New Jersey, being the most densely populated state in the United States, is plagued by high auto insurance rates. Drivers in New Jersey pay an average of $1697 every year to insure their cars. This makes New Jersey the 11th most expensive state to buy auto insurance. New Jersey has been called the ‘car theft capital’ of the world, with Newark leading the country in car theft numbers. This has also led to an increase in auto insurance rates.
According to the National Highway Traffic Safety Administration (NHTSA) data, there were 627 fatalities in New Jersey in 2011 and 589 in 2012. Of these, 194 and 164 were alcohol-impaired fatalities, respectively. Accidents also have a considerable impact on insurance rates.
The table below lists the average insurance rates in New Jersey and the insurance rates after accidents.
| City | Zip code | Average Annual Premium ($) | Average Premium after one accident ($) | Average premium after two accidents ($) |
|---|---|---|---|---|
| Wildwood | 8260 | 1,180 | 1,453 | 2,168 |
| Seaside Heights | 8751 | 1,187 | 1,462 | 2,181 |
| Princeton | 8540 | 1,224 | 1,507 | 2,249 |
| Ocean City | 8226 | 1,232 | 1,517 | 2,264 |
| Camden | 8108 | 1,306 | 1,608 | 2,400 |
| Trenton | 8611 | 1,729 | 2,129 | 3,177 |
| Jersey City | 7302 | 1,771 | 2,181 | 3,254 |
| Hoboken | 7030 | 1,771 | 2,181 | 3,254 |
| Atlantic City | 8401 | 1,972 | 2,429 | 3,623 |
| Newark | 7101 | 2,098 | 2,584 | 3,855 |
Newark is clearly the most expensive auto insurance city in New Jersey. Insurance rates are also increased by your insurance carriers as per the Insurance Services Office’s surcharge schedule. In Wildwood, as per this schedule, your premium will increase to $1416 for a multi-car policy and to $1652 for a single-car policy after an accident. In Trenton, similarly, a single-car policy will cost around $2421 and a multi-car policy will cost $2075.
In Hoboken, if you have been involved in an accident in the past three years, your rates could increase from $2214 to $2657. An accident that caused major property damage or serious medical injuries could double your annual insurance rate.
