It’s impossible to miss the commercials from car insurance companies like Farmers, Progressive, and Liberty Mutual claiming big savings, so you should just pick the company with the catchiest ad, right?
That is not the case, however, as there are a whole slew of unknowns such as if you own your own home, if you currently have coverage, if you are a man or woman, and what level of deductibles you need, that all have an effect on the price. If you keep reading, we will teach you about some of these things and hopefully give you enough understanding to have a good beginning to your quest for cheaper car insurance in Newark.
Shopping around for cost effective insurance is tough enough, and finding out which companies have the best car insurance rates for drivers over age 50 calls for even more rate comparisons. Each auto insurer has a unique approach for setting prices, so let’s take a look at the car insurance companies that tend to have lower prices in Newark, NJ.
It’s a good idea to be aware that Newark car insurance rates are calculated based on many things which can substantially change the cost of coverage. Simply improving your credit score, having a teen driver, or getting a few speeding tickets may generate price changes resulting in some companies being cheaper than competitors.
Cheapest Insurance Rates for Age 50+
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,145 |
| 3 | New Jersey Manufacturers | $1,258 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,341 |
| 6 | California Casualty | $1,481 |
| 7 | The Hartford | $1,491 |
| 8 | Allstate | $1,493 |
| 9 | USAA | $1,553 |
| 10 | Mercury | $1,635 |
| 11 | Progressive | $1,881 |
| 12 | Amica | $1,887 |
| 13 | Esurance | $1,894 |
| 14 | MetLife | $1,951 |
| 15 | GEICO | $2,174 |
| 16 | State Farm | $2,182 |
| 17 | Encompass | $2,397 |
| 18 | Liberty Mutual | $3,008 |
| 19 | Hanover | $3,987 |
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21st Century offers some of the best car insurance rates in Newark at around $1,067 each 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 are some of the cheaper Newark, NJ insurance companies.
As the example above demonstrates, if you currently buy coverage from Travelers and switched to 21st Century, you could realize annual savings of in the neighborhood of $78. Drivers with New Jersey Manufacturers may save as much as $191 a year, and Penn National policyholders might cut rates by $258 a year.
If you want to find out if you’re overpaying, click here to start a quote or feel free to get quotes from the companies below.
It’s important to note that these premiums are averages for all drivers and vehicles in New Jersey and do not take into consideration an exact zip code location for drivers over age 50. So the car insurance company that can offer you the lowest price may not even be in the list above. That is why you need to get quotes using your own personal information and vehicle type.
One of the many factors that determine the annual cost of car insurance is your address in Newark. Cities with more crime and/or more people tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates profit from lower rates.
The table below rates the highest-priced areas in New Jersey for drivers over age 50 in which to purchase auto insurance. Newark shows up at #1 costing $2,598 for car insurance, which is approximately $217 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Newark | $2,598 |
| 2 | East Orange | $2,495 |
| 3 | West New York | $2,456 |
| 4 | Union City | $2,450 |
| 5 | Paterson | $2,448 |
| 6 | Elizabeth | $2,446 |
| 7 | Jersey City | $2,345 |
| 8 | Passaic | $2,301 |
| 9 | Clifton | $2,299 |
| 10 | Kearny | $2,289 |
| 11 | Hoboken | $2,283 |
| 12 | Bayonne | $2,274 |
| 13 | Camden | $2,221 |
| 14 | Perth Amboy | $2,165 |
| 15 | Fort Lee | $2,123 |
| 16 | Linden | $2,121 |
| 17 | Atlantic City | $2,044 |
| 18 | Plainfield | $1,976 |
| 19 | Hackensack | $1,921 |
| 20 | Sayreville | $1,920 |
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Prices are estimated as the specific geographic location can influence premiums noticeably.
The vehicle to be insured is one of the largest factors when trying to find the cheapest auto insurance for drivers over age 50. Vehicles with high performance features, poor passenger safety features, or a high likelihood of having liability claims will cost much more to insure than more economical and safe models. The data below ranks car insurance rates for some of the most budget-friendly automobiles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $1,795 |
| Honda CR-V LX 4WD | $1,805 |
| Volkswagen Jetta S 2.5 Station Wagon | $1,944 |
| Toyota Prius | $1,986 |
| Dodge Grand Caravan Hero | $2,123 |
| Chevrolet Malibu Hybrid | $2,132 |
| GMC Sierra SLE Crew Cab 2WD | $2,123 |
| Toyota RAV4 Limited 4WD | $2,129 |
| Toyota Tacoma Double Cab 4WD | $2,123 |
| Ford Explorer Limited AWD | $2,166 |
| Honda Civic EX 4-Dr Sedan | $2,193 |
| Ford Focus SES 4-Dr Sedan | $2,200 |
| Honda Odyssey EX-L W/Navigation | $2,233 |
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Data rating is based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, claim-free, multi-vehicle, multi-policy, and homeowner. Information does not factor in vehicle garaging location which can alter auto insurance rates substantially.
Looking at the rates, we can assume that cars like the Ford Escape, Honda CR-V, Volkswagen Jetta, Toyota Prius, and Dodge Grand Caravan are most likely to be some of the cheaper vehicles to insure for older drivers.
Car insurance rates are higher with tickets and accidents
One of the best ways to maintain the most affordable car insurance premiums in New Jersey for older drivers is to drive safely and not have accidents or get tickets. The chart below illustrates how violations and accident claims impact car insurance costs for different age groups of insureds. The premiums are based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no additional discounts are factored in.
In the previous example, the average cost of car insurance in Newark per year with no accidents and a clean driving record is $2,560. Add in two speeding tickets and the average cost swells to $3,532, an increase of $972 each year. Now add one accident along with the two speeding tickets and the 12-month cost of car insurance for drivers over age 50 goes up to an average of $4,529. That’s an increase of $1,969, or $164 per month, just for not being a responsible driver!
Does full coverage make sense?
Saving money when shopping for car insurance is the goal of the majority of people, and one of the fastest ways to find cheaper insurance for drivers over age 50 is to buy liability only. The illustration below illustrates the difference between insurance premiums when comparing full coverage to liability only. The prices are based on a clean driving record, no claims, $1,000 deductibles, marital status is single, and no additional discounts are factored in.
Averaged out for all age groups, comprehensive and collision coverage on your policy costs $2,717 per year more than just buying liability only. Many drivers may wonder if buying full coverage is worth the money. There is no clear-cut rule that works best for making the decision to drop physical damage coverage on your policy, but there is a guideline you can use. If the yearly cost of comp and collision coverage is more than around 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.
There are some cases where removing full coverage is not a good idea. If you still owe a portion of the original loan, you have to keep full coverage as part of the loan requirements. Also, if your savings is not enough to buy a different vehicle if your current one is in an accident, you should not buy liability only.
The chart below demonstrates how choosing different deductibles can raise or lower insurance prices when quoting cheap insurance for drivers over age 50. The costs are based on a married female driver, comprehensive and collision coverage, and no policy discounts are applied.
A 30-year-old driver could lower rates by $382 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $576 by selecting a $1,000 deductible. Even younger drivers, like the Age 20 category, could save $814 or even more just by using higher deductibles.
When increasing deductibles, it will be necessary to have enough savings set aside to offset the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.