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