Who Has Affordable Newark Auto Insurance Rates for 16 Year Olds?

One of the more important components that determine insurance cost is where you keep your vehicle in Newark. More populated areas are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower rates.

The illustration below rates the most expensive places in New Jersey for 16 year olds to buy auto insurance in. Newark is listed at #2 with an annual cost of $2,522 for coverage, which is approximately $210 per month.

How much does car insurance cost in Newark, NJ?
Rank City Annual Rate
1 West New York $2,531
2 Newark $2,522
3 East Orange $2,495
4 Paterson $2,448
5 Passaic $2,395
6 Union City $2,378
7 Hoboken $2,377
8 Elizabeth $2,374
9 Jersey City $2,322
10 Kearny $2,289
11 Clifton $2,276
12 Bayonne $2,274
13 Linden $2,185
14 Camden $2,133
15 Perth Amboy $2,081
16 Fort Lee $2,060
17 Atlantic City $2,044
18 New Brunswick $1,932
19 Hackensack $1,921
20 Sayreville $1,920
21 Plainfield $1,898
22 Trenton $1,896
23 Vineland $1,842
24 Lakewood $1,800
25 Toms River $1,725
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Price information shown is comparative as vehicle location can modify auto insurance rates substantially.

Deciphering which company has the cheapest car insurance rates for 16 year olds will take a little more sweat in order to find the lowest price. Every car insurance company uses a little different formula for setting rates, so we’ll go over the most budget-friendly car insurance companies in Newark, NJ.

Keep in mind that Newark car insurance rates are impacted by many things that will increase or decrease the price you have to pay. Turning one year older, buying a home, or getting a ticket for careless driving can trigger price changes that may make certain companies more affordable than before.

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Cheapest New Jersey car insurance ranked by price
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,145
3 New Jersey Manufacturers $1,271
4 Palisades $1,354
5 Penn National $1,379
6 The Hartford $1,491
7 Allstate $1,493
8 California Casualty $1,495
9 USAA $1,600
10 Mercury $1,603
11 Amica $1,832
12 Progressive $1,881
13 Esurance $1,913
14 MetLife $1,951
15 State Farm $2,226
16 GEICO $2,240
17 Encompass $2,303
18 Liberty Mutual $3,008
19 Hanover $3,909
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21st Century normally has some of the cheapest car insurance rates in Newark at around $1,078 each year. Travelers, New Jersey Manufacturers, Palisades, and Penn National also rank well as some of the lowest-priced Newark, NJ car insurance companies.

As illustrated above, if you have coverage with Penn National and switched to Travelers, you could see a yearly savings of in the vicinity of $234. Insureds with The Hartford could save as much as $346 a year, and Allstate policyholders might reduce rates by $348 a year.

To see how much you can save, click here to get quotes or visit any of the companies below.

Be aware that those prices are averaged for all drivers and vehicles and and are not figured with a specific location for 16 year olds. So the auto insurance company that is best for you may not even be in the top 19 companies in the list above. That underscores the importance of why you need to get quotes using your own specific driver and vehicle information.

Ratings for New Jersey car insurance companies

Buying coverage from a highly-rated auto insurance company can be difficult considering how many different companies there are to choose from in Newark. The ranking information below can help you select which companies you want to consider comparing rates with. The rankings below include major nationwide insurance companies, so companies that focus mainly on New Jersey business are not factored into the list.

Top 10 Major Auto Insurers in Newark Ranked by A.M. Best Rating

  1. GEICO – A++
  2. Travelers – A++
  3. State Farm – A++
  4. USAA – A++
  5. Allstate – A+
  6. Nationwide – A+
  7. Mercury Insurance – A+
  8. Progressive – A+
  9. The Hartford – A+
  10. Esurance – A+

Top 10 Major Auto Insurers in Newark Ranked by Customer Satisfaction

  1. The Hartford – 93%
  2. Progressive – 90%
  3. 21st Century – 89%
  4. USAA – 87%
  5. Mercury Insurance – 87%
  6. State Farm – 87%
  7. Travelers – 87%
  8. Safeco Insurance – 86%
  9. AAA Insurance – 86%
  10. American Family – 85%

Types of discounts on Newark auto insurance rates

Car insurance for new drivers in Newark, NJCar insurance companies that provide coverage for 16 year olds may also give you premium discounts that can reduce rates by 25% or more if you can meet the requirements. A few of the larger companies and some of the premium reductions they offer are detailed below.

The illustration below shows the difference between insurance costs with and without discounts applied to the rates. The data is based on a female driver, no accidents or driving violations, New Jersey state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.

The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with passive restraint, continuous coverage, good student, anti-theft, vehicle safety, and paid-in-full discounts applied. With discounts applied, theaverage yearly reduction on car insurance for 16 year olds is 28% or $1,266.

The diagram below demonstrates how choosing different deductibles can increase or decrease premium costs when getting quotes for cheap insurance for 16 year olds. The costs are based on a married female driver, comp and collision included, and no additional discounts are factored in.

As shown above, a 30-year-old driver could cut expenses by $456 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $690 by choosing a $1,000 deductible. Young drivers, like the 20-year-old, can cut as much as $976 each year just by using higher deductibles. When choosing a higher deductible, it is essential to have plenty of discretionary funds to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

Why you should be shopping around

New Jersey car insurance rates are based on many factors that will increase or decrease the price you pay. Simply having another birthday, increasing liability limits, or having a fender bender can produce rate changes that can make some companies more affordable than others. Not only may your risk profile change, but car insurance companies file new New Jersey auto insurance rates at least once a year to adjust for gains or losses. Higher than normal claim frequency or severity can result in additional price hikes, while a lower level of claims may result in cheaper Newark car insurance rates.

The graph below shows a variety of companies that have the cheapest car insurance in Newark, NJ for a 45-year-old male driver with a clean driving record, no accidents, and a decent credit rating. If we estimate prices based on his current rating profile, 21st Century may offer the lowest car insurance rates in Newark at $1,607 annually. This is $245 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National also make the list of the most affordable Newark, NJ auto insurance companies.

The example below compares rates after we give the driver in the first chart a chargeable claim, poor credit, and a few traffic violations. Due to the fact that every insurance company uses a different method for establishing rates, getting updated rate quotes may now present a different ranking of the cheapest companies as shown below.

Allstate now has the lowest car insurance rate in Newark, NJ with California Casualty, USAA, Travelers, and Mercury also having competitive pricing. This example demonstrates why it is critical to perform an extensive rate comparison to get cheap auto insurance quotes for 16 year olds. Auto insurance prices are calculated by many different factors and can change without notice, so the best company when you last compared rates may now be one of the higher cost companies.

The insurance agents in Newark listed below can help you decide which car insurance policy is best, as many people would rather have a little guidance when buying car insurance for new drivers. It can be time-consuming to find the best rates on your own, so insurance agents licensed in the state of New Jersey can bring satisfaction knowing your policy gives you adequate protection.

To find a Newark insurance agent using an interactive map, click the link after the list or click here to compare price quotes.

More Newark, NJ insurance agents