This article would sure be shorter if we could simply give you the name of the one company that has the best deal on coverage in New Jersey. It’s not that easy, however, as there are a ton of unknown aspects such as whether or not your vehicle has good safety ratings, if you want full coverage, and what deductibles to use for physical damage coverage, that all impact the cost of your policy. The content below will cover the best ways to find cheap auto insurance and educate you enough to have a good start in finding the cheapest insurance in Newark.
Finding affordable auto insurance is easier said than done, and finding out which insurers offer the most affordable auto insurance rates for state employees takes even more diligence.
Every car insurance company has a unique formula for determining rates, so first we will examine the most affordable auto insurance companies in Newark, NJ. It’s important that you understand Newark, NJ auto insurance rates are influenced by many factors which can substantially change the price of your policy. Simply turning a year older, buying a different vehicle, or getting a few speeding tickets can trigger changes in premium that can cause some rates to be cheaper in comparison to the competition.
Find the Cheapest Car Insurance in New Jersey
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,180 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Penn National | $1,338 |
| 5 | Palisades | $1,382 |
| 6 | The Hartford | $1,476 |
| 7 | Allstate | $1,493 |
| 8 | California Casualty | $1,495 |
| 9 | USAA | $1,553 |
| 10 | Mercury | $1,635 |
| 11 | Esurance | $1,838 |
| 12 | Progressive | $1,881 |
| 13 | Amica | $1,887 |
| 14 | MetLife | $1,932 |
| 15 | GEICO | $2,174 |
| 16 | State Farm | $2,248 |
| 17 | Encompass | $2,374 |
| 18 | Liberty Mutual | $2,978 |
| 19 | Hanover | $4,027 |
| Get Personalized Rates Go | ||
21st Century quotes some of the cheapest car insurance rates in Newark at around $1,067 each year. Travelers, New Jersey Manufacturers, Penn National, and Palisades would also make the list of some of the cheaper Newark, NJ car insurance companies.
As illustrated above, if you have coverage with Penn National and switched to Travelers, you may realize yearly savings of around $158. Insureds with Palisades might save as much as $202 a year, and The Hartford policyholders might see rate reductions of $296 a year.
These rates are averaged across all drivers and vehicles and do not factor in an exact location for state employees. So the auto insurance company that fits your needs best may not even be in the top 19 companies in the list above. That point stresses why you need to compare prices as often as possible using your own specific driver information and vehicle.
For state workers, one of the more important criteria that aid in calculating the amount you pay each year for auto insurance is where your car is garaged. Cities with larger populations or higher claim trends tend to have higher auto insurance costs, whereas less populated areas benefit from lower coverage costs.
The illustration below rates the highest-priced areas in New Jersey for state employees to purchase auto insurance in. Newark shows up at #1 costing $2,572 for the average policyholder, which is about $214 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | East Orange | $2,571 |
| 3 | Elizabeth | $2,470 |
| 4 | West New York | $2,456 |
| 5 | Paterson | $2,400 |
| 6 | Passaic | $2,371 |
| 7 | Union City | $2,354 |
| 8 | Jersey City | $2,322 |
| 9 | Clifton | $2,299 |
| 10 | Kearny | $2,289 |
| 11 | Hoboken | $2,283 |
| 12 | Camden | $2,221 |
| 13 | Bayonne | $2,207 |
| 14 | Linden | $2,099 |
| 15 | Perth Amboy | $2,081 |
| 16 | Fort Lee | $2,060 |
| 17 | Atlantic City | $2,044 |
| 18 | Hackensack | $1,999 |
| 19 | Plainfield | $1,976 |
| 20 | Trenton | $1,974 |
| Quote Best Rates Go | ||
Rates are comparative as the specific zip code location can affect price quotes significantly.
The information below highlights how deductible choice can impact insurance rates when trying to find cheap insurance for state employees. The premium estimates are based on a married male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
A 40-year-old driver could lower their policy premium by $336 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $508 by using a $1,000 deductible. Even younger drivers, like the 20-year-old example, could reduce their rates as much as $1,114 or more just by choosing higher deductibles when buying full coverage. When choosing a higher deductible, it is essential to have additional savings on hand to offset the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Discount Newark insurance rates
Insurance companies that offer quotes for state employees may provide discounts that could reduce prices by as much as 40% or more if you meet specific eligibility requirements. A few of the larger companies and a selection of discounts are:
- GEICO offers discounts for emergency military deployment, membership and employees, multi-policy, defensive driver, seat belt use, and good student.
- USAA offers discounts including military installation, safe driver, multi-policy, annual mileage, driver training, and family discount.
- Progressive includes discounts for homeowner, multi-vehicle, continuous coverage, good student, multi-policy, and online quote discount.
- American Family discounts include good student, accident-free, early bird, bundled insurance, Steer into Savings, and multi-vehicle.
- Esurance has savings for multi-car, paid-in-full, online shopper, homeowner, anti-theft, emergency road assistance, and Switch & Save.
- Farmers Insurance may offer discounts for mature driver, multi-car, early shopping, good student, switch companies, homeowner, and distant student.
- State Farm offers premium reductions for accident-free, passive restraint, safe vehicle, defensive driving training, and Steer Clear safe driver discount.
The example below shows the difference between insurance rates with and without some available policy discounts. The data assumes a male driver, no claims or driving violations, New Jersey state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with defensive driving course, passive restraint, multiple policy, safe-driver, marriage, and anti-theft discounts applied. When drivers qualify for the discounts, theaverage amount saved on auto insurance for state employees is 28% or $628.
Here’s why you should compare rates often
Newark, NJ auto insurance rates are calculated based on many things that control the cost of having a policy. Simply improving your credit, buying a home instead of renting, or getting caught speeding can produce rate changes that can make some companies more affordable than the competition.
And not only may your rating factors change, but car insurance companies change their prices at least once a year in order to maintain liquidity for claims. An unexpected high level of claims can cause rate hikes, while lower claim expenses can cause lower-priced Newark car insurance rates.
To help illustrate this point, the graph below analyzes the cheapest car insurance in Newark, NJ for a 35-year-old male driver with no accidents or violations, and a high credit rating. If we estimate prices based on his personal profile, 21st Century offers the lowest car insurance rates in Newark at $1,640 a year. This is $212 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are also on the list of the cheapest Newark, NJ auto insurance companies.
Now we will pretend the driver from the first rate comparison a chargeable accident, slightly worse credit, and a blemish on his driving record. Because every insurance company has their own guidelines to determine rates, comparing insurance quotes could now result in a slightly different list of companies as shown below.
Allstate now has the lowest price on auto insurance in Newark, NJ with California Casualty, Travelers, Mercury, and USAA completing the list. This demonstrates why New Jersey drivers need to take the time to shop around to find the most economical car insurance quotes for state employees. Insurance rates can be altered by many things and can change substantially, so the most economical option the last time you shopped your coverage around may now be wasting a lot of money.