Who Has the Cheapest Car Insurance for Homeowners in New Jersey?

It would sure make life easier if we could simply give you the name of the company that has the cheapest coverage in New Jersey. It’s not that simple, unfortunately, as there are a ton of unknowns like if you have ever let your coverage lapse, your credit history, your age, and whether or not you are married, that all impact the cost of coverage. This article goes into detail about the best ways to find cheap car insurance and will hopefully give you a good start to your coverage search.

For people who own their homes, one of the big criteria that insurance companies use to determine the cost of insurance is where you live. Regions with larger populations or more claims like Newark, West New York, and Paterson tend to have higher rates, whereas areas with less people or fewer weather incidents generally pay less for insurance.

The illustration below displays the most expensive places in New Jersey for homeowners in which to buy car insurance.

Information shown are comparative as the specific area where the vehicle is garaged can decrease or increase coverage rates substantially.

The vehicle model you are seeking coverage for is a large factor that determines the availablility of the cheapest auto insurance for homeowners in New Jersey. Vehicles with higher performance characteristics, poor crash test ratings, or an increased likelihood of liability claims will cost quite a bit more to insure than more modest models. The next table illustrates coverage costs for a handful of the most budget-friendly vehicles to insure in New Jersey.

Data based on single male driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, claim-free, safe-driver, homeowner, and multi-vehicle. Table data does not factor in specific location information which can lower or raise rates significantly.

Looking at the data, you can conclude that cars like the Ford Escape, Volkswagen Jetta, Toyota Prius, and Honda CR-V are most likely to be a few of the cheapest vehicles to insure for people who own their homes.

Deciphering which insurers offer the cheapest car insurance rates for homeowners will require a little more sweat than just comparing rates from one or two companies. Every insurance provider has a unique formula to establish rates, so let’s examine the car insurance companies with the most affordable rates in New Jersey.

Keep in mind that New Jersey car insurance rates are based on many factors that will increase or decrease the cost of having a policy. Simply having a birthday, buying another vehicle, or getting a DUI can cause premium changes resulting in some companies being more affordable than the competition.

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21st Century generally has some of the best car insurance rates in New Jersey at around $1,078 per year. Travelers, New Jersey Manufacturers, Penn National, and Palisades are also some of the cheapest New Jersey car insurance companies.

As illustrated above, if you are currently insured with Penn National and switched to Travelers, you could earn annual savings of in the vicinity of $145. Insureds with Palisades might save as much as $174 a year, and California Casualty insureds might reduce prices by as much as $271 a year.

These policy rates are averages across all types of insureds and vehicles and do not take into consideration a rate discount for homeowners. So the insurer that has the lowest price for you may not even be featured in the list of companies shown earlier. That affirms the importance of why you need to get rate quotes from many companies using your own individual information.

Is Allstate, Geico, State Farm, or Progressive cheaper?

When shopping around for auto insurance for people who own their homes in New Jersey, the companies that insure more vehicles than anyone else are Allstate, Geico, State Farm, and Progressive. All of them offer physical damage and liability coverage, but each has somewhat different options that may influence your buying decision. The next table ranks ratings for price, service, and claims, in additional to some of the optional coverages offered by each one.

Who has the cheapest insurance quotes for people who own their homes?

Drivers have many ways to quote and buy car insurance in New Jersey, but the most prevalent methods are from a non-exclusive or independent agent, an exlusive agent like Liberty Mutual or Allstate, or buying direct from a company like Progressive or Geico. Each way has the same basic steps, but shoppers should understand the differences in how they price policies.

Independent agents work with multiple companies and can compare coverage rates with every one. They will give you a larger rate selection, which may provide you with the best idea of how your rates compare. If your agent finds better pricing, your agent can just switch to a different company which makes it easier to save money.

An agent who is captive is only able to quote rates from one insurance company like an Allstate or State Farm agent. Exclusive agents cannot quote rates from more than one company, so it’s a good idea to get additional price quotes.

Direct car insurance buyers forego either of the other two types of agents and instead buy from a direct company like Progressive. Shopping direct is a good choice for drivers who have limited assets and have an above average understanding of what coverage limits and deductibles they need.

When shopping for car insurance, which way works best to find the cheapest auto insurance for homeowners in New Jersey? One answer would be buying from a direct company yields the cheapest rates since that eliminates agent commissions, but unfortunately, it’s not that cut and dried. And we’d like to say an independent agency can save the most money since they have access to many companies, but that is not necessarily true either. For the right applicant, the exclusive agents have very competitive rates that are the cheapest.

Since car insurance rates vary so much, the best way to buy the cheapest coverage is to get quotes and compare. It takes a little work, but we recommend you get price quotes all three ways in order to find the best price. For a list of companies with some of the cheapest New Jersey car insurance rates, click here to view.