Who Has the Cheapest Car Insurance Rates for Drivers Under 25 in Newark?

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The words "bargain" and "insurance" probably shouldn't be used together, in particular when trying to find the best price on coverage for drivers under 25. To help control this cost, let's familiarize you with some of the things that significantly impact car insurance prices, and find some ways to lower the price of your next policy.

The vehicle model that is being insured is one of the largest considerations when shopping for low-priced insurance for drivers under 25. Vehicles with economical engines, a great safety record, or a positive history of liability claims will cost significantly less to insure than adrenaline junky models.

The data below estimates coverage premiums for some of the cheaper automobiles to insure.

Cheapest Vehicles to Insure in Newark, NJ
Vehicle Insured Estimated Cost for Full Coverage
Ford Escape XLS 4WD $4,537
Honda Accord EX 4-Dr Sedan $4,544
Honda CR-V EX 4WD $4,602
Toyota Prius $5,008
Ford F-150 XLT Crew Cab 2WD $5,050
Jeep Wrangler Rubicon 4WD 2-Dr $5,059
Toyota Tacoma 2WD $5,321
Ford Edge Limited 2WD $5,328
Honda Civic DX 4-Dr Sedan $5,321
Toyota RAV4 Limited 4WD $5,387
Toyota Camry LE $5,393
Chevrolet Impala LT $5,387
Dodge Grand Caravan Crew $5,456
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Premium data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in specific Newark, NJ garaging location which can influence prices substantially.

Looking at the numbers, we can presume that cars like the Ford Escape, Honda Accord, and Honda CR-V are a few of the most budget-friendly vehicles to insure for drivers age 25 and younger. Rates will be higher anyway because there is more claim risk for drivers under 25, but overall those vehicles will most likely have the best rates compared to all other vehicles.

Trying to buy cheap auto insurance is hard enough, and deciding which companies quote the lowest-priced insurance rates for drivers under 25 involves additional perseverance. Every car insurance company has their own unique process for establishing rates, so first let's look at the rankings for the most budget-friendly insurance companies in Newark, NJ.

Keep in mind that Newark, NJ insurance rates are based on many factors that will increase or decrease the cost of coverage. This price variability is why it is critical to compare many different companies when trying to get affordable insurance quotes for drivers under 25. Rates are determined by many things and change frequently, so the cheapest company when you bought your policy may now be wasting a lot of money.

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New Jersey car insurance ranked by cost per year
Rank Company Cost Per Year
1 21st Century $1,100
2 Travelers $1,145
3 New Jersey Manufacturers $1,310
4 Penn National $1,325
5 Palisades $1,382
6 California Casualty $1,437
7 Allstate $1,478
8 The Hartford $1,491
9 USAA $1,600
10 Mercury $1,603
11 Esurance $1,838
12 Amica $1,869
13 Progressive $1,919
14 MetLife $1,951
15 State Farm $2,160
16 GEICO $2,196
17 Encompass $2,303
18 Liberty Mutual $2,920
19 Hanover $3,869
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21st Century generally has some of the lowest car insurance rates in Newark at around $1,100 a year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also are some of the more affordable Newark, NJ car insurance companies.

As shown above, if you are currently insured with New Jersey Manufacturers and switched to 21st Century, you might realize a yearly price reduction of about $210. Drivers with Penn National may save as much as $225 a year, and Palisades customers might lower prices by up to $282 a year.

To find cheaper insurance rates for your vehicle, click here to begin a quote or click several companies below for low rates.

Be aware that those premiums are averaged for all drivers and vehicles in New Jersey and and are not figured with an exact vehicle garaging location for drivers under 25. So the car insurance company that is best for you may not even be in the list above. That point stresses why you need to compare prices as often as possible using your own driver information and specific vehicle type.

For drivers age 25 and younger, one of the big things that are looked at to determine insurance cost is where your car is garaged. Cities with more crime and/or more people tend to pay more, whereas areas with lower vehicle theft rates and fewer weather claims tend to receive cheaper rates.

The table below rates the highest-priced places in New Jersey for drivers under 25 to buy an auto insurance policy in. Newark comes in at #1 with the annual price of $2,572 for coverage, which is around $214 per month.

Car insurance prices in Newark
Rank City Annual Rate
1 Newark $2,572
2 East Orange $2,571
3 Paterson $2,448
4 West New York $2,431
5 Elizabeth $2,398
6 Hoboken $2,377
7 Union City $2,354
8 Passaic $2,301
9 Clifton $2,299
10 Kearny $2,289
11 Jersey City $2,253
12 Bayonne $2,251
13 Camden $2,199
14 Linden $2,121
15 Perth Amboy $2,081
16 Fort Lee $2,060
17 Atlantic City $2,024
18 Hackensack $1,999
19 Plainfield $1,956
20 Sayreville $1,939
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Rates are estimated as specific Newark zip code can lower or raise insurance rates noticeably.

Impact of violations and accidents on rates

In a perfect world, the best way to snag cheap insurance rates in New Jersey for drivers age 25 and younger is to be a cautious driver and avoid getting tickets or having accidents. The example below shows how speeding tickets and accidents can impact auto insurance costs for different insured age categories. The premiums are based on a single male driver, comprehensive and collision coverage, $100 deductibles, and no discounts are applied to the premium.

The data above shows the average cost of an auto insurance policy in Newark per year with no accidents and a clean driving record is $3,679. Get written up for one speeding ticket and the average cost increases to $4,145, an increase of $466 each year. Now throw in two accidents along with the one speeding ticket and the 12-month cost of insurance for drivers under 25 increases to an average of $8,095. That's an increase of $4,416, or $368 per month, just for not keeping your driving record clean!

Liability rates compared to full coverage

Saving on insurance is important to most vehicle owners, and one of the fastest ways to pay less for insurance for drivers under 25 is to buy liability only. The diagram below visualizes the comparison of insurance rates with liability coverage only compared to full coverage. The prices are based on no violations or accidents, $250 deductibles, single marital status, and no discounts are applied to the premium.

Averaged out for all age groups, comp and collision coverage costs $2,515 per year over having just liability coverage. That brings up the question if paying for full coverage is worth it. There is no exact rule that is best for determining when to drop physical damage coverage on your policy, but there is a general convention. If the yearly cost of comp and collision coverage is about 10% or more of the vehicle's replacement cost less your deductible, then you might want to think about dropping full coverage.

There are some conditions where buying only liability insurance is not financially feasible. If you have an outstanding loan on your vehicle, you are required to maintain full coverage to protect the lienholder's interest in the vehicle. Also, if your savings is not enough to buy a different vehicle in the event your current vehicle is totaled, you should keep full coverage in place.

Insuring your vehicle with the best auto insurance provider can be rather challenging considering how many choices drivers have in Newark. The ranking data listed below could help you analyze which car insurance companies to look at when shopping insurance around for drivers under 25.

The rankings below are only comprised of the largest companies in America, so companies that focus mainly on New Jersey business are not factored into this list. To check prices from these and other top-rated companies, simply click here.

Top 15 Insurance Companies for Drivers Under 25 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