Who Has the Cheapest Auto Insurance in Newark, New Jersey?
Who Has the Cheapest Auto Insurance in Newark, New Jersey?
Compare Car Insurance Rates in Newark, New Jersey
ValuePenguin's analysis found that Newark drivers will likely get the cheapest minimum coverage car insurance from State Farm, while Geico had the best rates for full coverage. State Farm's monthly rates are $49 per month for minimum coverage, and Geico's rates are $173 per month for full coverage.
As the most populous city in New Jersey, Newark residents pay higher auto insurance rates than other residents of the state. Minimum coverage costs $68 on average per month, but in Newark, that number increases by 43%, to $97 per month.
Full coverage from the most expensive insurer in Newark costs nearly $6,000 more than the same coverage from the cheapest insurer. Always be sure to get multiple quotes when shopping for car insurance.
Cheapest auto insurance in Newark: State Farm
The cheapest companies for minimum coverage are State Farm, Geico and Progressive. Together, these companies charge an average of $815 per year for minimum coverage. That's $354 cheaper than the city average, which is $1,169 per year.
Overall, State Farm had the best rate for minimum coverage. At just $590 per year, drivers who insure their cars with State Farm could pay half as much as the city average.
Compare Car Insurance Rates in Newark, New Jersey
Minimum coverage in New Jersey covers your injuries and damages to the other driver's car. So while you pay less, you also get less coverage and are on the hook for repairs to your own car.
Rank | Company | Annual rate |
|---|---|---|
| 1 | State Farm | $590 |
| 2 | Geico | $842 |
| 3 | Progressive | $1,014 |
| 4 | Travelers | $1,128 |
| 5 | NJM | $1,388 |
| 6 | Allstate | $1,554 |
| 7 | Palisades (Plymouth Rock) | $1,669 |
Cheapest full coverage car insurance in Newark: Geico
Geico had the cheapest rates for full coverage in Newark. On average, you'll pay $4,376 per year in Newark, but Geico charges less than half that — just $2,079 per year.
Full coverage combines collision and comprehensive coverages with the minimum required coverages in New Jersey. Collision coverage pays for damage that results from an accident, while comprehensive coverage pays for other damage to your car, such as "acts of God" like weather events or a fallen tree branch.
Rank | Company | Annual rate |
|---|---|---|
| 1 | Geico | $2,079 |
| 2 | State Farm | $2,600 |
| 3 | NJM | $2,761 |
| 4 | Progressive | $3,580 |
| 5 | Palisades | $4,880 |
| 6 | Travelers | $6,698 |
| 7 | Allstate | $8,036 |
ValuePenguin generally recommends full coverage, particularly to young drivers or those who drive new cars. While you'll pay higher rates, your own car is guaranteed protection on the roads.
Cheap car insurance for drivers with prior incidents
Insurers view incidents like an at-fault accident, a speeding ticket or a DUI citation as a sign of increased risk and often raise rates to reflect that risk.
We've identified the most affordable insurers for Neward drivers who have:
Cheapest car insurance in Newark after an accident: NJM
After an at-fault accident, average rates in Newark increase from $4,376 per year to $7,129 per year — a 63% jump. However, NJM raises rates much less sharply and charges much less than the state average. Newark drivers pay just $3,422 per year for a full coverage policy from NJM. That's $3,652 in savings per year.
Rank | Company | Annual rate |
|---|---|---|
| 1 | NJM | $2,761 |
| 2 | Geico | $2,986 |
| 3 | State Farm | $4,325 |
| 4 | Palisades | $5,359 |
| 5 | Progressive | $5,598 |
| 6 | Travelers | $9,924 |
| 7 | Allstate | $18,948 |
Cheapest car insurance for drivers with a speeding ticket: Geico
A speeding ticket was the least-serious offense in our study; insurers raised rates by just $596, as opposed to $2,708 after a DUI and $2,753 after an at-fault accident. Geico had the most affordable premiums for drivers with a speeding ticket. At $2,079 per year, Geico charged 58% less than the city average of $4,972.
Rank | Company | Annual rate |
|---|---|---|
| 1 | Geico | $2,079 |
| 2 | State Farm | $2,600 |
| 3 | NJM | $3,432 |
| 4 | Progressive | $4,585 |
| 5 | Palisades | $4,880 |
| 6 | Travelers | $7,496 |
| 7 | Allstate | $9,732 |
Cheapest car insurance for drivers with a DUI: NJM
The cheapest rates for drivers with a DUI on their record came from NJM, Progressive and Geico. Be aware, however, that while Geico offers cheaper rates than its competitors, it also raised rates far more significantly after a DUI, with a 111% increase for Newark drivers.
Rank | Company | Annual rate |
|---|---|---|
| 1 | NJM | $3,432 |
| 2 | Progressive | $4,140 |
| 3 | Geico | $4,381 |
| 4 | Palisades | $6,668 |
| 5 | Travelers | $9,105 |
| 6 | State Farm | $10,387 |
| 7 | Allstate | $11,476 |
Cheapest car insurance for married drivers: Geico
Married drivers in Newark save about $14 per month on full coverage compared to their single counterparts. ValuePenguin's analysis found that single drivers pay $365, whereas married drivers pay $351 per year on average.
Geico again had the most affordable coverage, followed by NJM and State Farm. Married drivers pay $191 per month for full coverage from Geico, $216 for full coverage from NJM and $217 for full coverage from State Farm.
Rank | Company | Annual rate |
|---|---|---|
| 1 | Geico | $2,295 |
| 2 | NJM | $2,589 |
| 3 | State Farm | $2,600 |
| 4 | Progressive | $3,139 |
| 5 | Palisades | $4,575 |
| 6 | Travelers | $6,723 |
| 7 | Allstate | $7,578 |
Cheapest car insurance for young drivers: Geico
Young drivers in Newark pay far more than adult drivers do. Insurers charged our sample 18-year-old driver rates that were 185% higher than the rates they charged our sample 30-year-old driver.
The most affordable full coverage policy came from Geico, which charged $4,716 annually for full coverage. While that's not cheap per se, it's significantly more affordable than what companies like Allstate and Palisades charge for annual coverage.
Rank | Company | Annual rate |
|---|---|---|
| 1 | Geico | $4,716 |
| 2 | NJM | $5,695 |
| 3 | State Farm | $8,648 |
| 4 | Travelers | $14,536 |
| 5 | Progressive | $15,101 |
| 6 | Allstate | $17,060 |
| 7 | Palisades | $21,468 |
Young drivers can help reduce the cost of insurance by staying on their parents' policy. Making good grades and leaving their car at home during the academic year can also help young students snag auto insurance discounts.
Best auto insurance companies in Newark, New Jersey
A ValuePenguin survey found that, of all the insurers in our New Jersey study, customers of State Farm, Allstate and Progressive reported satisfaction with their most recent claims experience at the highest rates.
For more information about the customer service reputations of New Jersey insurers, visit ValuePenguin's study of the best cheap car insurance in New Jersey.
Auto theft statistics in Newark
Newark has the largest population of all New Jersey cities and the second-highest rate of auto theft statistics. For every 1,000 residents, about 5 cars get stolen.
Rank | City | Population | Car thefts | Thefts per 1,000 |
|---|---|---|---|---|
| 1 | Elizabeth | 128,753 | 757 | 5.9 |
| 2 | Newark | 281,422 | 1,541 | 5.5 |
| 3 | Paterson | 144,866 | 456 | 3.1 |
| 4 | Jersey City | 266,508 | 670 | 2.5 |
| 5 | Clifton | 85,021 | 111 | 1.3 |
| 6 | Hamilton Township, Mercer County | 87,027 | 106 | 1.2 |
| 7 | Woodbridge Township | 100,125 | 99 | 1.0 |
| 8 | Edison Township | 100,282 | 90 | 0.9 |
| 9 | Toms River Township | 93,836 | 42 | 0.4 |
| 10 | Lakewood Township | 105,403 | 37 | 0.4 |
Motor vehicle theft data was pulled from the FBI 2019 New Jersey Crime Report.
Methodology
ValuePenguin gathered quotes from seven of the largest insurers in New Jersey. Unless otherwise noted, our data reflect the quotes these insurers gave a 30-year-old man who drove a 2015 Honda Civic EX with full coverage insurance.
We used the following limits for the full coverage policy:
Coverage type | Study limits |
|---|---|
| Bodily liability | $50,000 per person/$100,000 per accident |
| Personal injury protection | $10,000 |
| Property damage | $25,000 per accident |
| Uninsured/underinsured motorist bodily injury | $50,000 per person/$100,000 per accident |
| Comprehensive and collision | $500 deductible |
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. Rates were publicly sourced from insurer filings. Your own quotes may be different; utilize the rates in this analysis for comparative purposes only.
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.