Who Has Affordable Auto Insurance for College Graduates in Newark?

I’m sure you’ve seen the catchy advertisements from companies like Allstate and Nationwide that claim big savings, so drivers should just pick the company with the best ad, right?

It’s just not that easy, however, as there are many unknown aspects such as if you own or rent your home, your age, and whether or not you have had gaps between policies, that all impact the cost of coverage. This article goes into detail about the best ways to avoid overpriced car insurance and educate you enough to have a good start to your coverage search.

One of the many considerations that are used to help calculate car insurance rates is where you live in Newark. Areas with a lot of weather claims or more people tend to pay slightly more, whereas more rural areas have the luxury of lower rates.

The information below lists the most costly cities in New Jersey for college graduates in which to buy car insurance. Newark makes the list at #2 with the annual price of $2,496 for the average policyholder, which is about $208 per month.

Car insurance prices in Newark
Rank City Average Per Year
1 West New York $2,506
2 Newark $2,496
3 East Orange $2,495
4 Elizabeth $2,446
5 Paterson $2,400
6 Union City $2,378
7 Passaic $2,371
8 Clifton $2,345
9 Kearny $2,335
10 Jersey City $2,322
11 Hoboken $2,307
12 Bayonne $2,251
13 Camden $2,155
14 Fort Lee $2,144
15 Perth Amboy $2,144
16 Linden $2,099
17 Atlantic City $2,044
18 Trenton $1,954
19 Hackensack $1,921
20 Plainfield $1,918
21 New Brunswick $1,913
22 Sayreville $1,882
23 Lakewood $1,874
24 Vineland $1,842
25 Toms River $1,725
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Premium amounts are approximated as the garaging address in Newark can affect premiums substantially.

Trying to buy cost effective car insurance is not easy, and figuring out which company quotes the cheapest auto insurance rates for college graduates involves even more rate comparisons. Each company uses a different method to establish rates, so let’s take a look at the auto insurance companies that tend to have lower prices in New Jersey.

Keep in mind that Newark, NJ auto insurance rates are impacted by many things that may substantially change the cost of having a policy. Taking a driver safety course, buying a different vehicle, or having an accident can trigger price changes resulting in some companies being more affordable than competitors.

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Cheapest New Jersey car insurance ranked by price
Rank Company Cost Per Year
1 21st Century $1,111
2 Travelers $1,156
3 New Jersey Manufacturers $1,258
4 Penn National $1,325
5 Palisades $1,341
6 The Hartford $1,476
7 California Casualty $1,481
8 Allstate $1,538
9 USAA $1,538
10 Mercury $1,603
11 Amica $1,832
12 Progressive $1,862
13 Esurance $1,913
14 MetLife $1,951
15 GEICO $2,174
16 State Farm $2,182
17 Encompass $2,374
18 Liberty Mutual $2,920
19 Hanover $3,909
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21st Century offers some of the cheapest car insurance rates in Newark at around $1,111 per year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also qualify as some of the cheapest Newark, NJ auto insurance companies.

As the example above demonstrates, if you currently buy coverage from Penn National and switched to Travelers, you may realize an annual premium reduction of approximately $169. Drivers with Palisades may save as much as $185 a year, and The Hartford insureds might reduce rates by $320 a year.

It’s important to note that these premium estimates are averaged across all types of drivers and the different vehicles they drive and are not factoring in an exact zip code location for college graduates. So the company that fits your situation best may not even be in the list above. That underscores the importance of why you need to get car insurance quotes using your own driver information and specific vehicle type.

The vehicle you are insuring is a significant factor when looking for cheaper car insurance for college graduates. Vehicles with higher performance, a lack of advanced safety features, or a track record of large liability claims will cost much more to insure than safer, lower-performance models.

The information below estimates auto insurance rates for a number of the most affordable automobiles to insure.

Cheapest Vehicles to Insure in Newark, NJ
Vehicle Make and Model Estimated Cost for Full Coverage
Honda CR-V EX-L 4WD $1,922
Honda Accord LX-P 4-Dr Sedan $1,937
Ford Escape Limited 2WD $1,987
Volkswagen Jetta 2.0T Station Wagon $2,010
Ford Explorer Eddie Bauer AWD $2,066
Dodge Ram Quad Cab ST 2WD $2,073
Ford Focus SES 4-Dr Sedan $2,099
Honda Odyssey EX-L W/Navigation $2,137
Toyota Prius $2,146
Ford Fusion SEL 4-Dr Sedan $2,176
GMC Sierra SLT Extended Cab 2WD $2,186
Jeep Grand Cherokee Limited 4WD $2,176
Ford Edge SEL 2WD $2,179
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Data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, safe-driver, claim-free, multi-policy, and multi-vehicle. Rate quotes do not factor in the specific area where the vehicle is garaged which can raise or lower premiums considerably.

Looking at the numbers, you can presume that vehicles like the Honda CR-V, Honda Accord, Ford Escape, and Volkswagen Jetta will be some of the most affordable vehicles to insure for college grads.

Discount Newark auto insurance rates

Cheaper Newark, NJ auto insurance for college gradsInsurers that sell policies for college graduates may also offer policy discounts that could potentially reduce rates by as much as 30% if you meet specific criteria. The best auto insurance companies and a partial list of their discounts are shown below.

The example below compares insurance rates with and without discounts applied to the premium. The data is based on a female driver, no accidents, no driving violations, New Jersey state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with accident-free, homeowner, passive restraint, marriage, claim-free, and defensive driving course discounts applied. When drivers take advantage of discounts, theaverage yearly reduction on auto insurance for college graduates is 28% or $661.

Should you buy full coverage?

Saving money when shopping for auto insurance is probably important to most drivers, and one good way to find cheap insurance for college graduates is to buy liability only. The information below visualizes the comparison of insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data is based on no claims or driving violations, $250 deductibles, single status, and no discounts are applied.

If the expense is averaged for all age categories, full coverage costs an additional $2,782 per year over and above liability coverage. At some point, about every driver wonders if paying for full coverage is worth it. There is no clear-cut formula to drop comp and collision coverage, but there is a guideline you can use. If the yearly cost of full coverage is more than around 10% of the settlement you would receive from your company, then it might be time to consider dropping full coverage.

There are some conditions where dropping physical damage coverage is not recommended. If you have an outstanding loan on your vehicle, you have to keep full coverage to protect the lienholder’s interest. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should keep full coverage.

Ending up with the best car insurance company can be difficult considering how many different companies there are to choose from in New Jersey. The ranking data displayed below may help you decide which coverage providers you want to consider when comparing rates.

These rankings are only made up of companies that write coverage in many states, so smaller companies will not be included in these rankings. If you wish to compare prices and find the cheapest rates for college graduates, follow this link.

Newark, NJ Auto Insurance Company Rankings
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Mercury Insurance 87 96 100 87% A+ 93.4
The Hartford 88 96 91 93% A+ 92.6
Progressive 84 94 99 90% A+ 92.4
Travelers 84 93 100 87% A++ 92.3
State Farm 84 93 95 87% A++ 91
Farmers Insurance 87 92 90 85% A 90.6
Safeco Insurance 85 91 87 86% A 88.4
USAA 71 93 98 87% A++ 88
GEICO 73 93 95 85% A++ 87.1
21st Century 85 85 91 89% A 86.9
Liberty Mutual 72 91 97 83% A 86.4
AAA Insurance 85 85 88 86% A 85.8
Nationwide 71 90 93 83% A+ 84.9
Allstate 69 92 92 83% A+ 84.4
American Family 77 96 80 85% A 83.8
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Data Source: Insure.com Best Car Insurance Companies

How to find the cheapest auto insurance for college graduates

It’s not impossible to find cheaper rates, and here are some of the better money-saving suggestions that can help New Jersey drivers quote cheap car insurance.

The last item on the list is incredibly necessary, as we pointed out in the prior information. Coverage rates in Newark go up and down frequently, so drivers shouldn’t be reluctant to buy from a new company if a lower price can be found. Many drivers have brand loyalty and that’s fine, but it isn’t a good idea if that devotion results in you overpaying money that could be going to better use. Take a couple minutes and compare rates and find cheaper car insurance for college graduates.

The Newark car insurance agencies listed below are willing to answer your questions and help you decide which coverages you need, since some drivers aren’t sure which coverage they need and prefer to have professional advice when shopping around for cheaper insurance for college grads. It can be challenging to find the best policy on your own, and professional agents can provide you satisfaction knowing your policy gives you adequate protection. To locate an agency closest to you, click the link after the list or click here to get price quotes now.

Massey Insurance
46 Lyons AveNewark, NJ 07112(973) 926-6300

Farmers Insurance – Christine Veliz
229 Bloomfield AveNewark, NJ 07104(973) 482-1975

Gary’s Insurance Agency Newark
1 Bloomfield AveNewark, NJ 07104(973) 483-3500

Goker and Associates Insurance Agency
121 Elizabeth Ave #101Newark, NJ 07108(908) 344-7577

Arabo Insurance Group Inc
675 Bergen StNewark, NJ 07108(973) 391-9595

More Newark, NJ insurance agents