Newark, NJ Car Insurance
How much does car insurance cost in Newark?
Newark is a bustling city located in the heart of New Jersey. If you're planning on driving in Newark, it's essential to have car insurance. The average cost for a six-month policy is $1,528, or $255 per month. However, shopping around and comparing rates from different insurance companies is important to find the best deal.
Newark drivers pay more than the average for car insurance in New Jersey ($1,017 every six months) and more than double the national average of $880. According to our data, 34% of our customers in Newark said they are paying too much for auto insurance. If you are wondering if your rates are too high, or simply want to educate yourself about car insurance in New Jersey, keep reading to learn more about insurance requirements and typical rates in Newark.
| Car Insurance in Newark vs. New Jersey | Avg. 6 Mo. Premium |
|---|---|
| New Jersey Average | $1,017 |
| Newark Average | $1,528 |
The cheapest car insurance companies in Newark
New Jersey Manufacturers (NJM) is the cheapest option in Newark for auto insurance. This regional insurer offers rates of $157 per month or $943 for a six-month policy.
In second place is GEICO, which costs $970 every six months, or $162 per month.
Finishing strong on our list is State Farm as the third-cheapest insurance company. On average, a policy with State Farm in Newark costs $1,131 per six-month policy ($189 per month).
The Zebra's key takeaways about car insurance in Newark:
- The average cost of a car insurance policy in Newark is $1,528 per six-month policy — $255 per month.
- The cheapest company in Newark is New Jersey Manufacturers (NJM) — $157 per month.
- Newark ranks as the 2nd most expensive city for car insurance in New Jersey.
- 34% of Zebra customers in Newark stated they used our product because they were paying too much for car insurance.
Are you paying too much for auto insurance?
Newark car insurance rates by company
Newark drivers looking for the best cheap auto insurance for full coverage in 2024 should consider NJM as they offer coverage at a rate of $157 per month or $943 for a six-month policy. GEICO is the second most affordable option, with rates of $970 for a six-month policy or around $162 per month. Both companies offer rates that are lower than the average in Newark.
To learn more about the highest-rated car insurance companies based on The Zebra's Customer Satisfaction Survey, keep reading.
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Cheapest car insurance companies in Newark, NJ
| Company | Avg. 6 Mo. Premium |
|---|---|
| New Jersey Manufacturers | $943 |
| GEICO | $970 |
| State Farm | $1,131 |
| Allstate | $1,295 |
| Amica Mutual | $1,403 |
| MetLife | $1,495 |
| Progressive | $1,713 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Shop around for the best rates
For those seeking affordable car insurance, comparing companies is the simplest way to find it. Let us take care of the hard work, so you can concentrate on finding the best option for your budget and individual needs. Enter your ZIP code to compare rates from top companies like Progressive, Allstate, State Farm, and GEICO (as well as other companies) and find the cheapest car insurance in Newark.
Average car insurance in Newark by rating factor
In Newark, rating factors play a significant role in determining your car insurance rate. Although most insurance companies consider similar factors such as age and credit score, the weight given to these details can vary significantly. For example, one insurer may prioritize your driving record and claims history, whereas another may put more weight on your credit score. To learn more about the rating factors that affect your car insurance rate in Newark, keep reading.
Your insurance needs and circumstances can change over time, so the best insurance company for you may change as well, even if you've been with the same insurer for years. That's why it's essential to shop around and compare quotes every six months to a year to ensure you have coverage that fits your current situation in Newark. To learn more about finding the best insurance company for your needs, keep reading.
Q: I didn't have an accident — Why is my insurance going up?
A:Â In Newark, the end-of-year earnings (revenue of premiums versus the cost of paying insureds' claims) is a critical rating factor in determining how much you will pay for car insurance. Even if you have never made any claims with your insurer, you may still end up paying more with a specific company due to the increased cost of doing business in Newark.
Auto insurance premiums by age in Newark
In Newark, age is a significant player in determining how much you will pay for car insurance. Insurance companies focus on risk, and analysis of data indicates that teen drivers pose the most risk on the road and have a higher number of accidents. As a result, teens typically face the most expensive rates for their premiums. Although this may come as a surprise to some, these higher rates are in place to help offset the cost of claims paid by the insurance company.
In Newark, the distinction in fees paid by teen drivers and those in their twenties is $3,598 annually. Consequently, with a solid driving record and more experience on the road, you may observe a significant drop in premiums within a few years. To maintain lower rates in the meantime, consider including a teenage driver on a parent or guardian's policy rather than obtaining their own policy. You can also ask about discounts for academic excellence and safe driving.
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Cheapest car insurance companies for teen drivers in Newark, NJ
| Company | Avg. 6 Mo. Premium |
|---|---|
| New Jersey Manufacturers | $2,132 |
| GEICO | $2,354 |
| State Farm | $3,235 |
| Allstate | $4,406 |
| Amica Mutual | $5,793 |
| MetLife | $6,765 |
| Progressive | $7,606 |
| Age Bracket | Cheapest Companies | Avg. 6 Mo. Premium |
|---|---|---|
| 20s | NJM | $1,158 |
| 30s | NJM | $899 |
| 40s | NJM | $835 |
| 50s | NJM | $770 |
| 60s | NJM | $707 |
| 70s | GEICO | $761 |
Zebra Tip:Â The cheapest companies for Newark drivers between 20-40 are NJM, GEICO and State Farm
In Newark, our research indicates that the majority of drivers fall within the 20 to 40 age range. For a six-month policy, the average rate for this group is approximately $1,754. Nonetheless, drivers in this age group can save almost 31% by selecting one of these providers.
Auto insurance premiums for minimum coverage in Newark
The premium you pay for car insurance is directly affected by the coverage you choose, besides personal variables such as age or credit score. In Newark, the state minimum level of car insurance is held by 40% of drivers. This is an option to obtain lower rates, but the risk may not be worthwhile over time. In the case of an accident, if you only have the minimum coverage, you may be underinsured.
Adding collision coverage or comprehensive coverage (also called "full coverage") will considerably increase your rates in Newark. Nonetheless, it will also give you much more peace of mind. Collision and comprehensive coverage usually involve a deductible, which also influences your rates. If you want full coverage and affordable rates, consider raising your deductible. The deductible and premium have an inverse relationship, so the higher the deductible you carry, the lower your premium will be.
Feeling safe and protected on the road is key in Newark, and additional features like roadside assistance or uninsured motorist coverage will be available to assist if you're involved in an incident with an uninsured driver. Uninsured motorist coverage is actually required in New Jersey, as opposed to many states where it is optional. This provides more protection for you and your vehicle, similar to comprehensive coverage.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
If you're leasing or financing your vehicle in Newark, there's most likely a required amount of insurance coverage that you need to carry. If you own their car outright, however, it allows for more flexibility. If you're considering dropping comprehensive or collision coverage, we suggest obtaining the actual cash value of your car from a source like Kelley Blue Book. If your car is worth $4,000 or less, you probably don't need to carry full coverage. This can help lower your rates but also makes you more vulnerable to paying for damages yourself.
Cheapest car insurance companies for minimum coverage in Newark, NJ
| Company | Avg. 6 Mo. Premium |
|---|---|
| State Farm | $193 |
| New Jersey Manufacturers | $351 |
| GEICO | $353 |
| Amica Mutual | $361 |
| Allstate | $644 |
| MetLife | $759 |
| Progressive | $1,209 |
40% of our customers in Newark opt for minimum coverage, but this may not be the best option for everyone. Budgets can be tight, too, and we understand that carrying only the minimum required coverage can save money, but it can also leave you at risk for damages that exceed your liability limits. New Jersey's 25/50/25 liability limits provide coverage for damage you cause up to $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $25,000 for property damage. New Jersey also requires personal injury protection (PIP) and uninsured motorist (UMP) coverage, which adds to your insurance cost overall but also gives you an extra layer of protection.
Learn more about insurance laws in New Jersey.
Newark car insurance rates by credit score
Credit score is a critical factor in determining car insurance rates in New Jersey, as it is in most states. are multiple reasons for this, and like most things in the insurance world, it all comes down to risk. Studies have indicated that drivers with lower credit scores tend to have more lapses in insurance coverage, engage in riskier driving behaviors, and file more claims.
In Newark, drivers with poor credit scores (300-579) pay 153% more than drivers with excellent credit (800-850). This can make a very big difference over time! However, 42% percent of drivers in Newark have an good (680-719) credit score. NJM is the cheapest option for Newark drivers in this credit range as of 2024.
Cheapest car insurance companies for bad credit in Newark, NJ
| Company | Avg. 6 Mo. Premium |
|---|---|
| New Jersey Manufacturers | $1,537 |
| GEICO | $2,200 |
| Allstate | $2,234 |
| State Farm | $2,416 |
| Progressive | $2,480 |
| Amica Mutual | $2,578 |
| MetLife | $4,748 |
Zebra Tip: If you recently improved your credit score, shop around for car insurance!
Newark residents don't need to aim for a massive increase in their credit score to improve it. Our analysis shows that car insurance costs about $1,000 less annually for drivers with "Fair" credit than for those with "Poor" credit in Newark. Depending on where you stand on the credit spectrum, the disparity may only be a few points. If you've been working on improving your credit score, such as by paying off a loan, now is the perfect time to check how your efforts have helped and if you can save money on car insurance.
Auto insurance rates with an at-fault accident
In Newark, at-fault and collision-related accidents are the most prevalent types of claims, and you can expect either of them to result in higher rates. In Newark, these increases range from $51 to $141 per month, depending on the violation. NJM has the cheapest rates after an at-fault accident.
Whether you live in Newark or any other city, the most effective approach to maintaining affordable rates is to drive safely. Receiving a ticket for speeding, charges for reckless driving, and DUIs or DWIs can all lead to higher rates, and your premium may be impacted for up to three to five years following an accident. More severe infractions may have an even longer-lasting effect. While accidents can happen, by driving safely and practicing good driving habits, you're not only protecting yourself physically but also financially.
Cheapest car insurance companies after an at-fault accident in Newark, NJ
| Company | Avg. 6 Mo. Premium |
|---|---|
| New Jersey Manufacturers | $943 |
| GEICO | $1,332 |
| Amica Mutual | $1,589 |
| State Farm | $1,867 |
| Progressive | $2,580 |
| Allstate | $3,015 |
| MetLife | $3,983 |
Newark car insurance rates by violation
Below, you'll find details on how various violations and claims can impact the increase of your rate in Newark.
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Car insurance rate increases after violations and citations in Newark, NJ
Why is car insurance in Newark so expensive?
Newark is in a very populated part of the country that typically has a higher cost of living than other regions, such as the Midwest. There are also many commuters living near Newark, which means more people on the road. As the second-most expensive city for car insurance in the state, you might feel that your rates are exceptionally high. Keep in mind that there are many reasons for this — including factors that are within, and out of, your immediate control.
Here's a quick rundown of why car insurance rates in Newark may fluctuate and why your rate may seem higher.
In Newark, the specific location of your residence affects how much you pay for car insurance. Although this is somewhat beyond your control, it does influence risk. Certain areas are simply more prone to theft, other crimes, and uninsured drivers than others.
One positive aspect of Newark's neighborhoods is that the difference between the priciest ZIP code and the least expensive one is minimal — only a few dollars per month. If you live in an area with higher crime statistics or more uninsured motorists, for example, you'll likely pay slightly more than someone in a safer area.
The destruction caused by hurricanes and other similar weather-related damage has been known to bankrupt insurers, so they have to keep weather risk in mind when calculating rates in certain areas. New Jersey occasionally finds itself in the path of tropical storms and hurricanes, and although it isn't a daily concern in Newark, it is still a risk for insurance companies.
Excessive rainfall can be a concern from time to time, and damage to your vehicle caused by flooding is covered under your comprehensive coverage. If you have a new or nice vehicle, we definitely recommend keeping comprehensive coverage as part of your policy in Newark.
Newark is a popular place for folks in the Northeast with its convenient access to NYC and other major metropolitan areas. Many people in the area use public transportation to cut down on traffic issues, but there is still a huge number of drivers in Newark. More people on the road naturally leads to more accidents. The costs of accident-related claims generally get passed along to other drivers through higher rates, even if you're a safe or infrequent driver.
People operating vehicles without insurance coverage also pose a significant risk. Our research shows that about 36% of drivers in Newark are not currently insured. Although this is lower than in some places, it is still significant, and you could be stuck footing the bill all by yourself if you're hit by someone who is uninsured.
Zebra Tip: Comprehensive coverage and uninsured property damage coverage are good to have in New Jersey
No one intends to be involved in an accident, particularly with an uninsured driver, but carrying uninsured motorist coverage (also called UMPD) can assist you in being prepared in case of an incident. UMPD will be there to aid you if your vehicle (or yourself) is harmed by an underinsured or uninsured driver. UMPD coverage usually has a lower deductible than collision coverage, tends to be less expensive, and will also result in lower rate increases if you need to file a claim.
Severe weather can also cause significant damage to vehicles. Newark, for instance, experiences thunderstorms and flooding, so if you have a nice or newer vehicle, we recommend carrying comprehensive coverage even if your vehicle is paid off.
Bundling insurance policies in Newark
Auto insurance rates are rising in most places these days, and finding ways to save money may seem like a challenge, but there are methods to make things more affordable. One of the most straightforward and efficient ways to save is to bundle policies. By bundling your auto insurance with your homeowners or renters insurance, you may be able to save a significant amount of money.
If you have both homeowners or renters coverage and car insurance, contact your insurance company to inquire about combining them to receive a multi-policy discount. By bundling, you could save 10% or more on your overall premiums. Find out more about bundling home and car insurance in Newark. When comparing insurance options, be sure to investigate bundling discounts if you're searching for a new insurance provider.
Cheapest car insurance companies for bundling home and auto insurance in Newark, NJ
| Company | Avg. 6 Mo. Premium |
|---|---|
| New Jersey Manufacturers | $879 |
| GEICO | $896 |
| MetLife | $947 |
| State Farm | $955 |
| Allstate | $1,015 |
| Amica Mutual | $1,304 |
| Progressive | $1,426 |
Newark residents should be aware that certain variables affect auto insurance rates beyond their control. Nonetheless, you can play a part in lowering your premiums as a responsible driver. It's a smart idea to stay up to date on your rates by getting quotes every six months to a year. This is especially important if you've experienced a significant life event or personal change that could impact your premiums. By comparing quotes from a variety of insurance companies, you can find a policy that suits your needs and budget.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.