Finding cheap car insurance is not most people’s favorite thing to do, and figuring out which companies quote the cheapest insurance rates for good students requires additional perseverance. Every auto insurer has a different process for determining rates, so first we will examine the insurance companies with the overall cheapest rates in Newark.
It’s important to understand that Newark insurance rates are determined by lots of factors that may substantially change the policy price. Price variation is why it is critical to shop around with many companies to find the cheapest insurance quotes for good students. Insurance rates are determined by many risk factors and change substantially, so the cheapest company six months ago may now be wasting a lot of money.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,145 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,395 |
| 6 | California Casualty | $1,451 |
| 7 | The Hartford | $1,476 |
| 8 | Allstate | $1,478 |
| 9 | Mercury | $1,587 |
| 10 | USAA | $1,600 |
| 11 | Amica | $1,832 |
| 12 | Esurance | $1,838 |
| 13 | Progressive | $1,881 |
| 14 | MetLife | $1,951 |
| 15 | GEICO | $2,240 |
| 16 | State Farm | $2,248 |
| 17 | Encompass | $2,397 |
| 18 | Liberty Mutual | $3,008 |
| 19 | Hanover | $3,869 |
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21st Century offers some of the cheapest car insurance rates in Newark at around $1,067 annually. This is $785 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 cheaper Newark, NJ car insurance companies.
As shown above, if you currently have a policy with Penn National and switched to 21st Century, you could see yearly savings of roughly $258. Policyholders with Palisades could save as much as $328 a year, and California Casualty insureds might reduce rates by $384 a year.
Remember that these estimates are averaged across all drivers and vehicles and and are not figured with an exact zip code location for good students. So the insurer that is best for you may not even be in the list above. That helps illustrate why you need to get quotes using your own personalized driver profile and vehicle information.
The make and model of vehicle on the policy is probably the biggest factor when quoting cheaper coverage for good students. Vehicles with high performance, poor passenger safety features, or a history of substantial liability claims will cost much more to insure than safer, lower-performance models.
The next table illustrates car insurance rates for the most affordable automobiles to insure in New Jersey.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $6,653 |
| Honda Accord LX-P 4-Dr Sedan | $6,659 |
| Ford Escape XLT 2WD | $6,653 |
| Volkswagen Jetta S 2.5 Station Wagon | $7,157 |
| Toyota Prius | $7,226 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $7,388 |
| Ford Explorer XLT 4WD | $7,458 |
| Ford Edge Limited 2WD | $7,822 |
| Chevrolet Impala LT | $7,892 |
| Chevrolet Malibu LS | $7,899 |
| Toyota RAV4 2WD | $7,892 |
| Jeep Grand Cherokee Laredo 4WD | $7,900 |
| Ford F-150 FX4 4WD | $7,961 |
| Dodge Grand Caravan Crew | $7,966 |
| Hyundai Elantra Blue 4-Dr Sedan | $8,256 |
| Toyota Tacoma X-Runner 2WD | $8,326 |
| Nissan Altima 2.5 S 4-Dr Sedan | $8,333 |
| Toyota Camry SE | $8,326 |
| Toyota Corolla LE | $8,334 |
| Chevrolet Silverado LT Crew Cab 4WD | $8,395 |
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Table data assumes single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in garaging location in Newark, NJ which can alter coverage rates considerably.
Based on these rates, vehicles like the Honda CR-V, Honda Accord, Ford Escape, and Volkswagen Jetta are the more affordable vehicles to insure for student drivers.
For student drivers, one of the more important considerations that help determine the amount you pay for auto insurance is the neighborhood you call home. Regions with larger populations or more claims likely pay more, whereas more rural areas benefit from having to pay less for coverage.
The next table rates the most expensive areas in New Jersey for good students to buy auto insurance in. Newark shows up at #1 with an annual rate of $2,598 for the average policyholder, which is around $217 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Newark | $2,598 |
| 2 | East Orange | $2,521 |
| 3 | West New York | $2,506 |
| 4 | Paterson | $2,400 |
| 5 | Elizabeth | $2,398 |
| 6 | Union City | $2,378 |
| 7 | Hoboken | $2,353 |
| 8 | Jersey City | $2,322 |
| 9 | Passaic | $2,301 |
| 10 | Clifton | $2,299 |
| 11 | Kearny | $2,289 |
| 12 | Bayonne | $2,274 |
| 13 | Camden | $2,221 |
| 14 | Linden | $2,185 |
| 15 | Perth Amboy | $2,081 |
| 16 | Fort Lee | $2,060 |
| 17 | Atlantic City | $2,044 |
| 18 | Trenton | $1,954 |
| 19 | Hackensack | $1,940 |
| 20 | Plainfield | $1,918 |
| 21 | Sayreville | $1,882 |
| 22 | Vineland | $1,860 |
| 23 | New Brunswick | $1,856 |
| 24 | Lakewood | $1,800 |
| 25 | Toms River | $1,674 |
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Table data uses comparative as the specific area where the vehicle is garaged can change premiums greatly.
Picking the best insurer is hard considering how many choices there are in Newark. The company rank data in the next section may help you decide which car insurance providers to look at shopping prices with.
These ratings are only made up of insurance companies that insure vehicles in the majority of U.S. states, so companies that only write business in New Jersey or surrounding areas are not taken into consideration for this list. If you wish to compare rates from these and other top-rated companies, follow this link.
| 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
Driving violations and accidents
The easiest method to obtain affordable insurance rates in Newark for student drivers is to drive cautiously and avoid accidents and keep your driving record clean. The information below illustrates how traffic citations and at-fault fender-benders increase premium costs for different age groups. The data assumes a single male driver, full coverage, $100 deductibles, and no discounts are taken into consideration.
The data above shows the average cost of auto insurance per year with no accidents and a clean driving record is $2,745. Receive two speeding tickets and the average cost rises to $3,646, an increase of $901 each year. Then include one accident along with the two speeding tickets and the 12-month cost of insurance for good students jumps again to an average of $4,547. That’s an increase of $1,802, or $150 per month, just for being a little careless behind the wheel!
Get discounts on Newark insurance
Car insurance companies that offer coverage for good students may also give you discounts that may potentially lower prices by as much as 30% if you meet eligibility requirements. A few popular companies and some of the premium reductions they offer are included below.
- American Family offers discounts including bundled insurance, Steer into Savings, good student, TimeAway discount, defensive driver, air bags, and accident-free.
- State Farm includes discounts for safe vehicle, multiple autos, driver’s education, passive restraint, and multiple policy.
- 21st Century has savings for theft prevention, homeowners, student driver, automatic seat belts, 55 and older, and air bags.
- Travelers policyholders can earn discounts including save driver, continuous insurance, early quote, good student, and payment discounts.
- GEICO may offer discounts for anti-theft, good student, multi-policy, anti-lock brakes, emergency military deployment, air bags, and defensive driver.
The diagram below shows the difference between auto insurance rates with and without discounts applied to the rates. The information is based on a male driver, no tickets, no at-fault accidents, New Jersey state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with anti-theft, paid-in-full, vehicle safety, continuous coverage, passive restraint, and paperless filing discounts applied. In this example, theaverage amount saved on insurance for good students is 28% or $1,078.
Why you should be comparing rates
New Jersey insurance rates are impacted by many factors which can substantially decrease or increase the price of your policy. Simply having a birthday, buying a different home, or getting into an accident may cause policy rate changes that can now make some companies more affordable than the competition. In addition to those changes, insurance companies file new rates without warning in order to be able to pay unexpected claims. Higher than normal claims may result in increased policy costs, while better underwriting can cause lower-cost Newark car insurance rates.
To illustrate this example, the data below shows the cheapest car insurance in Newark, NJ for a 35-year-old male driver with no accidents, a clean driving record, and a good credit rating. Based on his current rating profile, 21st Century might quote the lowest car insurance rates in Newark at $1,607 each year. This is $245 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the rest of the cheapest Newark, NJ auto insurance companies.
The chart below compares rates after we give the driver in the first example a claim surcharge, poor credit, and a couple of points charged on his driving record. Because each company has a unique formula to set policy rates, analyzing rate quotes may now show a slightly different list of affordable companies as shown below.
Allstate now has the cheapest car insurance in Newark, NJ with The Hartford, USAA, Travelers, and Mercury also having competitive pricing. This example demonstrates why consumers need to compare lots of rates when trying to find the cheapest car insurance quotes for good students. Insurance prices are determined by many different factors and can change without notice, so the best company six months ago may now be one of the more expensive options.