How to Save on Car Insurance in Newark, NJ

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The average cost of auto insurance in Newark is $1,650. This is almost the same as the cost of auto insurance in neighboring places such as East Newark, Hillside, Harrison, and Irvington. The cost of auto insurance depends on numerous factors such as the rate of deductibles and the make and model of the car. The cost can also vary from one neighborhood to another depending on the rate of auto thefts in that area.


Driving Record:

Most car insurance companies offer substantial discounts to drivers who have a clean driving record. GEICO offers a 26% discount to drivers with a spotless driving record for five years. On the other hand, State Farm offers discounts when a driver goes three or more years with an accident-free record. With the advent of modern technology in the car insurance industry, Usage-Based Insurance (UBI) is increasingly being used to personalize car insurance. UBI works through both plugin devices and mobile apps. It keeps track of various factors in one’s car, making insurance rates more personalized.  

Being a safe driver would mean better savings. Having a poor driving record can lead to a massive increase in the cost of auto insurance. For instance, driving with an expired license could increase the cost of auto insurance by $1,112, while driving-under-influence could increase the cost of auto insurance to $2,826, which is a massive increase from the average cost of car insurance in Newark.

Hybrids and Electric Vehicles:

Zimlon found that Farmers and Travelers are among the few companies that offer discounts on alternative-fuel vehicles. Hybrids and Electric Vehicles are considered environmentally friendly thanks to lower emission rates. For such vehicles, Farmers offers car owners discounts of up to 5% in some states.  

Multi-Car Insurance:

It is always better to insure multiple cars with the same auto insurance company. Insurers provide discounts to those car owners who insure multiple cars with them. In Newark, a multi-car insurance for two vehicles can help save up to $429 and can save up to $858 when the number of vehicles is four. However, the price also depends on the make and model of the vehicle and the neighborhood one lives in. 

Bundling is another way of lowering the cost of auto insurance in Newark. Insurance companies provide additional discounts to those customers who insure their home, life, and auto insurances with the same company.