Who Has Cheap Newark Auto Insurance for Unemployed Drivers?

The words “bargain” and “insurance” really shouldn’t be used in the same sentence, specifically when trying to find the cheapest car insurance for unemployed drivers. To help control this cost, let’s go over a few of the factors that have a considerable impact on car insurance prices, and see if you can cut the cost of the next policy you buy.

For the unemployed, one of the largest criteria that are looked at to help calculate the cost of insurance is where you keep your car. Areas with increased crime or more people tend to pay slightly more, whereas areas with less crime or weather claims have the luxury of lower rates.

The next table rates the highest-priced places in New Jersey for unemployed drivers in which to purchase auto insurance. Newark ranks #1 having an annual price of $2,522 for the average insurance policy, which is around $210 each month.

How much is car insurance in Newark?
Rank City Annual Premium
1 Newark $2,522
2 West New York $2,506
3 East Orange $2,495
4 Elizabeth $2,470
5 Paterson $2,376
6 Passaic $2,371
7 Union City $2,354
8 Hoboken $2,353
9 Kearny $2,289
10 Clifton $2,276
11 Jersey City $2,253
12 Bayonne $2,207
13 Linden $2,185
14 Fort Lee $2,144
15 Camden $2,133
16 Perth Amboy $2,081
17 Atlantic City $2,044
18 Hackensack $1,940
19 Sayreville $1,939
20 Plainfield $1,918
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Table data uses comparative as the vehicle garaging location can change insurance rates substantially.

The type of vehicle you are buying coverage for is one of the main factors when comparing the most economical car insurance for unemployed drivers. Vehicles with economical engines, excellent safety ratings, or a track record of few liability claims will cost less to insure than high performance models. The next list outlines auto insurance prices for a handful of the most budget-friendly automobiles to insure.

Cheapest Vehicles to Insure in Newark, NJ
Make and Model Estimated Cost for Full Coverage
Honda Accord LX-P 4-Dr Sedan $1,750
Ford Edge SE 2WD $1,923
Toyota Prius $1,938
Honda CR-V EX-L 2WD $1,962
Ford Escape XLT 2WD $1,974
Dodge Grand Caravan Hero $2,073
Volkswagen Jetta LE 4-Dr Sedan $2,079
Hyundai Elantra SE Touring Station Wagon $2,135
Toyota Camry XLE $2,186
Honda Odyssey EX-L $2,191
Nissan Rogue S AWD $2,219
Hyundai Sonata GLS 4-Dr Sedan $2,228
Chevrolet Impala LS $2,225
Chevrolet Silverado 2500HD LTZ Crew Cab 4WD $2,234
Ford Explorer XLT 2WD $2,228
Toyota RAV4 Limited 4WD $2,269
Ford F-150 XL Crew Cab 4WD $2,278
Chevrolet Malibu LT $2,314
Toyota Tacoma Double Cab TRD Sport Package 4WD $2,323
Ford Focus SES 4-Dr Sedan $2,350
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Premium data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, multi-vehicle, and claim-free. Price estimates do not factor in vehicle garaging location which can raise or lower price quotes considerably.

Based on these rates, we can expect makes and models like the Honda Accord, Ford Edge, Toyota Prius, Honda CR-V, and Ford Escape are going to be the most budget-friendly vehicles to insure for the unemployed.

Determining which insurers offer the cheapest car insurance rates for unemployed drivers will require more work than just picking a company at random. Every insurance provider uses a slightly different approach for setting rates, so we will examine the most competitive car insurance companies in Newark.

Find the Cheapest Car Insurance for Job Seekers

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Cheapest insurance companies in New Jersey
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,191
3 New Jersey Manufacturers $1,310
4 Penn National $1,338
5 Palisades $1,382
6 California Casualty $1,437
7 Allstate $1,493
8 The Hartford $1,536
9 USAA $1,553
10 Mercury $1,651
11 Amica $1,813
12 Esurance $1,913
13 Progressive $1,938
14 MetLife $2,010
15 GEICO $2,196
16 State Farm $2,226
17 Encompass $2,327
18 Liberty Mutual $3,008
19 Hanover $3,987
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21st Century has some of the most affordable car insurance rates in Newark at around $1,078 a year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also rank well as some of the more affordable Newark, NJ insurance companies.

As the rates illustrate above, if you are insured with Penn National and switched to 21st Century, you may see an annual savings of approximately $260. Policyholders with Palisades might save as much as $304 a year, and California Casualty policyholders might lower prices by $359 a year.

To find the cheapest coverage for you, click here to begin a quote or click through to the companies below.

Bear in mind that those premium estimates are averaged for all ages of drivers and types of vehicles and do not factor in an exact zip code location for unemployed drivers. So the insurer that has the cheapest rates for you may not even be in the list above. That emphasizes why you need to quote rates from many companies using your own specific driver information and vehicle.

The chart below shows how different deductible levels can influence annual premium costs when researching cheap insurance for unemployed drivers. The costs are based on a single female driver, full coverage, and no discounts are taken into consideration.

As shown above, a 40-year-old driver could lower their car insurance rates by $382 a year by switching from a $100 deductible up to a $500 deductible, or save $576 by choosing a $1,000 deductible. Even younger insureds, like the Age 20 chart data, could save up to $966 or more by choosing a higher deductible.

If you do raise deductibles, it will be necessary to have plenty of discretionary funds to cover the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

Full coverage rates vs. liability-only

Saving on car insurance is probably important to most people, and one way to find cheaper insurance for unemployed drivers is to not buy full coverage. The illustration below visualizes the comparison of insurance prices with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data is based on no claims or driving violations, $250 deductibles, drivers are single, and no additional discounts are factored in.

As an average for all age groups, comp and collision coverage costs an extra $2,515 per year more than just buying liability only. Lot’s of drivers question if buying full coverage is a waste of money. There is no specific rule that works best for making the decision to drop comp and collision coverage, but there is a general guideline. If the annual cost of comprehensive and collision coverage is 10% or more of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.

For example, let’s pretend your vehicle’s replacement cost is $6,000 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most your company would pay you is $5,000 after paying your deductible. If you are paying in excess of $500 a year for physical damage coverage, then you may need to consider dropping full coverage.

There are some situations where only buying liability is not a good plan. If you still owe a portion of the original loan, you have to carry full coverage in order to keep the loan. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should not buy liability only.

Cautious Newark drivers save money

The obvious way to earn cheap car insurance rates for the unemployed is to pay attention while driving and avoid getting tickets or having accidents. The information below demonstrates how traffic citations and at-fault claims can impact annual premium costs for each age group. The costs are based on a married male driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.

The data in the chart shows the average cost of car insurance in Newark per year with a clean driving record and no accidents is $1,923. Add in two speeding tickets and the average cost swells to $2,648, an increase of $725 each year. Now include two accidents along with the two speeding tickets and the yearly cost of car insurance for unemployed drivers jumps again to an average of $5,482. That’s an increase of $3,559, or $297 per month, just for not driving carefully!

You may be paying too much for car insurance

Newark car insurance rates are based on many factors that will increase or decrease the price you have to pay for coverage. Simply turning a year older, moving to a different location, or getting a speeding ticket may prompt premium changes that can now make some companies cheaper than competitors.

Not only may your risk profile change, but car insurance companies file new rates at least once a year to adjust for unexpected claims or profits. Heavy losses can cause increased policy costs, while a better loss history can result in more affordable Newark car insurance rates.

As an example, the data below shows a variety of companies that have the cheapest car insurance in Newark, NJ for a 45-year-old male driver with no violations or accidents, and a good credit history. When comparing rates based on his current risk factors, 21st Century may have the lowest car insurance rates in Newark at $1,607 a year. This is $245 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the list of the top five cheapest Newark, NJ auto insurance companies.

Let’s now give the driver from the first example some claims, less-than-perfect credit, and a traffic ticket or two. Since each auto insurance company has their own process for setting prices, comparing insurance quotes will most likely result in a slightly different list of affordable Newark car insurance companies as shown below.

The Hartford now has the lowest price in Newark with Allstate, USAA, Mercury, and New Jersey Manufacturers completing the list. This example shows why New Jersey drivers need to perform an extensive rate comparison to find the lowest auto insurance quotes for unemployed drivers. Insurance prices are influenced by many factors and change dramatically, so the cheapest rate when you last compared rates may now be costing you a lot of money.