Who Has the Cheapest Auto Insurance for Drivers with Bad Credit in Newark?

The words “affordable” and “insurance” really don’t belong together, especially when looking for the best car insurance rates for drivers with bad credit. Because it’s so expensive, let’s teach you some situations that have an effect on car insurance premiums, and see how we can help you cut the cost of your next policy.

One of the more important things that aid in calculating the amount you pay for auto insurance is where you keep your car in Newark. More densely populated places tend to pay slightly more, whereas areas with fewer weather claims and lower vehicle theft rates get the luxury of paying less.

The information below ranks the most expensive cities in New Jersey for drivers with bad credit to purchase auto insurance in. Newark comes in at #3 with an annual rate of $2,522 for coverage, which is approximately $210 monthly.

How much is auto insurance in Newark, NJ?
Rank City Average Per Year
1 East Orange $2,571
2 West New York $2,531
3 Newark $2,522
4 Elizabeth $2,470
5 Paterson $2,400
6 Passaic $2,395
7 Union City $2,354
8 Hoboken $2,307
9 Jersey City $2,276
10 Clifton $2,276
11 Bayonne $2,274
12 Kearny $2,266
13 Perth Amboy $2,165
14 Linden $2,163
15 Camden $2,133
16 Fort Lee $2,123
17 Atlantic City $2,044
18 Hackensack $1,980
19 Plainfield $1,976
20 Trenton $1,974
21 New Brunswick $1,932
22 Sayreville $1,920
23 Vineland $1,860
24 Lakewood $1,855
25 Toms River $1,725
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Rates are estimated as the specific garaging location can revise auto insurance rates noticeably.

The vehicle needing coverage is one of the largest factors when quoting the cheapest auto insurance for drivers with bad credit. Vehicles with high performance features, poor safety ratings, or a track record of large liability claims will cost significantly more to insure than safer models.

The information below presents insurance rates for a handful of the most affordable vehicles to insure in New Jersey.

Cheapest Vehicles to Insure in Newark, NJ
Vehicle Make and Model Estimated Cost for Full Coverage
Toyota Prius $1,908
Ford Escape XLS 2WD $1,974
Honda Odyssey EX $2,004
Ford Edge SEL AWD $2,009
Honda CR-V EX-L 4WD $2,019
Chevrolet Malibu LT $2,081
Ford Explorer Eddie Bauer 4WD $2,086
Ford Focus SES 4-Dr Sedan $2,111
Hyundai Elantra GLS Touring Station Wagon $2,117
Volkswagen Jetta S 2.5 Station Wagon $2,141
Chevrolet Impala LTZ $2,150
Jeep Wrangler Sport Islander Package 4WD 2-Dr $2,174
Hyundai Sonata GLS 4-Dr Sedan $2,189
Chevrolet Silverado 2500HD LT Crew Cab 4WD $2,199
Toyota Tacoma 4WD $2,219
Dodge Ram Crew Cab TRX 2WD $2,228
Toyota Camry Hybrid $2,335
Chevrolet Silverado Crew Cab Hybrid 4WD $2,340
Toyota RAV4 Sport 2WD $2,341
Ford F-150 XLT Regular Cab 4WD $2,371
Honda Civic DX 2-Dr Coupe $2,395
Toyota Corolla S $2,463
GMC Sierra 2500HD SLT Crew Cab 2WD $2,481
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Prices based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, homeowner, claim-free, safe-driver, and multi-policy. Premium costs do not factor in specific garaging location which can influence insurance rates noticeably.

Based upon the table data, cars like the Toyota Prius, Ford Escape, and Honda Odyssey will definitely be a few of the most economical vehicles to insure for people with poor credit. The price for car insurance will trend higher just due to the fact that there is more liability risk for drivers with bad credit, but overall those vehicles will tend to have the cheapest auto insurance rates compared to other types of vehicles.

Establishing which companies quote the cheapest auto insurance rates for drivers with bad credit involves a little more work than just picking a company at random. Each company uses their own calculation to determine premium rates, so to begin we’ll rank the overall cheapest auto insurance companies in Newark.

It’s important that you understand Newark, NJ auto insurance rates are impacted by many factors that will increase or decrease the price of your policy. Simply getting older, buying a new vehicle, or getting caught speeding may cause policy rate changes that can make some companies more affordable than the competition.

Lowest Insurance Price Quotes with Bad Credit

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Who has the cheapest car insurance in New Jersey?
Rank Company Cost Per Year
1 21st Century $1,111
2 Travelers $1,156
3 New Jersey Manufacturers $1,310
4 Penn National $1,325
5 Palisades $1,382
6 California Casualty $1,481
7 The Hartford $1,536
8 Allstate $1,538
9 USAA $1,585
10 Mercury $1,651
11 Amica $1,813
12 Progressive $1,862
13 Esurance $1,913
14 MetLife $2,010
15 State Farm $2,160
16 GEICO $2,174
17 Encompass $2,374
18 Liberty Mutual $2,920
19 Hanover $4,027
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21st Century may have some of the cheapest 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, Penn National, and Palisades also rank well as some of the cheaper Newark, NJ insurance companies.

As shown in the rates above, if you buy coverage from Penn National and switched to 21st Century, you might realize savings of about $214. New Jersey drivers with Palisades may save as much as $271 a year, and California Casualty insureds might reduce prices by as much as $370 a year.

To get a fast rate comparison, click here to get a free quote or quote rates from the companies below.

These policy rates are averaged for all ages of drivers and types of vehicles and are not factoring in an exact zip code location for drivers with bad credit. So the car insurance company that fits your age and vehicle best may not even be in the top 19 companies in the list above. That affirms the importance of why you need to get car insurance quotes using your own personalized driver profile and vehicle information.

The chart below demonstrates how deductibles can impact premium costs when researching cheap insurance for drivers with bad credit. The price estimates are based on a married male driver, full physical damage coverage, and no other discounts are factored in.

A 40-year-old driver could lower their policy premium by $336 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $508 by choosing a $1,000 deductible. Even younger drivers, like the Age 20 chart data, could potentially save up to $1,114 or more just by choosing higher deductibles.

When increasing deductibles, it’s a good idea to have enough in a savings account to allow you to pay the extra out-of-pocket expense. That is the one drawback of using higher deductibles.

Which auto insurance company is best in Newark?

Insuring your vehicle with the highest-rated auto insurance company is difficult considering how many choices there are in New Jersey. The company ratings in the lists below could help you choose which auto insurers you want to consider shopping your coverage with.

The ratings below are only made up of large insurance companies, so smaller companies will not be included in these rankings. To compare rates from many more New Jersey auto insurance companies, click here.

Top 10 Major Auto Insurance Providers in Newark Ranked by A.M. Best Rating

  1. GEICO – A++
  2. Travelers – A++
  3. State Farm – A++
  4. USAA – A++
  5. Allstate – A+
  6. Nationwide – A+
  7. Mercury Insurance – A+
  8. Progressive – A+
  9. The Hartford – A+
  10. Esurance – A+

Top 10 Major Auto Insurance Providers in Newark Ranked by Customer Service

  1. Mercury Insurance
  2. The Hartford
  3. American Family
  4. Progressive
  5. GEICO
  6. USAA
  7. State Farm
  8. Travelers
  9. Farmers Insurance
  10. Allstate

Full coverage rates compared to liability-only

Buying cheaper auto insurance is important to most drivers, and one of the fastest ways to buy cheap insurance for drivers with bad credit is to buy liability only. The information below shows the difference between yearly insurance costs when comparing full coverage to liability only. The premium estimates are based on no accidents, no driving violations, $100 deductibles, single status, and no other discounts are factored in.

If we average the cost for all age groups, comprehensive and collision coverage on your policy costs $2,745 per year over and above liability only. That is a significant amount which raises the question if it’s a good idea to buy full coverage. There is no definitive formula to drop full coverage on your policy, but there is a guideline you can consider. If the annual cost of your full coverage insurance is more than 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.

For example, let’s say your vehicle’s replacement cost is $3,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would get paid by your company is $2,000 after you pay the deductible. If it’s costing in excess of $200 a year to have full coverage, then it may be the right time to buy liability only.

There are some situations where dropping full coverage is not advised. If you still have a lienholder on your title, you are required to maintain full coverage in order to keep the loan. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should not opt for liability only.

Low rates can quickly become overpriced

New Jersey auto insurance rates are impacted by many factors that control the cost of a policy. Simply having a birthday, having a claim, or getting a speeding ticket can trigger changes in premium resulting in some companies being cheaper than competitors.

Also, car insurance companies amend pricing at least once a year in order to maintain liquidity for claims. Unexpectedly high claims may cause higher prices, while lower claim levels can result in lower-priced Newark car insurance rates.

For instance, the data below shows a variety of companies that have the cheapest car insurance in Newark, NJ for a 45-year-old female driver with a good driving record, no prior claims, and a good credit rating. If we estimate prices based on her personal risk profile, 21st Century offers the most affordable car insurance rates in Newark at $1,607 a 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 best Newark, NJ auto insurance companies.

In the next rate comparison, we’ll give the driver in the first example a claim surcharge, a lower credit rating, and a traffic citation. Since every insurance provider uses their own calculation to set policy rates, analyzing rates will most likely result in a completely different list of the cheapest car insurance companies in Newark as shown below.

Allstate now has the cheapest insurance rate in Newark with The Hartford, Travelers, USAA, and Mercury now being in the top five. This example demonstrates why it is critical to compare rates to get affordable insurance rates for drivers with bad credit. Insurance rates are impacted by many risk factors and change substantially, so the best option six months ago may now cost much more than other companies.