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As drivers in Newark know, New Jersey car insurance can be expensive. The average cost of car insurance in Newark is $1,487 per year for full coverage, or $123 per month. The average minimum coverage policy costs $632 per year, or $52 per month. Although minimum coverage has the cheapest rates, it’s not often recommended by insurance agents as it provides limited coverage.
Fortunately, there are a handful of cheap car insurance companies in Newark that offer more affordable rates. To help you find the best and cheapest car insurance in Newark, Bankrate did some research and compared providers using our methodology. According to Bankrate’s 2021 study of quoted annual premiums, NJM offers the best and most affordable car insurance in Newark.
Best cheap car insurance companies in Newark
The best car insurance companies in Newark with the lowest rates are NJM, State Farm, Travelers and Geico, based on 2021 data from Quadrant Information Services. After finding average rates, we reviewed the carriers in-depth and assigned each company a Bankrate Score out of five points. Bankrate Scores are calculated based on claim handling, financial strength, affordability, online and mobile tools and other factors.
Although most drivers prioritize cost when comparing for insurance carriers, keep in mind that the best car insurance companies in Newark are not always the cheapest companies. For example, if you are looking for a carrier with excellent customer service or specific add-on policies, you might have to pay a slightly higher premium to get what you want.
|Insurance company||Bankrate Score||
J.D. Power customer satisfaction score
|Average annual premium for full coverage||Average annual premium for minimum coverage|
NJM, which stands for New Jersey Manufacturers Insurance, is the cheapest car insurance company in Newark, and it’s one of the best providers among those we reviewed. It was rated the top carrier for overall customer satisfaction in the Mid-Atlantic region in J.D. Power’s Auto Insurance Study. The company also stands out for its add-on policies, like gap insurance, rideshare coverage, new car replacement and pet coverage. Plus, there are lots of discounts available that can help you get a lower rate.
Learn more: NJM Insurance review
State Farm is consistently rated as one of the best car insurance companies in the country, and in New Jersey. The company is rated above average for overall customer satisfaction by J.D. Power, and is known for its excellent customer service, with a network of 19,000 agents around the country. Unfortunately, State Farm’s average rates in Newark are on the expensive side, but there are a wide variety of discounts available for additional policy savings.
Learn more: State Farm Insurance review
Travelers does not have the cheapest rates in Newark, but it’s still worth considering, especially if you are looking for an insurance company with great endorsements. Travelers sells many different add-on coverages, like accident forgiveness, new car replacement, gap insurance, roadside assistance and a few others. Travelers also has some good discounts, and it’s the only provider on our list that offers savings for electric/hybrid vehicles.
Learn more: Travelers Insurance review
Geico has the most expensive premiums in Newark for full coverage insurance on our list. The good news is that you can likely get a much lower premium by taking advantage of Geico’s discounts. There are savings for military service members, federal employees, good students, affinity group members, policy bundling, and having certain safety features in your vehicle, like airbags, anti-lock brakes, daytime running lights and an anti-theft device.
Learn more: Geico Insurance review
How to get and keep the cheapest car insurance in Newark
Finding the cheapest car insurance in Newark can take some work. But after you lock in a low rate, you need to work to maintain it. Car insurance rates can increase every time your policy renews due to changes in your driving record and credit score (in most states), for example. Here are a few tips for finding and keeping the cheapest car insurance rate for your circumstances.
- Compare rate quotes. Car insurance providers charge different rates for coverage. To find the cheapest policy for you, get multiple rate quotes for the same type and amount of coverage and compare them.
- Maintain a clean driving record. Insurance providers often reward customers who have clean driving records with lower premiums. To keep your rate low over time, focus on safe driving habits and avoid tickets and accidents.
Frequently asked questions
The best car insurance company depends on your unique needs and budget. Some companies are the best for customer service, some are the best for cheap policies and others are the best for high-risk drivers. To find the best provider for you, it’s important to shop around and compare providers using your criteria for what makes a carrier “the best.”
At the minimum, you must purchase the state-required coverage. Beyond that, it becomes a personal decision about the ratio of risk to protection. Figuring out how much car insurance you need can be tricky. To start, consider what would happen if your vehicle were totaled. Between your auto policy and your personal finances, would you be ok financially? If not, you may want more coverage.
Drivers in Newark pay less for car insurance than the average New Jersey driver. However, there are a variety of ways to get a lower premium if you feel that you are paying too much. To get a cheaper rate, consider raising your deductibles (if it makes sense financially), improving your credit score, taking a defensive driving course, paying your premium in full or bundling your policies.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.