Cheapest Car Insurance in Newark, NJ

Cheapest Car Insurance in Newark, NJ

Find Cheap Auto Insurance Quotes in Your Area

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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.

This graph shows the five companies out of 38 analyzed that had the overall lowest auto insurance rates for our benchmark five driver profiles.

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

Farmers1,192

3

CSAA1,285

4

Norfolk & Dedham1,455

5

National General1,499

6

Tower Group1,499

7

Palisades Insurance1,521

8

USAA*1,623

9

Foremost1,909

10

Founders Insurance2,005

11

PURE2,035

12

Encompass2,160
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  • 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$1,279Plymouth Rock$1,456CSAA$1,633

Married couple, age 30–49

Farmers1,686National General1,818Tower Group1,818

Single man, age 35

Plymouth Rock971Farmers1,293Palisades Insurance1,314

Married couple, age 65

Norfolk & Dedham615National General791Tower Group791

Single woman, age 23

USAA272Norfolk & Dedham415Plymouth Rock533
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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.

This chart compares the five cheapest auto insurance rates our young man in his early 20s found in Newark, and compares them to the average

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.

In this graph, we show where our married middle-aged motorists living in Newark found the lowest rates for insuring their two vehicles

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.

Displayed in this graph are the five lowest-cost auto insurers in Newark that we found for our sample 35-year-old and single man

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.

In this chart, we've displayed the five companies where our profiled married senior drivers found their most affordable quotes for insuring their two cars in Newark

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.

This graph displays where our example young woman in her early 20s found the cheapest quotes for insuring her vehicle in Newark.

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.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.