Who Has Cheap Auto Insurance Rates for High Risk Drivers in Newark?

You have probably seen the commercials from auto insurance companies like Allstate, Liberty Mutual, and State Farm promising huge savings, so you should just pick one randomly, right?

It’s just not that simple, as there are a whole slew of unknown factors like what your desired deductibles are, the performance level of your vehicle, your credit history, and whether you want full coverage. Car insurance is kind of a dry topic, but this article will explain the best ways to maintain low rates and will hopefully give you a good start in finding the cheapest insurance.

Finding decent, reasonably-priced car insurance is hard enough, and determining which companies offer the cheapest car insurance rates for high risk drivers will involve a bit more work.

Each auto insurer has their own formula for filing rates in each state, so first let’s look at the rankings for the most competitive car insurance companies in Newark.

Best Auto Insurance Prices for Risky Drivers

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Cheapest insurance companies in New Jersey
Rank Company Cost Per Year
1 21st Century $1,111
2 Travelers $1,191
3 New Jersey Manufacturers $1,271
4 Palisades $1,354
5 Penn National $1,366
6 California Casualty $1,437
7 Allstate $1,478
8 The Hartford $1,536
9 USAA $1,538
10 Mercury $1,635
11 Amica $1,813
12 Esurance $1,856
13 Progressive $1,862
14 MetLife $2,010
15 State Farm $2,226
16 GEICO $2,262
17 Encompass $2,327
18 Liberty Mutual $2,920
19 Hanover $3,987
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21st Century may have some of the most affordable car insurance rates in Newark at around $1,111 per year. This is $741 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National would also be considered some of the more affordable Newark, NJ car insurance companies.

As shown in the table above, if you have coverage with Palisades and switched to Travelers, you could see a yearly price reduction of roughly $163. Drivers with Penn National may save as much as $175 a year, and California Casualty policyholders might cut rates by $246 a year.

To find out how your current rates compare, click here to start your custom quote or quote rates from the companies below.

Be aware that those policy rates are averages for all ages of drivers and types of vehicles and do not take into consideration an exact location for high risk drivers. So the car insurance company that has the lowest price for you may not even be in the top 19 companies shown above. That helps illustrate why you need to get quotes using your own driver information and specific vehicle type.

The car, truck, or SUV you are seeking coverage for is a large consideration that determines if you can find low-cost insurance for high risk drivers. Vehicles with limited top-end speed, excellent safety ratings, or low incidents of liability claims will cost substantially less to insure than fast, unsafe models. The next list shows coverage rates for a selection of the most cost-effective vehicles to insure in New Jersey.

Cheapest Vehicles to Insure in Newark, NJ
Vehicle Insured Estimated Cost for Full Coverage
Ford Escape XLS 2WD $5,878
Honda CR-V EX-L 4WD $6,202
Toyota Prius $6,330
Ford F-150 XLT Regular Cab 4WD $6,645
Jeep Wrangler Sahara 4WD 2-Dr $6,842
Ford Explorer XLT AWD $6,848
Jeep Grand Cherokee Laredo 2WD $6,964
Chevrolet Malibu LS $6,970
Ford Edge SEL 2WD $7,106
Honda Odyssey EX W/Rear Entertainment $7,164
Dodge Grand Caravan Hero $7,175
Toyota RAV4 2WD $7,180
Chevrolet Impala LT $7,175
Chevrolet Equinox LS 2WD $7,245
Dodge Ram Quad Cab ST 2WD $7,250
Toyota Camry SE $7,279
Toyota Tacoma Double Cab TRD Off-Road Package 4WD $7,323
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Cost estimates assume single male driver age 30, two speeding tickets, two at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, homeowner, and multi-policy. Premium amounts do not factor in specific location information which can modify auto insurance rates substantially.

Based on these rates, cars like the Ford Escape, Honda CR-V, Toyota Prius, and Ford F-150 are likely to be the cheaper vehicles to insure for high risk drivers. Rates will trend higher just because there is more claim risk for high risk drivers, but generally speaking those specific models will probably have the best insurance prices available.

For high risk drivers, one of the largest things that are looked at to determine car insurance rates is where you live. Regions with larger populations or more claims tend to have higher rates, whereas more rural areas tend to receive slightly lower rates.

The table below rates the most expensive places in New Jersey for high risk drivers to purchase a policy in. Newark is listed at #3 having an annual price of $2,496 for the average policy, which is around $208 each month.

Car insurance prices in Newark
Rank City Annual Rate
1 East Orange $2,571
2 West New York $2,506
3 Newark $2,496
4 Paterson $2,448
5 Union City $2,378
6 Elizabeth $2,374
7 Passaic $2,371
8 Clifton $2,368
9 Jersey City $2,345
10 Kearny $2,335
11 Hoboken $2,307
12 Bayonne $2,207
13 Linden $2,163
14 Camden $2,155
15 Atlantic City $2,106
16 Perth Amboy $2,081
17 Fort Lee $2,081
18 Plainfield $1,956
19 Hackensack $1,940
20 Sayreville $1,939
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Table data uses comparative as specific location information can raise or lower auto insurance rates significantly.

Drive responsibly or pay higher rates

One of the best ways to maintain the best car insurance prices in New Jersey for high risk drivers is to drive safe and not have accidents or get tickets. The illustration below demonstrates how traffic citations and at-fault claims can impact insurance prices for each different age group. The price estimates are based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are taken into consideration.

The data charted above shows the average cost of an auto insurance policy per year with no violations or accidents is $2,560. Add in one speeding ticket and the average cost jumps to $2,947, an increase of $387 each year. Then add in two accidents along with the one speeding ticket and the annual cost of car insurance for high risk drivers goes up to an average of $6,441. That’s an increase of $3,881, or $323 per month, just for not being a responsible driver!

Selecting a high-quality auto insurance provider can be rather challenging considering how many companies there are to choose from in Newark. The company ratings displayed below could help you analyze which coverage providers you want to consider when buying insurance for high risk drivers.

The rankings below include large insurance companies, so companies that have a smaller presence are not included in these rankings. If you’d like to compare prices from the insurers below and more, simply click here.

Top 15 Car Insurance Companies for High Risk Drivers in Newark, NJ
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 example below illustrates how your deductible choice can change premium costs when searching for cheap insurance for high risk drivers. The prices are based on a married female driver, comprehensive and collision coverage, and no other discounts are factored in.

The chart above illustrates that a 40-year-old driver could pocket $444 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $666 by selecting a $1,000 deductible. Even younger drivers, such as the 20-year-old chart data, could lower their rates up to $1,098 each year by using a higher deductible.

If you make the decision to raise deductibles, it is necessary to have additional savings on hand to allow you to cover the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.