As Newark drivers know, New Jersey auto insurance can be expensive. The average annual cost of auto insurance in Newark is $ 1,254 for minimum coverage and $ 2,624 for full coverage. That’s quite a bit more than the national averages of $ 565 and $ 1,674. Knowing that Newark has such high averages makes it all the more important to find out about the best cheap auto insurance companies in Newark. In Essex County, where Newark is located, over 30,000 car accidents occurred in 2019. Additionally, around 15% of New Jersey drivers were without car insurance in 2015, underscoring the importance of cheap car insurance in Newark.
In order to find the best cheap car insurance in Newark, we used several variables. The most important ones included the average premium rates in the region, each company’s market share in the auto industry, the number of discounts granted, and the JD Power auto insurance report. These variables were weighted according to average rates, company size, JD power score, and discounts.
Best auto insurance in Newark
Using the auto insurance companies with the lowest average rates in the region and the largest market share in the industry, we compared companies by JD Power values and discounts. Those with the lowest rates, the highest scores, and the most generous discounts were selected as the best auto insurance companies in Newark.
|insurance company||JD Power Score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|NJM||847/100||$ 501||$ 1,704|
|Geico||841/100||$ 858||$ 1,995|
|traveler||836/100||$ 991||$ 1,903|
|District farm||855/100||$ 1,099||$ 1,862|
|Metlife||831/100||$ 1,196||$ 1,984|
NJM has been in auto insurance for more than a century. Of our last five, NJM has the lowest average annual rates for minimum and full coverage, and also scores higher than most on the JD Power report. Combined with great reviews and low costs, NJM offers numerous discounts to bring these prices down even further.
Geico is one of the most famous auto insurance companies and it fits well on our list of the best cheap auto insurances in Newark. According to NJM, Geico offers the cheapest average annual minimum coverage rates on our list. With an 841 in the JD Power report, Geico is only six points behind NJM. To strengthen Geico’s position, the company offers more discounts than many of its competitors.
Travel insurance costs a little more than the first two on our list but is known for its quality and service. Average Traveler Rewards and the JD Power Score are in the mid-range for our list, making the company a good average among the best cheap auto insurance companies in Newark. One of its selling points is Travelers ‘an app called IntelliDrive, which can monitor customers’ driving in real time and grant discounts in return for safe driving.
State Farm is one of the largest insurance companies serving customers in the United States. They are known for their extensive coverage options and some degree of customizability in their policies. While State Farm has the second most expensive rates out of our last five, they scored the highest scores among our selected companies in the JD Power report. While the company does offer discounts, these are fewer in number than some of the others on this list.
Metlife Insurance offers the standard range of auto insurance plans but also has some specialties. This company has auto insurance for classic cars and insurance accessories to insure custom parts for vehicles. Metlife has the most expensive average rates on our list but still got 831 points in the JD Power report. While there are relatively few, the discounts offered can have a significant impact on prices.
Cheapest car insurance in Newark
Compared to the national average, Newark car insurance is expensive, which makes it all the more important to find the best cheap car insurance. The US average per year for auto insurance is $ 565 for minimum coverage and $ 1,674 for full coverage. In Newark, the average annual cost for minimum coverage is $ 1,254 while the average for full coverage is $ 2,624.
The following list shows the auto insurance companies in Newark that hold the largest market share while offering the lowest average prices. This is how we can determine which companies are most financially stable while still remaining affordable. This gives us some of the best auto insurance in Newark. Among these, Amica offers the most affordable annual minimum coverage for a substantial amount. However, when it comes to full coverage, they’re all close to each other, with State Farm having a slight edge.
All of the auto insurers on this list offer annual rates that are below the local Newark average, making them a great choice for the cheapest Newark auto insurance. To lower these prices even further, you may be able to use discounts. Each of these companies offer discounts, with Amica and Geico offering some of the most impressive.
|insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|friend||$ 576||$ 2,252|
|Geico||$ 858||$ 1,995|
|traveler||$ 991||$ 1,903|
|District farm||$ 1,099||$ 1,862|
|MetLife||$ 1,196||$ 1,984|
Newark insurance requirements
New Jersey has mandatory auto insurance requirements that Newark drivers must follow. These requirements help avoid some of the financial problems that can result from car accidents when one or more of the drivers are uninsured. Since New Jersey is a no-fault state, the minimum liability here works a little differently than in most states. Unlike negligent states, in New Jersey your minimum liability insurance pays off your bills in the event of an accident, not the other driver’s.
While the minimum is all the law requires, it may not always be enough. The minimum coverage is not always sufficient to fully cover the costs of an accident. If property damage or medical bills exceed your coverage, you may be held responsible for any remaining costs. Let’s say your car repair bill is higher than your property damage limit. If so, you may have to pay the difference out of pocket or forego the full repair.
Newark insurance coverage requirements
- Personal Injury Liability: $ 15,000 per person and $ 30,000 per accident
- Property Damage Liability: $ 5,000 per accident
Auto insurance discounts in Newark
When looking for auto insurance deals in Newark, it helps to learn about the discounts. Fortunately, Newark has many options for car insurance discounts. Each of the car insurance policies mentioned so far offers a wide variety of discounts. Some of the best cheap auto insurance companies in Newark offer more robust discounts than others. Below are some of the discounts that can have the biggest impact on insurance rates. The area has been noted where available.
- Safe driving (7-23%)
- Good student driving (8-15%)
- Multiple car discounts
- Bundling of several guidelines
- Senior discount
frequently asked Questions
What is the best car insurance?
The best auto insurance for you may not be the best for another. To find the best auto insurance for you and your vehicle, start with Bankrate’s guide to the best auto insurance companies in 2021.
How much does car insurance cost in Newark?
The average cost of auto insurance in Newark is $ 1,254 for minimum coverage and $ 2,624 for full coverage. However, the cheapest average prices from our selected auto insurance companies were much lower at $ 501 and $ 1,704 respectively. If you want to take a look at affordable car insurance that goes beyond these lists, check out Bankrate’s guide to the cheapest car insurance in 2021.
How Much Auto Insurance Do I Need in Newark?
You have to acquire at least the coverage required by the state. In addition, it becomes a personal decision about the risk-to-protection ratio. It can be difficult to figure out how much car insurance you will need. First, think about what would happen if your vehicle were whole. Would you be okay between your auto policy and your personal finances? If not, you may want more coverage.
Bankrate uses Quadrant Information Services to analyze 2021 rates for all zip codes and airlines in all 50 states and Washington, DC. The tariffs given are based on a 40-year-old driver and a 40-year-old female driver with a clean driving record, good credit rating and the following complete information on coverage limits:
- $ 100,000 personal injury liability liability per person
- $ 300,000 personal injury liability per accident
- $ 50,000 property damage liability per accident
- $ 100,000 uninsured personal injury per person
- US $ 300,000 uninsured driver injury per accident
- $ 500 collision deduction
- $ 500 comprehensive deductible
To set minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our example drivers own a 2019 Toyota Camry, commute five days a week, and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes. Your quotes can be different.