Average car insurance cost in Newark, NJ

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The average car insurance cost in Newark, New Jersey is $2,641 per year, according to Insure.com data. This is $739 more than the average auto insurance cost in New Jersey and $746 more than the national average, as analyzed by Insure.com.

The rates can vary wildly depending on where they are filed. City demographics, including population density and average resident age, will affect how much money you spend on premiums which could make it cheaper or more expensive than other areas with different factors like accident rates, theft and vandalism rates, etc.

The article covers information on – the cheapest car insurance providers in Newark, the average car insurance rates by age, gender and how much is car insurance in Newark based on coverage limits. Whether you’re a new driver or have been driving for years, this article can help you find the best deal on cheap car insurance in Newark. Read on to learn more.

Cheap car insurance companies in Newark

NJM provides the best value for car insurance in Newark with coverage limits of 100/300/100, costing $1,787 annually.

A close second is Selective Insurance, which offers car insurance at $1,846 per year.

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

In Newark, car insurance rates are the highest for teens, at $7,359 per year or $613 per month. The rates are higher for teenagers (16- to 19-year-olds) as they are more prone to road accidents due to their lack of experience on the road, according to the Insurance Information Institute. There are driving laws for teens to help them drive better. Also, teen insurance rates can be lowered by adding teens to a parent’s auto insurance policy.

Car insurance rates are bound to decrease as teens grow older and earn a good driving record. Young adults pay $3,949 per year for their car insurance which is $3,410 less than what the teens pay for their insurance policy.

The car insurance rates in Newark for adult and senior drivers are $2,617 and $2,334 per year respectively.

The car insurance rates for adults and seniors are lower than those for teens and young adults. “This is because they are more likely to obey the speed limits and follow the rules of the road,” says 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 the trends in car insurance rates in Newark, New Jersey it was on an downward swing from 2022 to 2023. From 2022 to 2023 rates decrease overall by 7%, or $205.

The table below shows the trend for last four years:

Conclusion

Car insurance rates in Newark are higher than the average rates in New Jersey. Drivers in Newark can secure affordable car insurance by shopping around and utilizing available discounts. Additionally, many insurance companies offer bundling discounts for customers who purchase multiple policies from the same provider.

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.