Buying cost effective insurance is challenging, and deciding which companies have the best car insurance rates for a school permit will take even more diligence.
Every auto insurer has a proprietary method for determining prices, so to begin we'll rank the car insurance companies with the overall best prices in New Jersey.
Best Car Insurance Prices for Students
|Rank||Company||Cost Per Year|
|3||New Jersey Manufacturers||$1,271|
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21st Century generally has some of the cheapest car insurance rates in Jersey City at around $1,067 a year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also rank well as some of the most economical Jersey City, NJ auto insurance companies.
In the rate table above, if you currently have a policy with New Jersey Manufacturers and switched to 21st Century, you could see an annual premium reduction of around $204. Customers with Penn National may save as much as $258 a year, and Palisades customers might lower prices by up to $328 a year.
These policy rates are averaged across all insureds and vehicles and and are not figured with a specific location for a school permit. So the auto insurance company that is most affordable for your situation may not even be in the top 19 companies in the list above. That points out the importance of why you need to get car insurance quotes using your own driver data and vehicle information.
One of the more important components that help determine the amount you pay each year for auto insurance is where your car is garaged. Areas with high crime rates or more dense population likely pay more, whereas more rural areas tend to receive slightly lower rates.
The information below sorts the highest-priced areas in New Jersey for a school permit to purchase auto insurance in. Jersey City is ranked #11 with a yearly cost of $2,253 for the average policy, which is around $188 per month.
|Rank||City||Average Per Year|
|2||West New York||$2,531|
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Premium amounts are estimated as the vehicle garaging location can impact coverage rates considerably.
The car, truck, or SUV that is being insured is probably the largest consideration when consumers are trying to find economical coverage for a school permit. Vehicles with lower performance, a plethora of safety features, or low incidents of liability claims will cost quite a bit less to insure than higher performance models.
The information below illustrates coverage rates for a selection of the cheaper automobiles to buy insurance for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda Accord EX 4-Dr Sedan||$4,890|
|Honda CR-V LX 4WD||$4,899|
|Ford Escape Limited 4WD||$5,248|
|Dodge Grand Caravan CV||$5,493|
|Ford F-150 STX Super Cab 4WD||$5,540|
|Chevrolet Impala LS||$5,757|
|Ford Focus S 4-Dr Sedan||$5,764|
|Chevrolet Equinox LT AWD||$5,804|
|Chevrolet Malibu LS||$5,809|
|Volkswagen Jetta S 4-Dr Sedan||$5,804|
|Toyota RAV4 Sport 4WD||$5,810|
|Toyota Tacoma Double Cab 4WD||$5,851|
|Ford Explorer Eddie Bauer 4WD||$5,859|
|Chevrolet Silverado LS Regular Cab 2WD||$5,927|
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Cost estimates assume single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific Jersey City, NJ garaging location which can modify rates greatly.
Based upon the rates shown, we can infer that vehicles like the Honda Accord, Honda CR-V, Ford Escape, and Toyota Prius are most likely to be a few of the cheapest vehicles to insure for a learners permit. Car insurance rates will tend to be higher because there is a higher risk for a school permit, but generally speaking those models will tend to have the cheapest rates compared to other types of vehicles.
The diagram below shows how choosing a deductible can influence insurance rates when trying to find cheap insurance for a school permit. The rate quotes are based on a single female driver, full physical damage coverage, and no discounts are taken into consideration.
The chart above illustrates that a 50-year-old driver could lower their car insurance rates by $382 a year by increasing from a $100 deductible to a $500 deductible, or save $576 by changing to a $1,000 deductible. Younger drivers, such as the 20-year-old example, have the ability to save $966 every year just by using higher deductibles. If you do decide to increase your deductibles, it's a good idea to have enough savings to be able to pay the extra out-of-pocket expense associated with higher deductibles.
Get discount Jersey City car insurance
Insurers that provide coverage for a school permit may also give you premium discounts that may potentially lower prices by as much as 40% or more if you meet specific criteria. A list of car insurance companies and the discounts they provide include:
- State Farm has savings for safe vehicle, multiple policy, Drive Safe & Save, anti-theft, Steer Clear safe driver discount, driver's education, and good driver.
- Liberty Mutual discounts include good student, newly married, new graduate, newly retired, preferred payment discount, multi-car, and new move discount.
- American Family offers discounts including air bags, TimeAway discount, Steer into Savings, bundled insurance, accident-free, and mySafetyValet.
- Progressive may have discounts that include multi-vehicle, online quote discount, homeowner, multi-policy, online signing, good student, and continuous coverage.
- Farmers Insurance offers premium reductions for good student, mature driver, business and professional, youthful driver, homeowner, and electronic funds transfer.
- Auto-Owners Insurance may offer discounts for teen driver, air bags, safe vehicle, good student, group or association, and multiple vehicles.
- SAFECO offers discounts for homeowner, drive less, multi-car, teen safe driver, and teen safety rewards.
The diagram below illustrates the comparison of insurance rates with and without discounts applied to the premium. Data assumes a female driver, no driving violations, no at-fault accidents, New Jersey state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with paperless filing, vehicle safety, continuous coverage, paid-in-full, good student, and passive restraint discounts applied. In this example, the average savings per year on car insurance for a school permit is 28% or $1,000.
Why you are probably overpaying for car insurance
Jersey City car insurance rates are impacted by many factors that control the price you have to pay. Turning one year older, adding a teenager to your policy, or getting a driving violation can trigger changes in premium resulting in some rates now being affordable when they were higher priced. Not only may your risk profile change, but car insurance companies file new New Jersey auto insurance rates multiple times each year in order to protect their financial rating. Higher than normal claim frequency or severity may result in rate hikes, while lower claim expenses can cause more affordable Jersey City car insurance rates.
To illustrate this example, the chart below analyzes the cheapest car insurance in Jersey City, NJ for a 30-year-old male driver with a clear driving record, no claims, and good financial standing. If we compare prices based on his current risk profile, 21st Century might offer the best car insurance rates in Jersey City at $1,408 per year. This is $444 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the remaining cheapest Jersey City, NJ auto insurance companies.
Now we will pretend the driver from the first set of rates a claim surcharge, a lower credit rating, and a stop sign violation. Since each auto insurance company uses their own calculation for determining prices, analyzing rates may now show a significantly different list of affordable companies as shown below.
The Hartford now has the cheapest auto insurance in Jersey City with Allstate, USAA, Mercury, and Travelers also being competitive. This example proves why it is so important to compare many different companies when trying to find the most affordable insurance rates for a school permit. Auto insurance prices consist of many things and change frequently, so the best price when you bought your policy may now cost much more than other companies.
How to find more affordable insurance for a school permit
It is possible to find better rates, and here are some of the better thrifty solutions that can help you quote cheaper coverage.
- Do not waste money insuring older vehicles for full coverage
- Do not get traffic tickets
- Avoid accidents and claims
- Do not file small claims
- Increase your deductibles
- Shop around for cheaper prices
That last tip is especially valuable, as was emphasized in this article. Coverage prices in Jersey City can change in a short period of time, so don't be unwilling to switch carriers if you can save money. Many consumers stick with the same company and that's fine, but it's not a great idea if that inflexibility results in costing you lots of money. It only takes a couple minutes to shop around to find cheaper auto insurance for a school permit.