For using your car for business, one of the largest factors that help determine the cost of insurance is the neighborhood you call home. Areas with increased crime or more people are more likely to pay higher prices, whereas more rural areas can boast about having cheaper rates.
The table below lists the most expensive cities in New Jersey for business use to purchase a policy in. Newark is ranked at #1 having an annual price of $2,572 for the average insured, which is about $214 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | West New York | $2,531 |
| 3 | East Orange | $2,495 |
| 4 | Elizabeth | $2,470 |
| 5 | Union City | $2,378 |
| 6 | Hoboken | $2,377 |
| 7 | Paterson | $2,376 |
| 8 | Kearny | $2,358 |
| 9 | Jersey City | $2,345 |
| 10 | Clifton | $2,345 |
| 11 | Passaic | $2,301 |
| 12 | Bayonne | $2,251 |
| 13 | Camden | $2,199 |
| 14 | Linden | $2,185 |
| 15 | Perth Amboy | $2,144 |
| 16 | Fort Lee | $2,060 |
| 17 | Atlantic City | $2,024 |
| 18 | Plainfield | $1,956 |
| 19 | Sayreville | $1,939 |
| 20 | Hackensack | $1,921 |
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Price information shown is estimated as specific Newark garaging address can affect price quotes noticeably.
Determining which companies quote the most affordable insurance rates for business use calls for a little more work than just quoting one company’s rates. Each company has their own formula for establishing rates, so we will examine the insurance companies with the most affordable rates in New Jersey.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,078 |
| 2 | Travelers | $1,180 |
| 3 | New Jersey Manufacturers | $1,310 |
| 4 | Palisades | $1,341 |
| 5 | Penn National | $1,379 |
| 6 | The Hartford | $1,476 |
| 7 | California Casualty | $1,495 |
| 8 | Allstate | $1,523 |
| 9 | USAA | $1,585 |
| 10 | Mercury | $1,651 |
| 11 | Amica | $1,813 |
| 12 | Progressive | $1,862 |
| 13 | Esurance | $1,894 |
| 14 | MetLife | $1,932 |
| 15 | State Farm | $2,226 |
| 16 | GEICO | $2,262 |
| 17 | Encompass | $2,327 |
| 18 | Liberty Mutual | $2,890 |
| 19 | Hanover | $3,987 |
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21st Century normally has some of the best car insurance rates in Newark at around $1,078 annually. Travelers, New Jersey Manufacturers, Palisades, and Penn National also are some of the more affordable Newark, NJ insurance companies.
In the rate table above, if you are insured with Penn National and switched to Travelers, you may realize annual savings of in the vicinity of $199. Policyholders with The Hartford could save as much as $296 a year, and California Casualty policyholders might reduce rates by $315 a year.
To see how much you can save, click here to begin a quote or visit any of the low-priced companies below.
Remember that these policy rates are averages for all insureds and vehicles and are not factoring in a specific zip code for business use. So the insurer that is best suited for you may not even be in the top 19 companies shown above. That illustrates why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.
Price comparison of only insuring for liability
Paying a lower price for insurance is important to most drivers, and an effective way to find cheaper insurance for business use is to buy only liability coverage. The chart below illustrates the difference between insurance costs with liability coverage only compared to full coverage. The premiums assume no claims or violations, $250 deductibles, drivers are single, and no discounts are applied to the premium.
If averaged out across all ages, physical damage insurance costs $3,421 per year more than carrying just liability coverage. That is a big expense that brings up the question if physical damage coverage is worth the money. There is no clear-cut formula for dropping full coverage, but there is a guideline you can consider. If the annual cost of having full coverage is about 10% or more of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.
Safe drivers pay cheaper rates
The best way to score good insurance prices in New Jersey for using your car for business is to be a cautious driver and avoid traffic citations and accidents. The example below shows how speeding tickets and at-fault collisions impact insurance rates for different ages of insureds. The price estimates are based on a married female driver, full coverage, $500 deductibles, and no discounts are taken into consideration.
In the previous chart, the average cost of car insurance in Newark per year with no violations or accidents is $1,735. Add in one speeding ticket and the average cost surges to $2,024, an increase of $289 each year. Then add in two accidents along with the one speeding ticket and the 12-month cost of insurance for business use jumps again to an average of $4,615. That’s an increase of $2,880, or $240 per month, just for a couple of infractions!
How to get discounts on Newark insurance
Auto insurance companies that provide policies for business use may also provide policy discounts that can reduce rates by 40% or more if you meet specific criteria. A list of insurance companies and their possible discounts are outlined below.
- State Farm offers premium reductions for multiple policy, accident-free, multiple autos, anti-theft, good driver, and defensive driving training.
- GEICO may have discounts that include multi-vehicle, anti-theft, federal employee, good student, five-year accident-free, and defensive driver.
- Allstate includes discounts for early signing, economy car, good student, 55 and retired, premier discount, good payer, and senior citizen.
- SAFECO discounts include teen safety rewards, anti-theft, multi-car, anti-lock brakes, bundle discounts, teen safe driver, and accident prevention training.
- Farm Bureau offers discounts for 55 and retired, renewal discount, good student, driver training, multi-policy, safe driver, and multi-vehicle.
- Progressive offers discounts including multi-policy, online quote discount, continuous coverage, homeowner, and good student.
- AAA has savings for anti-theft, pay-in-full, multi-car, AAA membership discount, education and occupation, and good driver.
The information below illustrates the difference between insurance rates with and without discounts applied to the policy premium. The premiums are based on a female driver, no accidents, no driving violations, New Jersey state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, accident-free, claim-free, homeowner, multiple policy, and multiple vehicle discounts applied. In this example, the average savings per year on insurance for business use is 28% or $597.
How to find more affordable insurance for business use
It’s not impossible to find cheaper rates, and here are many thrifty solutions that can help Newark drivers quote low-cost coverage.
- Save money by obeying traffic laws and keeping a clean driving record
- Better credit scores save money
- Higher comprehensive and collision coverage deductibles will save money
- If possible, pay for small claims out-of-pocket
- Drive attentively and avoid accidents
- Buying home and auto together can help save money
- Keep rates low by comparing prices once a year
The last suggestion is extraordinarily valuable, as was emphasized in the article above. Auto insurance rates in Newark fluctuate constantly, so don’t be tentative to switch companies if a lower-cost policy is available.
We understand brand loyalty, but is isn’t recommended if that loyalty ends up costing lots of hard earned cash every month. Now is a great time to compare prices and find cheaper auto insurance for business use.