The words “bargain” and “insurance” really should not be used together, specifically when comparison shopping for the cheapest auto insurance for drivers requiring a SR22. Because of the high cost, let’s open your eyes to some things that significantly impact auto insurance premiums, and find a few ways to take the bite out of your next policy.
For high risk drivers, one of the big components that are looked at to determine auto insurance rates is where you normally keep your vehicle in Newark. Cities with larger populations tend to have higher auto insurance costs, whereas areas with fewer weather claims and lower vehicle theft rates have the benefit of cheaper auto insurance prices.
The following table lists the highest-priced places in New Jersey for drivers requiring a SR22 to buy auto insurance in. Newark is ranked at #1 with an annual cost of $2,496 for coverage, which is around $208 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Newark | $2,496 |
| 2 | East Orange | $2,495 |
| 3 | Elizabeth | $2,470 |
| 4 | West New York | $2,431 |
| 5 | Paterson | $2,400 |
| 6 | Passaic | $2,395 |
| 7 | Union City | $2,378 |
| 8 | Clifton | $2,368 |
| 9 | Hoboken | $2,353 |
| 10 | Kearny | $2,335 |
| 11 | Jersey City | $2,322 |
| 12 | Bayonne | $2,207 |
| 13 | Linden | $2,185 |
| 14 | Perth Amboy | $2,144 |
| 15 | Camden | $2,133 |
| 16 | Fort Lee | $2,081 |
| 17 | Atlantic City | $2,044 |
| 18 | Trenton | $1,954 |
| 19 | Hackensack | $1,940 |
| 20 | Plainfield | $1,918 |
| 21 | Sayreville | $1,863 |
| 22 | Vineland | $1,860 |
| 23 | New Brunswick | $1,856 |
| 24 | Lakewood | $1,800 |
| 25 | Toms River | $1,725 |
| Find Cheaper Insurance Go | ||
Annual rates are approximated as specific Newark zip code can increase or decrease prices noticeably.
Deciphering which companies quote the lowest-priced auto insurance rates for drivers requiring a SR22 may require a bit more work than just quoting one company’s rates.
Each insurance company has a unique formula for establishing rates, so let’s look at the rankings for the auto insurance companies with the overall cheapest rates in New Jersey. It’s important to know that Newark auto insurance rates are calculated based on many things that will increase or decrease the policy premium. Simply improving your credit, buying a home instead of renting, or getting a DUI may cause policy rate changes that can make some companies cheaper than competitors.
Best Auto Insurance Prices for SR22 Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,111 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,310 |
| 4 | Penn National | $1,338 |
| 5 | Palisades | $1,341 |
| 6 | California Casualty | $1,451 |
| 7 | Allstate | $1,478 |
| 8 | The Hartford | $1,536 |
| 9 | USAA | $1,600 |
| 10 | Mercury | $1,603 |
| 11 | Esurance | $1,838 |
| 12 | Amica | $1,887 |
| 13 | MetLife | $1,932 |
| 14 | Progressive | $1,938 |
| 15 | State Farm | $2,182 |
| 16 | GEICO | $2,240 |
| 17 | Encompass | $2,397 |
| 18 | Liberty Mutual | $2,920 |
| 19 | Hanover | $4,027 |
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21st Century has some of the lowest car insurance rates in Newark at around $1,111 a year. This is $741 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 cut as some of the cheaper Newark, NJ car insurance companies.
As the rates illustrate above, if you are a customer of Travelers and switched to 21st Century, you could realize yearly savings of roughly $80. Drivers with New Jersey Manufacturers might save as much as $199 a year, and Penn National policyholders might cut rates by $227 a year.
Be aware that those estimates are averaged across all types of drivers and the different vehicles they drive and and are not figured with a specific zip code for drivers requiring a SR22. So the insurer that fits your situation best may not even be in the top 19 companies in the list above. That’s why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
The make and model of vehicle on the policy is one of the biggest factors when comparison shopping for economical car insurance for drivers requiring a SR22. Vehicles with limited top-end speed, a great safety record, or low incidents of liability claims will cost substantially less to insure than high performance models. The next table features insurance costs for a selection of the most cost-effective vehicles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $6,051 |
| Honda CR-V EX 4WD | $6,196 |
| Volkswagen Jetta S 2.5 Station Wagon | $6,254 |
| Toyota Prius | $6,589 |
| Ford Edge SEL AWD | $6,888 |
| Ford Explorer XLT AWD | $6,925 |
| Toyota RAV4 Sport 4WD | $6,954 |
| Chevrolet Silverado LT Extended Cab 4WD | $6,959 |
| Ford Focus S 4-Dr Sedan | $7,160 |
| Honda Odyssey EX | $7,166 |
| Jeep Grand Cherokee Laredo 4WD | $7,241 |
| Toyota Camry SE | $7,272 |
| Ford F-350 XL Super Cab 2WD | $7,313 |
| Ford F-150 FX4 4WD | $7,319 |
| Chevrolet Malibu LT | $7,327 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $7,319 |
| Dodge Grand Caravan SXT | $7,324 |
| GMC Sierra SLE Extended Cab 4WD | $7,339 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $7,417 |
| Honda Civic LX 4-Dr Sedan | $7,472 |
| Toyota Corolla LE | $7,498 |
| Hyundai Elantra GLS 4-Dr Sedan | $7,505 |
| Chevrolet Impala LTZ | $7,553 |
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Prices based on single male driver age 30, two speeding tickets, two at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, multi-policy, and multi-vehicle. Table data does not factor in specific location which can impact premium rates considerably.
Based upon the rates shown, you can infer that makes and models like the Ford Escape, Honda CR-V, Volkswagen Jetta, Toyota Prius, and Ford Edge are a few of the most budget-friendly vehicles to insure for high risk drivers. Prices will tend to be higher just because there is more claim exposure for drivers requiring a SR22, but generally speaking those particular models will most likely have the lowest insurance rates compared to all other vehicles.
How accidents and tickets impact rates in Newark
The recommended way to obtain cheap auto insurance rates for high risk drivers is to be a safe driver and have a clean driving record. The information below demonstrates how speeding tickets and accident claims increase insurance costs for each age group. The premiums are based on a single male driver, full coverage, $250 deductibles, and no discounts are taken into consideration.
The data charted above shows the average cost of auto insurance per year with a clean driving record and no accidents is $3,363. Get written up for one speeding ticket and the average cost increases to $3,791, an increase of $428 each year. Then add one accident along with the one speeding ticket and the 12-month cost of auto insurance for drivers requiring a SR22 increases to an average of $5,007. That’s an increase of $1,644, or $137 per month, just for being a less-than-perfect driver!
The example below shows how choosing a deductible can influence insurance premiums when trying to find cheap insurance for drivers requiring a SR22. The premium estimates are based on a single male driver, full physical damage coverage, and no discounts are applied.
As shown above, a 30-year-old driver could save $602 a year by changing from a $100 deductible up to a $500 deductible, or save $902 by using a $1,000 deductible. Younger drivers, like the age 20 example, can cut up to $1,782 every year by using a higher deductible.
When increasing deductibles, it is a good idea to have emergency funds available to satisfy the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Last year’s bargain might be this year’s rip off
Newark, NJ auto insurance rates are determined by lots of factors that will increase or decrease the cost of coverage. Simply having a birthday, buying a new vehicle, or getting caught speeding can trigger rate changes resulting in some companies being cheaper than before.
In addition, car insurance companies amend premium rates without warning in order to be able to pay unexpected claims. Heavier than normal losses may result in increased rates, while better underwriting can cause lower-priced Newark car insurance rates.
The data below shows a variety of companies that have the cheapest car insurance in Newark, NJ for a 45-year-old male driver with no prior claims, no tickets, and a decent credit rating. If we compare prices based on his current risk factors, 21st Century has the most affordable car insurance rates in Newark at $1,544 per year. This is $308 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the rest of the cheapest Newark, NJ auto insurance companies.
Let’s now give the driver from the first set of rates an at-fault accident, less-than-perfect credit, and a blemish on his driving record. Since every insurance provider has their own process to determining premium rates, comparing prices may now show a completely different list of the cheapest car insurance companies in Newark as shown below.
The Hartford now has the lowest car insurance rate in Newark, NJ with Allstate, Travelers, USAA, and Mercury completing the list. This illustrates why drivers need to perform a complete rate comparison when trying to get the lowest car insurance rates for drivers requiring a SR22. Insurance prices are impacted by many things and change substantially, so the cheapest company the last time you compared rates may now be quite expensive.