Cheapest Car Insurance in Newark, NJ
Find the Cheapest Auto Insurance Quotes in Your Area
In a different New Jersey Auto Insurance study, we found that Newark to the most expensive place for motorists to live and drive in the Garden State. Nevertheless, we analyzed auto insurance quotes for five sample drivers living within Newark's five wards, and found that there are still chances to save. Annual rates for our five drivers averaged to $2,635, but depending on the insurer drivers choose to buy a policy from and a driver’s profile, the cost could double. It is important for drivers to compare car insurance quotes across several carriers, so enter your zip code above to get started with a list of insurers.
Cheapest Auto Insurance Companies in Newark
Plymouth Rock, Farmers, and CSAA have the three most affordable rates for auto insurance in Newark out of the 38 companies surveyed, based on our five drivers. Our sample drivers under these insurers on average saved 54% (over $1,400), compared to the 38-carrier mean.
Most Expensive Car Insurance Companies
On the other hand, the most expensive carrier can pay for over four years of coverage of the cheapest provider. This $4,000 difference demonstrates the importance of shopping around for and comparing car insurance quotes. Generally speaking, Personal Service Insurance Company, Harleysville Insurance, and Electric Insurance had the three highest overall annual rates for on 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. Note that, 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 families. Plymouth Rock, Palisades Insurance, and Norfolk & Dedham Group only sell insurance to drivers in the northeast and California Casualty only writes insurance to drivers who are peace officers, educators, nurses, and firefighters.
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Rank | Company | Average |
|---|---|---|
|
1 | Plymouth Rock | $1,171 |
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2 | Farmers | 1,192 |
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3 | CSAA | 1,285 |
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4 | Norfolk & Dedham | 1,455 |
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5 | National General | 1,499 |
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6 | Tower Group | 1,499 |
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7 | Palisades Insurance | 1,521 |
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8 | USAA* | 1,623 |
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9 | Foremost | 1,909 |
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10 | Founders Insurance | 2,005 |
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11 | PURE | 2,035 |
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12 | Encompass | 2,160 |
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13 | California Casualty* | 2,238 |
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14 | Esurance | 2,296 |
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15 | MAPFRE Insurance | 2,310 |
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16 | Hartford | 2,327 |
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17 | Allstate | 2,339 |
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18 | GEICO | 2,416 |
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19 | Amica | 2,487 |
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20 | Progressive | 2,557 |
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21 | Nationwide | 2,561 |
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22 | Ameriprise | 2,607 |
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23 | CURE | 2,647 |
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24 | Selective Insurance | 2,673 |
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25 | 21st Century | 2,686 |
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26 | Mercury Insurance | 2,748 |
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27 | Atlantic Employers | 2,889 |
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28 | Bankers Insurance | 2,889 |
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29 | State Farm | 3,087 |
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30 | Fireman's Fund | 3,211 |
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31 | IFA Auto Insurance | 3,568 |
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32 | Hanover | 3,720 |
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33 | AIG | 3,724 |
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34 | Kemper | 3,797 |
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35 | Chubb | 4,146 |
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36 | Electric | 4,574 |
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37 | Harleysville Insurance | 5,006 |
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38 | Personal Services Insurance Company | 5,273 |
- 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 Insurance by Driver Profile in Newark
On average, a married pair aged 30-49 with two cars will have an annual premium of $4,016, the most expensive rate out of our profiled drivers - and for good reason: two cars and higher limits will require greater protection. A young man in his early 20s could pay about $3,381 a year, 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 woman aged 23 could pay $1,295 (extremely basic policy). Insurers classify young single males as high risk drivers, while young females are considered relatively lower risk in comparison. Nevertheless, there are chances to save by means as simple as 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 Male, 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 |
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Single Male, 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 |
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Single Female, age 23 | USAA | 272 | Norfolk & Dedham | 415 | Plymouth Rock | 533 |
Single 23 Year-Old Male
The cheapest insurers for a single 23 year-old male are Farmers, Plymouth Rock, CSAA, Foremost, and Palisades Insurance based on this data set. Young males generally are quoted higher auto insurance rates, and indeed, our sample average 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 over $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, if they insure with one of the top five companies in the area, they will be able to save over 55%, or $2,000 a year on car insurance. 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
Who has the cheapest auto insurance quotes in Newark for bachelors in their mid-30s? Based on the data, we'd suggest they include Plymouth Rock, Farmers, Palisades Insurance, CSAA, and National General if low costs are a priority. On average, our sample males in this age group paid an annual premium of $2,515 for liability and uninsured coverage with 100/300/25 limits. However, going with one of the 5 insurers above, they will be able to save 50%, or over $1,200 a year on car insurance, letting them save more money in the bank.
Married Couple 65+ Years-Old
For our married senior citizens, the insurers with the most affordable car insurance quotes are Norfolk & Dedham, National General, Tower Group, Farmers, and CSAA. Our sample married couple over the age of 65 pays an annual premium of $1,968, but if they insure with one of the cheapest five companies, they could pay under $1,000 a year for car insurance, nearly halving their rates.
Single 23 Year-Old Female
Our single female in her early 20s saw average car insurance quotes in Newark of $1,295 for a basic policy with the lowest coverage permissible by law. To save more, we'd suggest similar drivers check out USAA, Norfolk & Dedham, National General, Plymouth Rock, CSAA, or Atlantic Employers, where our profiled young woman found her cheapest auto insurance quotes. On average, she paid about $500 less a year on car insurance going with one of the five companies versus her citywide mean.
Methodology & 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 corporation and local companies. With the exception of our married couple between the ages of 30 and 49 (multi-car policy for 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 male, age 23: $25,000 Personal Injury Protection coverage with $250 deductible, 15/30/5 liability insurance, as well as Uninsured Motorists coverage in the same limits. He also purchased both coverages of physical damage insurance, both with a $750 deductible.
- Single female, age 23: purchased a Basic Policy, which includes $5,000 Property Damage coverage, and $15,000 Personal Injury Protection.
- Single male, 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 $25k (with $250 deductible), and both Comprehensive and Collision coverage with a $750 deductible.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.