You have probably seen the catchy advertisements from insurers like Farmers, Liberty Mutual, and State Farm that make claims of big savings, so drivers just need to pick the company with the cutest commercial, right?
Unfortunately, it's not that simple as there are a lot of unknown elements such as your credit rating, if you own a home, the area you live in, and if you have ever let your policy lapse, that all go into determining the rate you pay. We know insurance is not everyone's favorite topic, but in this article we will cover the best ways to find cheap auto insurance and hopefully give you enough understanding to have a good start in finding the cheapest insurance in Jersey City.
Buying cost effective auto insurance is not most people's favorite thing to do, and determining which companies have the cheapest car insurance rates for 17 year olds may require additional perseverance. Each auto insurer has a proprietary method for determining rates in each state, so we'll go over the lowest cost car insurance companies in Jersey City, NJ.
Lowest Insurance Price Quotes for Teens
|Rank||Company||Cost Per Year|
|3||New Jersey Manufacturers||$1,271|
|Find Your Rate Go|
21st Century has some of the lowest car insurance rates in Jersey City at around $1,067 per year. Travelers, New Jersey Manufacturers, Palisades, and Penn National also rank well as some of the more affordable Jersey City, NJ auto insurance companies.
As illustrated above, if you have coverage with New Jersey Manufacturers and switched to 21st Century, you may realize a yearly price reduction of in the vicinity of $204. New Jersey drivers with Palisades may save as much as $287 a year, and Penn National policyholders might realize rate reductions of up to $299 a year.
To find out how your current rates compare, click here to start your free quote or visit several of the following companies.
It's important to note that these estimates are averaged for all types of insureds and vehicles and do not factor in an exact zip code location for 17 year olds. So the company that fits your situation best may not even be in the top 19 companies shown above. That underscores the importance of why you need to compare prices as often as possible using your own personal information and vehicle type.
For teen drivers, one of the big things that are used to help calculate the price you pay for insurance is the neighborhood you call home. Cities with more crime and/or more people tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents tend to receive cheaper rates.
The following table shows the most expensive places in New Jersey for 17 year olds to buy auto insurance in. Jersey City comes in at #9 with a yearly premium of $2,322 for coverage, which is around $194 each month.
|Rank||City||Average Per Year|
|5||West New York||$2,431|
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Premium costs are estimated as the specific Jersey City residence address can revise coverage prices substantially.
The make and model of vehicle that is being insured is one of the primary factors when quoting affordable coverage for 17 year olds. Vehicles with limited top-end speed, a plethora of safety features, or a positive history of liability claims will cost quite a bit less to insure than adrenaline junky models.
The list below estimates insurance costs for a handful of the cheaper vehicles to insure.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$5,420|
|Honda CR-V LX 2WD||$5,427|
|Ford Edge SE 2WD||$6,023|
|Ford F-150 FX2 Super Cab 2WD||$6,081|
|Ford Explorer Eddie Bauer 2WD||$6,089|
|Dodge Grand Caravan CV||$6,081|
|Volkswagen Jetta SE 2.5 Station Wagon||$6,245|
|Chevrolet Impala LS||$6,379|
|Ford Focus S 4-Dr Sedan||$6,388|
|Chevrolet Malibu Hybrid||$6,436|
|Toyota Camry LE||$6,446|
|GMC Sierra SLE Crew Cab 2WD||$6,436|
|Get a Custom Quote Go|
Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in vehicle location which can lower or raise coverage prices considerably.
Based on these rates, vehicles like the Ford Escape, Honda CR-V, Toyota Prius, and Ford Edge should be the most affordable vehicles to insure for teen drivers. Auto insurance rates will be more costly just due to the fact that there is more exposure for 17 year olds, but in general those particular models will tend to have the best rates compared to all other vehicles.
Discount Jersey City car insurance rates
Car insurance companies that offer quotes for 17 year olds may also give you price discounts that could lower prices by 35% or more if you meet the requirements. Large car insurance companies and the discounts they provide are:
- State Farm offers premium reductions for accident-free, student away at school, Steer Clear safe driver discount, Drive Safe & Save, multiple autos, safe vehicle, and driver's education.
- Progressive may have discounts that include online quote discount, continuous coverage, homeowner, online signing, multi-vehicle, multi-policy, and good student.
- Progressive offers discounts including continuous coverage, online signing, multi-vehicle, homeowner, good student, multi-policy, and online quote discount.
- MetLife may offer discounts for accident-free, good driver, good student, multi-policy, defensive driver, and claim-free.
- Farm Bureau may include discounts for safe driver, youthful driver, multi-policy, driver training, multi-vehicle, 55 and retired, and renewal discount.
- GEICO has savings for defensive driver, membership and employees, emergency military deployment, federal employee, and air bags.
- SAFECO discounts include accident prevention training, teen safe driver, teen safety rewards, multi-car, and anti-lock brakes.
The diagram below shows the comparison of auto insurance rates with and without discounts applied to the premium. Data assumes a female driver, no claims or driving citations, New Jersey state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with anti-theft, continuous coverage, good student, vehicle safety, paid-in-full, and passive restraint discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on car insurance for 17 year olds is 28% or $1,123.
Do you need full coverage?
Finding the cheapest car insurance should be important to most drivers, and one good way to find cheap insurance for 17 year olds is to not pay for full coverage. The example below shows the difference between insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. Data assumes a clean driving record, no at-fault accidents, $500 deductibles, marital status is single, and no policy discounts are applied.
If we average the cost for ages 20 through 70, full coverage costs an extra $3,060 per year more than just buying liability only. Many drivers will wonder if full coverage is worth the money. There is no set guideline for eliminating physical damage insurance, but there is a general convention. If the annual cost of your full coverage insurance is about 10% or more of the vehicle's replacement cost less your deductible, then it might be time to consider dropping full coverage.
For example, let's pretend your vehicle's settlement value is $8,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most you would receive is $7,000 after paying your policy deductible. If premiums are more than $700 annually for physical damage coverage, then you may need to consider dropping full coverage.
There are some conditions where only buying liability is not recommended. If you haven't satisfied your loan, you have to carry full coverage to protect the lienholder's interest. Also, if your emergency fund is not enough to purchase a different vehicle in the even your car is totaled, you should keep full coverage in place.
Car insurance rates are higher with tickets and accidents
The common sense way to earn affordable car insurance prices for teen drivers is to be a safe driver and have a clean driving record. The diagram below shows how traffic citations and at-fault fender-benders influence car insurance rates for each age group. The prices are based on a single female driver, full physical damage coverage, $500 deductibles, and no other discounts are factored in.
The data charted above shows the average cost of an auto insurance policy in Jersey City per year with a clean driving record and no accidents is $2,865. Add in two speeding tickets and the average cost increases to $3,839, an increase of $974 each year. Then include two accidents along with the two speeding tickets and the 12-month cost of car insurance for 17 year olds goes up to an average of $7,668. That's an increase of $4,802, or $400 per month, just for being a careless driver!
Tips for finding economical insurance for 17 year olds
It's not impossible to find cheaper rates, and here are some penny-pinching suggestions that can help New Jersey drivers buy cheap auto insurance.
- Higher physical damage deductibles lower rates
- Drop full coverage on older vehicles
- Choose a safer vehicle and pay lower rates
- Good credit scores may lower your rates
- Buying your home and auto policies from the same company can earn a discount
- Pay for small claims rather than turning them in to your insurance company
- Shop around for cheaper prices
The last idea is incredibly valuable, as was noted in the prior article. Prices charged by auto insurers vary greatly, so don't hesitate to switch companies if you can save money.
Staying with the same car insurance company is fine, but it's not a great idea if that faithfulness ends up costing you money that could be going to better use. It only take a few minutes to shop around and find cheaper car insurance for 17 year olds in Jersey City.
If you aren't clear which coverage you need and would like to get some professional advice when shopping around for cheaper insurance for teen drivers, the insurance agencies listed below can help you make a decision which auto insurance policy would work best for you.
To locate a Jersey City auto insurance agent using an interactive map, click the button below the list.
Sam's Insurance and Travel
3396 John F. Kennedy Blvd - Jersey City, NJ 07307 - (201) 659-6800
Allstate Insurance: Emad Soliman
844 Bergen Ave - Jersey City, NJ 07306 - (201) 332-6999
Lou Schloss Agency Inc
31 River Ct - Jersey City, NJ 07310 - (201) 626-7589
2330 John F. Kennedy Blvd - Jersey City, NJ 07304 - (201) 435-4300
GG Insurance - Independent Insurance Agent
270 Marin Boulevard, Metropolis Towers Suite #14D - Jersey City, NJ 07302 - (800) 801-0394