How Much is Car Insurance for Low Mileage Drivers in Newark?

See How Much You Could Save

You have probably watched the ads from car insurance companies like Nationwide, The General, and GEICO claiming the cheapest rates, so you should just pick the one with the best commercial, right?

Unfortunately, it's not that simple as there are a whole bunch of unknowns such as when you were born, what coverage limits you need, and your financial responsibility. This article will cover the different scenarios that increase car insurance cost and hopefully give you enough understanding to have a good beginning to your search for cheaper coverage.

The make and model of vehicle you are buying coverage for is one of the primary factors when comparison shopping for cheap coverage for low mileage drivers. Vehicles with lower acceleration and performance, good crash test ratings, or a track record of few liability claims will cost substantially less to insure than higher performance models.

The table below ranks auto insurance premiums for a number of the most affordable automobiles to buy insurance for.

Cheapest Vehicles to Insure in Newark, NJ
Vehicle Insured Estimated Cost for Full Coverage
Ford Escape Limited 4WD $2,061
Hyundai Elantra SE Touring Station Wagon $2,069
Ford Edge SE 2WD $2,083
Ford F-150 XL Regular Cab 4WD $2,123
Honda CR-V EX 2WD $2,142
Chevrolet Malibu Hybrid $2,244
Chevrolet Equinox LT AWD $2,254
Honda Accord EX-L 4-Dr Sedan $2,312
Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr $2,322
Ford Explorer XLT 2WD $2,325
Toyota Camry SE $2,365
Toyota Prius $2,368
Hyundai Sonata GLS 4-Dr Sedan $2,406
Nissan Rogue SL 2WD $2,412
Chevrolet Impala LS $2,412
Dodge Grand Caravan SXT $2,508
Toyota RAV4 Limited 4WD $2,530
Volkswagen Jetta LE 4-Dr Sedan $2,535
GMC Sierra SL Extended Cab 2WD $2,530
Kia Optima EX $2,570
Toyota Tacoma Double Cab TRD Sport Package 4WD $2,586
Nissan Altima 2.5 S 4-Dr Sedan $2,595
Honda Odyssey EX-L W/Navigation $2,600
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Table data represents single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, homeowner, multi-vehicle, safe-driver, and multi-policy. Premium costs do not factor in specific zip code location which can lower or raise auto insurance rates substantially.

Based upon the table data, you can see that vehicles like the Ford Escape, Hyundai Elantra, and Ford Edge are likely to be some of the most affordable vehicles to insure for infrequent drivers.

Deciding which company quotes the lowest-priced insurance rates for low mileage drivers may require a bit more work in order to find a policy that fits your budget. Each auto insurance company uses their own method for establishing rates, so to begin we'll rank the insurance companies that tend to have lower prices in New Jersey.

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Cheapest New Jersey car insurance ranked by price
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,180
3 New Jersey Manufacturers $1,297
4 Penn National $1,325
5 Palisades $1,395
6 The Hartford $1,476
7 Allstate $1,478
8 California Casualty $1,495
9 USAA $1,600
10 Mercury $1,651
11 Amica $1,869
12 Esurance $1,894
13 MetLife $1,932
14 Progressive $1,938
15 State Farm $2,226
16 GEICO $2,240
17 Encompass $2,303
18 Liberty Mutual $2,890
19 Hanover $3,869
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21st Century quotes some of the cheapest car insurance rates in Newark at around $1,078 annually. This is $774 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the most economical Newark, NJ car insurance companies.

In the above example, if you are a customer of Penn National and switched to 21st Century, you might realize an annual premium reduction of in the vicinity of $247. Policyholders with Palisades could save as much as $317 a year, and The Hartford customers might reduce prices by as much as $398 a year.

To find out how your current rates compare, click here to begin a quote or click several companies below for low rates.

These premiums are averaged for all types of drivers and the different vehicles they drive and do not take into consideration a specific vehicle garaging location for low mileage drivers. So the auto insurance company that can offer you the best price may not even be in the top 19 companies in the list above. That point stresses why you need to get car insurance quotes using your own driver data and vehicle information.

Does full coverage make sense?

Paying a lower price for insurance is the goal of most drivers, and a good way to find cheap insurance for low mileage drivers is to not insure for full coverage. The illustration below illustrates the difference between auto insurance rates with liability coverage only compared to full coverage. The price estimates are based on no claims or driving citations, $1,000 deductibles, single status, and no additional discounts are factored in.

If the expense is averaged for all age categories, full coverage on your policy costs an additional $2,010 per year more than just insuring for liability. Many people question if it's a good idea to buy full coverage. There is no exact rule to exclude comprehensive and collision coverage on your policy, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of replacement cost minus your deductible, then you may want to consider only buying liability coverage.

For example, let's say your vehicle's claim settlement value is $12,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $11,000 after the deductible is paid. If you are paying in excess of $1,100 annually for your policy with full coverage, then it might be time to buy liability only.

There are some conditions where removing full coverage is not advised. If you still owe a portion of the original loan, you have to keep full coverage in order to keep the loan. Also, if you can't afford to buy a different vehicle in the even your car is totaled, you should not remove full coverage.

The information below highlights how deductible choice can change insurance prices when searching for cheap insurance for low mileage drivers. The premiums are based on a single female driver, comprehensive and collision coverage, and no discounts are taken into consideration.

In the chart above, a 40-year-old driver could cut expenses by $382 a year by increasing from a $100 deductible up to a $500 deductible, or save $576 by choosing a $1,000 deductible. Even younger drivers, like the Age 20 category, could potentially save up to $966 annually just by using higher deductibles.

If you do raise deductibles, it will be important to have additional savings on hand to pay the extra out-of-pocket expense, which deters some people from using high deductibles.

Can you find cheaper Newark car insurance?

Newark insurance rates are based on many factors which can significantly increase or decrease the cost of your policy. Simply improving your credit, adding a teenager to your policy, or having a fender bender can produce rate changes that may make certain companies more affordable than others.

Not only may your risk profile change, but car insurance companies amend premium rates without warning to adjust for heavy claims or excess profits. A period of higher than normal claims may cause increased rates, while a lower level of claims can cause lower-cost Newark car insurance rates.

To illustrate this point, the graph below shows which company has the cheapest car insurance in Newark, NJ for a 35-year-old female driver with a clean driving record, no accidents, and a good credit rating. If we look at prices based on her personal profile, 21st Century might quote the most affordable car insurance rates in Newark at $1,724 per year. This is $128 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the remainder of the cheapest Newark, NJ auto insurance companies.

Let's now give the driver from the first rate comparison a claim, a lower credit rating, and a blemish on her driving record. Due to the fact that every auto insurer has a proprietary formula to set their prices, comparing prices may result in a completely different list of companies as shown below.

The Hartford now has the lowest price in Newark, NJ with USAA, Allstate, Mercury, and Travelers also having competitive pricing. This example illustrates why it is important to shop around with many companies when trying to get cheap insurance quotes for low mileage drivers. Car insurance prices are made up of many factors and can change without notice, so the best price when you last compared rates may now be an over-priced policy.

The Newark, NJ, insurance agents below can help you decide which car insurance policy is best, as some drivers aren't sure which coverage they need and prefer to get some help when comparing insurance rates for infrequent drivers. It can be challenging to do it yourself, and agents can provide peace of mind knowing you have adequate coverage if you have an accident or claim.

To locate a Newark insurance agent in your neighborhood, click the button after the list.

Gary's Insurance Agency Newark
1 Bloomfield Ave - Newark, NJ 07104 - (973) 483-3500

Morais Insurance Agency, Inc.
217 Ferry St - Newark, NJ 07105 - (973) 344-2000

Te Freuler
274 Chestnut St - Newark, NJ 07105 - (973) 274-0500

View map of Newark, NJ insurance agents

How to find low-cost car insurance for low mileage drivers

It is possible to find better rates, and here are some money-saving solutions that can help Newark drivers get cheaper coverage.

That final tip is extraordinarily crucial, as we discussed in this write-up. Coverage rates in Newark change a lot, so you should be ready to change to a new company if you can save money.

Brand loyalty is not necessarily bad, but it's not a good idea if your bullheadedness ends up costing you big bucks every year. Now is a great time to compare prices to find cheaper car insurance for low mileage drivers.