Who Has Affordable Newark Auto Insurance for Low Credit Scores?

You have surely seen all the commercials from auto insurance companies like The General, Nationwide, and Progressive that guarantee enormous savings. So drivers should just choose one randomly, right?

It’s not that simple, unfortunately, as there are a ton of unknowns like if you have a lapse in coverage, the area where you live, and how high your deductibles should be. This article will cover the best ways to save on auto insurance and also should give you a good start in finding the cheapest car insurance in Newark.

The vehicle model you are seeking coverage for is one of the primary factors that determines whether or not you can buy the most affordable insurance for low credit scores. Vehicles with average performance, an excellent safety record, or a positive history of liability claims will cost substantially less to insure than fast, unsafe models.

The table below ranks auto insurance premiums for a number of the most cost-effective vehicles to buy insurance for.

Cheapest Vehicles to Insure in Newark, NJ
Make and Model Estimated Cost for Full Coverage
Honda Accord EX 4-Dr Sedan $1,751
Honda Odyssey LX $1,924
Honda CR-V EX-L 4WD $1,963
Dodge Grand Caravan SE $1,973
Ford Escape XLT 2WD $1,978
Ford Focus SE 4-Dr Sedan $2,034
Chevrolet Malibu LT $2,112
Ford Explorer XLT 4WD $2,148
Jeep Wrangler Rubicon 4WD 2-Dr $2,154
Hyundai Elantra GLS 4-Dr Sedan $2,186
Toyota Prius $2,189
Volkswagen Jetta 2.0T 4-Dr Sedan $2,225
Chevrolet Equinox LTZ 2WD $2,231
Ford F-350 XL Crew Cab 2WD $2,267
Jeep Grand Cherokee Laredo 2WD $2,273
Chevrolet Impala LS $2,285
Toyota RAV4 Limited 4WD $2,339
GMC Sierra SLE Regular Cab 2WD $2,349
Toyota Tacoma X-Runner 2WD $2,398
Nissan Rogue S AWD $2,431
Nissan Altima Hybrid 4-Dr Sedan $2,443
Ford F-150 Lariat King Ranch 2WD $2,449
GMC Sierra 2500HD SLE Crew Cab 4WD $2,443
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Data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, homeowner, multi-vehicle, multi-policy, and safe-driver. Prices do not factor in vehicle location which can lower or raise price quotes noticeably.

Based upon the table data, you can expect vehicles like the Honda Accord, Honda Odyssey, Honda CR-V, and Dodge Grand Caravan are most likely going to be a few of the cheaper vehicles to insure for bad credit.

For bad credit, one of the more important components that determine car insurance rates is the neighborhood you call home. Regions with more people or even just more weather-related claims tend to have higher rates, whereas areas with less congestion have the benefit of cheaper auto insurance prices.

The following table shows the most expensive places in New Jersey for low credit scores to buy an auto insurance policy in. Newark is ranked at #2 with the annual price of $2,496 for coverage, which is about $208 monthly.

How much is auto insurance in Newark, NJ?
Rank City Premium Per Year
1 East Orange $2,597
2 Newark $2,496
3 Paterson $2,472
4 Elizabeth $2,470
5 Union City $2,450
6 West New York $2,431
7 Passaic $2,371
8 Clifton $2,368
9 Kearny $2,358
10 Hoboken $2,353
11 Jersey City $2,345
12 Bayonne $2,274
13 Camden $2,199
14 Fort Lee $2,144
15 Perth Amboy $2,144
16 Linden $2,121
17 Atlantic City $2,024
18 Hackensack $1,999
19 Plainfield $1,956
20 Trenton $1,954
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Premium amounts are approximated as the specific geographic location can affect insurance rates substantially.

Locating low-priced car insurance is hard enough, and finding out which insurers offer the cheapest insurance rates for low credit scores takes more quotes for comparison. Each auto insurer has their own guidelines to set policy rates, so we need to take a look at the most competitive insurance companies in New Jersey.

It’s important that readers know that Newark, NJ insurance rates are based on many factors that will increase or decrease the price you pay for coverage. This is why Newark drivers need to compare many different companies when trying to find the most affordable insurance quotes for low credit scores. Insurance rates can be altered by many different factors and change dramatically, so the most economical company when you bought your policy may now be one of the more expensive options.

Cheap Insurance Rates in New Jersey

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Rankings for the cheapest New Jersey auto insurance companies
Rank Company Cost Per Year
1 21st Century $1,100
2 Travelers $1,145
3 New Jersey Manufacturers $1,271
4 Palisades $1,341
5 Penn National $1,379
6 California Casualty $1,437
7 The Hartford $1,491
8 Allstate $1,493
9 USAA $1,538
10 Mercury $1,635
11 Amica $1,813
12 Esurance $1,856
13 Progressive $1,862
14 MetLife $1,991
15 GEICO $2,174
16 State Farm $2,226
17 Encompass $2,397
18 Liberty Mutual $2,890
19 Hanover $3,987
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21st Century may offer some of the cheapest car insurance rates in Newark at around $1,100 per year. This is $752 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National also make the cut as some of the more affordable Newark, NJ insurance companies.

As the example above demonstrates, if you have coverage with Palisades and switched to Travelers, you may realize an annual savings of about $196. Policyholders with Penn National could save as much as $234 a year, and California Casualty policyholders might see rate reductions of $292 a year.

To see how much you can save, click here to start a quote or visit any of the low-priced companies below.

These policy prices are averaged across all insureds and vehicles and do not take into consideration an exact zip code location for low credit scores. So the company that has the lowest price for you may not even be in the top 19 companies shown above. That is why you need to get auto insurance quotes using your own individual information.

Drive responsibly or pay higher rates

One of the best ways to maintain affordable insurance rates in Newark for bad credit is to drive cautiously and avoid accidents and traffic violations. The chart below shows how speeding tickets and accident claims can affect insurance prices for different age groups of insureds. The rates are based on a married male driver, comp and collision included, $500 deductibles, and no discounts are applied to the premium.

In the previous chart, the average cost of auto insurance in Newark per year with no accidents or violations is $1,923. Receive one speeding ticket and the average cost surges to $2,211, an increase of $288 each year. Now get one accident along with the one speeding ticket and the annual cost of insurance for low credit scores goes up to an average of $3,010. That’s an increase of $1,087, or $91 per month, just for not driving responsibly!

The illustration below shows how choosing a deductible can influence insurance costs when researching cheap insurance for low credit scores. The premium estimates are based on a single female driver, full coverage, and no discounts are factored in.

The data above shows that a 30-year-old driver could pocket $436 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $658 by switching to a $1,000 deductible. Younger drivers, like the 20-year-old, could potentially save as much as $966 annually by choosing larger deductibles on their policy. When choosing a higher deductible, it will be required to have additional funds squirreled away to offset the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

Can you find cheaper Newark car insurance?

New Jersey insurance rates are influenced by many factors which can substantially decrease or increase the price of coverage. Simply having a birthday, getting divorced, or having a fender bender may cause policy rate changes resulting in some companies being more affordable than competitors. Not only may your risk profile change, but car insurance companies modify pricing as needed in order to maintain liquidity for claims. Heavier than normal losses can cause rate increases, while profitable underwriting can cause cheaper Newark car insurance rates.

For instance, the chart below demonstrates which company has the cheapest car insurance in Newark, NJ for a 45-year-old male driver with a clear driving record, no claims, and a decent credit rating. If we compare prices based on his current risk profile, 21st Century might offer the cheapest car insurance rates in Newark at $1,640 each year. This is $212 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are also on the list of the most affordable Newark, NJ auto insurance companies.

In the next rate comparison, we’ll give the driver in the first chart some claims, slightly worse credit, and a few blemishes on his driving record. Since every insurance provider uses a different method for setting rates, comparing insurance quotes could result in a completely different list of companies as shown below.

Allstate now has the cheapest car insurance in Newark with The Hartford, USAA, Mercury, and Travelers also being competitive. This example illustrates why it is critical to compare as many rates as possible to find the most economical insurance quotes for low credit scores.

Insurance rates are determined by many risk factors and can decrease or increase without notice, so the cheapest company six months ago may now be an over-priced policy.