Life would sure be easier if we could just give you the name of the company that has the cheapest policy rates in New Jersey. It’s not that easy, however, as there are a whole slew of unknown elements such as how many years you have been driving, whether or not you are currently insured, and how high your deductibles should be, that all influence how much you pay for auto insurance. We will try to cover the best ways to avoid paying too much and should give you a solid foundation to find cheaper car insurance in New Jersey.
The car, truck, or SUV on the policy is one of the primary factors when quoting low-cost insurance for good drivers. Vehicles with economical engines, good safety features, or a low likelihood of liability claims will cost substantially less to insure than fast, unsafe models. The data below ranks coverage costs for a number of the most budget-friendly vehicles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $1,874 |
| Toyota Prius | $2,031 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $2,053 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $2,209 |
| Honda Civic LX-S 4-Dr Sedan | $2,240 |
| Ford Escape XLS 2WD | $2,249 |
| Nissan Altima 2.5 S 4-Dr Sedan | $2,280 |
| GMC Sierra 2500HD SLE Extended Cab 4WD | $2,323 |
| Nissan Rogue S AWD | $2,330 |
| Dodge Ram 3500 Crew Cab ST 2WD | $2,406 |
| Hyundai Sonata SE 4-Dr Sedan | $2,437 |
| Ford Edge Limited 2WD | $2,443 |
| Chevrolet Impala LS | $2,452 |
| Volkswagen Jetta SE 2.5 Station Wagon | $2,455 |
| Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD | $2,480 |
| Honda Accord EX-L 2-Dr Coupe | $2,490 |
| GMC Sierra SLE Regular Cab 2WD | $2,489 |
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Data variables include single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, safe-driver, multi-vehicle, homeowner, and multi-policy. Premium amounts do not factor in your specific Newark, NJ location which can revise insurance rates significantly.
Looking at the data, models like the Honda CR-V, Toyota Prius, Jeep Wrangler, and Toyota Tacoma are likely to be the cheapest vehicles to insure for safe drivers.
One of the more important factors that are looked at to determine the amount you pay each year for auto insurance is where you keep your car. More populated areas tend to have more expensive auto insurance rates, whereas areas that tend to be more rural have the luxury of lower rates.
The table below rates the priciest cities in New Jersey for good drivers to buy an auto insurance policy in. Newark shows up at #1 with the annual price of $2,598 for the average insured, which is approximately $217 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Newark | $2,598 |
| 2 | East Orange | $2,597 |
| 3 | West New York | $2,456 |
| 4 | Elizabeth | $2,446 |
| 5 | Union City | $2,378 |
| 6 | Paterson | $2,376 |
| 7 | Hoboken | $2,353 |
| 8 | Clifton | $2,345 |
| 9 | Passaic | $2,325 |
| 10 | Kearny | $2,266 |
| 11 | Jersey City | $2,253 |
| 12 | Bayonne | $2,251 |
| 13 | Linden | $2,163 |
| 14 | Camden | $2,155 |
| 15 | Perth Amboy | $2,144 |
| 16 | Fort Lee | $2,081 |
| 17 | Atlantic City | $2,024 |
| 18 | Hackensack | $1,999 |
| 19 | Trenton | $1,974 |
| 20 | Plainfield | $1,956 |
| 21 | Sayreville | $1,882 |
| 22 | New Brunswick | $1,856 |
| 23 | Vineland | $1,842 |
| 24 | Lakewood | $1,819 |
| 25 | Toms River | $1,725 |
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Annual rates are approximated as the specific garaging location can impact coverage prices noticeably.
Establishing which companies have the lowest-priced auto insurance rates for good drivers will take a bit more work than just picking a company at random.
Each insurance company used slightly different criteria to set policy rates, so we’ll take a look at the most budget-friendly auto insurance companies in Newark. It’s important that you understand New Jersey auto insurance rates are based on many factors which can substantially change the price you pay for coverage. Improving your credit rating, adding a teenager to your policy, or getting a driving violation can produce rate changes that can cause some rates to be cheaper in comparison to the competition.
Find Cheaper Auto Insurance for Good Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,156 |
| 3 | New Jersey Manufacturers | $1,310 |
| 4 | Penn National | $1,379 |
| 5 | Palisades | $1,395 |
| 6 | California Casualty | $1,437 |
| 7 | The Hartford | $1,476 |
| 8 | Allstate | $1,493 |
| 9 | USAA | $1,538 |
| 10 | Mercury | $1,603 |
| 11 | Amica | $1,813 |
| 12 | Esurance | $1,913 |
| 13 | Progressive | $1,919 |
| 14 | MetLife | $1,951 |
| 15 | State Farm | $2,182 |
| 16 | GEICO | $2,196 |
| 17 | Encompass | $2,303 |
| 18 | Liberty Mutual | $3,008 |
| 19 | Hanover | $3,869 |
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21st Century offers some of the best car insurance rates in Newark at around $1,067 per year. This is $785 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the best Newark, NJ auto insurance companies.
In the above rates, if you are currently insured with Travelers and switched to 21st Century, you might see a yearly price reduction of approximately $89. Customers with New Jersey Manufacturers may save as much as $243 a year, and Penn National policyholders might reduce prices by as much as $312 a year.
To find the cheapest coverage for you, click here to get quotes or click through to the companies below.
It’s important to note that these premium estimates are averaged for all types of insureds and vehicles and and are not calculated with a vehicle location for good drivers. So the auto insurance company that can offer you the lowest price may not even be in the list above. That’s why you need to get car insurance quotes using your own specific driver and vehicle information.
Full coverage rates compared to liability only
Paying a lower price for auto insurance is probably important to most people, and an effective way to reduce the cost of insurance for good drivers is to not buy full coverage. The example below compares insurance premiums with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. The rate quotes are based on no driving violations, no at-fault accidents, $1,000 deductibles, single status, and no discounts are factored in.
If the expense is averaged for all age categories, physical damage coverage costs $2,176 per year more than buying just liability insurance. That raises the question if paying for full coverage is worth it. There is no exact formula for phasing out physical damage coverage, but there is a guideline you can consider. If the annual cost of coverage is more than around 10% of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.
The chart below illustrates how your deductible choice can raise or lower insurance rates when getting quotes for cheap insurance for good drivers. The costs are based on a married female driver, comp and collision included, and no other discounts are factored in.
A 40-year-old driver could save $444 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $666 by selecting a $1,000 deductible. Younger drivers, like the Age 20 chart data, could shave $1,098 each year by using higher deductibles when buying full coverage.
When increasing deductibles, it is a good idea to have enough in a savings account to enable you to cover the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
The importance of shopping around
Newark, NJ auto insurance rates are impacted by many factors that may substantially change the policy premium. Simply having another birthday, having a claim, or getting a ticket for running a stop sign can trigger price changes that can make some companies cheaper than competitors. In addition to those changes, companies file new New Jersey car insurance rates every year or even multiple times each year in order to remain profitable. Unexpectedly high claims may cause more expensive prices, while a lower level of claims can produce lower-cost Newark car insurance rates.
To illustrate this point, the bar chart below compares the cheapest car insurance in Newark, NJ for a 30-year-old female driver with no accidents or violations, and great credit. If we estimate prices based on her personal profile, 21st Century has the lowest car insurance rates in Newark at $1,656 a year. This is $196 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the remainder of the best Newark, NJ auto insurance companies.
In the next rate comparison, we’ll give the driver in the first example a couple of claims, less-than-perfect credit, and a traffic citation. Since each auto insurer has a different formula to determine rates, comparing insurance quotes could result in a substantially altered list of the cheapest companies as shown below.
Allstate now has the best price on car insurance in Newark, NJ with The Hartford, USAA, Travelers, and Mercury also being competitive. This example proves why Newark drivers need to do a thorough rate comparison when trying to get cheap car insurance quotes for good drivers.
Insurance prices are determined by many things and can change without notice, so the best price a year ago may now be quite expensive.