What is the Best Cheap Auto Insurance in Newark, New Jersey?

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For drivers in Newark, one of the more important considerations that are used to help calculate the price you pay for insurance is your zip code in Newark. Larger areas will most likely pay more, whereas less populated areas tend to receive cheaper rates.

The illustration below sorts the most expensive areas in New Jersey to buy an auto insurance policy in. Newark makes the list at #3 with an annual cost of $2,522 for car insurance, which is around $210 each month.

How much is car insurance in Newark?
Rank City Annual Rate
1 East Orange $2,571
2 West New York $2,531
3 Newark $2,522
4 Paterson $2,448
5 Elizabeth $2,446
6 Union City $2,426
7 Clifton $2,345
8 Kearny $2,335
9 Passaic $2,301
10 Hoboken $2,283
11 Jersey City $2,276
12 Bayonne $2,251
13 Linden $2,185
14 Perth Amboy $2,144
15 Camden $2,133
16 Atlantic City $2,106
17 Fort Lee $2,081
18 New Brunswick $1,932
19 Hackensack $1,921
20 Sayreville $1,920
21 Plainfield $1,918
22 Trenton $1,896
23 Lakewood $1,874
24 Vineland $1,788
25 Toms River $1,674
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Table data uses approximated as vehicle location can influence premium rates substantially.

Seeing where Newark ranks compared to other cities, buying low-cost car insurance is easier said than done, and figuring out which company quotes the best car insurance rates in Newark will take even more perseverance. Each auto insurer uses slightly different criteria for filing rates in each state, so let's begin by taking a look at the car insurance companies that tend to have lower prices in Newark, NJ.

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New Jersey auto insurance company rankings
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,156
3 New Jersey Manufacturers $1,310
4 Penn National $1,338
5 Palisades $1,382
6 The Hartford $1,491
7 California Casualty $1,495
8 Allstate $1,523
9 USAA $1,585
10 Mercury $1,587
11 Amica $1,813
12 Esurance $1,838
13 MetLife $1,932
14 Progressive $1,938
15 State Farm $2,160
16 GEICO $2,262
17 Encompass $2,374
18 Liberty Mutual $3,008
19 Hanover $3,909
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21st Century may offer some of the cheapest car insurance rates in Newark at around $1,078 annually. Travelers, New Jersey Manufacturers, Penn National, and Palisades also rank well as some of the more affordable Newark, NJ car insurance companies.

As depicted above, if you have coverage with Penn National and switched to 21st Century, you might achieve a yearly price reduction of approximately $260. Drivers with Palisades could save as much as $304 a year, and The Hartford policyholders might reduce rates by $413 a year.

To see if you're overpaying, click here to start your free quote or quote rates from the companies below.

These premium estimates are averaged across all types of insureds and vehicles and do not factor in a specific location in Newark. So the insurer that fits your age and vehicle best may not even be in the top 19 companies shown above. That illustrates why you need to quote rates from many companies using your own personalized driver profile and vehicle information.

The car, truck, or SUV that needs insurance is one of the largest considerations when shopping for cheaper coverage in Newark. Vehicles with more horsepower, poor crash test ratings, or high incidents of liability claims will cost more to insure than safer, lower-performance models. The table below illustrates car insurance prices for the most economical automobiles to insure in New Jersey.

Cheapest Vehicles to Insure in Newark, NJ
Vehicle Estimated Cost for Full Coverage
Ford Escape XLS 4WD $1,433
Honda Accord LX 4-Dr Sedan $1,561
Hyundai Elantra GLS Touring Station Wagon $1,566
Honda CR-V EX-L 2WD $1,646
Ford Edge Limited 2WD $1,661
Toyota RAV4 Limited 2WD $1,696
Chevrolet Silverado LT Extended Cab 4WD $1,702
Ford F-150 STX Super Cab 2WD $1,711
Honda Civic VP 4-Dr Sedan $1,749
Toyota Corolla LE $1,784
Chevrolet Impala LTZ $1,792
Toyota Prius $1,795
Nissan Rogue SL 2WD $1,816
Volkswagen Jetta 2.0T 4-Dr Sedan $1,819
Ford Fusion Sport 4-Dr Sedan $1,827
GMC Sierra SLT Extended Cab 4WD $1,819
Jeep Wrangler Unlimited Sport 2WD 4-Dr $1,886
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Prices above based on married male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, multi-vehicle, claim-free, safe-driver, and multi-policy. Rates do not factor in specific Newark, NJ garaging location which can decrease or increase rates substantially.

Based upon the rates shown, we can tell that models like the Ford Escape, Honda Accord, and Hyundai Elantra should be a few of the most budget-friendly vehicles to insure for drivers in Newark.

Comparison of full coverage and liability-only policies

Saving on car insurance is probably important to most vehicle owners, and one of the easiest ways to pay lower rates for insurance in Newark is to buy only liability coverage. The example below illustrates the comparison of insurance rates with full coverage and liability only. The premiums are based on no accidents, no driving violations, $250 deductibles, drivers are not married, and no policy discounts are applied.

As an average for all age groups, physical damage coverage costs an extra $3,363 per year more than carrying just liability coverage. At some point, every insured wonders when is the right time to remove full coverage. There is no set guideline of when to stop paying for physical damage coverage on your policy, but there is a broad guideline. If the yearly cost of comp and collision coverage is more than 10% of the vehicle's replacement cost less your deductible, then you might want to consider buying only liability coverage.

The example below illustrates how choosing a deductible can impact insurance costs when searching for cheap insurance in Newark. The costs are based on a single male driver, comprehensive and collision coverage, and no discounts are applied.

The chart above illustrates that a 40-year-old driver could lower their car insurance rates by $396 a year by increasing from a $100 deductible up to a $500 deductible, or save $594 by switching to a $1,000 deductible. Even younger insureds, like the 20-year-old, could drop their prices as much as $1,296 every year by selecting a higher deductible. When increasing deductibles, it's a good idea to have plenty of savings on hand to enable you to pay the extra out-of-pocket expense. That is the one drawback of using higher deductibles.

Here's why you should shop around

New Jersey car insurance rates are based on many factors that can increase the policy price. Simply having another birthday, marrying your spouse, or getting a speeding ticket may cause policy rate changes that can cause some rates to be more affordable than before. Not only may your risk profile change, but insurance companies change prices as often as every three months to ensure their profitability. An unexpected high level of claims may result in rate increases, while a lower level of claims can produce cheaper Newark car insurance rates.

The chart below shows which companies have the cheapest car insurance in Newark, NJ for a 30-year-old female driver with a good driving record, no prior claims, and a decent credit rating. If we estimate rates based on her current rating profile, 21st Century might quote the cheapest car insurance rates in Newark at $1,608 a year. This is $244 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National are the remaining most affordable Newark, NJ auto insurance companies.

Now let's give the driver in the first example some claims, a little lower credit rating, and a blemish on her driving record. Due to the fact that every insurance company uses their own method for determining rates, comparing prices may now result in a significantly different list of cheap Newark auto insurance companies as shown below.

Allstate now has the lowest car insurance rate in Newark, NJ with The Hartford, USAA, Mercury, and Travelers now being in the top five. This shows why it is important to spend some time comparing rates to get the lowest car insurance rates in Newark.

Car insurance prices are determined by many factors and change frequently, so the lowest-price company when you bought your policy may now be priced much higher than other options.

If you prefer to get some help when trying to find lower insurance rates for drivers in Newark, the agents shown below can help you determine which policy fits your needs best.

To find an auto insurance agency nearest to you, click the button following the list.

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Tips for finding cheaper insurance in Newark

Lowering your rates is not difficult, and here are some money-saving suggestions that can help New Jersey drivers get lower-cost coverage.

The last tip is remarkably important, as was discussed in this article. Prices change frequently, so don't hesitate to buy a different policy if a lower price can be found.

Being loyal to a particular company is commendable, but it isn't a good idea if that devotion results in you overpaying a considerable chunk of change every month. It only take a few minutes to compare prices to find cheaper auto insurance in Newark in Newark.