In Newark, car insurance costs an average of $1,775 annually, which is more expensive than the state average. The most affordable insurer for the average driver is GEICO, but MoneyGeek also analyzed options based on coverage levels and driver profiles. For those looking to balance affordability and quality service, MoneyGeek also ranked the best car insurance providers in Newark.
bestauto insuranceNewark2021The Cheapest and Best Car Insurance in Newark
The Cheapest Car Insurance Companies in Newark
In Newark, the companies with the cheapest average rates for a full coverage car insurance policy are:
- GEICO: $1,174 per year
- MetLife: $1,484 per year
Among the car insurance companies in Newark, GEICO is the most affordable carrier with an average annual premium of $1,174, a rate that’s about $601 cheaper than the citywide average. In terms of affordability in Newark, GEICO is followed by MetLife, New Jersey Manufacturers, Allstate and Progressive. The most expensive among Newark insurance providers is Mercury, with rates that are more than twice as expensive as those offered by GEICO.
For this study, MoneyGeek collected average insurance rates in Newark for a sample 40-year-old male driver with a full coverage policy. This includes both liability and comprehensive and collision coverage.
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- CompanyAmountper year
- 1.$1,174
- 2.$1,484
- 3.New Jersey Manufacturers$1,492
- 4.$1,499
- 5.$1,666
Average Cost of Car Insurance in Newark
Newark$1,775
New Jersey$1,674
U.S.$1,424
The average car insurance rate in Newark is $1,775 per year. In comparison, this rate is much higher than the national average annual premium, and slightly higher than the New Jersey average as well. Newark drivers pay 6% more than the state average and 24.6% more than the typical annual premium in the United States.
The Best Car Insurance Companies in Newark
If you are a driver in Newark looking for insurance providers that balance affordability with quality service, MoneyGeek ranked the best companies in the city. According to MoneyGeek’s study, the best car insurance companies for most drivers are:
- New Jersey Manufacturers: MoneyGeek score 98 out of 100
- GEICO: MoneyGeek score 93 out of 100
USAA received the highest score in Newark by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
To determine final scores out of 100, MoneyGeek utilized factors including J.D. Power user satisfaction ratings, affordability and financial stability.
1
USAA
Score:100
2
New Jersey Manufacturers
Score:98
3
GEICO
Score:93
4
Hartford
Score:88
5
State Farm
Score:85
6
Travelers
Score:85
7
Progressive
Score:80
8
Nationwide
Score:78
9
Farmers
Score:75
10
CSAA
Score:75
11
Plymouth Rock Assurance
Score:73
12
Liberty Mutual
Score:73
13
Allstate
Score:73
Personalized Quotes to Get You the Cheapest Car Insurance in Newark
Various factors dictate the average car insurance rates in Newark. Insurance carriers will evaluate individualized factors, such as your ZIP code, age, gender, driving history and marital status. Young drivers often pay high premiums. For example, an 18-year-old male GEICO policyholder in Newark will pay an average of $2,542 annually.
On the other hand, a 40-year-old male with a similar policy will only pay an average of $1,174 per year. It is important to regularly compare personalized quotes that match your circumstances to find the best rate. Doing so can also help you find out if you qualify for discounts and rebates.
Shopping around for car insurance in Newark could save you $601, which is enough to buy:
200Cups of Coffee
46Months of Your Favorite Streaming Service
Cheapest Car Insurance in Newark by Coverage Amount
In Newark and elsewhere, how much coverage you choose to buy greatly impacts how much you pay for car insurance. For instance, in Newark, a state minimum liability policy costs an average of $1,077 per year, while a full coverage policy with higher liability limits costs $1,775 on average. That is a $698 difference.
New Jersey Minimum Liability Requirements
- ItemDescription
- Property Damage$5,000 for property damage. A more protective level is 100/300/100.
- Personal Injury Protection$15,000 per person.
If you are only thinking of getting state minimum liability coverage, the cheapest policy in Newark is from GEICO at an average of $560. If you want to add optional coverages, you can choose between a 50/100/50 liability-only and full-coverage policy. Progressive offers the smallest difference in costs between the two levels — a 50/100/50 liability-only policy from Progressive is $1,171 per year on average while adding around $333 can get you a 50/100/50 full-coverage plan.
If you want comprehensive protection that covers even more injuries and vehicle damages, you can opt for 100/300/100 full coverage. GEICO offers the cheapest average premium for this level at $1,174, which is about $104 more expensive than its 50/100/50 full-coverage policies.
Average Car Insurance Premiums: Liability-Only vs. Full Coverage
Liability Only
- CompanyState Minimumper year50 / 100 / 50per year
- 1.$560$725
- 2.New Jersey Manufacturers$851$985
- 3.$830$1,011
- 4.$1,067$1,117
- 5.$913$1,069
Full Coverage
- Company50 / 100 / 50per year100 / 300 / 100per year
- 1.$1,070$1,174
- 2.New Jersey Manufacturers$1,334$1,492
- 3.$1,400$1,499
- 4.$1,520$1,484
- 5.$1,580$1,679
Cheapest Car Insurance in Newark if You Have Driving Violations
Having a good driving record will allow you to enjoy cheap car insurance in Newark. A person with a DUI can pay nearly four times the premium of a driver with no violations. For example, a State Farm policyholder with a clean record pays an average of $2,155. If you have speeding tickets, you will be paying an average of $1,470 more for a total of $3,625. If your moving violation is a DUI, you could pay $8,098 for your average annual premium with State Farm.
- CompanySpeeding Ticketper yearAt-Fault Accidentper yearDUIper year
- 1.$1,174$1,643$2,364
- 2.New Jersey Manufacturers$1,797$1,492$1,797
- 3.$1,803$2,437$2,110
- 4.$2,148$2,868$1,923
- 5.$2,023$2,253$5,064
Average Cost of Car Insurance by Postal Code
Average car insurance rates in Newark hardly vary at all depending on your ZIP code. The average annual premium in terms of ZIP code ranges from $1,754 to $1,785. Drivers living in 07105 pay the cheapest premiums, while those who are from ZIP codes 07104 and 07107 pay around $31 more.
- Zip CodeState Minimumper year
- 07105$1,754
- 07104$1,785
- 07107$1,785
Insurance Providers That Serve Newark
Factors That Impact Insurance Costs in Newark
In addition to individual driver needs and history, location-specific factors like personal injury protection coverage requirements and the percentage of uninsured motorists also contribute to car insurance rates in Newark. How Newark ranks compared to the 300 most populous cities in the United States can have a significant impact on premium costs.
Methodology and Assumptions
MoneyGeek’s average premium rates for Newark are based on 100/300/100 comprehensive collision coverage with a $1,000 deductible for a 40-year-old male driver. The average driver profiled drives a 2010 Toyota Camry LE and has no tickets or accidents on their record. Additional premiums are added based on coverage type, location and driving record. Learn more about MoneyGeek’s data and methodology here.
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