What Insurance is Cheapest for 18 Year Olds in Jersey City?

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It's hard to miss the catchy advertisements from companies like Farmers and State Farm that claim big savings, so you should just pick the company with the catchiest ad, right?

That is not the case, however, as there are a whole slew of unknowns like what coverage limits you want, what physical damage coverage deductibles you want, your driving record, and whether you just need liability insurance, that all impact the price you pay. If you keep reading, we will teach you about the things that influence insurance rates and also should give you a solid foundation to find cheaper car insurance.

Shopping around for affordable auto insurance is challenging, and figuring out which companies offer the best car insurance rates for 18 year olds takes more quotes for comparison. Each insurance company has a unique approach for setting prices, so we'll take a look at the car insurance companies that tend to have lower prices in Jersey City.

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Rankings for the cheapest New Jersey auto insurance companies
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,191
3 New Jersey Manufacturers $1,310
4 Penn National $1,366
5 Palisades $1,382
6 California Casualty $1,451
7 The Hartford $1,536
8 Allstate $1,538
9 USAA $1,585
10 Mercury $1,603
11 Progressive $1,862
12 Amica $1,869
13 Esurance $1,894
14 MetLife $1,991
15 GEICO $2,196
16 State Farm $2,248
17 Encompass $2,397
18 Liberty Mutual $3,008
19 Hanover $3,987
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21st Century may offer some of the most affordable car insurance rates in Jersey City at around $1,078 per year. This is $774 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also are some of the more affordable Jersey City, NJ car insurance companies.

As the rates illustrate above, if you currently buy coverage from Penn National and switched to Travelers, you might achieve an annual premium reduction of about $175. New Jersey drivers with Palisades may save as much as $191 a year, and California Casualty insureds might cut rates by $260 a year.

To find cheaper insurance rates for your vehicle, click here to begin a quote or click several companies below for low rates.

Understand that those policy prices are averaged for all insureds and vehicles and and are not figured with an exact zip code location for 18 year olds. So the auto insurance company that can offer you the best price may not even be in the list above. That is why you need to compare rates from as many companies as possible using your own driver data and vehicle information.

The vehicle model you are seeking coverage for is one of the largest factors when comparison shopping for the most affordable coverage for 18 year olds. Vehicles with limited speed and performance, a great safety record, or a low likelihood of having liability claims will cost much less to insure than fast, unsafe models. The table below outlines car insurance rates for a handful of the most budget-friendly automobiles to insure in New Jersey.

Cheapest Vehicles to Insure in Jersey City, NJ
Make, Model, and Trim Level Estimated Cost for Full Coverage
Honda CR-V EX-L 2WD $5,700
Ford Escape Limited 2WD $5,708
Toyota Prius $6,141
Ford Explorer XLT AWD $6,310
Ford F-150 STX Super Cab 4WD $6,374
Toyota RAV4 Limited 4WD $6,687
Chevrolet Impala LT $6,697
Chevrolet Equinox LT 2WD $6,687
Dodge Grand Caravan Hero $6,693
Toyota Tacoma Double Cab 4WD $6,751
Ford Focus SEL 4-Dr Sedan $7,000
Toyota Camry XLE $7,064
Nissan Altima 2.5 S 4-Dr Sedan $7,074
Ford Edge Limited AWD $7,064
Hyundai Elantra GLS 4-Dr Sedan $7,070
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Prices above based on single male driver age 18, 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 estimates do not factor in zip code location which can revise premiums substantially.

Looking at the rates, we can presume that models like the Honda CR-V, Ford Escape, Toyota Prius, Ford Explorer, and Ford F-150 are likely to be a few of the most economical vehicles to insure for teen drivers. The cost of a car insurance policy will be more expensive just due to the fact that there is more liability risk for 18 year olds, but in general those specific models will most likely have the cheapest auto insurance rates that you are likely to find.

Rate comparison of full coverage and liability-only

Saving on car insurance is the goal of the majority of people, and one way to buy cheaper insurance for 18 year olds is to only pay for liability coverage. The chart below shows the comparison of insurance costs with full physical damage coverage and with liability coverage only. The rate quotes are based on no accidents or driving violations, $250 deductibles, single status, and no discounts are taken into consideration.

Averaged out for all age groups, physical damage coverage on your policy costs an extra $3,363 per year more than just insuring for liability. That is a large expense and it proposes the question if physical damage coverage is worth the money. There is no definitive formula for phasing out full coverage on your policy, but there is a broad guideline. If the annual cost of coverage is more than around 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.

There are some circumstances where buying only liability insurance is not a good idea. If you still have a loan on your vehicle, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should not opt for liability only.

Types of discounts on Jersey City auto insurance rates

Discounts on car insurance for 18 year oldsCar insurance companies that provide policies for 18 year olds could also offer discounts that could lower prices by 40% or more if you meet certain criteria. Larger car insurance companies and some of the discounts are shown below.

The chart below shows the difference between yearly insurance costs with and without discounts applied to the policy premium. The price estimates are based on a female driver, no claims or driving citations, New Jersey state minimum liability limits, full physical damage coverage, and $1,000 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with passive restraint, paperless filing, vehicle safety, paid-in-full, good student, and continuous coverage discounts applied. When these discounts are applied to the policy premium, the average savings per year on car insurance for 18 year olds is 28% or $888.

The illustration below shows how choosing a deductible can change premium costs when searching for cheap insurance for 18 year olds. The data assumes a single female driver, comprehensive and collision coverage, and no discounts are applied to the premium.

The data above shows that a 30-year-old driver could pocket $436 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $658 by using a $1,000 deductible. Youthful drivers, like the 20-year-old, could lower their rates up to $966 each year by choosing larger deductibles on their policy. If you make the decision to raise deductibles, it will be required to have additional funds squirreled away to be able to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.

How to find low-cost auto insurance for 18 year olds

The list below details some of the better thrifty suggestions that can help Jersey City drivers buy cheaper car insurance.

The last idea is remarkably important, as was pointed out in this article. Prices charged by companies in Jersey City fluctuate constantly, so don't be unwilling to buy from a different company if a better deal can be had.

Sticking with a specific company is fine, but it's not a good idea if that loyalty results in overpaying money that could be going to better use. In just a couple of minutes you could compare rates to find cheaper auto insurance for 18 year olds.

The agents below are a good start to help you decide which auto insurance policy fits you best, since lots of people like to have some advice when shopping around for cheaper insurance for 18 year olds. It's not always simple to find the cheapest auto insurance company, so getting advice from a licensed agent can give you peace of mind knowing your coverage gives you adequate protection. To locate a Jersey City auto insurance agent by location nearest to you, click the button at the bottom.

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