How Much is Newark Car Insurance for Business Use?

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For using your car for business, one of the largest factors that help determine the cost of insurance is the neighborhood you call home. Areas with increased crime or more people are more likely to pay higher prices, whereas more rural areas can boast about having cheaper rates.

The table below lists the most expensive cities in New Jersey for business use to purchase a policy in. Newark is ranked at #1 having an annual price of $2,572 for the average insured, which is about $214 per month.

How much does car insurance cost in Newark, NJ?
Rank City Annual Rate
1 Newark $2,572
2 West New York $2,531
3 East Orange $2,495
4 Elizabeth $2,470
5 Union City $2,378
6 Hoboken $2,377
7 Paterson $2,376
8 Kearny $2,358
9 Jersey City $2,345
10 Clifton $2,345
11 Passaic $2,301
12 Bayonne $2,251
13 Camden $2,199
14 Linden $2,185
15 Perth Amboy $2,144
16 Fort Lee $2,060
17 Atlantic City $2,024
18 Plainfield $1,956
19 Sayreville $1,939
20 Hackensack $1,921
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Price information shown is estimated as specific Newark garaging address can affect price quotes noticeably.

Determining which companies quote the most affordable insurance rates for business use calls for a little more work than just quoting one company's rates. Each company has their own formula for establishing rates, so we will examine the insurance companies with the most affordable rates in New Jersey.

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New Jersey car insurance ranked by cost per year
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,180
3 New Jersey Manufacturers $1,310
4 Palisades $1,341
5 Penn National $1,379
6 The Hartford $1,476
7 California Casualty $1,495
8 Allstate $1,523
9 USAA $1,585
10 Mercury $1,651
11 Amica $1,813
12 Progressive $1,862
13 Esurance $1,894
14 MetLife $1,932
15 State Farm $2,226
16 GEICO $2,262
17 Encompass $2,327
18 Liberty Mutual $2,890
19 Hanover $3,987
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21st Century normally has some of the best car insurance rates in Newark at around $1,078 annually. Travelers, New Jersey Manufacturers, Palisades, and Penn National also are some of the more affordable Newark, NJ insurance companies.

In the rate table above, if you are insured with Penn National and switched to Travelers, you may realize annual savings of in the vicinity of $199. Policyholders with The Hartford could save as much as $296 a year, and California Casualty policyholders might reduce rates by $315 a year.

To see how much you can save, click here to begin a quote or visit any of the low-priced companies below.

Remember that these policy rates are averages for all insureds and vehicles and are not factoring in a specific zip code for business use. So the insurer that is best suited for you may not even be in the top 19 companies shown above. That illustrates why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.

Price comparison of only insuring for liability

Paying a lower price for insurance is important to most drivers, and an effective way to find cheaper insurance for business use is to buy only liability coverage. The chart below illustrates the difference between insurance costs with liability coverage only compared to full coverage. The premiums assume no claims or violations, $250 deductibles, drivers are single, and no discounts are applied to the premium.

If averaged out across all ages, physical damage insurance costs $3,421 per year more than carrying just liability coverage. That is a big expense that brings up the question if physical damage coverage is worth the money. There is no clear-cut formula for dropping full coverage, but there is a guideline you can consider. If the annual cost of having full coverage is about 10% or more of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.

Safe drivers pay cheaper rates

The best way to score good insurance prices in New Jersey for using your car for business is to be a cautious driver and avoid traffic citations and accidents. The example below shows how speeding tickets and at-fault collisions impact insurance rates for different ages of insureds. The price estimates are based on a married female driver, full coverage, $500 deductibles, and no discounts are taken into consideration.

In the previous chart, the average cost of car insurance in Newark per year with no violations or accidents is $1,735. Add in one speeding ticket and the average cost surges to $2,024, an increase of $289 each year. Then add in two accidents along with the one speeding ticket and the 12-month cost of insurance for business use jumps again to an average of $4,615. That's an increase of $2,880, or $240 per month, just for a couple of infractions!

How to get discounts on Newark insurance

Insurance for using your car for business in Newark, NJAuto insurance companies that provide policies for business use may also provide policy discounts that can reduce rates by 40% or more if you meet specific criteria. A list of insurance companies and their possible discounts are outlined below.

The information below illustrates the difference between insurance rates with and without discounts applied to the policy premium. The premiums are based on a female driver, no accidents, no driving violations, New Jersey state minimum liability limits, full coverage, and $500 deductibles.

The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, accident-free, claim-free, homeowner, multiple policy, and multiple vehicle discounts applied. In this example, the average savings per year on insurance for business use is 28% or $597.

How to find more affordable insurance for business use

It's not impossible to find cheaper rates, and here are many thrifty solutions that can help Newark drivers quote low-cost coverage.

The last suggestion is extraordinarily valuable, as was emphasized in the article above. Auto insurance rates in Newark fluctuate constantly, so don't be tentative to switch companies if a lower-cost policy is available.

We understand brand loyalty, but is isn't recommended if that loyalty ends up costing lots of hard earned cash every month. Now is a great time to compare prices and find cheaper auto insurance for business use.