Cheapest Car Insurance in Newark, NJ
Cheapest Car Insurance in Newark, NJ
Find Cheap Auto Insurance Quotes in Your Area
Newark is the most expensive place to buy car insurance in New Jersey — but fortunately, there are ways to find deals. We checked auto insurance quotes for five sample drivers living within Newark's five wards, and found the annual rate averaged $2,635. But drivers should always compare car insurance quotes from multiple carriers. You can enter your ZIP code above to get started.
Cheapest car insurers in Newark
Based on a survey of 38 car insurance companies using five sample drivers, Plymouth Rock, Farmers and CSAA have the three most affordable rates. Our sample drivers saved more than $1,400 compared to the average among the 38 companies.
Most expensive car insurance companies
On the other hand, the most expensive carriers charged $4,000 more than the cheapest insurers — showing how important it is to shop around and compare car insurance quotes. Personal Service Insurance Co., Harleysville Insurance and Electric Insurance had the three highest overall annual rates for our composite benchmark of five motorists.
Auto insurance companies in Newark, NJ
Below is a table of the top car insurers offering auto insurance policies in Newark, ranked by their average annual rate from the lowest to the highest. Some of the more affordable insurance companies are specialty and local providers that are not available to everyone. For starters, CSAA is affiliated with AAA and is a membership-based insurer with a primary basic membership fee of $60. USAA only offers insurance to members of the U.S. military, veterans and their family members. Plymouth Rock, Palisades Insurance and Norfolk & Dedham Group only sell insurance to drivers in the northeast, while California Casualty only writes insurance policies to drivers who are peace officers, educators, nurses and firefighters.
Rank | Company | Average |
|---|---|---|
|
1 | Plymouth Rock | $1,171 |
|
2 | Farmers | 1,192 |
|
3 | CSAA | 1,285 |
|
4 | Norfolk & Dedham | 1,455 |
|
5 | National General | 1,499 |
|
6 | Tower Group | 1,499 |
|
7 | Palisades Insurance | 1,521 |
|
8 | USAA* | 1,623 |
|
9 | Foremost | 1,909 |
|
10 | Founders Insurance | 2,005 |
|
11 | PURE | 2,035 |
|
12 | Encompass | 2,160 |
- Specialty providers with eligibility requirements
For a fuller list and description of the auto insurance companies in New Jersey, refer to our guide here.
Cheapest auto insurers by driver type
A married couple aged 30–49 with two cars will pay $4,016 a year on average, which is the most expensive rate out of our profiled drivers. For a basic policy, a young, single man in his early 20s could pay about $3,381 a year, while a single 35-year-old man could pay $2,515. A 65-year-old married couple with one car could pay $1,968 and a single 23-year-old woman could pay $1,295. Insurers classify young, single men as high-risk drivers, while young women are considered relatively lower-risk in comparison. Nevertheless, anyone can save money by choosing the right insurer. Based on our study, we have identified the cheapest insurers for each of our profile drivers:
Cheapest insurer #1 | Cheapest insurer #2 | Cheapest insurer #3 | ||||
|---|---|---|---|---|---|---|
|
Single man, age 23 | Farmers | $1,279 | Plymouth Rock | $1,456 | CSAA | $1,633 |
|
Married couple, age 30–49 | Farmers | 1,686 | National General | 1,818 | Tower Group | 1,818 |
|
Single man, age 35 | Plymouth Rock | 971 | Farmers | 1,293 | Palisades Insurance | 1,314 |
|
Married couple, age 65 | Norfolk & Dedham | 615 | National General | 791 | Tower Group | 791 |
|
Single woman, age 23 | USAA | 272 | Norfolk & Dedham | 415 | Plymouth Rock | 533 |
Single 23-year-old man
The cheapest insurers for a single 23 year-old man are Farmers, Plymouth Rock, CSAA, Foremost and Palisades Insurance based on this data set. Young men are typically quoted higher auto insurance rates — and indeed, our sample single 23-year-old guy pays about $3,381 a year for car insurance. If they insure with one of the top five lowest-cost auto insurers in Newark, however, they may be able to save up to 52%, or more than $1,600 a year.
Married couple, 30–49 years old
On average, our sample middle-aged couple in Newark pays $4,016 a year to insure two cars with 100/300/25 in liability coverage. However, one of the top five companies in the area can save this couple 55% off their policy, or about $2,000 a year. The five carriers with the best auto insurance rates in Newark for our married couple were Farmers, National General, Tower Group, Plymouth Rock and CSAA.
Single 35-year-old man
Based on our data, bachelors in their mid-30s should check out Plymouth Rock, Farmers, Palisades Insurance, CSAA and National General. Our sample drivers paid $2,515 annually for liability and uninsured motorist coverage with 100/300/25 limits. However, going with one of the five insurers above can save this group 50% off a policy — about $1,200 a year.
Married couple 65+ years old
Our married senior citizen couple paid about $1,968 a year for basic coverage. But by going with one of the cheaper companies — Norfolk & Dedham, National General, Tower Group, Farmers, and CSAA — our sample couple could halve that rate.
Single 23-year-old woman
Our single woman in her early 20s paid $1,295 a year, on average, for a basic policy in Newark. But our sample young woman found her cheapest auto insurance quotes through USAA, Norfolk & Dedham, National General, Plymouth Rock, CSAA and Atlantic Employers. On average, she paid about $500 less a year on car insurance going with one of the five companies versus her citywide mean.
Methodology and assumptions
Our Newark study was based on rates provided by New Jersey's Department of Banking and Insurance. We compared average costs for five sample drivers, all of whom elected a limited right to sue and had no violations or accidents in the past three years. The average rates were calculated across 38 different insurers, including both large national corporations and local companies. With the exception of our married couple between the ages of 30 and 49 (multicar policy for a 2012 Ford Taurus SE and 2010 Chrysler Town & Country LX), every other profiled driver in our study is insuring one car per policy. Both of our young drivers own a 2007 Buick Lacrosse CX, while our more mature drivers drive a 2012 Ford Taurus SE. Most bought a policy that is much better than the state-required minimums. Here are the details of the coverage for each driver:
- Single man, age 23: He purchased a policy with $25,000 in personal injury protection coverage with $250 deductible; liability insurance with 15/30/5 limits; and uninsured motorists coverage with the same limits. He also purchased collision and comprehensive coverages with a $750 deductible.
- Single woman, age 23: She purchased a basic policy, which includes $5,000 property damage coverage and $15,000 in personal injury protection.
- Single man, age 35/married couple, age 30–49/married couple, age 65+: All three policies included 100/300/25 liability insurance and uninsured motorists coverage, personal injury protection of $25,000 (with $250 deductible), and both comprehensive and collision coverages with a $750 deductible.
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