Average car insurance cost in Paterson, NJ

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According to data from Insure.com, the average annual cost of car insurance in Paterson, New Jersey is $2,518. The auto insurance rates in Paterson is $616 more than the state average and $623 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 Paterson, the average car insurance rates by age and gender, and how much car insurance cost in Paterson 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 Paterson. Keep reading to learn more.

Cheap car insurance companies in Paterson

Selective Insurance provides the best value for car insurance in Paterson with coverage limits of 100/300/100, costing $1,693 annually.

A close second is NJM, which offers car insurance at $1,742 per year.

Read about the best car insurance companies.

Average car insurance cost in Paterson by coverage limits

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

• State minimum coverage: $1,116 per year (limits are 25/50/25)
• Liability only coverage: $1,247 per year (limits are 50/100/50)
• Full coverage: $2,518 per year (limits are 100/300/100)
• Non-owners coverage: $497 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 Paterson

The average car insurance rate for a female driver in Paterson, New Jersey, is $2,518 per year.

While the rate for a male driver is $2,518 per year, which is equals to what female drivers pay, according to a rate analysis by Insure.com.

Women are considered to be safer drivers than men, and statistics have proved this, according to the Insurance Information Institute. They often pay less for auto insurance because of their lower rate of severe accidents than men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Paterson

Car insurance rates in Paterson, are highest for teens at $6,887 per year or $574 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 $3,778 annually for their car insurance, which is $3,109 less than what teens pay for their insurance coverage.

In Paterson, adult drivers pay an average of $2,492 per year for car insurance, while senior drivers pay $2,271 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 Paterson

Examining car insurance rate trends in Paterson, 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 9% or $251.

The table below shows the trend for last four years:

Conclusion

In conclusion, Paterson’s car insurance rates are higher than the average insurance rates in New Jersey. Drivers in Paterson can find affordable car insurance options by shopping around and taking advantage of available discounts. Moreover, 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.