No Surprise: New Jersey Among Highest Auto Insurance Rates In USA

There is nothing more Americana than owning a vehicle and driving whenever or wherever you want to go. For many people, taking the Driver's Exam and getting a Driver's License is one of the steps to adulthood followed by purchasing your first vehicle.

As we have documented previously, the Cost of Living in New Jersey is among the highest in the United States, and now we know that Auto Insurance is also among the highest as well. The website Market Watch compiled data from each state on what people are paying on average for auto insurance along with other demographic categories.

New Jersey Residents are paying the third-highest Minimum-Coverage Auto Insurance Average Rate in the USA today, approximately $895 more per year compared to Pennsylvania Residents.

Even residents of the state of New York ($870) pay less per year for Minimum Coverage than drivers in these states:

1. Florida $1,385
2. Michigan $1,360
3. New Jersey $1,332
4. Nevada $1,283
5. Rhode Island $1,036
6. Connecticut $980
7. Louisiana $925
8. Maryland $901

Meanwhile, New Jersey drivers are paying an average of $2,513 per year for Full-coverage Auto Insurance, which lands them at 5th most in the United States.  Residents of the Garden State are paying more on average per year than Pennsylvania ($1,981) and New York ($2,088).  Here is the top ten list of most expensive states to pay Full-Coverage Auto Insurance:

1. Michigan $3,643
2. Florida $3,244
3. Nevada $2,788
4. Kentucky $2,522
5. New Jersey $2,513
6. Massachusetts $2,430
7. California $2,313
8. South Dakota $2,291
9. Delaware $2,218
10. Texas $2,205

Another big difference between New Jersey and its neighboring states is what vehicle New Jersey residents are buying the most. While Pennsylvania and New York drivers top purchased vehicle is the Toyota RAV4, New Jersey residents are purchasing the Honda CR-V instead. According to Edmunds.com Research, the Honda CR-V is the sixth most commonly sold car in 2022 while the Toyota RAV4 is the third most purchased.

Even though I do not drive either vehicle, I can confirm my Auto Insurance Rate is still high and all of us in New Jersey have to suck it up or move away from the Garden State.