What Insurance is Cheapest for Retired Military in Newark?

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You have most likely seen the captivating commercials from companies like Nationwide and Progressive that claim big savings. So you just need to pick the one with the catchiest commercial, right?

It's not that simple, unfortunately, as there are a ton of unknown elements like the vehicle you drive, if you have any driving citations, if you need full coverage or liability-only, and whether you are married or single, that all have an effect on the price. This article will detail the best ways to save on auto insurance and will give you a solid foundation to find cheaper car insurance.

For veterans, one of the more important components that are used to help calculate the cost of insurance is where your car is garaged in Newark. Areas with more people or higher crime rates tend to pay slightly more, whereas areas with less crime or weather claims have the benefit of cheaper auto insurance prices.

The table below rates the priciest cities in New Jersey for retired military to purchase a policy in. Newark makes the list at #1 with a yearly premium of $2,598 for the average policy, which is around $217 monthly.

How much does auto insurance cost in Newark?
Rank City Average Per Year
1 Newark $2,598
2 East Orange $2,571
3 Paterson $2,448
4 West New York $2,431
5 Union City $2,378
6 Elizabeth $2,374
7 Passaic $2,371
8 Kearny $2,335
9 Hoboken $2,283
10 Clifton $2,276
11 Bayonne $2,274
12 Jersey City $2,253
13 Perth Amboy $2,165
14 Linden $2,163
15 Camden $2,155
16 Atlantic City $2,086
17 Fort Lee $2,060
18 Hackensack $1,980
19 Trenton $1,974
20 Plainfield $1,918
21 New Brunswick $1,913
22 Sayreville $1,882
23 Vineland $1,842
24 Lakewood $1,819
25 Toms River $1,742
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Annual rates are estimated as the garaging address in Newark can modify price quotes noticeably.

Comparing rates for cheap auto insurance is not most people's favorite thing to do, and determining which insurers offer the cheapest auto insurance rates for retired military calls for more quotes for comparison. Each insurance company has a different process to establish rates, so we'll take a look at the lowest cost auto insurance companies in New Jersey.

It's important to understand that New Jersey auto insurance rates are impacted by many factors which can significantly increase or decrease the price you pay for coverage. Simply turning a year older, buying a newer car, or getting a ticket for careless driving may prompt premium changes that can cause some rates to be more expensive than competitors.

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Rankings for the cheapest New Jersey auto insurance companies
Rank Company Cost Per Year
1 21st Century $1,067
2 Travelers $1,145
3 New Jersey Manufacturers $1,310
4 Palisades $1,341
5 Penn National $1,379
6 California Casualty $1,451
7 The Hartford $1,491
8 Allstate $1,523
9 USAA $1,600
10 Mercury $1,603
11 Progressive $1,862
12 Amica $1,887
13 Esurance $1,894
14 MetLife $2,010
15 State Farm $2,160
16 GEICO $2,196
17 Encompass $2,374
18 Liberty Mutual $2,890
19 Hanover $3,869
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21st Century offers some of the cheapest car insurance rates in Newark at around $1,067 each year. Travelers, New Jersey Manufacturers, Palisades, and Penn National are also some of the more affordable Newark, NJ auto insurance companies.

As depicted above, if you currently have a policy with Palisades and switched to Travelers, you could earn a yearly price reduction of in the vicinity of $196. Insureds with Penn National may save as much as $234 a year, and California Casualty customers might cut rates by $306 a year.

If you want to see how much you could save, click here to get quotes or visit any of the low-priced companies below.

Be aware that those premiums are averages across all types of drivers and the different vehicles they drive and and are not calculated with an exact vehicle garaging location for retired military. So the insurer that can offer the best rates for your situation may not even be in the top 19 companies shown above. That affirms the importance of why you need to quote rates from many companies using your own driver information and specific vehicle type.

The type of vehicle you are trying to insure is probably the largest consideration when consumers are trying to find the most economical coverage for retired military. Vehicles with limited speed and performance, good crash test ratings, or a positive history of liability claims will cost quite a bit less to insure than fast, unsafe models. The list below illustrates insurance prices for a number of the most affordable vehicles to insure.

Cheapest Vehicles to Insure in Newark, NJ
Insured Vehicle Estimated Cost for Full Coverage
Ford Escape Limited 4WD $1,757
Toyota Tacoma 4WD $1,811
Honda CR-V EX-L 4WD $1,817
Honda Accord LX-P 4-Dr Sedan $1,828
Honda Odyssey EX $1,880
Chevrolet Silverado LS Extended Cab 4WD $1,914
Jeep Wrangler Unlimited Sport 4WD 4-Dr $1,969
Toyota Prius $1,977
Ford F-150 FX2 Super Cab 2WD $1,980
Nissan Rogue S 2WD $2,052
Chevrolet Malibu LTZ $2,055
Nissan Altima Hybrid 4-Dr Sedan $2,065
Chevrolet Equinox LTZ AWD $2,055
Chevrolet Impala LS $2,058
Dodge Ram Crew Cab TRX 2WD $2,089
GMC Sierra SL Extended Cab 2WD $2,098
Ford Explorer Limited 4WD $2,138
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Data rating is based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, safe-driver, multi-policy, multi-vehicle, and claim-free. Price estimates do not factor in specific location information which can affect auto insurance rates considerably.

Based upon the table data, we can assume that vehicles like the Ford Escape, Toyota Tacoma, and Honda CR-V are likely to be a few of the less-costly vehicles to insure for veterans.

Safe drivers pay cheaper rates

The best way to receive low auto insurance premiums in New Jersey for veterans is to be a safe driver and not receive tickets or have accidents. The illustration below highlights how traffic violations and at-fault fender-benders can raise insurance costs for each age group. Data assumes a single male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are taken into consideration.

In the example above, the average cost of an auto insurance policy per year with no accidents and a clean driving record is $3,012. Get two speeding tickets and the average cost jumps to $3,986, an increase of $974 each year. Now throw in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for retired military increases to an average of $7,815. That's an increase of $4,803, or $400 per month, just for not maintaining a clean driving record!

Best auto insurance in Newark

Ending up with the best car insurance provider can be difficult considering how many companies sell insurance in New Jersey. The ranking data displayed below may help you pick which insurers you want to consider when trying find the best insurance for retired military. The ratings below are only made up of large nationwide companies, so smaller regional companies are not factored into this list.

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

The diagram below shows how choosing a deductible can affect premium costs when researching cheap insurance for retired military. The data is based on a married female driver, full physical damage coverage, and no discounts are taken into consideration.

The chart above illustrates that a 50-year-old driver could lower their policy premium by $328 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $496 by switching to a $1,000 deductible. Youthful drivers, like the 20-year-old, could save up to $814 every year by choosing a higher deductible. If you do raise deductibles, it will be important to have enough in a savings account to enable you to pay the extra out-of-pocket expense, which is the one shortcoming of high deductibles.

Why are you paying too much for car insurance?

Newark, NJ auto insurance rates are determined by lots of factors that control the cost of having a policy. Simply having another birthday, buying a new vehicle, or getting a ticket for running a stop sign may generate price changes that may make certain companies more affordable than others. Also, auto insurance companies change premium rates every year or even multiple times each year to adjust for unexpected claims or profits. Heavy losses may cause price increases, while a better claims history may result in cheaper Newark car insurance rates.

As an example, the bar chart below demonstrates which company has the cheapest car insurance in Newark, NJ for a 30-year-old male driver with no accidents or violations, and a good credit history. Based on his current risk profile, 21st Century might offer the lowest car insurance rates in Newark at $1,576 a year. This is $276 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are also on the list of the best Newark, NJ auto insurance companies.

Let's now give the driver from the first rate comparison an at-fault accident, a lower credit rating, and a traffic citation. Since every car insurance company has a proprietary formula to set policy rates, analyzing rate quotes could now result in a different set of cheap Newark auto insurance companies as shown below.

California Casualty now has the lowest car insurance rate in Newark, NJ with Allstate, USAA, Mercury, and Travelers completing the list. This shows why consumers need to take the time to shop around when trying to find the best insurance rates for retired military. Car insurance prices are impacted by many different factors and change dramatically, so the cheapest company the last time you shopped around may now be quite expensive.