The words “economical” and “insurance” probably shouldn’t be used together, in particular when you are trying to find the lowest insurance rates for uninsured drivers. Because it’s not cheap, let’s start off by going over some things that have a considerable impact on insurance rates, and come up with some ideas to take the sting out of the next policy you buy.
Figuring out which companies quote the cheapest insurance rates for uninsured drivers may require a bit more effort in order to find the lowest price.
Each auto insurance company uses their own formula to set policy rates, so let’s take a look at the insurance companies with the overall cheapest rates in New Jersey. We do need to point out that Newark, NJ insurance rates are calculated based on many things which can significantly increase or decrease the price you have to pay. Simply having a birthday, filing a claim, or getting a driving violation can produce rate changes that can cause some rates to be more affordable than competitors.
Best Auto Insurance Prices in New Jersey
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,078 |
| 2 | Travelers | $1,145 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Penn National | $1,366 |
| 5 | Palisades | $1,395 |
| 6 | California Casualty | $1,437 |
| 7 | Allstate | $1,478 |
| 8 | The Hartford | $1,521 |
| 9 | USAA | $1,553 |
| 10 | Mercury | $1,587 |
| 11 | Amica | $1,832 |
| 12 | Esurance | $1,838 |
| 13 | Progressive | $1,919 |
| 14 | MetLife | $1,991 |
| 15 | State Farm | $2,160 |
| 16 | GEICO | $2,240 |
| 17 | Encompass | $2,327 |
| 18 | Liberty Mutual | $2,978 |
| 19 | Hanover | $4,027 |
| Compare Rates Now Go | ||
21st Century quotes some of the cheapest car insurance rates in Newark at around $1,078 a year. This is $774 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also qualify as some of the lowest-priced Newark, NJ auto insurance companies.
In this example, if you are currently insured with New Jersey Manufacturers and switched to 21st Century, you may see savings of in the vicinity of $193. New Jersey drivers with Penn National may save as much as $288 a year, and Palisades policyholders might realize rate reductions of up to $317 a year.
To compare your rates to other New Jersey insurance companies, click here or visit any of the low-priced companies below.
Remember that these premium estimates are averages for all ages of drivers and types of vehicles and and are not calculated with an exact zip code location for uninsured drivers. So the car insurance company that is most affordable for your situation may not even be in the top 19 companies shown above. That points out the importance of why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.
One of the more important components that determine the cost of insurance is where you choose to live. More densely populated places tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The information below ranks the most expensive places in New Jersey for uninsured drivers to buy auto insurance in. Newark shows up at #3 with a yearly cost of $2,496 for the average insurance policy, which is about $208 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | East Orange | $2,597 |
| 2 | West New York | $2,506 |
| 3 | Newark | $2,496 |
| 4 | Elizabeth | $2,446 |
| 5 | Paterson | $2,400 |
| 6 | Union City | $2,378 |
| 7 | Hoboken | $2,377 |
| 8 | Clifton | $2,345 |
| 9 | Passaic | $2,301 |
| 10 | Kearny | $2,289 |
| 11 | Jersey City | $2,276 |
| 12 | Camden | $2,199 |
| 13 | Linden | $2,185 |
| 14 | Bayonne | $2,184 |
| 15 | Fort Lee | $2,123 |
| 16 | Perth Amboy | $2,102 |
| 17 | Atlantic City | $2,086 |
| 18 | Hackensack | $1,980 |
| 19 | Trenton | $1,954 |
| 20 | Sayreville | $1,939 |
| 21 | New Brunswick | $1,913 |
| 22 | Plainfield | $1,898 |
| 23 | Lakewood | $1,874 |
| 24 | Vineland | $1,788 |
| 25 | Toms River | $1,674 |
| Find the Best Rates Go | ||
Table data uses comparative as specific Newark garaging address can increase or decrease price quotes considerably.
Difference between liability only and full coverage rates
Lowering the price of insurance is the goal of most drivers, and an effective way to buy cheaper insurance for uninsured drivers is to not buy full coverage. The chart below visualizes the comparison of car insurance rates with full physical damage coverage compared to only buying liability only. The data assumes no accidents or driving violations, $100 deductibles, marital status is single, and no discounts are applied to the premium.
If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs $3,679 per year over having just liability coverage. That is a significant amount which raises the question when is it a good idea to stop buying full coverage. There is no set guideline for phasing out comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the yearly cost of full coverage is more than around 10% of the settlement you would receive from your company, then you might want to consider buying only liability coverage.
For example, let’s pretend your vehicle’s replacement value is $4,000 and you have $1,000 deductibles. If your vehicle is totaled, you would only receive $3,000 after paying your deductible. If it’s costing you more than $300 a year for physical damage coverage, then you might want to think about dropping full coverage.
Types of discounts on Newark car insurance rates
Insurance providers that provide coverage for uninsured drivers may have rate discounts that could lower prices by as much as 40% or more if you are eligible for them. A few popular companies and some of their more popular discounts can be found below.
- State Farm offers discounts including accident-free, multiple policy, safe vehicle, anti-theft, driver’s education, multiple autos, and defensive driving training.
- GEICO policyholders can earn discounts including federal employee, good student, five-year accident-free, anti-theft, driver training, and daytime running lights.
- SAFECO includes discounts for teen safe driver, accident prevention training, teen safety rewards, anti-lock brakes, and safe driver.
- Farmers Insurance may offer discounts for multi-car, early shopping, distant student, alternative fuel, and bundle discounts.
- AAA offers premium reductions for pay-in-full, multi-policy, multi-car, good driver, AAA membership discount, and education and occupation.
- USAA may have discounts that include new vehicle, safe driver, multi-vehicle, driver training, loyalty savings, military installation, and multi-policy.
The chart below compares yearly insurance costs with and without policy discounts. The price estimates are based on a female driver, no accidents, no driving violations, New Jersey state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with marriage, multiple vehicle, passive restraint, homeowner, claim-free, and accident-free discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on insurance for uninsured drivers is 28% or $719.
Compare rates to save
Newark insurance rates are based on many factors that will increase or decrease the price you pay. Improving your credit rating, having a claim, or getting a ticket for careless driving can produce rate changes that can now make some companies affordable when they were higher priced. In addition, auto insurance companies modify pricing every year or even multiple times each year in order to maintain liquidity for claims. Heavier than normal losses can result in more expensive prices, while lower claim levels can cause cheaper Newark car insurance rates.
As an example, the bar chart below analyzes the cheapest car insurance in Newark, NJ for a 35-year-old male driver with no accidents, a clean driving record, and great credit. If we estimate prices based on his personal risk profile, 21st Century might quote the cheapest car insurance rates in Newark at $1,640 annually. This is $212 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades round out the rest of the best Newark, NJ auto insurance companies.
Now we will give the driver from the first example a chargeable accident, less-than-perfect credit, and a few blemishes on his driving record. Due to the fact that every auto insurer uses their own method for establishing rates, analyzing rate quotes could now result in a different list of the cheapest car insurance companies in Newark as shown below.
California Casualty now has the best insurance rate in Newark, NJ with The Hartford, USAA, Mercury, and Travelers also having competitive pricing. This example shows why consumers need to compare many different companies when trying to get the best insurance quotes for uninsured drivers. Insurance rates are determined by many risk factors and change frequently, so the cheapest option when you last compared rates may now be costing you a lot of money.
If you like to get some professional advice when shopping for cheaper insurance for uninsured drivers, the agents below can most likely help you make a decision which car insurance policy is best. To find a Newark insurance agent close to you, click the link at the bottom.
- Farmers Insurance – Christine Veliz
229 Bloomfield Ave – Newark, NJ 07104 – (973) 482-1975 - Morais Insurance Agency, Inc.
217 Ferry St – Newark, NJ 07105 – (973) 344-2000 - International Fidelity Insurance Co
1111 Raymond Blvd – Newark, NJ 07102 – (973) 624-7200