The Complete Guide to New Jersey Car Insurance
Lemonade is on the way to the Garden State and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things NJ car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in New Jersey?
Car insurance in New Jersey averages $249/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Newark | $376 |
| Jersey City | $326 |
| Paterson | $363 |
| Elizabeth | $362 |
| Lakewood | $278 |
Source: ValuePenguin
Why is car insurance so high in New Jersey?
New Jersey drivers face unique risks that drive insurance costs
Uninsured drivers
While only 3.1% of drivers in New Jersey are uninsured (vs. 13% nationally), other factors like repair costs and claim frequency drive premiums higher.
Car theft
FBI data shows there were 15,231 reported motor vehicle thefts in 2024 in NJ, down 10% from the previous year.
Natural disasters
NJ has a relatively moderate FEMA disaster rating of 79, with the highest risks of hurricane and inland flooding, driving up comprehensive coverage costs.
What car insurance do I need in New Jersey?
All New Jersey drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for New Jersey drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Property damage liability | $5,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
| Personal injury protection (PIP) | $15,000 | Your medical bills and often lost wages after any car accident, regardless of who’s at fault | Car damage, pain and suffering, may have limits on who’s covered |
What additional car insurance coverages are offered in New Jersey?
Beyond state minimums, these optional coverages provide
extra protection for New Jersey drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in New Jersey?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from Pine Barrens trail riding
How much car insurance do I need in New Jersey?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local New Jersey labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Passaic | $82 | $95 | $125 | $82 |
| Union City | $82 | $95 | $125 | $82 |
| Mount Laurel | $113 | $138 | $204 | $75 |
| Egg Harbor Township | $76 | $89 | $121 | $76 |
| Jersey City | $82 | $95 | $125 | $82 |
Source: Caliber
What happens if I drive without insurance in New Jersey?
New Jersey takes uninsured driving seriously, and the penalties add up fast.
Fines
$300-$1,000 first offense plus $750 in surcharges. Repeat offenses? Up to $5,000 plus surcharges.
Suspension
One year license suspension first offense, two years for repeat violations.
Jail time
First offense won’t land you in jail. Repeat offenses? Up to 14 days plus 30 days community service.
What do you need to get a car insurance quote in New Jersey?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in New Jersey?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
New Jersey car insurance FAQs
Is New Jersey a no-fault state?
Yes, New Jersey is a choice no-fault state. When you buy insurance, you can choose between limited or unlimited rights to sue. Most drivers rely on PIP coverage for injuries regardless of who’s at fault. Your lawsuit rights depend on the policy option you select.
Do I need insurance to register a car in New Jersey?
Yes, New Jersey requires insurance to register a vehicle. You must carry minimum liability coverage and Personal Injury Protection (PIP). Proof of insurance is required at registration, and coverage must stay active for the registration to remain valid.
What are the top risks for driving in New Jersey?
New Jersey’s intense traffic congestion and aggressive driving behaviors make major highways particularly dangerous. Distracted driving is a significant problem throughout the state, while rain and snow conditions worsen already challenging traffic situations.
How long do I have to report an accident in New Jersey?
In New Jersey, accidents involving injury, death, or property damage of $500 or more must be reported immediately to police. You must also file a written report with the MVC within 10 days if police don’t investigate. Timely reporting is required by law. Insurance reporting should be prompt.
What are the top safety tips for driving in New Jersey?
In New Jersey, drive defensively in that intense traffic and don’t get road rage. Leave extra space in congestion. Watch for sudden stops on busy highways. Slow down when it’s raining or snowing.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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