The words “bargain” and “insurance” really shouldn’t be used in the same sentence, specifically when trying to find the best price on coverage for government employees. Because of the high cost, let’s go over a few of the factors that significantly impact car insurance premiums, and find a few ways to reduce the price of your next policy.
For state and federal workers, one of the more important factors that are used to help calculate the amount you pay each year for auto insurance is where you live. Cities with larger populations or higher claim trends will most likely pay more, whereas areas with less congestion have the luxury of lower rates.
The information below sorts the most costly cities in New Jersey for government employees to buy an auto insurance policy in. Newark is ranked #1 with a yearly premium of $2,598 for the average policyholder, which is around $217 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Newark | $2,598 |
| 2 | East Orange | $2,571 |
| 3 | Paterson | $2,448 |
| 4 | West New York | $2,431 |
| 5 | Elizabeth | $2,398 |
| 6 | Union City | $2,378 |
| 7 | Hoboken | $2,377 |
| 8 | Passaic | $2,371 |
| 9 | Clifton | $2,368 |
| 10 | Bayonne | $2,274 |
| 11 | Kearny | $2,266 |
| 12 | Jersey City | $2,253 |
| 13 | Linden | $2,185 |
| 14 | Perth Amboy | $2,144 |
| 15 | Camden | $2,133 |
| 16 | Fort Lee | $2,123 |
| 17 | Atlantic City | $2,044 |
| 18 | Plainfield | $1,976 |
| 19 | Hackensack | $1,921 |
| 20 | Sayreville | $1,920 |
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Prices are comparative as the vehicle garaging location can lower or raise premiums significantly.
Finding budget car insurance is tough enough, and finding out which company has the best auto insurance rates for government employees may require even more shopping around. Each auto insurer uses slightly different criteria to determine premium rates, so let’s rank the auto insurance companies that tend to have lower prices in Newark, NJ.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,100 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,297 |
| 4 | Penn National | $1,379 |
| 5 | Palisades | $1,382 |
| 6 | The Hartford | $1,491 |
| 7 | California Casualty | $1,495 |
| 8 | Allstate | $1,538 |
| 9 | Mercury | $1,587 |
| 10 | USAA | $1,600 |
| 11 | Esurance | $1,838 |
| 12 | Amica | $1,887 |
| 13 | Progressive | $1,938 |
| 14 | MetLife | $2,010 |
| 15 | GEICO | $2,174 |
| 16 | State Farm | $2,226 |
| 17 | Encompass | $2,397 |
| 18 | Liberty Mutual | $2,890 |
| 19 | Hanover | $3,987 |
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21st Century has some of the best car insurance rates in Newark at around $1,100 annually. This is $752 less than the average 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 insurance companies.
As shown in the rates above, if you currently buy coverage from Travelers and switched to 21st Century, you could see annual savings of roughly $91. New Jersey drivers with New Jersey Manufacturers may save as much as $197 a year, and Penn National insureds might realize rate reductions of up to $279 a year.
Understand that those prices are averaged across all types of drivers and the different vehicles they drive and and are not figured with a specific location for government employees. So the car insurance company that has the lowest price for you may not even be in the top 19 companies in the list above. That point stresses why you need to compare as many prices as possible using your own driver information and specific vehicle type.
The information below shows how choosing a deductible can raise or lower insurance rates when quoting cheap insurance for government employees. The rates are based on a married female driver, comp and collision included, and no policy discounts are applied.
As shown above, a 50-year-old driver could cut expenses by $328 a year by changing from a $100 deductible to a $500 deductible, or save $496 by choosing a $1,000 deductible. Younger drivers, such as the Age 20 example, could lower their rates as much as $814 each year by using a higher deductible. When raising deductibles, it is important to have plenty of money set aside to enable you to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Picking a high-quality car insurance provider is hard considering how many companies there are in New Jersey. The company ratings displayed below may help you analyze which coverage providers to look at comparing prices from.
These ratings include companies that insure vehicles across America, so companies with more of a regional focus will not be included in these rankings. To view rates from the most competitive companies in New Jersey, click here.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Mercury Insurance | 87 | 96 | 100 | 87% | A+ | 93.4 |
| The Hartford | 88 | 96 | 91 | 93% | A+ | 92.6 |
| Progressive | 84 | 94 | 99 | 90% | A+ | 92.4 |
| Travelers | 84 | 93 | 100 | 87% | A++ | 92.3 |
| State Farm | 84 | 93 | 95 | 87% | A++ | 91 |
| Farmers Insurance | 87 | 92 | 90 | 85% | A | 90.6 |
| Safeco Insurance | 85 | 91 | 87 | 86% | A | 88.4 |
| USAA | 71 | 93 | 98 | 87% | A++ | 88 |
| GEICO | 73 | 93 | 95 | 85% | A++ | 87.1 |
| 21st Century | 85 | 85 | 91 | 89% | A | 86.9 |
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Data Source: Insure.com Best Car Insurance Companies
Types of discounts on Newark car insurance rates
Car insurance companies that offer coverage for government employees may additionally offer policy discounts that can lower rates by as much as 35% if you qualify. Large auto insurance companies and their offered discounts can be found below.
- Farmers Insurance policyholders can earn discounts including teen driver, homeowner, mature driver, bundle discounts, switch companies, and good student.
- State Farm offers premium reductions for Drive Safe & Save, accident-free, driver’s education, passive restraint, and good driver.
- Liberty Mutual may have discounts that include newly married, good student, preferred payment discount, new move discount, multi-car, and new graduate.
- MetLife includes discounts for good driver, accident-free, defensive driver, good student, claim-free, and multi-policy.
- Progressive has discounts for multi-vehicle, good student, homeowner, continuous coverage, online quote discount, multi-policy, and online signing.
The information below shows the comparison of yearly insurance costs with and without discounts applied. Data assumes a female driver, no claims, a clean driving record, New Jersey state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with claim-free, defensive driving course, homeowner, safe-driver, marriage, and anti-theft discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on auto insurance for government employees is 28% or $597.
Why are you paying too much for Newark car insurance?
Newark auto insurance rates are determined by lots of factors that can increase the price of coverage. Simply having another birthday, buying a home instead of renting, or having an at-fault accident can trigger rate changes that may make certain companies cheaper than competitors.
Also, car insurance companies file new New Jersey auto insurance rates as often as every three months in order to offset underwriting gains or losses. Larger than normal claims can result in higher prices, while lower claims may produce cheaper Newark car insurance rates.
To illustrate this example, the graph below shows the company with the cheapest car insurance in Newark, NJ for a 45-year-old female driver with no prior accidents, a clean driving record, and good financial standing. When comparing rates based on her personal profile, 21st Century might quote the most affordable car insurance rates in Newark at $1,591 each year. This is $261 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National are the rest of the most affordable Newark, NJ auto insurance companies.
The chart below compares rates after we give the driver in the first chart an accident surcharge, bad credit, and a speeding citation. Due to the fact that every insurance company has a different formula for determining rates in each state, analyzing rates will most likely result in a completely different list of the cheapest Newark car insurance companies as shown below.
The Hartford now has the cheapest price in Newark with Allstate, USAA, Mercury, and Travelers now being in the top five. This demonstrates why New Jersey drivers need to do a thorough rate comparison to find the most economical insurance quotes for government employees.
Insurance prices are determined by many factors and can change without notice, so the cheapest rate the last time you compared rates may now not even be in the top five.
If you prefer to get help from a professional when trying to find lower insurance rates for government employees, the agents listed below can answer your questions and help you decide which coverage meets your needs best.
To locate an agency nearest to you, click the button following the list or click here to compare prices now.
- Cheap Car Insurance Quotes Auto Newark NJ
268 W KINNEY ST – Newark, NJ 07103 – (888) 290-0635 - Rosa, Michael Rosa Agency INC
360 Lafayette St – Newark, NJ 07105 – (973) 589-7550 - N J Insurance Underwriting
744 Broad St # 1100 – Newark, NJ 07102 – (973) 622-3838 - Morais Insurance Agency, Inc.
217 Ferry St – Newark, NJ 07105 – (973) 344-2000