Auto Insurance Basics

Cheapest Car Insurance in Newark, NJ

Find the Cheapest Insurance Quotes in Your Area

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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.

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 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.

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
13 California Casualty* 2,238
14 Esurance 2,296
15 MAPFRE Insurance 2,310
16 Hartford 2,327
17 Allstate 2,339
18 GEICO 2,416
19 Amica 2,487
20 Progressive 2,557
21 Nationwide 2,561
22 Ameriprise 2,607
23 CURE 2,647
24 Selective Insurance 2,673
25 21st Century 2,686
26 Mercury Insurance 2,748
27 Atlantic Employers 2,889
28 Bankers Insurance 2,889
29 State Farm 3,087
30 Fireman's Fund 3,211
31 IFA Auto Insurance 3,568
32 Hanover 3,720
33 AIG 3,724
34 Kemper 3,797
35 Chubb 4,146
36 Electric 4,574
37 Harleysville Insurance 5,006
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
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
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.

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, 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. 

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

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.  

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

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.

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 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.

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

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.

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