The words “bargain” and “auto insurance” really shouldn’t be used in the same sentence, specifically when you are looking for the best price on coverage for welfare recipients. Because it’s so expensive, let’s start the ball rolling by going over some situations that impact insurance prices, and find out if we can help you take the bite out of the next policy you buy.
For drivers on welfare, one of the big criteria that are looked at to help calculate the amount you pay each year for auto insurance is where you call home in Newark. Larger areas will most likely pay more, whereas areas with less congestion receive better rates.
The information below shows the most expensive places in New Jersey for welfare recipients to purchase a policy in. Newark shows up at #1 with an annual rate of $2,572 for the average policy, which is approximately $214 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | East Orange | $2,571 |
| 3 | Paterson | $2,472 |
| 4 | Elizabeth | $2,470 |
| 5 | West New York | $2,431 |
| 6 | Union City | $2,378 |
| 7 | Passaic | $2,301 |
| 8 | Clifton | $2,299 |
| 9 | Kearny | $2,289 |
| 10 | Hoboken | $2,283 |
| 11 | Jersey City | $2,276 |
| 12 | Bayonne | $2,251 |
| 13 | Linden | $2,185 |
| 14 | Camden | $2,133 |
| 15 | Perth Amboy | $2,102 |
| 16 | Fort Lee | $2,081 |
| 17 | Atlantic City | $2,024 |
| 18 | Hackensack | $1,999 |
| 19 | New Brunswick | $1,932 |
| 20 | Plainfield | $1,918 |
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Rate information is approximated as the garaging address in Newark can change rates significantly.
The type of vehicle to be insured is a significant factor that determines the availability of the cheapest coverage for welfare recipients. Vehicles with high performance, a lack of safety features, or high incidents of liability claims will cost more to insure than more modest models.
The list below illustrates insurance costs for some of the most budget-friendly vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $1,715 |
| Honda Accord LX 4-Dr Sedan | $1,880 |
| Chevrolet Silverado LS Regular Cab 4WD | $1,888 |
| Ford F-150 XLT Super Cab 2WD | $1,919 |
| Ford Escape XLT 4WD | $1,987 |
| Chevrolet Impala LT | $2,028 |
| Toyota Prius | $2,087 |
| Hyundai Elantra SE Touring Station Wagon | $2,093 |
| Ford Explorer XLT AWD | $2,099 |
| Honda Odyssey Touring | $2,176 |
| Ford Edge SEL 2WD | $2,179 |
| Volkswagen Jetta S 4-Dr Sedan | $2,220 |
| Jeep Grand Cherokee Laredo 4WD | $2,230 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $2,264 |
| Ford Focus SE 2-Dr Coupe | $2,285 |
| Toyota RAV4 Limited 2WD | $2,288 |
| Chevrolet Malibu Hybrid | $2,293 |
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Price data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, multi-policy, homeowner, safe-driver, and claim-free. Price estimates do not factor in specific location information which can increase or decrease auto insurance rates substantially.
Looking at the numbers, vehicles like the Honda CR-V, Honda Accord, Chevrolet Silverado, Ford F-150, and Ford Escape will be some of the cheapest vehicles to insure for drivers on welfare.
The illustration below highlights how deductible choice can influence insurance rates when getting quotes for cheap insurance for welfare recipients. The premium estimates are based on a single male driver, full coverage, and no discounts are factored in.
The data above shows that a 50-year-old driver could lower their policy premium by $474 a year by increasing from a $100 deductible up to a $500 deductible, or save $714 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old, could reduce their rates as much as $1,560 each year by choosing a higher deductible.
When choosing a higher deductible, it’s a good idea to have enough spare savings to allow you to cover the extra out-of-pocket expense that is associated with using high deductibles.
Do you need full coverage?
Saving money on insurance is important to most people, and one of the quickest ways to pay lower rates for insurance for welfare recipients is to only buy liability insurance. The diagram below compares insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. The information is based on no violations or claims, $1,000 deductibles, single marital status, and no discounts are taken into consideration.
If we average the cost for ages 20 through 70, physical damage coverage costs $2,681 per year over and above liability coverage. A very common question is if it’s worth it to buy full coverage. There is no definitive rule of when to stop paying for physical damage coverage, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost minus the deductible, then it could be time to drop full coverage.
How to get discounts on Newark auto insurance rates
Insurance companies that offer coverage for welfare recipients may also provide policy discounts that could reduce prices by as much as 25% or more if you are eligible for them. The best insurance companies and a selection of discounts are included below.
- State Farm has discounts for anti-theft, defensive driving training, driver’s education, accident-free, and passive restraint.
- Esurance policyholders can earn discounts including DriveSense, safety device, good driver, paid-in-full, and Switch & Save.
- Progressive may include discounts for continuous coverage, homeowner, online signing, online quote discount, and multi-vehicle.
- Liberty Mutual discounts include newly married, new vehicle discount, hybrid vehicle, preferred payment discount, multi-car, and newly retired.
- Auto-Owners Insurance offers discounts for paid in full, air bags, group or association, multiple vehicles, and mature driver.
- GEICO offers discounts including five-year accident-free, federal employee, multi-vehicle, military active duty, and seat belt use.
The illustration below shows the comparison of yearly insurance costs with and without discounts applied to the rates. The rate quotes are based on a male driver, no claims or driving violations, New Jersey state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the price with no discounts. The lower bar shows the rates with passive restraint, multiple vehicle, homeowner, accident-free, anti-theft, and multiple policy discounts applied. When discounts are applied, theaverage amount saved on insurance for welfare recipients is 28% or $686.
If you aren’t sure which coverage to buy and prefer to have professional advice when comparing insurance rates for welfare recipients, the insurance agencies below can most likely help you make a decision which auto insurance policy would work best for you. To find an auto insurance agency closest to you, click the button at the bottom or click here to compare rates now.
- Astor C Wilson Insurance Agency
88 Pacific St – Newark, NJ 07105 – (973) 491-0002 - Halsey Street Agency Inc
199 Halsey St – Newark, NJ 07102 – (973) 621-0955 - Goker and Associates Insurance Agency
121 Elizabeth Ave #101 – Newark, NJ 07108 – (908) 344-7577 - Farmers Insurance – Anthony Pugliese
41 Wilson Ave – Newark, NJ 07105 – (973) 732-2105