How Much are Auto Insurance Rates for Inexperienced Drivers in Jersey City?

For new drivers, one of the largest factors that are looked at to determine car insurance rates is where you normally keep your vehicle. Areas with more people or higher crime rates tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims have the gratification of cheaper auto insurance rates.

The illustration below shows the most expensive areas in New Jersey for inexperienced drivers in which to buy car insurance. Jersey City is ranked at #7 costing $2,345 for the average policyholder, which is about $195 per month.

How much does car insurance cost in Jersey City, NJ?
Rank City Premium Per Year
1 Newark $2,572
2 West New York $2,531
3 East Orange $2,495
4 Paterson $2,448
5 Elizabeth $2,374
6 Union City $2,354
7 Jersey City $2,345
8 Clifton $2,345
9 Kearny $2,335
10 Passaic $2,325
11 Hoboken $2,283
12 Camden $2,221
13 Bayonne $2,184
14 Linden $2,163
15 Fort Lee $2,123
16 Perth Amboy $2,102
17 Atlantic City $2,044
18 Hackensack $1,980
19 New Brunswick $1,932
20 Sayreville $1,920
21 Plainfield $1,918
22 Trenton $1,896
23 Lakewood $1,819
24 Vineland $1,788
25 Toms River $1,725
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Price information shown is approximated as specific location information can influence premiums considerably.

The type of vehicle you are trying to insure is one of the primary factors that determines the availability of the best cheap car insurance for inexperienced drivers. Vehicles with lower performance, good safety features, or a low likelihood of liability claims will cost quite a bit less to insure than adrenaline junky models. The data below ranks coverage premiums for some of the cheaper automobiles to buy coverage for.

Cheapest Vehicles to Insure in Jersey City, NJ
Make and Model Estimated Cost for Full Coverage
Honda CR-V LX 4WD $1,561
Hyundai Elantra GLS Touring Station Wagon $1,570
Toyota Prius $1,583
Ford F-150 XL Regular Cab 4WD $1,596
Ford Explorer Eddie Bauer 2WD $1,605
Ford Escape Limited 2WD $1,650
Honda Odyssey EX-L $1,779
Toyota Corolla XLE $1,785
Hyundai Sonata GLS 4-Dr Sedan $1,809
Dodge Grand Caravan SE $1,812
Volkswagen Jetta 2.0T 4-Dr Sedan $1,820
Ford Edge SE AWD $1,812
Jeep Grand Cherokee Laredo 4WD $1,847
Toyota RAV4 Limited 2WD $1,854
Chevrolet Impala LT $1,847
Chevrolet Equinox LS AWD $1,852
Jeep Wrangler Unlimited Rubicon 4WD 4-Dr $1,863
GMC Sierra SL Extended Cab 2WD $1,900
Ford Focus SEL 4-Dr Sedan $1,914
Chevrolet Malibu LT $1,944
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Prices above based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, safe-driver, claim-free, multi-policy, and homeowner. Price information does not factor in vehicle location which can raise or lower premium rates considerably.

Based on these rates, we can assume that models like the Honda CR-V, Hyundai Elantra, Toyota Prius, Ford F-150, and Ford Explorer are likely to be a few of the most budget-friendly vehicles to insure for new drivers.

Comparing quotes for cheap insurance is tough enough, and finding out which company offers the best insurance rates for inexperienced drivers takes a little more work.

Every insurance company uses different criteria for establishing rates, so we need to take a look at the insurance companies with the overall cheapest rates in Jersey City, NJ. It’s a good idea to know that New Jersey insurance rates are calculated based on many things which can substantially decrease or increase the price of your policy. This is why it is critical to perform a complete rate comparison when trying to get affordable insurance quotes for inexperienced drivers. Insurance prices can be determined by many things and can change substantially, so the most economical company when you bought your policy may now be one of the higher cost companies.

Cheap Insurance Rates for Newbies

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21st Century may have some of the most affordable car insurance rates in Jersey City at around $1,078 each year. This is $774 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also qualify as some of the cheapest Jersey City, NJ auto insurance companies.

As the rates illustrate above, if you are insured with Penn National and switched to Travelers, you might see annual savings of about $145. Customers with Palisades could save as much as $161 a year, and California Casualty policyholders might realize rate reductions of up to $271 a year.

Bear in mind that those premiums are averaged for all types of insureds and vehicles and and are not calculated with an exact vehicle garaging location for inexperienced drivers. So the company that can offer you the best rate may not even be in the list above. That is why you need to get quotes using your own personalized driver profile and vehicle information.

Picking a good quality car insurance provider can be a challenge considering how many companies there are in Jersey City. The company ratings displayed below can help you choose which coverage providers to look at when shopping insurance around for inexperienced drivers. These rankings are for companies that insure vehicles nationwide, so companies without a large exposure are not factored into this list.

Jersey City, NJ Insurance Company Rankings
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Mercury Insurance 87 96 100 87% A+ 93.4
The Hartford 88 96 91 93% A+ 92.6
Progressive 84 94 99 90% A+ 92.4
Travelers 84 93 100 87% A++ 92.3
State Farm 84 93 95 87% A++ 91
Farmers Insurance 87 92 90 85% A 90.6
Safeco Insurance 85 91 87 86% A 88.4
USAA 71 93 98 87% A++ 88
GEICO 73 93 95 85% A++ 87.1
21st Century 85 85 91 89% A 86.9
Liberty Mutual 72 91 97 83% A 86.4
AAA Insurance 85 85 88 86% A 85.8
Nationwide 71 90 93 83% A+ 84.9
Allstate 69 92 92 83% A+ 84.4
American Family 77 96 80 85% A 83.8
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Data Source: Best Car Insurance Companies

Full coverage rates vs. liability-only in Jersey City

Finding the cheapest insurance is the goal of most drivers, and one way to pay less for insurance for inexperienced drivers is to buy liability only. The information below illustrates the difference between yearly insurance costs with and without full coverage. The premium estimates are based on no violations or claims, $1,000 deductibles, drivers are single, and no policy discounts are applied.

On average, comprehensive and collision coverage on your policy costs $2,717 per year more than carrying just liability coverage. That raises the question if paying for full coverage is worth it. There isn’t a written rule to exclude physical damage coverage, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.

For example, let’s pretend your vehicle’s replacement value is $6,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most your company will settle for is $5,000 after paying your deductible. If premiums are more than $500 annually for comprehensive and collision coverage, then you may want to consider only buying liability coverage.

The chart below highlights how deductible selection can influence annual premium costs when searching for cheap insurance for inexperienced drivers. The premiums are based on a married male driver, full physical damage coverage, and no policy discounts are applied.

As shown above, a 30-year-old driver could pocket $516 a year by switching from a $100 deductible to a $500 deductible, or save $778 by changing to a $1,000 deductible. Young drivers, such as the Age 20 example, could potentially save as much as $1,562 each year by using higher deductibles when buying full coverage.

If you do decide to increase your deductibles, it will now be necessary to have plenty of discretionary funds to allow you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.

Why you should be shopping around

New Jersey insurance rates are impacted by many factors that can increase the policy price. Simply having a birthday, having a teenage driver, or having a fender bender can trigger price changes resulting in some rates now being more affordable than before. Not only may your risk profile change, but auto insurance companies change premium rates without warning to adjust for gains or losses. Heavier than normal losses can result in rate increases, while lower claims may produce cheaper Jersey City car insurance rates.

The data below demonstrates which company has the cheapest car insurance in Jersey City, NJ for a 40-year-old male driver with a clear driving record, no claims, and solid credit. If we estimate rates based on his current situation, 21st Century may offer the most affordable car insurance rates in Jersey City at $1,495 per year. This is $357 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades round out the rest of the cheapest Jersey City, NJ auto insurance companies.

Now we will pretend the driver from the above example a claim or two, poor credit, and a blemish on his driving record. Since each auto insurer has a different formula for setting prices, analyzing rates may now result in a slightly different list of the cheapest car insurance companies in Jersey City as shown below.

The Hartford now has the cheapest insurance rate in Jersey City, NJ with Allstate, USAA, Travelers, and Mercury also being competitive. This example proves why Jersey City drivers need to compare lots of rates when trying to find the most affordable car insurance quotes for inexperienced drivers.

Prices are impacted by many different factors and change dramatically, so the most economical option the last time you shopped your coverage around may now be one of the more expensive options.