Average car insurance cost in Newark, NJ

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According to data from Insure.com, the average annual cost of car insurance in Newark, New Jersey is $2,641. The auto insurance rates in Newark is $739 more than the state average and $746 more than the national average.

Car insurance premiums vary significantly based on where they are filed. Factors such as city demographics, population density and average resident age, accident rates, theft, and vandalism rates will influence the amount of premiums you pay.

This article talks in detail about the most affordable car insurance companies in Newark, the average car insurance rates by age and gender, and how much car insurance cost in Newark depending on coverage limits. Whether you’re a new driver or an experienced one, this article will help you to find the most affordable car insurance in Newark. Keep reading to learn more.

Cheap car insurance companies in Newark

At an average of $1,787 per year with full coverage limits of 100/300/100, NJM provides the most affordable car insurance in Newark.

Ranked as the second most affordable company in Newark, Selective Insurance provides car insurance at $1,846 per year.

As previously noted, car insurance rates differ among companies due to variations in the factors used for calculating the rates. So, it is best to compare quotes from several insurers to secure affordable car insurance rates in Newark that align with your needs before selecting a policy.

The table below lists the average annual and monthly costs for the various car insurance companies providing coverage in Newark, New Jersey:

Read about the best car insurance companies.

Average car insurance cost in Newark by coverage limits

In Newark, the average car insurance rates the coverage levels are as follows:

• State minimum coverage: $1,136 per year (limits are 25/50/25)
• Liability only coverage: $1,262 per year (limits are 50/100/50)
• Full coverage: $2,641 per year (limits are 100/300/100)
• Non-owners coverage: $513 per year

In most states, drivers are required to have state minimum coverage to drive legally, although these requirements vary by state. However, it’s important to note that state minimum coverage does not provide coverage for any vehicles listed on your policy in the event of an at-fault accident.

To prevent compromising on coverage and out-of-pocket expenses, it’s advisable to opt for full coverage or non-owner coverage if you frequently borrow or rent a car but do not own one.

Average car insurance rates by gender in Newark

The average car insurance per year for female drivers in Newark, New Jersey, is $2,639.

Whereas the yearly average car insurance rate for male drivers is $2,644, which is $5 more than what female drivers pay.

According to the Insurance Information Institute, women are considered to be safer drivers than men, and statistics have proved this. They often enjoy lower auto insurance premiums due to their lower incidence of severe accidents compared to men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Newark

Car insurance rates in Newark, are highest for teens at $7,359 per year or $613 per month. According to the Insurance Information Institute, the rates are higher for teens (16- to 19-year-olds) as they are more prone to road accidents due to their lack of experience on the road. To address this, there are specific driving laws for teens to help them drive better. Additionally, parents can potentially reduce teen insurance rates by adding them to their existing auto insurance policy.

As teens age and build a positive driving history, it’s common for car insurance rates to decline. Young adults typically pay $3,949 annually for their car insurance, which is $3,410 less than what teens pay for their insurance coverage.

In Newark, adult drivers pay an average of $2,617 per year for car insurance, while senior drivers pay $2,334 annually.

The rates for adults and seniors are notably lower compared to the rates for teens and young adults as they are more likely to obey the speed limits and follow the rules of the road, as per the Insurance Information Institute.

Read more on auto insurance for seniors.

The table below depicts the average annual rates for drivers of different age groups:

Car insurance rate trends in Newark

Examining car insurance rate trends in Newark, New Jersey, we observe a downward trend from 2022 to 2023. Subsequently, from 2022 to 2023, the rates experienced decrease overall, with an increase of 7% or $205.

The table below shows the trend for last four years:

Conclusion

In conclusion, the insurance rates in Newark, are higher than the average insurance cost in New Jersey. Shopping around and taking advantage of available discounts, drivers in Newark can find affordable car insurance options. Additionally, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

• Insurance Information Institute. “What determines the price of my auto insurance policy,” Accessed September 2024.
• Insurance Information Institute. “Auto insurance for teen drivers,” Accessed September 2024.
• Insurance Information Institute. “Senior driving safety and tips,” Accessed September 2024.

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Prachi Singh

Contributing Researcher

 

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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.