For people who own their homes, one of the big factors that are looked at to determine auto insurance rates is your address. More densely populated places are more likely to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of lower rates.
The information below rates the most expensive areas in New Jersey for homeowners to buy car insurance in. Newark makes the list at #1 with a yearly cost of $2,522 for the average policyholder, which is about $210 monthly.
|2||West New York||$2,506|
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Rates are approximated as the specific area where the vehicle is garaged can change premium rates significantly.
The vehicle model requiring coverage is one of the largest considerations when comparing the best insurance for homeowners. Vehicles with reasonable performance levels, advanced safety features, or a positive history of liability claims will cost much less to insure than high performance models.
The table below illustrates coverage costs for a number of the more affordable vehicles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$1,527|
|Hyundai Elantra SE Touring Station Wagon||$1,616|
|Honda CR-V EX 2WD||$1,670|
|Honda Accord LX 4-Dr Sedan||$1,676|
|Ford Focus SE 4-Dr Sedan||$1,727|
|Chevrolet Equinox LS AWD||$1,762|
|Ford F-150 STX Super Cab 2WD||$1,780|
|Toyota Corolla S||$1,855|
|Ford Edge Limited AWD||$1,865|
|Toyota Tacoma 4WD||$1,875|
|Dodge Ram Crew Cab ST 2WD||$1,923|
|Toyota Camry LE||$1,930|
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Table data represents married male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, safe-driver, homeowner, claim-free, and multi-policy. Prices do not factor in your specific Newark, NJ location which can revise premium rates substantially.
Based upon the table data, we can conclude that makes and models like the Ford Escape, Hyundai Elantra, Honda CR-V, Honda Accord, and Ford Focus are likely to be some of the more affordable vehicles to insure for people who own their homes.
Trying to find reasonably-priced auto insurance is easier said than done, and determining which insurers offer the best car insurance rates for homeowners requires even more rate comparisons. Every car insurance company uses different criteria to determine rates, so we'll go over the overall cheapest car insurance companies in Newark, NJ.
Cheapest Insurance Rates for Homeowners
|Rank||Company||Cost Per Year|
|3||New Jersey Manufacturers||$1,271|
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21st Century may have some of the lowest car insurance rates in Newark at around $1,067 each year. This is $785 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National would also be considered some of the cheaper Newark, NJ auto insurance companies.
As shown in the rates above, if you buy coverage from Penn National and switched to Travelers, you might see an annual premium reduction of around $223. Insureds with Allstate may save as much as $337 a year, and California Casualty insureds might realize rate reductions of up to $339 a year.
Understand that those premiums are averaged across all types of drivers and the different vehicles they drive and do not factor in a specific location for homeowners. So the car insurance company that can offer you the best price may not even be in the top 19 companies shown above. That illustrates why you need to get auto insurance quotes using your own personalized driver profile and vehicle information.
Full coverage versus liability only rates
Saving on car insurance is probably important to most vehicle owners, and one good way to save on the cost of insurance for homeowners is to not buy comprehensive and collision coverage. The diagram below illustrates the difference between yearly insurance costs with liability coverage only compared to full coverage. The premiums assume no claims, a clean driving record, $500 deductibles, single status, and no discounts are applied.
If we average the cost for ages 20 through 70, physical damage coverage on your policy costs $3,012 per year more than just insuring for liability. That raises the question when is the right time to remove full coverage. There isn't a steadfast formula of when to exclude physical damage coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.
For example, let's say your vehicle's claim settlement value is $9,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company would pay you is $8,500 after the deductible is paid. If you are paying more than $850 annually for your policy with full coverage, then it could be time to drop full coverage.
Types of discounts on Newark car insurance rates
Insurance providers that offer coverage for homeowners may have policy discounts that may potentially lower prices by 30% or more if you meet eligibility requirements. Large car insurance companies and a summarized list of policyholder discounts are shown below.
- Esurance has discounts for anti-lock brakes, defensive driver, Pac-12 alumni, multi-policy, good student, and DriveSense.
- The Hartford may include discounts for vehicle fuel type, bundle, anti-theft, driver training, air bag, and good student.
- AAA includes discounts for multi-car, multi-policy, pay-in-full, education and occupation, good student, and anti-theft.
- GEICO policyholders can earn discounts including seat belt use, emergency military deployment, driver training, five-year accident-free, and military active duty.
- State Farm offers discounts for safe vehicle, passive restraint, defensive driving training, driver's education, and anti-theft.
The information below visualizes the comparison of premium costs with and without discounts applied to the policy premium. Data assumes a female driver, a clean driving record, 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 average annual price with no discounts. The lower bar shows the rates with claim-free, safe-driver, anti-theft, accident-free, multiple vehicle, and defensive driving course discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on car insurance for homeowners is 28% or $597.
Your cheap policy may actually be overpriced
Newark, NJ car insurance rates are influenced by many factors that may substantially change the price of your policy. Turning one year older, adding a teenager to your policy, or getting a DUI may cause policy rate changes that can cause some rates to be cheaper than others.
In addition, insurers amend pricing without warning in order to be able to pay unexpected claims. A period of increased losses can cause higher priced premiums, while a better claims history can result in cheaper Newark car insurance rates.
To help illustrate this point, the data below demonstrates which company has the cheapest car insurance in Newark, NJ for a 35-year-old male driver with no prior claims, no tickets, and a good credit history. If we compare prices based on his current situation, 21st Century might quote the best car insurance rates in Newark at $1,608 a year. This is $244 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National round out the rest of the most affordable Newark, NJ auto insurance companies.
In this example, we will give the driver from the first rate comparison a chargeable accident, less-than-perfect credit, and a few traffic violations. Due to the fact that every auto insurer uses their own method for setting prices, comparing rates may now result in a slightly different list of affordable companies as shown below.
Allstate now has the cheapest rate in Newark with The Hartford, USAA, Mercury, and Travelers now being in the top five. This example demonstrates why it is important to take the time to shop around when trying to find affordable car insurance rates for homeowners. Auto insurance prices are impacted by many factors and change frequently, so the best option six months ago may now be an over-priced policy.
How to find budget-friendly car insurance for homeowners
The list below details a few money-saving suggestions that can help you find cheap auto insurance.
- Having too many claims will increase rates substantially
- Being accident-free can lower rates significantly
- Save money by insuring older vehicles for liability only
- Just one traffic violation will increase your rates
- Increase physical damage deductibles
- Compare quotes from other companies often
That last tip is particularly critical, as we hit on in this article. Car insurance rates adjust often, so drivers shouldn't be reluctant to switch carriers if you can find a cheaper rate. Having a favorite company is fine, but is isn't recommended if that dedication is costing lots of hard earned cash every month. Now is a great time to compare rates to find cheaper car insurance for homeowners in Newark.
The agents shown below are a good start to provide answers to your questions and help you determine which coverages you need, since some drivers wish to have some professional guidance when trying to find lower insurance rates for homeowners. It can be hard to find the best policy on your own, and getting advice from a licensed New Jersey insurance agent can add peace of mind knowing your coverage gives you adequate protection in case of an accident or claim.
To find an auto insurance agency closest to you, click the link after the list.
International Fidelity Insurance Co
1111 Raymond Blvd - Newark, NJ 07102 - (973) 624-7200
775 Newark Ave - Jersey City, NJ 07306 - (201) 217-1780
AMC Insurance Inc
Newark, NJ 07106 - Newark, NJ 07106 - (973) 373-3300
METROPLUS INSURANCE AGENCY
1423 McCarter Hwy - Newark, NJ 07104 - (973) 732-3794
METROPLUS INSURANCE AGENCY-BELLEVILLE
338 Washington Ave - Belleville, NJ 07109 - (973) 759-8291