As Newark drivers know, auto insurance in New Jersey can be expensive. The average cost of auto insurance in Newark per year is $ 1,254 for minimum coverage and $ 2,624 for full coverage. That’s a little above the national average of $ 565 and $ 1,674. Knowing that Newark has such high averages, it is all the more important to educate yourself about the best cheap car insurance companies in Newark. Essex County, where Newark is located, saw more than 30,000 car accidents in 2019. On top of that, about 15% of New Jersey drivers did not have car insurance in 2015, stressing the importance of finding good auto insurance in Newark on the cheap.
To come up with the best cheap car insurance in Newark, we used several variables. These included the average premium rates in the region, the automotive industry market share held by each company, the number of discounts offered, and JD Power’s auto insurance report. These variables have been weighted based on average rates, company size, JD Power score, and discounts.
Best Auto Insurance Companies in Newark
Taking the auto insurance companies with the lowest average rates in the region and the largest market share in the industry, we then compared the companies by JD Power Scores and discounts. The ones with the lowest rates, the highest scores, and the most generous discounts were selected as the best car insurance companies in Newark.
|Insurance company||JD Power Score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|NJM||847/100||$ 501||$ 1,704|
|Geico||841/100||$ 858||$ 1,995|
|Travelers||836/100||$ 991||$ 1,903|
|State farm||855/100||$ 1,099||$ 1,862|
|Metlife||831/100||$ 1,196||$ 1,984|
NJM has been in the auto insurance business for over a century. Of our last five, NJM offers the lowest average annual rates for minimal and comprehensive coverage while still scoring higher than most on the JD Power report. Combined with great ratings and low costs, NJM offers plenty of discounts to help bring these rates down even further.
Geico is one of the best-known auto insurance companies and is well on our list of the best cheap auto insurance in Newark. After NJM, Geico offers the cheapest average annual minimum coverage rates on our list. With an 841 on the JD Power report, Geico is just six points behind NJM. Helping to strengthen Geico’s position, the company offers more discounts than many of its competitors.
Traveler insurance costs a little more than the first two on our list, but it is well known for its quality and service. The average traveler premiums and JD Power score all fall within the middle of our list, making the company a good average among the best cheap auto insurance companies in Newark. Among its selling points, Travelers has an app called IntelliDrive that can monitor customers’ driving in real time and offer discounts in return for safe driving.
State Farm is one of the largest insurance companies, serving customers across the United States. They have become well known for their extensive coverage options and some customization around their policies. Although State Farm has the second most expensive fares of our last five, they got the highest score from our chosen companies in the JD Power report. Although the company does offer discounts, they are outnumbered by some of the others on this list.
Metlife Insurance offers the standard range of auto insurance plans, but also has a few specialties. This company has auto insurance plans for classic cars and policy add-ons to insure custom parts for vehicles. Metlife has the most expensive average fares on our list, but still managed to get an 831 on the JD Power report. Although relatively few in number, the discounts offered can have a significant impact on prices.
The cheapest auto insurance in Newark
Compared to the national average, auto insurance in Newark is expensive, so finding the best cheap auto insurance is all the more important. The US average per year for auto insurance is $ 565 for minimum coverage and $ 1,674 for full coverage. In Newark, the average annual cost for minimum coverage is $ 1,254, while the average for full coverage is $ 2,624.
The list below shows the auto insurance companies in Newark that have the largest market share while offering the lowest average rates. This allows us to see which companies are the most financially stable while remaining affordable, which gives us some of the best auto insurance in Newark. Among them, Amica offers the cheapest minimum annual coverage by a significant amount. When it comes to full coverage, however, they’re all close with State Farm holding a slight lead.
All of the auto insurers on this list offer average annual rates below the local Newark average, making them great choices for the cheapest auto insurance in Newark. To get these rates even lower, you may be able to use discounts. Each of these companies offer discounts, with Amica and Geico offering some of the most impressive.
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Amica||$ 576||$ 2,252|
|Geico||$ 858||$ 1,995|
|Travelers||$ 991||$ 1,903|
|State farm||$ 1,099||$ 1,862|
|MetLife||$ 1,196||$ 1,984|
Newark Insurance Terms
New Jersey has mandatory auto insurance requirements that Newark drivers must follow. These requirements help prevent some of the financial problems that can arise from traffic accidents when one or more drivers are uninsured. Because New Jersey is a no-fault state, minimum liability works a little differently here than in most states. Unlike the responsible states, in New Jersey your minimum liability coverage pays your accident bills instead of the other driver’s.
While the minimum is all the law requires, it may not always be enough. Minimum coverage is not always sufficient to fully cover the costs of an accident. If the property damage or medical bills exceed the limits of your coverage, you could be held responsible for any remaining charges. For example, suppose your auto repair bill is over your property damage limit. In this case, you may have to pay the difference out of pocket or go without full repairs.
Newark Insurance Coverage Requirements
- Liability for bodily injury: $ 15,000 per person and $ 30,000 per accident
- Property damage civil liability: $ 5,000 per accident
Auto Insurance Discounts in Newark
When shopping for auto insurance quotes in Newark, it helps to learn about the discounts. Fortunately, there are many options for auto insurance discounts in Newark. Each of the auto insurance companies mentioned so far offers a variety of discounts. Among the best cheap car insurance companies in Newark, some offer bigger discounts than others. Below are some of the discounts that can have the most significant impact on insurance rates. Where appropriate, the range has been noted.
- Safe driving (7-23%)
- Good student behavior (8-15%)
- Multi-car discounts
- Grouping of several policies
- Senior driver discount
Frequently Asked Questions
What is the best auto insurance company?
The best auto insurance company for you may not be the best for another. To find the best auto insurance for you and your vehicle, start with Bankrate’s Guide to the Best Auto Insurance Companies of 2021.
How much does auto insurance cost in Newark?
The average cost of auto insurance in Newark is $ 1,254 for minimum coverage and $ 2,624 for full coverage. However, the cheapest average rates from our selected auto insurance companies were well below $ 501 and $ 1,704, respectively. For an overview of affordable auto insurance beyond these lists, check out Bankrate’s guide to the cheapest auto insurance companies of 2021.
How Much Car Insurance Do I Need in Newark?
At a minimum, you should purchase the coverage required by the state. Beyond that, it becomes a personal decision on the risk / protection ratio. Figuring out how much auto insurance you need can be difficult. To get started, think about what would happen if your vehicle were totaled. Between your auto contract and your personal finances, are you okay? Otherwise, you might want more coverage.
Bankrate uses Quadrant Information Services to analyze 2021 rates for all zip codes and carriers in all 50 states and Washington, DC Rates shown are based on a 40 year old male and female driver with a clean driving record , good credit and the following comprehensive coverage limits:
- $ 100,000 of civil liability for bodily injury per person
- $ 300,000 liability for bodily injury per accident
- Civil liability for property damage of $ 50,000 per accident
- $ 100,000 in bodily injury caused by an uninsured motorist per person
- $ 300,000 in uninsured bodily injury per accident to a motorist
- $ 500 collision deductible
- Global deductible of $ 500
To determine the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our sample drivers own a 2019 Toyota Camry, commute five days a week, and travel 12,000 miles a year.
These are sample rates and should only be used for comparison purposes. Your quotes may be different.