The words “low-cost” and “insurance” probably shouldn’t be used in the same sentence, specifically when you are searching for the lowest insurance rates for active military. Because it’s not cheap, let’s lead off by showing you some of the factors that impact auto insurance premiums, and come up with some ideas to take the bite out of the next policy you buy.
Comparing rates for budget car insurance is tough enough, and deciding which companies offer the cheapest insurance rates for active military may require more quotes for comparison.
Each auto insurer has a unique approach to set their prices, so let’s begin by examining the most competitive insurance companies in Newark. Keep in mind that New Jersey insurance rates are calculated based on many things that may substantially change the price you have to pay for coverage. This price variability is why it is critical to compare many different companies when trying to find the lowest auto insurance quotes for active military. Insurance prices can be altered by many risk factors and change frequently, so the most affordable company a year ago may now be priced much higher than other options.
Best Cheap Insurance Rates for Military
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21st Century has some of the cheapest car insurance rates in Newark at around $1,067 each year. This is $785 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also qualify as some of the cheaper Newark, NJ auto insurance companies.
As the rates illustrate above, if you buy coverage from Penn National and switched to Travelers, you might achieve savings of about $223. Policyholders with Palisades might save as much as $226 a year, and The Hartford policyholders might see rate reductions of $335 a year.
Bear in mind that those policy rates are averages for all drivers and vehicles and are not factoring in an exact zip code location for active military. So the auto insurance company that has the cheapest rates for you may not even be in the top 19 companies in the list above. That is why you need to get rate quotes using your own personal information and vehicle type.
The make and model of vehicle you are trying to insure is one of the biggest factors when shopping around for economical car insurance for active military. Vehicles with limited top-end speed, modern passenger safety features, or low incidents of liability claims will cost substantially less to insure than fast, unsafe models. The table below ranks coverage costs for the cheaper vehicles to insure in New Jersey.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Toyota Prius | $1,908 |
| Dodge Grand Caravan CV | $1,935 |
| Ford Escape XLS 4WD | $1,974 |
| Honda Accord LX-P 4-Dr Sedan | $1,981 |
| Ford Edge Limited 2WD | $2,004 |
| Ford Focus SE 4-Dr Sedan | $2,011 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $2,114 |
| Hyundai Elantra GLS Touring Station Wagon | $2,117 |
| Honda CR-V LX 2WD | $2,123 |
| Honda Odyssey EX-L W/Rear Entertainment | $2,150 |
| Toyota Corolla LE | $2,155 |
| Toyota Camry SE | $2,150 |
| Chevrolet Impala LTZ | $2,160 |
| Hyundai Sonata GLS 4-Dr Sedan | $2,189 |
| Volkswagen Jetta SEL 4-Dr Sedan | $2,194 |
| Ford Explorer XLT AWD | $2,219 |
| Ford Fusion Sport AWD 4-Dr Sedan | $2,335 |
| Chevrolet Equinox LT AWD | $2,341 |
| Toyota Tacoma Double Cab 4WD | $2,350 |
| Dodge Ram 3500 Crew Cab SLT 2WD | $2,374 |
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Data based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-vehicle, and multi-policy. Price estimates do not factor in garaging location in Newark, NJ which can impact coverage rates substantially.
Looking at the numbers, you can see that models like the Toyota Prius, Dodge Grand Caravan, Ford Escape, and Honda Accord should be some of the less-costly vehicles to insure for military personnel.
One of the more important things that aid in calculating the annual cost of car insurance is where your residence is. Areas with high crime rates or more dense population tend to pay more, whereas areas with lower crime rates and fewer weather claims can boast about having cheaper rates.
The following table shows the most expensive areas in New Jersey for active military to buy auto insurance in. Newark is listed at #3 with a yearly premium of $2,496 on average, which is approximately $208 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | East Orange | $2,571 |
| 2 | West New York | $2,531 |
| 3 | Newark | $2,496 |
| 4 | Passaic | $2,395 |
| 5 | Union City | $2,378 |
| 6 | Paterson | $2,376 |
| 7 | Elizabeth | $2,374 |
| 8 | Clifton | $2,368 |
| 9 | Kearny | $2,335 |
| 10 | Hoboken | $2,283 |
| 11 | Bayonne | $2,274 |
| 12 | Jersey City | $2,253 |
| 13 | Linden | $2,163 |
| 14 | Camden | $2,155 |
| 15 | Fort Lee | $2,123 |
| 16 | Atlantic City | $2,106 |
| 17 | Perth Amboy | $2,102 |
| 18 | Hackensack | $1,999 |
| 19 | Trenton | $1,974 |
| 20 | Plainfield | $1,956 |
| 21 | New Brunswick | $1,932 |
| 22 | Sayreville | $1,920 |
| 23 | Lakewood | $1,855 |
| 24 | Vineland | $1,806 |
| 25 | Toms River | $1,691 |
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Information shown are estimated as the specific geographic location can change premium rates substantially.
Get discounts on Newark car insurance
Insurance providers that provide coverage for active military may also give you special discounts that could potentially reduce rates by as much as 35% or more if you qualify for them. Larger insurance companies and their offered discounts are shown below.
- GEICO policyholders can earn discounts including seat belt use, multi-policy, defensive driver, military active duty, and anti-theft.
- Travelers offers discounts for early quote, new car, IntelliDrive, good student, multi-car, and multi-policy.
- Nationwide includes discounts for family plan, multi-policy, anti-theft, business or organization, and defensive driving.
- Farmers Insurance may offer discounts for bundle discounts, teen driver, pay in full, electronic funds transfer, good student, alternative fuel, and early shopping.
- Esurance may include discounts for defensive driver, multi-car, good student, claim free, good driver, and Switch & Save.
- State Farm discounts include multiple policy, Drive Safe & Save, good student, driver’s education, passive restraint, accident-free, and anti-theft.
- Progressive offers premium reductions for good student, online quote discount, online signing, multi-vehicle, and multi-policy.
- Mercury Insurance has savings for multi-policy, low natural disaster claims, type of vehicle, location of vehicle, and accident-free.
The illustration below shows the comparison of insurance rates with and without policy discounts. The premiums are based on a male driver, no driving violations, no at-fault accidents, New Jersey state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with accident-free, homeowner, multiple vehicle, vehicle safety, passive restraint, and defensive driving course discounts applied. In this example, theamount saved on insurance for active military is 28% or $686.
Impact of speeding/accidents on insurance rates
The ideal way to earn the best insurance prices in New Jersey for military personnel is to drive safely and avoid tickets and accidents. The example below illustrates how traffic citations and at-fault collisions influence car insurance costs for different insured age categories. Data assumes a single male driver, full coverage, $500 deductibles, and no policy discounts are applied.
The data above shows the average cost of car insurance in Newark per year with no accidents or violations is $2,471. Add in two speeding tickets and the average cost swells to $3,274, an increase of $803 each year. Now get two accidents along with the two speeding tickets and the annual cost of insurance for active military goes up to an average of $6,270. That’s an increase of $3,799, or $317 per month, just for not driving safely!
What is the best insurance company in New Jersey?
Choosing the top car insurance provider is difficult considering how many companies are available to choose from in New Jersey. The ranking information displayed below can help you pick which companies you want to consider when comparing insurance rates for active military. These ratings include companies that insure vehicles across America, so smaller regional companies are not taken into consideration for these 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