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Beth Swanson

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Beth joined The Zebra in 2022 as an Associate Content Strategist. She is a licensed insurance agent whose goal is to make insurance content easy to r…

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Nathan is an insurance professional with a focus on creating positive customer experiences with more than 10 years of industry experience.

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Kristine Lee

Insurance Analyst

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  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

How much does car insurance cost in Newark?

Newark is a bustling city located in the heart of New Jersey. If you're planning on driving in Newark, it's essential to have car insurance. The average cost for a six-month policy is $1,528, or $255 per month. However, shopping around and comparing rates from different insurance companies is important to find the best deal.

Newark drivers pay more than the average for car insurance in New Jersey ($1,017 every six months) and more than double the national average of $880. According to our data, 34% of our customers in Newark said they are paying too much for auto insurance. If you are wondering if your rates are too high, or simply want to educate yourself about car insurance in New Jersey, keep reading to learn more about insurance requirements and typical rates in Newark.

Car Insurance in Newark vs. New Jersey Avg. 6 Mo. Premium
New Jersey Average $1,017
Newark Average $1,528

The cheapest car insurance companies in Newark

1st place medal
1st place: New Jersey Manufacturers

New Jersey Manufacturers (NJM) is the cheapest option in Newark for auto insurance. This regional insurer offers rates of $157 per month or $943 for a six-month policy.

2nd place medal
2nd place: GEICO

In second place is GEICO, which costs $970 every six months, or $162 per month.

3rd place medal
3rd place: State Farm

Finishing strong on our list is State Farm as the third-cheapest insurance company. On average, a policy with State Farm in Newark costs $1,131 per six-month policy ($189 per month).

The Zebra's key takeaways about car insurance in Newark:

  • The average cost of a car insurance policy in Newark is $1,528 per six-month policy — $255 per month.
  • The cheapest company in Newark is New Jersey Manufacturers (NJM) — $157 per month.
  • Newark ranks as the 2nd most expensive city for car insurance in New Jersey.
  • 34% of Zebra customers in Newark stated they used our product because they were paying too much for car insurance.

Are you paying too much for auto insurance?

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Newark car insurance rates by company

Newark drivers looking for the best cheap auto insurance for full coverage in 2024 should consider NJM as they offer coverage at a rate of $157 per month or $943 for a six-month policy. GEICO is the second most affordable option, with rates of $970 for a six-month policy or around $162 per month. Both companies offer rates that are lower than the average in Newark.

To learn more about the highest-rated car insurance companies based on The Zebra's Customer Satisfaction Survey, keep reading.

 

Cheapest car insurance companies in Newark, NJ
Company Avg. 6 Mo. Premium
New Jersey Manufacturers $943
GEICO $970
State Farm $1,131
Allstate $1,295
Amica Mutual $1,403
MetLife $1,495
Progressive $1,713

The Zebra’s Dynamic Insurance Rating Tool data methodology — auto insurance

The auto insurance rates displayed throughout this page come from The Zebra’s Dynamic Insurance Rating Tool, a proprietary insurance premium estimator that uses the most recent rate filings across the United States at the ZIP code level to provide up-to-date rate data. Most insurance companies file car insurance rates one to two times a year. This data comes from Quadrant Information Services, which sources the latest approved rate filings across carriers in each state from S&P Global. Quadrant then uses an internal QA process to validate the information and build reports before the data is programmed into The Zebra’s dynamic rating tool.

Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To provide insight to consumers on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies. For more information, see our full data methodology.


Shop around for the best rates


For those seeking affordable car insurance, comparing companies is the simplest way to find it. Let us take care of the hard work, so you can concentrate on finding the best option for your budget and individual needs. Enter your ZIP code to compare rates from top companies like Progressive, Allstate, State Farm, and GEICO (as well as other companies) and find the cheapest car insurance in Newark.

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Average car insurance in Newark by rating factor

In Newark, rating factors play a significant role in determining your car insurance rate. Although most insurance companies consider similar factors such as age and credit score, the weight given to these details can vary significantly. For example, one insurer may prioritize your driving record and claims history, whereas another may put more weight on your credit score. To learn more about the rating factors that affect your car insurance rate in Newark, keep reading.

Your insurance needs and circumstances can change over time, so the best insurance company for you may change as well, even if you've been with the same insurer for years. That's why it's essential to shop around and compare quotes every six months to a year to ensure you have coverage that fits your current situation in Newark. To learn more about finding the best insurance company for your needs, keep reading.

Q: I didn't have an accident — Why is my insurance going up?

A: In Newark, the end-of-year earnings (revenue of premiums versus the cost of paying insureds' claims) is a critical rating factor in determining how much you will pay for car insurance. Even if you have never made any claims with your insurer, you may still end up paying more with a specific company due to the increased cost of doing business in Newark.

Auto insurance premiums by age in Newark

In Newark, age is a significant player in determining how much you will pay for car insurance. Insurance companies focus on risk, and analysis of data indicates that teen drivers pose the most risk on the road and have a higher number of accidents. As a result, teens typically face the most expensive rates for their premiums. Although this may come as a surprise to some, these higher rates are in place to help offset the cost of claims paid by the insurance company.

In Newark, the distinction in fees paid by teen drivers and those in their twenties is $3,598 annually. Consequently, with a solid driving record and more experience on the road, you may observe a significant drop in premiums within a few years. To maintain lower rates in the meantime, consider including a teenage driver on a parent or guardian's policy rather than obtaining their own policy. You can also ask about discounts for academic excellence and safe driving.

 

Cheapest car insurance companies for teen drivers in Newark, NJ
Company Avg. 6 Mo. Premium
New Jersey Manufacturers $2,132
GEICO $2,354
State Farm $3,235
Allstate $4,406
Amica Mutual $5,793
MetLife $6,765
Progressive $7,606
Age Bracket Cheapest Companies Avg. 6 Mo. Premium
20s NJM $1,158
30s NJM $899
40s NJM $835
50s NJM $770
60s NJM $707
70s GEICO $761

Zebra Tip: The cheapest companies for Newark drivers between 20-40 are NJM, GEICO and State Farm


In Newark, our research indicates that the majority of drivers fall within the 20 to 40 age range. For a six-month policy, the average rate for this group is approximately $1,754. Nonetheless, drivers in this age group can save almost 31% by selecting one of these providers.

Auto insurance premiums for minimum coverage in Newark

The premium you pay for car insurance is directly affected by the coverage you choose, besides personal variables such as age or credit score. In Newark, the state minimum level of car insurance is held by 40% of drivers. This is an option to obtain lower rates, but the risk may not be worthwhile over time. In the case of an accident, if you only have the minimum coverage, you may be underinsured.

Adding collision coverage or comprehensive coverage (also called "full coverage") will considerably increase your rates in Newark. Nonetheless, it will also give you much more peace of mind. Collision and comprehensive coverage usually involve a deductible, which also influences your rates. If you want full coverage and affordable rates, consider raising your deductible. The deductible and premium have an inverse relationship, so the higher the deductible you carry, the lower your premium will be.

Feeling safe and protected on the road is key in Newark, and additional features like roadside assistance or uninsured motorist coverage will be available to assist if you're involved in an incident with an uninsured driver. Uninsured motorist coverage is actually required in New Jersey, as opposed to many states where it is optional. This provides more protection for you and your vehicle, similar to comprehensive coverage.

Q: Can I lower my car insurance coverage?

A: Possibly — if your vehicle is paid off.

If you're leasing or financing your vehicle in Newark, there's most likely a required amount of insurance coverage that you need to carry. If you own their car outright, however, it allows for more flexibility. If you're considering dropping comprehensive or collision coverage, we suggest obtaining the actual cash value of your car from a source like Kelley Blue Book. If your car is worth $4,000 or less, you probably don't need to carry full coverage. This can help lower your rates but also makes you more vulnerable to paying for damages yourself.

Cheapest car insurance companies for minimum coverage in Newark, NJ
Company Avg. 6 Mo. Premium
State Farm $193
New Jersey Manufacturers $351
GEICO $353
Amica Mutual $361
Allstate $644
MetLife $759
Progressive $1,209

40% of our customers in Newark opt for minimum coverage, but this may not be the best option for everyone. Budgets can be tight, too, and we understand that carrying only the minimum required coverage can save money, but it can also leave you at risk for damages that exceed your liability limits. New Jersey's 25/50/25 liability limits provide coverage for damage you cause up to $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $25,000 for property damage. New Jersey also requires personal injury protection (PIP) and uninsured motorist (UMP) coverage, which adds to your insurance cost overall but also gives you an extra layer of protection.

Learn more about insurance laws in New Jersey.

Newark car insurance rates by credit score

Credit score is a critical factor in determining car insurance rates in New Jersey, as it is in most states. are multiple reasons for this, and like most things in the insurance world, it all comes down to risk. Studies have indicated that drivers with lower credit scores tend to have more lapses in insurance coverage, engage in riskier driving behaviors, and file more claims.

In Newark, drivers with poor credit scores (300-579) pay 153% more than drivers with excellent credit (800-850). This can make a very big difference over time! However, 42% percent of drivers in Newark have an good (680-719) credit score. NJM is the cheapest option for Newark drivers in this credit range as of 2024.

car insurance in Newark by credit score
Cheapest car insurance companies for bad credit in Newark, NJ
Company Avg. 6 Mo. Premium
New Jersey Manufacturers $1,537
GEICO $2,200
Allstate $2,234
State Farm $2,416
Progressive $2,480
Amica Mutual $2,578
MetLife $4,748

Zebra Tip: If you recently improved your credit score, shop around for car insurance!


Newark residents don't need to aim for a massive increase in their credit score to improve it. Our analysis shows that car insurance costs about $1,000 less annually for drivers with "Fair" credit than for those with "Poor" credit in Newark. Depending on where you stand on the credit spectrum, the disparity may only be a few points. If you've been working on improving your credit score, such as by paying off a loan, now is the perfect time to check how your efforts have helped and if you can save money on car insurance.

Auto insurance rates with an at-fault accident

In Newark, at-fault and collision-related accidents are the most prevalent types of claims, and you can expect either of them to result in higher rates. In Newark, these increases range from $51 to $141 per month, depending on the violation. NJM has the cheapest rates after an at-fault accident.

Whether you live in Newark or any other city, the most effective approach to maintaining affordable rates is to drive safely. Receiving a ticket for speeding, charges for reckless driving, and DUIs or DWIs can all lead to higher rates, and your premium may be impacted for up to three to five years following an accident. More severe infractions may have an even longer-lasting effect. While accidents can happen, by driving safely and practicing good driving habits, you're not only protecting yourself physically but also financially.


Cheapest car insurance companies after an at-fault accident in Newark, NJ
Company Avg. 6 Mo. Premium
New Jersey Manufacturers $943
GEICO $1,332
Amica Mutual $1,589
State Farm $1,867
Progressive $2,580
Allstate $3,015
MetLife $3,983

Newark car insurance rates by violation

Below, you'll find details on how various violations and claims can impact the increase of your rate in Newark.

 

Car insurance rate increases after violations and citations in Newark, NJ
Accident/Violation Avg. 6 Mo. Premium % Rate Increase $ Rate Increase
None $1,528 0% $0
One Med/PIP claim $1,539 1% $11
Not-at-fault accident $1,607 5% $79
One comp claim $1,654 8% $126
Two Med/PIP claims $1,695 11% $168
Failure to show documents $1,711 12% $183
Speeding 6 - 10 MPH over limit $1,733 13% $205
Speeding 11 - 15 MPH over limit $1,740 14% $213
Driving without lights $1,775 16% $247
Child safety restraint $1,810 18% $282
Failure to wear a seat belt $1,810 18% $282
At-fault accident - less than $1000 $1,836 20% $308
Driving with expired registration $1,847 21% $320
Driving too slowly $1,870 22% $342
Two comp claims $1,897 24% $369
Wrong way/wrong lane $1,908 25% $380
Failure to yield $1,919 26% $391
Failure to stop at a red light $1,930 26% $402
Illegal turn $1,971 29% $443
Cell phone violation $1,980 30% $452
Texting while driving $1,980 30% $452
Speeding 16 - 20 MPH over limit $2,004 31% $476
Speeding in school zone $2,035 33% $508
Operating a vehicle without permission $2,061 35% $534
Following too closely $2,080 36% $552
Improper passing $2,082 36% $554
Passing school bus $2,160 41% $632
In 65 MPH zone $2,183 43% $655
Speeding 21 - 25 MPH over limit $2,236 46% $708
At-fault accident - $1000-$2000 $2,357 54% $829
At-fault accident - greater than $2000 $2,373 55% $845
Open container $2,532 66% $1,004
Reckless driving $2,803 83% $1,276
Racing $2,932 92% $1,405
DUI $3,079 102% $1,551
Refusal to submit to a chemical test $3,079 102% $1,551
Leaving scene of an accident/hit and run $3,120 104% $1,592
Driving with a suspended license $3,195 109% $1,667

Why is car insurance in Newark so expensive?

Newark is in a very populated part of the country that typically has a higher cost of living than other regions, such as the Midwest. There are also many commuters living near Newark, which means more people on the road. As the second-most expensive city for car insurance in the state, you might feel that your rates are exceptionally high. Keep in mind that there are many reasons for this — including factors that are within, and out of, your immediate control.

Here's a quick rundown of why car insurance rates in Newark may fluctuate and why your rate may seem higher.

location
Location

In Newark, the specific location of your residence affects how much you pay for car insurance. Although this is somewhat beyond your control, it does influence risk. Certain areas are simply more prone to theft, other crimes, and uninsured drivers than others.

One positive aspect of Newark's neighborhoods is that the difference between the priciest ZIP code and the least expensive one is minimal — only a few dollars per month. If you live in an area with higher crime statistics or more uninsured motorists, for example, you'll likely pay slightly more than someone in a safer area.

Weather risk
Weather risk

The destruction caused by hurricanes and other similar weather-related damage has been known to bankrupt insurers, so they have to keep weather risk in mind when calculating rates in certain areas. New Jersey occasionally finds itself in the path of tropical storms and hurricanes, and although it isn't a daily concern in Newark, it is still a risk for insurance companies.

Excessive rainfall can be a concern from time to time, and damage to your vehicle caused by flooding is covered under your comprehensive coverage. If you have a new or nice vehicle, we definitely recommend keeping comprehensive coverage as part of your policy in Newark.

number of drivers
Number of drivers

Newark is a popular place for folks in the Northeast with its convenient access to NYC and other major metropolitan areas. Many people in the area use public transportation to cut down on traffic issues, but there is still a huge number of drivers in Newark. More people on the road naturally leads to more accidents. The costs of accident-related claims generally get passed along to other drivers through higher rates, even if you're a safe or infrequent driver.

People operating vehicles without insurance coverage also pose a significant risk. Our research shows that about 36% of drivers in Newark are not currently insured. Although this is lower than in some places, it is still significant, and you could be stuck footing the bill all by yourself if you're hit by someone who is uninsured.

Zebra Tip: Comprehensive coverage and uninsured property damage coverage are good to have in New Jersey


No one intends to be involved in an accident, particularly with an uninsured driver, but carrying uninsured motorist coverage (also called UMPD) can assist you in being prepared in case of an incident. UMPD will be there to aid you if your vehicle (or yourself) is harmed by an underinsured or uninsured driver. UMPD coverage usually has a lower deductible than collision coverage, tends to be less expensive, and will also result in lower rate increases if you need to file a claim.

Severe weather can also cause significant damage to vehicles. Newark, for instance, experiences thunderstorms and flooding, so if you have a nice or newer vehicle, we recommend carrying comprehensive coverage even if your vehicle is paid off.


Bundling insurance policies in Newark

Auto insurance rates are rising in most places these days, and finding ways to save money may seem like a challenge, but there are methods to make things more affordable. One of the most straightforward and efficient ways to save is to bundle policies. By bundling your auto insurance with your homeowners or renters insurance, you may be able to save a significant amount of money.

If you have both homeowners or renters coverage and car insurance, contact your insurance company to inquire about combining them to receive a multi-policy discount. By bundling, you could save 10% or more on your overall premiums. Find out more about bundling home and car insurance in Newark. When comparing insurance options, be sure to investigate bundling discounts if you're searching for a new insurance provider.

bundling home and auto insurance in Newark
Cheapest car insurance companies for bundling home and auto insurance in Newark, NJ
Company Avg. 6 Mo. Premium
New Jersey Manufacturers $879
GEICO $896
MetLife $947
State Farm $955
Allstate $1,015
Amica Mutual $1,304
Progressive $1,426

Newark residents should be aware that certain variables affect auto insurance rates beyond their control. Nonetheless, you can play a part in lowering your premiums as a responsible driver. It's a smart idea to stay up to date on your rates by getting quotes every six months to a year. This is especially important if you've experienced a significant life event or personal change that could impact your premiums. By comparing quotes from a variety of insurance companies, you can find a policy that suits your needs and budget.

Find the best rates for both auto and home insurance in minutes!

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Frequently asked questions

Newark drivers can purchase a six-month auto insurance policy for an average cost of $1,528, which results in a monthly rate of $255. This is more expensive than both the New Jersey state average and the national average.

New Jersey Manufacturers (NJM) is the cheapest option for car insurance in Newark. The regional carrier offers a six-month rate of $943, which comes out to $157 per month.

In New Jersey, the state minimum required coverage is 25/50/25. They are also required to carry $15,000 of personal injury protection (PIP) coverage and uninsured motorist coverage for bodily injury at $25,000 per person and $50,000 per accident.


Find affordable rates in minutes!

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How much is car insurance near me? — explore more cities near Newark, NJ


About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.