Locating cheap auto insurance is not easy, and determining which company has the best car insurance rates for infrequent drivers takes even more shopping around. Each insurer has their own guidelines to set premium rates, so first we will examine the car insurance companies with the overall cheapest rates in Newark, NJ.
Keep in mind that Newark car insurance rates are influenced by many factors that may substantially change the price of coverage. This price fluctuation is why drivers need to perform a complete rate comparison when trying to find the lowest auto insurance quotes for infrequent drivers. Car insurance prices are impacted by many factors and can change substantially, so the most economical option six months ago may now be priced much higher than other options.
Cheap Insurance Rates in New Jersey
21st Century quotes some of the cheapest car insurance rates in Newark at around $1,067 per year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the cheaper Newark, NJ insurance companies.
As illustrated above, if you currently have coverage with Penn National and switched to Travelers, you could see a yearly price reduction of about $169. New Jersey drivers with Palisades could save as much as $185 a year, and California Casualty insureds might see rate reductions of $281 a year.
To find out how much you can save, click here or visit several of the following companies.
Be aware that those premiums are averaged for all drivers and vehicles in New Jersey and do not factor in a specific vehicle garaging location for infrequent drivers. So the company that has the cheapest price for you may not even be in the top 19 companies in the list above. That underscores the importance of why you need to get car insurance quotes using your own specific driver information and vehicle.
For low mileage drivers, one of the more important criteria that are looked at to determine auto insurance rates is where you live in Newark. Areas with more people or even just a higher incidence of claims tend to have higher auto insurance costs, whereas areas with less people or fewer weather incidents receive better rates.
The illustration below lists the most expensive cities in New Jersey for infrequent drivers to purchase a policy in. Newark comes in at #1 having an annual price of $2,572 for the average policyholder, which is approximately $214 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | East Orange | $2,571 |
| 3 | West New York | $2,506 |
| 4 | Paterson | $2,448 |
| 5 | Elizabeth | $2,398 |
| 6 | Passaic | $2,395 |
| 7 | Union City | $2,378 |
| 8 | Hoboken | $2,377 |
| 9 | Kearny | $2,358 |
| 10 | Jersey City | $2,322 |
| 11 | Clifton | $2,299 |
| 12 | Camden | $2,221 |
| 13 | Bayonne | $2,207 |
| 14 | Linden | $2,099 |
| 15 | Fort Lee | $2,081 |
| 16 | Perth Amboy | $2,081 |
| 17 | Atlantic City | $2,024 |
| 18 | Hackensack | $1,980 |
| 19 | Plainfield | $1,918 |
| 20 | Trenton | $1,916 |
| 21 | Sayreville | $1,863 |
| 22 | New Brunswick | $1,856 |
| 23 | Vineland | $1,842 |
| 24 | Lakewood | $1,819 |
| 25 | Toms River | $1,674 |
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Premium amounts are comparative as the specific area where the vehicle is garaged can impact auto insurance rates significantly.
The make and model of vehicle you are insuring is probably the largest consideration that determines whether or not you find affordable car insurance for infrequent drivers. Vehicles with high performance engines, poor safety ratings, or a history of substantial liability claims will cost substantially more to insure than safer, lower-performance models.
The information below features coverage costs for a selection of the more affordable vehicles to buy insurance for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $1,653 |
| Volkswagen Jetta S 2.5 Station Wagon | $1,792 |
| Honda CR-V LX 4WD | $1,807 |
| Dodge Grand Caravan CV | $1,847 |
| Ford Edge SEL AWD | $1,917 |
| Toyota RAV4 2WD | $1,952 |
| Hyundai Elantra SE Touring Station Wagon | $1,966 |
| Ford F-150 FX4 4WD | $1,989 |
| Toyota Prius | $2,009 |
| Jeep Wrangler Sahara 4WD 2-Dr | $2,021 |
| Toyota Corolla LE | $2,056 |
| Toyota Camry SE | $2,063 |
| Nissan Rogue S AWD | $2,091 |
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Data variables include single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, multi-policy, claim-free, multi-vehicle, and homeowner. Premium amounts do not factor in vehicle garaging location which can increase or decrease insurance rates noticeably.
Looking at the data, we can presume that makes and models like the Ford Escape, Volkswagen Jetta, Honda CR-V, and Dodge Grand Caravan are some of the less-costly vehicles to insure for low mileage drivers.
Get discounts on Newark car insurance rates
Insurers that provide coverage for infrequent drivers may also offer special discounts that could reduce prices by as much as 40% or more if you meet certain criteria. Larger car insurance companies and a summarized list of policyholder discounts are included below.
- GEICO policyholders can earn discounts including membership and employees, military active duty, defensive driver, federal employee, and anti-theft.
- Travelers discounts include driver training, early quote, save driver, hybrid/electric vehicle, multi-car, good student, and payment discounts.
- Nationwide offers discounts for Farm Bureau membership, multi-policy, anti-theft, defensive driving, family plan, good student, and easy pay.
- Farmers Insurance includes discounts for electronic funds transfer, alternative fuel, good student, teen driver, and switch companies.
- Esurance has discounts for Switch & Save, Pac-12 alumni, emergency road assistance, defensive driver, homeowner, and DriveSense.
- State Farm may have discounts that include driver’s education, multiple autos, student away at school, multiple policy, good driver, defensive driving training, and passive restraint.
- Progressive may offer discounts for online quote discount, continuous coverage, multi-vehicle, multi-policy, online signing, and homeowner.
- Mercury Insurance may include discounts for age of vehicle, annual mileage, ease of repair, good driver, and good student.
The chart below shows the comparison of annual premium costs with and without discounts. The prices are based on a male driver, no accidents or driving violations, New Jersey state minimum liability limits, full physical damage coverage, and $250 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with passive restraint, anti-theft, homeowner, multiple vehicle, defensive driving course, and accident-free discounts applied. When discounts are applied, the average savings per year on car insurance for infrequent drivers is 28% or $939.
Bad driving habits will cost you more
In a perfect world, the best way to snag good car insurance prices in New Jersey for low mileage drivers is to be an attentive driver and avoid accidents and traffic citations. The information below illustrates how speeding tickets and at-fault claims impact yearly insurance costs for different age categories. The premiums are based on a married male driver, full physical damage coverage, $500 deductibles, and no discounts are applied.
The data in the chart shows the average cost of a car insurance policy per year with no accidents or violations is $2,560. Get two speeding tickets and the average cost surges to $3,532, an increase of $972 each year. Then throw in one accident along with the two speeding tickets and the yearly cost of car insurance for infrequent drivers goes up to an average of $4,529. That’s an increase of $1,969, or $164 per month, just for being a careless driver!
Why you should be shopping around
Newark car insurance rates are calculated based on many things which can substantially change the price of your policy. Simply having another birthday, filing a claim, or getting a reckless driving citation can trigger changes in premium that may make certain companies more affordable than others. And not only may your rating factors change, but auto insurance companies file new New Jersey car insurance rates every year to ensure their profitability. Heavy losses can result in increased policy costs, while lower claims can result in lower-priced Newark car insurance rates.
For instance, the data below shows which company has the cheapest car insurance in Newark, NJ for a 30-year-old male driver with no prior claims, no tickets, and a decent credit rating. Based on his current situation, 21st Century might quote the most affordable car insurance rates in Newark at $1,592 per year. This is $260 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades round out the rest of the top five cheapest Newark, NJ auto insurance companies.
Now we will give the driver in the first chart a claim, a lower credit rating, and a traffic ticket or two. Because each insurer has a different formula to establish rates, analyzing rates may now show a different set of affordable Newark car insurance companies as shown below.
The Hartford now has the cheapest price in Newark with Allstate, USAA, Travelers, and Mercury now rounding out the top five. This illustrates why it is important to take the time to shop around to get the most economical auto insurance quotes for infrequent drivers. Rates can be determined by many factors and change dramatically, so the most economical company three years ago may now be priced much higher than other options.