Best Cheap Auto Insurance in Newark, New Jersey (2024)

Everything is expensive close to Manhattan, and car insurance in Newark is no exception. You can expect to pay an average of $402 per month for full coverage and $153 per month for liability only. 

Newark’s proximity to Manhattan, and its high population density of nearly 13,000 people per square mile, contribute to the city’s relatively high insurance costs. Fortunately, companies like NJM, Plymouth Rock, GEICO, and Travelers continually offer low average rates in the area.

With average rates this high, you want to reduce your insurance cost wherever you can. Here’s how you can find affordable car insurance and make life in Newark a little less expensive.

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Best car insurance companies in Newark

Choosing an insurance company to protect your vehicle is an important decision. While most insurance companies offer similar products, each sets its own car insurance rates, level of coverage, and discounts. Your needs will also vary from someone else who uses the same insurance company since your credit scores, driving history, marital status, and coverage needs are likely different.

As you compare rates and companies, look for a balance between rate and benefits to find the best fit for your family. Here are three insurers you can review to get started.

Best insurer for low rates: NJM

Best insurer for drivers with a DUI: GEICO

Best insurer for discounts: Plymouth Rock

Cheapest liability-only car insurance in Newark

On average, Newark drivers pay $153 per month for liability coverage. CSAA offers the lowest rate for liability-only insurance at $150 per month. NJM and Plymouth Rock also have cheap rates for liability coverage in Newark.

Liability coverage will pay to cover any damages to people or personal property of other parties involved in an accident you cause. However, liability insurance doesn’t offer protection for your car or yourself. New Jersey law requires drivers to carry at least liability protection, and you might consider liability-only coverage if you can afford to pay out of pocket for damage or to replace your vehicle.

The table below shows what you can expect to pay for liability coverage in Newark.

Cheapest full-coverage car insurance in Newark

If you want or need more comprehensive coverage, consider a full-coverage insurance policy. Full-coverage car insurance provides the same protection as liability, but it also includes your vehicle as well as personal injury protection for your covered parties.

Not surprisingly, then, full coverage will be more expensive. However, if you have a loan on your vehicle, or you would be unable to pay out of pocket for repairs, full coverage might be a better fit for your needs.

Newark drivers pay $402 per month for full-coverage car insurance, on average. Check out the companies below to get an idea of average full-coverage costs in the Gateway City.

Car insurance requirements in New Jersey

New Jersey is a no-fault state.^[1] This means that insurance companies pay for damages to vehicles and people they cover, no matter who’s liable for the accident. However, New Jersey law also allows you to make choices based on your insurance type. Basic policies provide no-fault coverage, while opting for more standard coverage may give you the right to file a lawsuit following an accident.

If you choose a basic policy, you’ll have a limited right to sue, meaning you can sue the responsible party if your injuries are permanent.^[2] If you have standard coverage, you can choose a limited or an unlimited right to sue.^[3] Here’s a look at the minimum coverage you must carry in order to drive legally in New Jersey:

If you’re interested in coverage that goes beyond the minimum requirements, you may pursue the following options:

• 

  Comprehensive coverage

  Comprehensive insurance pays for repairs to your vehicle from damages as a result of non-collision events, like theft, vandalism, fire, and more.

• 

  Collision coverage

  Collision coverage pays for damage to your vehicle following a collision with another car or other object.

• 

  Uninsured/underinsured motorist coverage

  This type of policy offers protection when one or more drivers involved in an accident are uninsured or underinsured.

Cheapest car insurance for drivers with an incident

Finding cheap car insurance when you have an incident on your driving record might take some extra work. Incidents typically refer to at-fault accidents, speeding tickets, DUIs, or other moving violations.

One factor that insurance companies consider when setting rates is your driving history. Insurance companies take on risk when providing insurance, and they attempt to offset some of that risk by increasing rates for drivers deemed more likely to file a claim. A history of accidents or moving violations is an indication to insurance companies that you’re a higher-risk consumer. Here, you’ll see how different incidents affect your car insurance rates.

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Cheapest car insurance for drivers with a speeding ticket

Drivers with a history of speeding tickets are more likely to see higher rates on their auto insurance policy. For example, the average cost of full-coverage car insurance in Newark is $536 if you have a speeding ticket versus $402 for drivers with a clean record.

New Jersey assigns points for specific traffic violations, and speeding violations incur between two and five points per conviction. The specific number depends on how fast you traveled over the posted speed limits. Drivers who accumulate more than six points in three years, or 12 points total, will face a license suspension.

Here’s a look at the average premiums available from top insurers for drivers with a speeding ticket on their record.

Cheapest car insurance for drivers with an at-fault accident

While New Jersey is a no-fault state, that designation only applies to how accidents are paid for by insurance companies. Law enforcement officers write tickets and determine which driver is responsible for the accident (or what percentage of fault each driver has).

Insurance companies view at-fault accidents as a sign of risk. In addition to higher premiums, drivers could gain several points on their driving record based on the violations that led to the accident. 

The average monthly cost of liability-only insurance is $234 for Newark drivers with an at-fault accident. The table below provides examples of rates from top insurance companies for Newark drivers with an accident on their records.

Cheapest car insurance for drivers with a DUI

Drivers with a DUI may have a difficult time finding cheap car insurance in New Jersey. In addition to fines and license suspension, drivers may have to pay a $1,000 insurance surcharge for three years and face up to 30 days of jail time.^[4]

Drivers with a DUI may also be required to purchase SR-22 insurance, which allows the state to ensure you maintain the state’s minimum insurance requirements. Insurance companies may legally deny drivers with a DUI, so you might have to put in more work to find a company that fits your coverage needs.

Newark drivers with a DUI conviction pay $264 per month on average for liability-only insurance and $694 for full coverage.

Cheapest car insurance for seniors

Once drivers reach 75 years old, they’ll likely see their rates increase. This can be due to reduced faculties as drivers age, as well as the increased risk of heightened medical costs for seniors involved in an accident.

Here, you can see the rates available for seniors in Newark. The overall average monthly cost of car insurance for Newark seniors is $233.

Cheapest car insurance for teens

In New Jersey, drivers can’t get their permit until they’re 16 years old. Once a driver is 17, they may obtain a probationary license. Teens only qualify for a full driver’s license at 18. No matter what type of license teens have, they’re required to be covered by car insurance and pay some of the highest rates on the market. This is because teens are at the highest risk of car accidents, and those incidents are the leading cause of death for teens in the U.S.^[5]

Teen drivers in Newark pay an overall average of $483 for car insurance. But teens can help lower rates on their insurance by staying on their parents’ policy, participating in a safe-driver program, and asking their insurance company if it offers a good-grades discount.

How to get the cheapest car insurance in Newark

Finding affordable car insurance takes a little bit of leg work, but once you know how insurance companies determine their rates, you can hunt for the best rates available to you.

Some of the most common things that insurance companies consider when setting rates for coverage include your credit score, driving history, gender, age, location, and the average amount of time you spend on the road. Male teens typically pay higher rates than females.

While you can’t control some of the factors used to set rates, you have a few ways to lower your insurance costs:

• Choose a vehicle with high safety standards. Some insurance companies offer discounts and lower rates for vehicles with high safety ratings and extra safety features, like rear cameras.

• Bundle multiple policies. Consider bundling your homeowners insurance, renters insurance, and auto policy with the same company. You can also bundle policies for your car and recreational vehicles.

• Look for discounts with a local organization. Check with the AARP, your employer, or other programs to see if they partner with any insurance companies for discounted rates. 

• Compare car insurance quotes and coverage from multiple companies. If you want to find the best prices for auto insurance, compare prices and coverage options from two or three different companies. Comparing rates is particularly important if you have unique coverage needs, like a DUI or teen driver.

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Newark car insurance quotes by credit tier

New Jersey allows car insurance companies to use your credit history to evaluate your risk as a driver and assign rates. Insurance companies use information in your credit report to give you an insurance score. This score helps determine how risky you are as a customer.

Drivers with lower credit scores could pay higher premiums, while drivers with a good or excellent credit score could benefit from lower premium costs.

Is car insurance more expensive in Newark?

If you’re a driver in Newark, you’ll likely pay more per month for your insurance than other drivers in the state and across the country. Several factors affect the rates in New Jersey, including its status as a no-fault state and the number of drivers on the road, particularly in large urban areas.

The average rates in Newark are $153 for liability coverage and $402 for full coverage. This is compared to the state averages of $112 for liability coverage and $216 for full coverage, and the national averages of $106 for liability coverage and $172 for full coverage.

More cities in New Jersey

If you’re curious about rates in New Jersey, the chart below compares the rates drivers in Newark pay with those paid in other cities in the state.

Newark car insurance FAQs