Average car insurance cost in Newark, New Jersey

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At $4,142 per year, Newark drivers pay $1,020 more than the state average and $1,564 more than the national average for full coverage car insurance.

NJM holds the lowest average rate at $3,447, while your own premium comes down to your age, driving record, and coverage level.

Here’s how Newark’s average rate compares to state and national averages:

How much car insurance do you need in Newark?

Every driver in Newark needs at least liability coverage, but full coverage offers better protection because it covers your own car too, not just the other driver’s.

Liability only covers damage you cause to others. If your car is damaged in an accident, stolen, or hit by a falling tree, you’re on the hook for the cost without full coverage. Here’s what each coverage level costs per year and what it includes:

• State minimum coverage: $1,816 per year – Limits of $25,000 bodily injury per person, $50,000 total bodily injury per accident, $25,000 property damage. The lowest coverage level allowed by law.
• Liability only coverage: $1,957 per year – Limits of $50,000 bodily injury per person, $100,000 total bodily injury per accident, $50,000 property damage. Pays for others’ injuries and property damage when you’re at fault but doesn’t cover your own vehicle.
• Full coverage: $4,142 per year – Limits of $100,000 bodily injury per person, $300,000 total bodily injury per accident, $100,000 property damage. Combines liability with collision and comprehensive, so your own car is covered too.

What are the cheapest car insurance companies in Newark?

NJM beats every insurer when it comes down to price for full coverage car insurance in Newark, at $3,447 per year. Travelers ranks second at $3,580 per year. Rates are based on limits of $100,000 bodily injury per person, $300,000 per accident, and $100,000 property damage.

Rates differ by company, so comparing quotes from multiple providers is the best way to find a rate that fits your budget.

Below is a breakdown of average yearly and monthly car insurance rates from different insurers in Newark.

Do men or women pay more for car insurance in Newark?

In Newark, male drivers pay $4,018 per year for full coverage car insurance – $231 less than female drivers, who average $4,249 per year.

Most states permit insurers to price policies by gender. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania are exceptions that ban the practice.

Data from the Insurance Information Institute (Triple-I), a nonprofit that researches insurance trends, shows women drive more cautiously and cause fewer serious accidents than men. That risk gap is why insurers charge men more.

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How does age affect car insurance rates in Newark?

No age group pays more than teens in Newark – $14,274 a year, or $1,190 monthly. Every year of driving experience chips away at that number – with drivers 20 to 24 averaging at $6,701 annually, drivers 25 to 55 averaging at$4,119, and drivers 60 to 75 averaging at $4,190.

According to Insurance Institute for Highway Safety (IIHS), teen drivers — between the ages of 16 to 19 — have crash rates over 3 times those of drivers 20 and older per mile driven. Insurers factor this risk in, pushing teen car insurance rates higher.

That gap narrows fast with age. By 20 to 24, drivers pay $6,701 a year – 53% what teens pay.

Below is a breakdown of average annual full coverage car insurance rates by age group.

How have car insurance rates changed in Newark?

Since 2023 to 2025, Newark premiums have gone upward, moving by 56%, or $1,494.

A rising premium is worth a second look. When renewal season comes around, shop around to find a rate that fits your budget.

The graph below tracks insurance costs from 2022 to 2025, showing the long-term trend behind today’s rates.

Methodology

Insure.com commissioned car insurance rates in 2026 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors analyzed 65,756,440 auto insurance quotes collected in 2025 across 51 states, 29,159 cities and 34,595 zip codes. Quotes came from 195 insurance companies across 73 company groups, giving a national average annual premium of $2,578.

Each quote reflects a 40-year-old male and female driver with a Honda Accord LX, no violations and a good insurance score, driving 10,000 miles a year with a 12-mile daily commute. Coverage includes:

• 100/300/100 liability limits (up to $100,000 per person and $300,000 per accident for bodily injury, and $100,000 for property damage)
• $500 deductible for collision and comprehensive

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

Read more about our research standards and methodology.

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.