Who Has the Cheapest Auto Insurance Rates for a Learners Permit in Newark?

See How Much You Can Save

The words "low-priced" and "auto insurance" really shouldn't be used together, in particular when trying to find the best insurance rates for a learners permit. Because it's not cheap, let's start the ball rolling by going over a few of the factors the can have a considerable influence on insurance rates, and find a way to lower the price of the next policy you buy.

The type of vehicle you are buying coverage for is a significant factor when looking for the cheapest car insurance for a learners permit. Vehicles with average performance, a great safety record, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models. The data below ranks coverage premiums for a handful of the cheaper automobiles to insure in New Jersey.

Cheapest Vehicles to Insure in Newark, NJ
Make and Model Estimated Cost for Full Coverage
Honda CR-V EX 2WD $7,916
Ford Escape Limited 4WD $8,476
Honda Accord EX-L 4-Dr Sedan $8,486
Toyota Prius $8,551
Toyota Tacoma 4WD $8,904
Chevrolet Impala LS $9,314
Honda Odyssey EX $9,320
Jeep Grand Cherokee Laredo 2WD $9,389
Dodge Grand Caravan Hero $9,394
GMC Sierra SL Extended Cab 2WD $9,389
Toyota RAV4 2WD $9,398
Chevrolet Equinox LT AWD $9,389
Chevrolet Silverado LS Extended Cab 4WD $9,398
Chevrolet Malibu LS $9,389
Toyota Camry LE $9,398
Ford Explorer Eddie Bauer AWD $9,464
Ford F-150 XLT Crew Cab 4WD $9,469
Hyundai Elantra Blue 4-Dr Sedan $9,799
Jeep Wrangler Unlimited Sport 2WD 4-Dr $9,862
Ford Edge Sport AWD $9,874
Toyota Corolla LE $9,880
Nissan Altima 3.5 SR 4-Dr Sedan $9,949
Volkswagen Jetta SEL 4-Dr Sedan $9,956
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Prices above based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific Newark, NJ garaging location which can change coverage rates noticeably.

Based on these rates, you can assume that makes and models like the Honda CR-V, Ford Escape, and Honda Accord are most likely to be a few of the less-costly vehicles to insure for new drivers. The cost of auto insurance will tend to be more expensive because there is more risk for a learners permit, but in general those specific models will probably have the cheapest auto insurance rates compared to other types of vehicles.

For new drivers, one of the more important things that determine the annual cost of car insurance is where you normally keep your vehicle. Regions with larger populations or more claims will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.

The next table shows the most expensive cities in New Jersey for a learners permit in which to purchase auto insurance. Newark makes the list at #1 with the annual price of $2,598 for the average insurance policy, which is approximately $217 monthly.

How much is auto insurance in Newark, NJ?
Rank City Annual Premium
1 Newark $2,598
2 East Orange $2,571
3 Paterson $2,448
4 West New York $2,431
5 Elizabeth $2,398
6 Passaic $2,371
7 Union City $2,354
8 Hoboken $2,283
9 Clifton $2,276
10 Kearny $2,266
11 Jersey City $2,253
12 Bayonne $2,207
13 Camden $2,199
14 Linden $2,163
15 Fort Lee $2,144
16 Perth Amboy $2,144
17 Atlantic City $2,086
18 Trenton $1,974
19 Hackensack $1,921
20 Plainfield $1,898
21 Sayreville $1,882
22 New Brunswick $1,856
23 Lakewood $1,855
24 Vineland $1,788
25 Toms River $1,674
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Price information shown is approximated as vehicle location can modify coverage prices substantially.

Determining which companies have the most affordable car insurance rates for a learners permit requires a little more sweat in order to find the best policy. Every insurance company has a proprietary method for determining prices, so to begin we'll rank the car insurance companies that tend to have lower prices in Newark, NJ.

We do need to point out that Newark car insurance rates are impacted by many things which can substantially decrease or increase your annual premium. Simply improving your credit, having a teen driver, or having an accident may cause policy rate changes that can cause some rates to be more affordable than others.

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Who has the cheapest car insurance in New Jersey?
Rank Company Cost Per Year
1 21st Century $1,100
2 Travelers $1,191
3 New Jersey Manufacturers $1,310
4 Penn National $1,338
5 Palisades $1,354
6 The Hartford $1,476
7 Allstate $1,478
8 California Casualty $1,481
9 USAA $1,553
10 Mercury $1,603
11 Progressive $1,881
12 Amica $1,887
13 Esurance $1,894
14 MetLife $1,991
15 State Farm $2,182
16 GEICO $2,196
17 Encompass $2,374
18 Liberty Mutual $2,978
19 Hanover $4,027
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21st Century has some of the lowest car insurance rates in Newark at around $1,100 a year. This is $752 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the cheaper Newark, NJ auto insurance companies.

As shown above, if you have coverage with Travelers and switched to 21st Century, you may realize an annual premium reduction of roughly $91. Policyholders with New Jersey Manufacturers could save as much as $210 a year, and Penn National insureds might realize rate reductions of up to $238 a year.

Be aware that those policy prices are averages across all insureds and vehicles and and are not figured with an exact vehicle garaging location for a learners permit. So the auto insurance company that can offer you the lowest price may not even be in the top 19 companies in the list above. That affirms the importance of why you need to get rate quotes from many companies using your own driver information and specific vehicle type.

Cost difference between full coverage and liability

Paying a lower price for car insurance is important to the majority of people, and an easy way to pay less for insurance for a learners permit is to not buy comprehensive and collision coverage. The diagram below shows the comparison of annual premium costs with full physical damage coverage and with liability coverage only. The price estimates are based on no driving violations, no at-fault accidents, $1,000 deductibles, single status, and no discounts are taken into consideration.

If all age groups are averaged, physical damage insurance costs $2,681 per year more than carrying just liability coverage. At some point, almost every driver questions if physical damage coverage is worth the money. There isn't a steadfast formula for dropping physical damage coverage on your policy, but there is a general convention. If the yearly cost for physical damage coverage is more than about 10% of any settlement you would receive from your insurance company, then it may be the right time to buy liability only.

What is the best car insurance company in Newark?

Insuring your vehicle with a good quality car insurance provider can be difficult considering how many different insurance companies sell coverage in New Jersey. The ranking data below could help you pick which insurers you want to consider comparing price quotes from. These ratings include companies that insure vehicles nationwide, so smaller companies that only insure vehicles in New Jersey are not factored into this list.

Top 10 Major Auto Insurance Companies 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 Companies 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

Discount Newark car insurance rates

Cheaper Newark, NJ car insurance for new driversAuto insurance companies that offer coverage for a learners permit may have special discounts that could reduce prices by as much as 35% if you meet specific eligibility requirements. A few popular companies and the discounts they provide are:

The information below compares insurance costs with and without discounts applied to the policy premium. Data assumes a male driver, no violations or claims, New Jersey state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with continuous coverage, passive restraint, good student, vehicle safety, paid-in-full, and anti-theft discounts applied. With discounts applied, theaverage amount saved on car insurance for a learners permit is 28% or $1,240.