What Auto Insurance is Cheapest for Teenagers in Newark?

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One of the more important factors that help determine the amount you pay each year for auto insurance is where you live. Regions with more people or even just more weather-related claims likely pay more, whereas more rural areas tend to receive slightly lower rates.

The information below shows the most expensive places in New Jersey for teenagers in which to buy car insurance. Newark makes the list at #1 with the yearly price of $2,522 for coverage, which is about $210 per month.

How much does auto insurance cost in Newark?
Rank City Annual Premium
1 Newark $2,522
2 East Orange $2,521
3 West New York $2,456
4 Paterson $2,400
5 Hoboken $2,377
6 Elizabeth $2,374
7 Passaic $2,371
8 Clifton $2,368
9 Kearny $2,358
10 Union City $2,354
11 Jersey City $2,276
12 Bayonne $2,207
13 Camden $2,133
14 Fort Lee $2,123
15 Linden $2,099
16 Perth Amboy $2,081
17 Atlantic City $2,044
18 Trenton $1,954
19 Sayreville $1,939
20 New Brunswick $1,932
21 Hackensack $1,921
22 Plainfield $1,898
23 Lakewood $1,819
24 Vineland $1,806
25 Toms River $1,742
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Premium amounts are approximated as the specific area where the vehicle is garaged can lower or raise coverage prices considerably.

Finding out which companies have the best auto insurance rates for teenagers calls for a little more sweat in order to find the best policy.

Each auto insurer has a unique approach to determine premium rates, so let's examine the auto insurance companies with the overall best prices in Newark. It's important to know that Newark auto insurance rates are impacted by many factors that may substantially change the cost of a policy. Simply improving your credit, moving to a new city, or having an accident can trigger price changes resulting in some rates now being cheaper in comparison to the competition.

Best Auto Insurance Prices for Teens

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Rankings for the cheapest car insurance companies in New Jersey
Rank Company Cost Per Year
1 21st Century $1,100
2 Travelers $1,191
3 New Jersey Manufacturers $1,271
4 Penn National $1,325
5 Palisades $1,341
6 California Casualty $1,451
7 Allstate $1,478
8 The Hartford $1,536
9 Mercury $1,587
10 USAA $1,600
11 Amica $1,832
12 Esurance $1,838
13 Progressive $1,919
14 MetLife $1,932
15 State Farm $2,248
16 GEICO $2,262
17 Encompass $2,303
18 Liberty Mutual $3,008
19 Hanover $3,869
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21st Century may offer some of the most affordable car insurance rates in Newark at around $1,100 per year. This is $752 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also are some of the most economical Newark, NJ auto insurance companies.

In this example, if you are a customer of Palisades and switched to Travelers, you may realize a yearly price reduction of upwards of $150. New Jersey drivers with California Casualty could save as much as $260 a year, and Allstate insureds might realize rate reductions of up to $287 a year.

Be aware that those estimates are averaged across all types of drivers and the different vehicles they drive and are not factoring in an exact vehicle garaging location for teenagers. So the insurer that has the cheapest price for you may not even be in the top 19 companies shown above. That point stresses why you need to get rate quotes using your own driver data and vehicle information.

The vehicle on the policy is a large consideration in finding low-cost coverage for teenagers. Vehicles with lower acceleration and performance, excellent safety ratings, or low incidents of liability claims will cost quite a bit less to insure than high performance models. The next table presents car insurance costs for the cheaper vehicles to insure.

Cheapest Vehicles to Insure in Newark, NJ
Make, Model, and Trim Level Estimated Cost for Full Coverage
Hyundai Elantra GLS Touring Station Wagon $7,304
Honda CR-V EX 2WD $7,314
Honda Accord EX 4-Dr Sedan $7,304
Ford Escape XLS 2WD $7,312
Volkswagen Jetta S 2.5 Station Wagon $7,819
Toyota Prius $7,889
Ford Edge SE 2WD $8,143
Chevrolet Silverado LS Regular Cab 4WD $8,149
Ford F-150 XLT Regular Cab 4WD $8,213
Toyota Tacoma 4WD $8,222
Ford Focus S 4-Dr Sedan $8,589
Chevrolet Malibu LS $8,659
Chevrolet Equinox LT AWD $8,669
Jeep Grand Cherokee Laredo 2WD $8,659
Dodge Grand Caravan Hero $8,665
Toyota RAV4 4WD $8,659
Ford Explorer Eddie Bauer 4WD $8,728
Dodge Ram Quad Cab ST 2WD $8,942
Honda Civic LX 4-Dr Sedan $9,038
Chevrolet Impala LTZ $9,107
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific location information which can raise or lower rates noticeably.

Based on these rates, we can tell that vehicles like the Hyundai Elantra, Honda CR-V, Honda Accord, and Ford Escape are likely to be the less-costly vehicles to insure for teen drivers. The cost of a car insurance policy will trend higher because of the fact that there is more inherent risk for teenagers, but generally speaking those specific models will most likely have the cheapest car insurance rates compared to all other vehicles.

Best auto insurance company in New Jersey

Choosing the highest-rated auto insurance provider can be difficult considering how many companies sell insurance in Newark. The rank data in the next section may help you pick which car insurance companies you want to consider when shopping car insurance rates for teenagers.

The rankings below are for companies with a nationwide focus, so smaller companies are not included in this list. If you wish to compare rates and find the cheapest rates for teenagers, just click here.

Best 15 Auto Insurance Companies for Teenagers in New Jersey
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

Discounts on Newark insurance rates

Save on auto insurance for teen drivers in NewarkAuto insurance companies that offer coverage for teenagers may additionally offer premium discounts that may potentially lower prices by 35% or more if you qualify for them. Larger auto insurance companies and a partial list of their discounts are outlined below.

The illustration below illustrates the comparison of yearly insurance costs with and without discounts applied to the policy rates. The price estimates are based on a female driver, no claims or driving violations, New Jersey state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with paid-in-full, vehicle safety, paperless filing, passive restraint, anti-theft, and continuous coverage discounts applied. When drivers take advantage of discounts, theaverage amount saved on auto insurance for teenagers is 28% or $1,149.

The diagram below shows how choosing a deductible can increase or decrease insurance costs when trying to find cheap insurance for teenagers. The data assumes a married female driver, full physical damage coverage, and no discounts are factored in.

The data above shows that a 50-year-old driver could reduce rates by $456 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $690 by changing to a $1,000 deductible. Youthful drivers, like the Age 20 category, have the ability to save as much as $1,134 every year just by using higher deductibles.

If you do decide to increase your deductibles, it will be necessary to have additional funds squirreled away to be able to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.

Tips for finding cheaper car insurance for teenagers

The list below shows some of the recommended money-saving ideas that can help drivers locate cheap auto insurance.

The last tip is notably significant, as was emphasized in this article. Prices charged by car insurance companies can change considerably based on profitability, so don't hesitate to change insurance companies if you find a better deal. Many drivers tend to have loyalty to a certain company, but we do not recommend it if it's costing you a fortune every year. It takes less than five minutes to shop around to find cheaper auto insurance for teenagers in Newark.

The Newark car insurance agencies listed below can most likely help you make a decision which policy is best, as lots of people like to have the advice of a professional agent when comparing insurance rates for teen drivers. It can be complicated to find the best coverage on your own, so getting advice from a licensed New Jersey insurance agent can give peace of mind knowing you have enough coverage when you need it.

To locate a Newark insurance agent nearest to you, click the button after the list.

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