Best cheap car insurance in Paterson

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Drivers in Passaic County saw a total of 4,038 car crashes in 2019, so they know the value of good car insurance when on the road in Paterson. Since the city was the site of 456 car thefts, it is also important to consider adding comprehensive coverage to your policy.

The average annual rate of auto insurance in Paterson is $1,259 for minimum coverage and $2,565 for full coverage. We looked at the insurers writing policies in the region and found the ones offering the best cheap car insurance in Paterson, while also providing excellent customer service and financial stability.

Best car insurance companies in Paterson

To find the best car insurance in Paterson, we looked at average car insurance quotes in Paterson, as well as how the companies scored with consumer watchdog agencies like J.D. Power. We also assessed the range of coverage options and possibility for discounts.

Insurance company J.D. Power score Average annual premium for minimum coverage Average annual premium for full coverage
Amica 907/1,000 $580 $2,258
Geico 871/1,000 $856 $1,891
NJM 909/1,000 $522 $1,617
State Farm 881/1,000 $1,099 $1,761
Travelers 861/1,000 $984 $1,818

Amica

Amica is known for great customer service. The company ranks second on J.D. Power’s index, so you know your insurance needs are more likely to be quickly and efficiently handled. Amica does not have a lot of bells and whistles on its website, but you can manage your account online, paying bills and filing claims, if that is how you prefer to do business.

Coverage options include auto loan/lease insurance, full glass coverage, roadside assistance and more. There is also a list of discounts, including ones for adaptive headlights and electronic stability control.

Geico

Geico’s customer service scores are about average, but its prices are well below average for Paterson drivers, coming in at $856 per year for minimal coverage and $1,891 per year for full coverage. Geico offers all the insurance coverages that are required in New Jersey along with a small handful of optional coverages: emergency road service, rental reimbursement and mechanical breakdown insurance.

The company is more generous with discounts than some of the others on our list. These include several for safety features, such as a possible 23% savings on your premium rate for air bags, another possible 23% off for an anti-theft system and a potential good driver discount of 22% if you go five years without an accident.

NJM

NJM is the number one pick on J.D. Power’s 2020 Auto Insurance Study. It is also our number one choice for cheapest car insurance in Paterson, with a low $522 per year for minimum coverage and $1,617 per year for full.

As a smaller company, NJM does not have some of the perks of the big companies. But it does offer innovative options such as pet coverage and a rideshare endorsement, as well as discounts for senior drivers, good students and more.

State Farm

State Farm policyholders like the company’s focus on customer service and its reasonable rates. Even though it was at the high end for rates among our choices, its average premiums were still lower than Paterson averages.

State Farm has amendments that let you customize your policy for specific needs — if you have a sports car or antique car, for example, or if you drive for a rideshare company. Discounts range from safe driver options (there are six of them) to discounts for loyal customers.

Travelers

Although Travelers earned the lowest J.D. Power score of our choices, the company still ranks above average with the consumer agency, and it has a very low score with the NAIC Complaint Index, meaning that you should have little trouble handling claims through the company.

Travelers offers a standard slate of options, including loan/lease gap insurance, rental coverage and accident forgiveness. It offers a good array of discounts, including one for hybrid and electric vehicles and an early quote discount, so that you should be able to keep your premium rate low.

Cheapest car insurance in Paterson

Paterson’s average auto insurance rates — $1,259 per year for minimum and $2,565 per year for full coverage — are higher than New Jersey’s averages of $847 and $1,757. Both are higher than national averages of $565 and $1,674.

These five insurers are the cheapest car insurance Paterson:

Insurance Company Average Annual Premium for Minimum Coverage Average Annual Premium for Full Coverage
Amica $580 $2,258
Geico $856 $1,891
Travelers $984 $1,818
State Farm $1,099 $1,761
Progressive $1,204 $2,318

All of these companies except Progressive made our “Best of” list. Progressive only lost out because it has mediocre marks for customer service with J.D. Power, but it is still worth getting a quote to see if it is the right company for you. Amica has the best customer service ranking, so it should be your first stop if good support is a priority for you. If you like doing your business online, we recommend State Fam, which has an excellent website that makes managing your account simple.

Paterson insurance requirements

Like most states, New Jersey requires you to carry a minimum amount of auto insurance in order to drive legally. The legal minimums are as follows:

  • $15,000 bodily injury (BI) liability: this is the maximum your insurer will pay for the injuries of one person in an at-fault accident.
  • $30,000 total BI liability: this is the maximum your insurer will pay for all injuries, if more than one person is injured in an at-fault accident.
  • $5,000 property damage (PD) liability: this is the maximum your insurer will pay for damage to the other driver’s car or other structures in an at-fault accident.
  • $15,000 personal injury protection (PIP): this covers medical costs, work-loss costs, and funeral costs, regardless of who is at fault. PIP is required because N.J. is a no-fault state.
  • $15,000/$30,000 uninsured/underinsured motorist (UM/UIM): this coverage kicks in if you are in an accident with someone who has no insurance, or not enough insurance to pay the claim.

For many people, the minimum coverage is not enough. If you have a leased car or a car loan, you will be required to purchase collision and comprehensive coverage. Many insurance experts recommend that you increase your liability coverage as much as you can afford to be fully covered following a serious accident.

Car insurance discounts in Paterson

Almost all insurers offer discounts, which can play a primary role in keeping your premium costs as low as possible. Here are some common ones in Paterson:

  • Accident-free: If you have been driving for a certain number of years without making a claim on your policy, many insurers will give you a break on your premium cost.
  • Anti-theft devices: If your car is equipped with a device that makes it difficult for it to be started when you are not there, you may be eligible for a discount.
  • Safe driver: Insurers are increasingly using telematics devices, which install in your car and transmit information about your driving habits, to determine if you are a safe driver. If you follow the speed limit and drive safely, you may be eligible to save up to 20%.
  • Multi-policy and multi-car: If you insure more than one car with the same insurer, or have both your car and your home/rental unit insured by the same company, you may qualify for a discount.
  • Good student: Young drivers who are still in school can potentially earn a discount by maintaining a certain GPA.

Discounts are unique to each company, so be sure to talk to your agent about the ones that would be most applicable to your situation.

Frequently asked questions

What is the best car insurance company?

To find the company that works best for your needs, we suggest you start by checking out Bankrate’s Best Car Insurance Companies of 2021 list. Get some online quotes, talk to agents at several companies and you should be able to find the best car insurance in Paterson.

How much does car insurance in Paterson cost?

The average cost of a policy in Paterson is $1,259 per year for minimum coverage and $2,565 per year for full coverage. Your own costs will probably differ from this, based on your own situation — including your car’s age and condition, your driving skills, your age and your credit rating.

How much car insurance do I need in Paterson?

THe minimum car insurance Paterson is 15/30/5, along with PIP and UM/UIM coverage. If you can afford to increase the minimum limits, we recommend that you do so in order to be adequately protected in the event of a serious accident.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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.

Written by
Mary Van Keuren
Insurance Contributor
Mary Van Keuren has written for insurance domains such as Bankrate.com, Coverage.com and Thesimpledollar.com for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including reviews.com and myslumberyard.com. Prior to that, she worked as a writer in academia for several decades.