You have most likely seen the ads from car insurance companies like Liberty Mutual and Nationwide that promise enormous savings. So drivers should just choose the one with the most memorable commercial, right?
Unfortunately, it’s not that simple as there are a whole slew of unknowns like where you live in Newark, what deductibles to use for physical damage coverage, and whether or not you are currently insured, that all go into determining the rate you pay. The information below covers these things and also should give you some help in finding cheaper rates.
For new drivers, one of the largest components that are used to help calculate the amount you pay each year for auto insurance is where you live in Newark. Areas with high crime rates or more dense population tend to pay slightly more, whereas areas that tend to be more rural profit from lower rates.
The illustration below ranks the most expensive cities in New Jersey for inexperienced drivers to purchase auto insurance in. Newark makes the list at #1 with the yearly price of $2,522 for the average insured, which is about $210 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Newark | $2,522 |
| 2 | East Orange | $2,521 |
| 3 | Paterson | $2,472 |
| 4 | West New York | $2,431 |
| 5 | Elizabeth | $2,398 |
| 6 | Hoboken | $2,377 |
| 7 | Union City | $2,354 |
| 8 | Jersey City | $2,345 |
| 9 | Clifton | $2,345 |
| 10 | Passaic | $2,301 |
| 11 | Bayonne | $2,274 |
| 12 | Kearny | $2,266 |
| 13 | Camden | $2,221 |
| 14 | Perth Amboy | $2,144 |
| 15 | Linden | $2,121 |
| 16 | Atlantic City | $2,086 |
| 17 | Fort Lee | $2,060 |
| 18 | Hackensack | $1,980 |
| 19 | Plainfield | $1,976 |
| 20 | New Brunswick | $1,913 |
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Table data uses comparative as the specific geographic location can decrease or increase price quotes substantially.
The vehicle that is being insured is probably the biggest factor that determines whether or not you find cheap auto insurance for inexperienced drivers. Vehicles with high performance engines, a lack of safety features, or a track record of large liability claims will cost significantly more to insure than safer models. The next table illustrates insurance costs for the cheapest vehicles to insure in New Jersey.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX-L 4-Dr Sedan | $1,834 |
| Toyota Prius | $1,872 |
| Hyundai Elantra Blue 4-Dr Sedan | $2,067 |
| Ford Focus SES 4-Dr Sedan | $2,072 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $2,073 |
| Honda CR-V EX 2WD | $2,076 |
| Ford Escape XLT 4WD | $2,126 |
| Chevrolet Silverado 2500HD LTZ Crew Cab 4WD | $2,144 |
| GMC Sierra Denali Crew Cab 2WD | $2,289 |
| Kia Optima SX | $2,296 |
| Toyota Camry Hybrid | $2,289 |
| Toyota RAV4 Sport 2WD | $2,294 |
| Chevrolet Equinox LS 2WD | $2,301 |
| Dodge Ram 3500 Mega Cab Laramie 2WD | $2,327 |
| Ford Explorer XLT 2WD | $2,333 |
| Chevrolet Silverado 3500HD LTZ Crew Cab Diesel 2WD | $2,327 |
| Chevrolet Impala LTZ | $2,415 |
| Honda Odyssey EX-L | $2,421 |
| Toyota Camry SE | $2,415 |
| Volkswagen Jetta SEL 4-Dr Sedan | $2,460 |
| GMC Sierra 2500HD SLE Regular Cab 4WD | $2,470 |
| Dodge Grand Caravan Hero | $2,460 |
| Ford F-150 Lariat King Ranch 2WD | $2,467 |
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Data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, multi-vehicle, safe-driver, claim-free, and homeowner. Premium costs do not factor in specific location information which can modify coverage prices substantially.
Based on these rates, you can conclude that cars like the Honda Accord, Toyota Prius, Hyundai Elantra, Ford Focus, and Jeep Wrangler are going to be a few of the most economical vehicles to insure for new drivers.
Liability-only versus full coverage
Finding the cheapest auto insurance is the goal of most drivers, and one of the best ways to pay less for insurance for inexperienced drivers is to not buy comprehensive and collision coverage. The illustration below shows the comparison of insurance costs with full physical damage coverage and with liability coverage only. The premiums are based on no claims or driving violations, $100 deductibles, marital status is single, and no other discounts are factored in.
If we average all the age groups together, comp and collision coverage costs an additional $3,744 per year over liability only. Many people question when is it safe to stop buying full coverage. There is no written rule to drop physical damage coverage, but there is a general guideline. If the yearly cost of full coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
There are some circumstances where dropping full coverage is not advised. If you haven’t satisfied your loan, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you can’t afford to buy a different vehicle if your current one is totaled, you should not buy liability only.
Tickets and at-fault accidents raise rates
In a perfect world, the best way to find affordable auto insurance prices in Newark for new drivers is to be a good driver and maintain a clean driving record. The information below shows how traffic citations and fender-benders can drive up insurance costs for different categories of driver ages. The prices are based on a married female driver, comprehensive and collision coverage, $1,000 deductibles, and no discounts are taken into consideration.
The data in the chart shows the average cost of an auto insurance policy per year with no violations or accidents is $1,540. Add in two speeding tickets and the average cost surges to $2,176, an increase of $636 each year. Then include two accidents along with the two speeding tickets and the 12-month cost of auto insurance for inexperienced drivers goes up to an average of $4,841. That’s an increase of $3,301, or $275 per month, just for a couple of infractions!
Chances are good that you’re overpaying for Newark car insurance
Newark auto insurance rates are influenced by many factors which can significantly increase or decrease the price you have to pay. Simply improving your credit, buying higher coverage limits, or getting a driving violation can trigger changes in premium resulting in some rates now being much cheaper than others.
Additionally, companies amend premium rates every year or even multiple times each year in order to remain profitable. Heavy losses can cause more expensive premiums, while lower claims can produce lower-cost Newark car insurance rates.
The graph below shows which companies have the cheapest car insurance in Newark, NJ for a 35-year-old female driver with a clear driving record, no claims, and good credit. Based on her current situation, 21st Century might offer the best car insurance rates in Newark at $1,624 annually. This is $228 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the list of the cheapest Newark, NJ auto insurance companies.
In this next rate comparison, we will give the driver from the first set of rates a chargeable claim, poor credit, and a few blemishes on her driving record. Since every car insurance company has a unique approach to determine rates, analyzing rates most likely will result in a completely different list of cheap Newark auto insurance companies as shown below.
The Hartford now has the cheapest insurance rate in Newark, NJ with Allstate, USAA, Mercury, and Travelers now rounding out the top five. This demonstrates why it is so important to compare as many rates as possible when trying to get the most affordable auto insurance quotes for inexperienced drivers.
Insurance prices are influenced by many things and change frequently, so the best price when you bought your policy may now be costing you a lot of money.
If you aren’t sure which coverage you need and prefer to get some professional advice when shopping for cheaper insurance for new drivers, the professional agents shown below can aid you in deciding which coverages and limits you need.
To locate a Newark car insurance agency close to you, click the button below the list or click here to get price quotes now.
- Milwaukee Insurance Co
10 Park Pl – Newark, NJ 07102 – (973) 648-3000 - Arabo Insurance Group Inc
675 Bergen St – Newark, NJ 07108 – (973) 391-9595 - Farmers Insurance – Christine Veliz
229 Bloomfield Ave – Newark, NJ 07104 – (973) 482-1975 - State Farm: Zanetta Glover
570 Broad St #114 – Newark, NJ 07102 – (973) 648-0699 - Atlantis Agency
177 Adams St – Newark, NJ 07105 – (973) 466-9090
View more Newark, NJ insurance agents
Ideas for buying economical car insurance for inexperienced drivers
Below you’ll find some penny-pinching ideas that can help drivers find cheaper car insurance.
- Bundle car and home insurance and save money
- The safer your car, the less it costs to insure
- Avoid price increases by not filing claims
- Keep your driving record clean
- Staying accident-free helps keep rates low
- Comparison shop at least once a year
The final tip is certainly valuable, as was emphasized in this write-up. Insurance rates can be modified anytime, so you should be ready to switch companies if a lower price can be found.
Brand loyalty is not necessarily bad, but it’s not recommended if that dedication is costing a lot of money. Now is a great time to shop around and find cheaper insurance for inexperienced drivers in Newark.