Having a low credit score can make car insurance more expensive in New Jersey, but affordable options still exist. Many insurers consider credit when setting rates, and drivers with poor credit often pay more—even with a clean driving record.
“Bad credit can significantly impact your car insurance costs. Most insurance companies use a credit-based insurance score to help predict risks, in which statistically, drivers with lower credit scores are more likely to file claims,” says Ted Kaplun, principal attorney and founding partner of KaplunMarx, a personal injury law firm in Pennsylvania. “This means insurers often charge higher premiums to those with poor credit, despite a clean driving record.”
This guide breaks down the cheapest car insurance options for drivers with bad credit in New Jersey, using real-world rate data to help you find savings and make informed choices.
- The average annual car insurance rate for full coverage for drivers with bad credit in New Jersey is $4,276.
- The cheapest insurance company in New Jersey for drivers with poor credit is NJM.
- Shopping around can help drivers with any credit score find more affordable rates for their situation.
What are the average car insurance rates for people with bad credit in New Jersey?
In New Jersey, drivers with bad credit pay an average of $356 per month for full coverage car insurance. If you choose liability-only coverage with 50/100/50 limits, the average monthly cost drops to $171. Minimum liability coverage is even lower at $160 per month.
The table below shows how car insurance rates in New Jersey increase for drivers with poor credit.
| Company | Average rates | Rates after bad credit | $ increase | % increase |
|---|---|---|---|---|
| NJM | $1,318 | $2,259 | $941 | 71% |
| Progressive | $2,187 | $3,650 | $1,463 | 67% |
| Geico | $1,563 | $3,656 | $2,093 | 134% |
| Travelers | $1,706 | $3,817 | $2,111 | 124% |
| Allstate | $2,294 | $4,211 | $1,917 | 84% |
| Plymouth Rock Assurance | $1,737 | $4,216 | $2,479 | 143% |
| Farmers | $2,254 | $4,473 | $2,219 | 98% |
| State Farm | $2,153 | $8,955 | $6,803 | 316% |
Find out how bad credit can impact your car insurance rates
Top car insurance companies in New Jersey for drivers with bad credit
Car insurance companies in New Jersey use different methods to calculate risk, which means rates vary widely, especially for drivers with bad credit. Some insurers offer more competitive pricing than others.
The most affordable car insurance companies in New Jersey for drivers with bad credit include NJM, Progressive, and Geico.
Use the table below to compare average rates by company for drivers with poor credit in New Jersey.
| Company | Annual rates after bad credit | Six-month rates after bad credit | Monthly rates after bad credit |
|---|---|---|---|
| NJM | $2,259 | $1,129 | $188 |
| Progressive | $3,650 | $1,825 | $304 |
| Geico | $3,656 | $1,828 | $305 |
| Travelers | $3,817 | $1,909 | $318 |
| Allstate | $4,211 | $2,105 | $351 |
| Plymouth Rock Assurance | $4,216 | $2,108 | $351 |
| Farmers | $4,473 | $2,236 | $373 |
| State Farm | $8,955 | $4,478 | $746 |
Check out our detailed guide on the cheapest car insurance companies
How age and gender affect car insurance rates with bad credit in New Jersey
Age and gender are two factors car insurance companies consider when determining premiums. Young drivers pay more for coverage than those with more experience behind the wheel. Female drivers are statistically less likely to get into a serious accident. As a result, women tend to pay less for car insurance coverage than their male counterparts.
The table below highlights the average rates across age and gender for those with bad credit.
| Age | Six-month cost for male drivers | Six-month cost for female drivers | Monthly cost for male drivers | Monthly cost for female drivers |
|---|---|---|---|---|
| 18 | $9,549 | $8,257 | $1,592 | $1,376 |
| 25 | $2,549 | $2,383 | $425 | $397 |
| 40 | $2,148 | $2,128 | $358 | $355 |
| 65 | $2,059 | $2,012 | $343 | $335 |
How driving record and location influence rates with bad credit in New Jersey
In addition to your credit score, your driving record and location significantly impact how much you pay for car insurance, especially if you have bad credit. Drivers with violations like speeding tickets or at-fault accidents are considered higher risk by insurers and often face higher premiums.
Where you live also affects your car insurance rates. Premiums vary by state and ZIP code, with drivers in rural areas typically paying less than those in urban regions with higher traffic congestion and crime rates.
For drivers with bad credit, factors like driving history and geographic location can sometimes influence rates even more than credit alone. That’s why comparing car insurance options and understanding all the factors affecting your premium is important.
Check out 10 most important factors that affect car insurance rates
What are the discounts for drivers with bad credit in New Jersey?
While drivers with bad credit might experience higher rates, seeking out discounts can help to offset their costs. Some of the discounts drivers with bad credit can pursue include:
Safe driving discounts: Many car insurance companies offer discounts to safe drivers. If you are comfortable signing up for a telematics program that tracks your driving behavior, you could score significant savings if you practice safe driving habits.
Bundling discounts: If you need other types of coverage, like renters insurance or homeowners insurance, buying multiple policies through the same insurer can often lead to a discount.
Affinity discounts: Being part of a group, like an alumni association or a veteran organization, can sometimes result in a discount.
Pay-in-full discount: Some insurers offer a discount when you pay for coverage upfront instead of monthly.
Paperless discount: Many insurers offer a discount if you opt to go paperless.
See what drivers with bad credit pay on average in nearby states
Tips to find cheap car insurance with bad credit in New Jersey
As you look for cheap car insurance with bad credit in New Jersey, use these strategies to seek out lower rates:
- Shop around: Comparing rates across multiple insurance companies can help you find the most affordable rate for your unique situation.
- Raise your deductible: Generally, opting for a higher deductible leads to a lower insurance premium. Locking in the premium savings can make sense if you have the money to cover a higher deductible during an emergency.
- Maintain safe driving habits: Safe drivers tend to pay less for coverage. Sticking to safe driving habits can lead to savings.
How to shop for car insurance with bad credit in New Jersey
When shopping for car insurance with bad credit in New Jersey, use the following steps as a guide:
- Gather your information: To get accurate quotes, you must provide some basic information about your vehicle. For example, you’ll need to provide the VIN, make, model and year of your car.
- Consider your policy needs: While a state minimum coverage policy often offers the cheapest rates, it might not fit your unique situation. For example, you might need comprehensive coverage while paying off an auto loan.
- Compare quotes: Collect quotes from multiple car insurance companies to find the most affordable option.
Frequently ask questions
Does a bad credit score affect car insurance rates in New Jersey?
Your credit score can impact your car insurance rate in New Jersey. Drivers with bad credit generally pay more than those with strong credit histories.
Can you improve your rates with bad credit in New Jersey over time?
Yes, your car insurance rates can improve as your credit improves. In New Jersey, making consistent payments and reducing high-interest debt can help lower future premiums.
Car insurance rates for good vs. bad credit in New Jersey
The cost of full coverage car insurance in New Jersey is higher for drivers with bad credit, averaging $4,276 per year, compared to $1,902 annually for drivers with good credit.
Car insurance requirements in New Jersey if you have bad credit
In New Jersey, having bad credit doesn’t affect the type of car insurance you need. You must still carry the state’s minimum legal coverage to drive.
Find out whether it’s legal for insurers to raise your premium because of a bad credit score
Resources and Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for drivers with poor credit scores. The rates are based on sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
Note: USAA is only available to military community members and their families.
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