Cheapest and Best Car Insurance in Paterson, NJ (July 2024)

In Paterson, the most affordable full coverage comes from Plymouth Rock Assurance, while GEICO offers the lowest rates for families with teen drivers. These differ from the minimal coverage leader, Plymouth Rock Assurance. Renowned for service, Amica Mutual stands as the best for customer satisfaction and overall value, aligning preferences with coverage needs.

MoneyGeek found that Plymouth Rock Assurance offers the cheapest option for minimum coverage car insurance in Paterson.Take a look at the most affordable companies:

• Plymouth Rock Assurance: $624 per year
• GEICO: $697 per year

Hanover has the most expensive minimum coverage policy in Paterson at $2,686 annually. The difference in annual rates between Plymouth Rock Assurance and Hanover is $2,062.

In New Jersey, state law prescribes the minimum car insurance coverage required. Here are your essential coverage minimums:

• $25,000 bodily injury per person
  
• $50,000 bodily injury per accident
  
• $25,000 property damage liability per accident
  
• $15,000 personal injury protection (PIP) per person
  

For instance, if you hold the minimum coverage and are at fault in an accident that results in another person's bodily injuries, your insurance would cover up to $25,000 for that person's medical expenses. However, if their medical bills total $40,000, you would be responsible for the remaining $15,000 out of pocket.

MoneyGeek found that Plymouth Rock Assurance is the least expensive for cheapest full coverage car insurance in Paterson.

• Plymouth Rock Assurance: $1,168 per year
• NJM: $1,454 per year

Hanover offers the most expensive policy in Paterson, with annual rates at $5,459, which is $4,291 more than Plymouth Rock Assurance. This highlights the importance of shopping for full coverage car insurance.

When opting for a full coverage policy you can increase liability coverage, enhancing it to $100,000 in bodily injury liability per individual, $300,000 per accident and $100,000 in property damage liability per incident. This upgraded protection is a 100/300/100 policy.

Full coverage insurance integrates the added benefits of comprehensive and collision coverages:

• Collision Insurance: This insurance is designed to cover the costs of repairs to your vehicle in the event it collides with another vehicle or object like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This option provides coverage for a range of non-collision incidents that can affect your car, such as theft or damage from severe weather conditions, natural disasters and being struck by an animal like a deer.

For those investing in a new vehicle, procuring full coverage insurance is integral for protecting your financial interests. But when it comes to older models, the additional cost for this expansive coverage might not be worth the expense. It's crucial to evaluate how much car insurance you need based on coverage and cost.

MoneyGeek found that Plymouth Rock Assurance is the cheapest option in Paterson for drivers with a speeding ticket or a DUI, while NJM offers the lowest rates for those involved in an at-fault accident. Here are the most affordable annual premiums for each incident:

• Speeding Ticket: Plymouth Rock Assurance ($1,327 per year)
• At-fault accident: NJM ($1,497 per year)
• DUI: Plymouth Rock Assurance ($1,327 per year)

State Farm has the most expensive rates for drivers with a DUI at $10,626 annually.

Insurance premiums in Paterson reflect the principle that the severity of a driving violation correlates with higher rates due to increased risk perception by insurers. For instance, drivers with a speeding ticket face an average annual rate of approximately $4,064, while those with a DUI offense climb to an average of $6,840.

MoneyGeek found that GEICO is the cheapest option in Paterson, providing affordable cheapest car insurance for teens. Here are the two most cost-effective providers:

• GEICO: $2,928 per year for female teens and $3,149 per year for male teens
• Travelers: $3,717 per year for female teens and $4,092 per year for male teens

These premiums are for a policy that covers a combination of two parents and a teenage driver. With Foremost ranking as the most expensive option in Paterson, the annual premium difference between GEICO and Foremost is $4,931 for female teens. This shows the significant savings that can be found by comparing rates, especially when adding higher risk drivers like teenagers to an insurance policy.

Teenagers in cities like Paterson face steep costs when seeking car insurance. On average, a teen purchasing an individual policy will pay around $9,355 annually, higher than the $5,506 average premium when added to a family plan. Insurers see teens as high-risk drivers, leading to elevated rates for individual policies.

MoneyGeek found that Plymouth Rock Assurance is the most affordable option in Paterson for those seeking the cheapest car insurance for military backgrounds.

• Plymouth Rock Assurance: $1,168 per year
• NJM: $1,454 per year

Although USAA does not appear in the top two cheapest providers, it does offer competitive rates and exceptional service tailored to active duty military members.

You can use MoneyGeek's car insurance calculator to find estimates in Paterson. You can simply input your age, driving history, credit score, desired coverage levels and other relevant details to swiftly receive a tailored rate estimate.

Selecting the right auto insurance hinges on your personal preferences for service quality, cost, coverage, and other factors, and MoneyGeek's tailored scoring system reflects these distinct categories. In Paterson, the findings are as follows:

• Best overall: Amica Mutual (MoneyGeek score 88 out of 100)
• Best for service: Amica Mutual (MoneyGeek score 97 out of 100)
• Best cheap: Plymouth Rock Assurance (MoneyGeek score 88 out of 100)

Amica Mutual emerges as the optimal choice in Paterson for those seeking a harmonious blend of service excellence and cost-effectiveness, securing the title for both best overall and best for service. Meanwhile, Plymouth Rock Assurance stands out for individuals prioritizing budget-friendliness without a significant compromise on service quality.

MoneyGeek found that Amica Mutual offers the best option for car insurance in Paterson, providing customers with outstanding service and competitive rates. Those in search of the best car insurance should consider the top two providers in Paterson:

• Amica Mutual: MoneyGeek score of 88 out of 100 ($3,180 per year)
• Plymouth Rock Assurance: MoneyGeek score of 86 out of 100 ($1,168 per year)

Amica Mutual stands out with the highest MoneyGeek score for a full coverage policy, largely due to exceptional customer satisfaction and claims processing.

Amica Mutual is the best option in Paterson for car insurance focused on customer service. Their exceptional customer service experience, as measured by general satisfaction, claims handling and coverage options, is unmatched, regardless of rates.

• Amica Mutual: MoneyGeek score of 97 out of 100 ($3,180 per year)
• Plymouth Rock Assurance: MoneyGeek score of 82 out of 100 ($1,168 per year)

Amica Mutual reassures customers that they are not only purchasing coverage but also investing in peace of mind.

MoneyGeek found that Plymouth Rock Assurance is the best option in Paterson for affordable and high-quality car insurance.

• Plymouth Rock Assurance: MoneyGeek score of 88 out of 100 ($624 per year)
• NJM: MoneyGeek score of 81 out of 100 ($985 per year)

Plymouth Rock Assurance distinguishes itself not only for its affordability but also holds high ratings in customer satisfaction.

In Paterson, New Jersey, the average cost of car insurance is $2,651. This figure is higher compared to the average state cost of car insurance in New Jersey, which stands at $2,355, representing a $296 difference.

Comparatively, New Jersey’s average cost exceeds the national average of $1,781 by $573, indicating that both Paterson and New Jersey residents face higher rates than the average American driver.

Car insurance premiums are influenced by geographical area due to factors such as accident rates, crime levels and traffic congestion. Newark has the most expensive premium at $2,677, while Jersey City is at the opposite end with the cheapest, at $2,307.