As drivers in Newark know, New Jersey car insurance can be expensive. The average cost of auto insurance in Newark, per year, is $1,254 for minimum coverage and $2,624 for full. That’s quite a bit above the national average of $565 and $1,674. Knowing that Newark has such high averages makes it all the more important to learn about the best cheap car insurance companies in Newark. Essex county, where Newark is located, saw over 30,000 auto accidents in 2019. On top of that, roughly 15% of New Jersey drivers were without auto insurance in 2015, highlighting the importance of finding good auto insurance in Newark for cheap.
To arrive at the best cheap car insurance in Newark, we used several variables. Top among these were average premium rates in the area, market share of the auto industry held by each company, number of discounts provided and the J.D. Power auto insurance report. These variables were weighted towards average rates, company size, J.D. Power score and discounts.
Best car insurance companies in Newark
Taking the auto insurance companies with the lowest average rates in the area and the industry’s largest market share, we then compared the companies by J.D. Power scores and discounts. Those with the lowest rates, highest scores and most generous discounts were selected as the best car insurance companies in Newark.
|Insurance Company||J.D. Power Score||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
|NJM||847 / 100||$501||$1,704|
|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 more than a century. Of our final five, NJM offers the lowest average annual rates for both minimum and full coverage while also scoring higher than most on the J.D. Power report. Combined with excellent ratings and low costs, NJM offers numerous discounts to help drive those rates even lower.
Geico is one of the best-known auto insurance companies and fits well on our list of best cheap car insurance in Newark. After NJM, Geico offers the cheapest average annual minimum coverage rates on our list. Scoring an 841 on the J.D. Power report places Geico a mere six points behind NJM. Helping to bolster Geico’s position, the company offers more discounts than many of its competitors.
Travelers insurance costs a little more than the first two on our list, but it’s well known for its quality and services. Travelers average premiums and J.D. Power score are all in the mid-range for our list, making the company a good average amongst the best cheap car insurance companies in Newark. Among its selling points, Travelers offers an app called IntelliDrive that can monitor customer driving in real-time and provide discounts in return for safe driving.
State Farm is one of the largest insurance companies, serving customers throughout the United States. They have become well-known for their extensive coverage options and a certain amount of customizability around their policies. Although State Farm has the second most expensive rates of our final five, they scored highest of our chosen companies on the J.D. Power report. While the company does offer discounts, they are fewer in number than some of the others on this list.
Metlife insurance offers the standard array of auto insurance plans but also has some specialties. This company has car insurance plans for classic cars and policy add-ons for insuring custom parts for vehicles. Metlife has the most expensive average rates on our list but still managed to score an 831 on the J.D. Power report. While relatively few in number, the discounts offered may make a significant impact on rates.
Cheapest car insurance in Newark
Compared to the national average, car insurance in Newark is expensive, making it all the more important to find the best cheap auto insurance. The U.S. average, per year, for auto insurance is $565 for minimum coverage and $1,674 for full. In Newark, the average yearly cost of minimum coverage is $1,254, while the average for full is $2,624.
The list below shows those car insurance companies in Newark that hold the largest market shares while offering the lowest average rates. This allows us to see which companies are most financially stable while still remaining affordable, giving us some of the best car insurance in Newark. Among them, Amica offers the cheapest annual minimum coverage by a significant amount. However, when it comes to full coverage, they are all close, with State Farm holding a slight lead.
All of the auto insurers on this list offer annual rate averages lower than the local average in Newark, making them excellent choices for cheapest car insurance in Newark. To get these rates even lower, though, 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|
Newark Insurance requirements
New Jersey has mandatory auto insurance requirements that drivers in Newark must follow. These requirements help prevent some of the financial problems that can come from auto accidents when one or more of the drivers is uninsured. Because New Jersey is a no-fault state, minimum liability works a little differently here than in most states. Unlike at-fault states, in New Jersey your minimum liability coverage pays towards your bills in an accident instead of the other driver’s.
While the minimum is all that the law requires, it may not always be enough. Minimum coverage is not always enough to fully cover the costs of an accident. If property damage or medical bills exceed the limits of your coverage, you may be liable for any remaining costs. For example, suppose your car repair bill is larger than your property damage limit. In that case, you may have to pay for the difference out of pocket or go without the full repairs.
Newark insurance coverage requirements
- Bodily injury liability: $15,000 per person and $30,000 per accident
- Property damage liability: $5,000 per accident
Car insurance discounts in Newark
When shopping around for car insurance quotes in Newark, it helps to learn about the discounts. Thankfully, there are many options for car 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 more robust discounts than others. Listed below are some of those discounts that may have the most significant impact on insurance rates. Where available, the range has been noted.
- Safe driving (7-23%)
- Good student driving (8-15%)
- Multi-car discounts
- Multi-policy bundling
- Senior driver discount
Frequently asked questions
What is the best car insurance company?
The best car insurance company for you may not be the best for another. To find the best auto insurance for you and your vehicle, start with the Bankrate guide to The Best Car Insurance Companies of 2021.
How much does car insurance in Newark cost?
The average cost of car insurance in Newark is $1,254 for minimum coverage and $2,624 for full. However, our selected auto insurance companies’ cheapest average rates were much less at $501 and $1,704, respectively. For a look at affordable car insurance beyond these lists, consider the Bankrate guide to the cheapest car insurance companies of 2021.
How much car insurance do I need in Newark?
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? If not, you may want more coverage.
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 coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.