Auto insurance costs are once again on the rise in New Jersey, with state regulators approving rate increases for almost 90% of carriers in the state in 2025.
According to data from the New Jersey Department of Banking and Insurance, 69 of the state;s 77 auto insurers have received approval to raise premiums.
The largest increase comes for Vault Reciprocal Exchange, which received a 30% hike after requesting nearly 39%. State Farm Guaranty requested a 19.7% rate increase and was granted 19.2%, while Progressive Garden State requested a 6.9% increase and was approved for 5%.
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Why Is My Auto Insurance Going Up?
State officials say auto insurance rate increases reflect higher costs tied to repairs, materials and labor. An spike in crashes blamed on distracted and aggressive driving also contributed to the rate hikes.
New Jersey requires companies to justify any proposed increase. The agency reports it has reduced or blocked more than $1.4 billion in combined auto and homeowners rate hikes since early 2023, according to NJ.com.
No companies were denied a rate increase, though not all received their full requests. Requests from nine more insurance providers are still under review.
Policyholders won’t see identical changes. Premiums vary based on factors such as driving history, vehicle type and mileage. However, most NJ drivers can expect some increase.
How Can I Lower Auto Insurance Costs in NJ?
One way to lower auto insurance costs is by comparison shopping and bundling auto and home policies. For some providers, discounts may also be available for completing defensive driving courses or maintaining a low annual mileage.
Drivers can opt for higher deductibles to lower monthly premiums, though that means paying more out of pocket in the event of an accident.
The wave of rate increases marks another costly year for motorists in New Jersey. It appears for now, there’s no sign that insurance rates will ease.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.