The words “economical” and “insurance” probably shouldn’t be used in the same sentence, in particular when you are searching for the lowest insurance rates for drivers under 21. To help control this cost, let’s take a look at a few of the factors that have an impact on auto insurance premiums, and come up with some ways to lower the cost of the next policy you buy.
The vehicle requiring coverage is probably the biggest factor that determines the availability of low-priced car insurance for drivers under 21. Vehicles with reasonable performance levels, a great safety record, or low incidents of liability claims will cost substantially less to insure than adrenaline junky models. The data below outlines insurance rates for some of the most budget-friendly vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$3,862|
|Honda Accord EX 4-Dr Sedan||$3,869|
|Ford Escape Limited 4WD||$4,180|
|Honda Odyssey LX||$4,265|
|Ford Explorer XLT 4WD||$4,312|
|Toyota Tacoma Double Cab 4WD||$4,584|
|Chevrolet Impala LT||$4,591|
|Dodge Grand Caravan Hero||$4,584|
|Toyota RAV4 Sport 2WD||$4,592|
|Chevrolet Silverado LT Extended Cab 4WD||$4,584|
|Toyota Camry LE||$4,591|
|Ford F-150 SVT Raptor Super Cab 4WD||$4,630|
|Toyota Corolla S||$4,855|
|Nissan Altima 2.5 S 4-Dr Sedan||$4,862|
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Data assumes single female driver age 19, 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 vehicle location which can change insurance rates significantly.
By looking at the data, cars like the Honda CR-V, Honda Accord, and Ford Escape are likely to be some of the cheaper vehicles to insure for minors. The price for car insurance will tend to be more expensive because of the fact that there is more inherent risk for drivers under 21, but generally speaking those makes and models will have the least expensive rates that you are likely to find.
Finding decent, affordable insurance is not easy, and figuring out which company has the cheapest auto insurance rates for drivers under 21 will require even more rate comparisons. Every insurance provider has a different process for setting rates, so we’ll take a look at the overall cheapest auto insurance companies in New Jersey.
Cheapest Insurance Rates for Minors
|Rank||Company||Cost Per Year|
|3||New Jersey Manufacturers||$1,310|
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21st Century has some of the best car insurance rates in Jersey City at around $1,078 annually. This is $774 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are also some of the most economical Jersey City, NJ car insurance companies.
As the example above demonstrates, if you are insured with Travelers and switched to 21st Century, you might see yearly savings of roughly $78. Drivers with New Jersey Manufacturers might save as much as $232 a year, and Penn National insureds might realize rate reductions of up to $301 a year.
To see how much you can save, click here to start your free quote or visit several of the following companies.
Bear in mind that those policy prices are averages for all types of insureds and vehicles and and are not calculated with a specific location for drivers under 21. So the auto insurance company that fits your needs best may not even be in the top 19 companies in the list above. That underscores the importance of why you need to get rate quotes from many companies using your own driver and vehicle profiles.
For minors, one of the more important things that are used to help calculate the cost of insurance is where your residence is. More densely populated places are more likely to pay higher prices, whereas areas with less crime or weather claims have the gratification of cheaper auto insurance rates.
The illustration below ranks the most expensive places in New Jersey for drivers under 21 to buy car insurance in. Jersey City is ranked #11 costing $2,276 for the average insured, which is approximately $190 monthly.
|3||West New York||$2,456|
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Rates are comparative as specific Jersey City garaging address can decrease or increase rates greatly.
Discount Jersey City car insurance
Car insurance companies that sell policies for drivers under 21 may have rate discounts that could reduce prices by 40% or more if you meet specific criteria. A list of companies and some of their more popular discounts are detailed below.
- Progressive has savings for multi-policy, multi-vehicle, good student, continuous coverage, and homeowner.
- The Hartford may include discounts for defensive driver, vehicle fuel type, driver training, good student, and anti-theft.
- Mercury Insurance offers discounts including good student, accident-free, multi-car, type of vehicle, multi-policy, location of vehicle, and good driver.
- GEICO may have discounts that include defensive driver, driver training, air bags, military active duty, anti-theft, daytime running lights, and five-year accident-free.
- AAA offers discounts for good driver, multi-policy, anti-theft, education and occupation, AAA membership discount, pay-in-full, and multi-car.
- State Farm offers premium reductions for driver’s education, passive restraint, safe vehicle, good student, student away at school, and Drive Safe & Save.
The example below shows the difference between insurance prices with and without discounts being applied to the rates. The data assumes a male driver, no tickets, no at-fault accidents, New Jersey state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with anti-theft, safe-driver, homeowner, defensive driving course, marriage, and accident-free discounts applied. When drivers take advantage of discounts, theaverage amount saved on auto insurance for drivers under 21 is 28% or $677.
Picking the right car insurance company can be difficult considering how many companies sell coverage in New Jersey. The information shown below can help you select which providers you want to consider purchasing from. These rankings are only comprised of the largest auto insurers in America, so smaller companies that only insure vehicles in New Jersey are not included in this list.
Top 10 Major Car Insurance Companies Overall in Jersey City
- Mercury Insurance
- The Hartford
- State Farm
- Farmers Insurance
- Safeco Insurance
- 21st Century
Top 10 Major Car Insurance Companies in Jersey City Ranked by A.M. Best Rating
- GEICO – A++
- Travelers – A++
- State Farm – A++
- USAA – A++
- Allstate – A+
- Nationwide – A+
- Mercury Insurance – A+
- Progressive – A+
- The Hartford – A+
- Esurance – A+
Comparing rates can save you money
New Jersey auto insurance rates are calculated based on many things which can substantially decrease or increase the price you pay for coverage. Turning one year older, moving to a different location, or having a fender bender can produce rate changes that can cause some rates to be cheaper than before. Not only that, but companies change the rates they charge in New Jersey as often as every three months in order to maintain liquidity for claims. A period of increased losses may cause more expensive prices, while profitable underwriting can cause more affordable Jersey City car insurance rates.
The chart below shows which company has the cheapest car insurance in Jersey City, NJ for a 40-year-old male driver with no violations or accidents, and a high credit rating. If we estimate prices based on his current situation, 21st Century might quote the lowest car insurance rates in Jersey City at $1,423 per year. This is $429 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the remaining most affordable Jersey City, NJ auto insurance companies.
In this example, we will give the driver in the first chart a couple of claims, slightly worse credit, and an imperfect driving record. Due to the fact that each insurance company has a different process for setting rates, comparing quotes could now result in a slightly different list of the cheapest Jersey City car insurance companies as shown below.
Allstate now has the cheapest rate in Jersey City, NJ with The Hartford, USAA, Travelers, and Mercury completing the list. This example shows why consumers need to take the time to compare lots of rates when trying to get affordable auto insurance quotes for drivers under 21. Prices are impacted by many factors and can increase or decrease at any time, so the best company when you bought your policy may now be costing you a lot of money.
The auto insurance agents in Jersey City shown below can provide answers to your questions and help you determine which policy fits your needs best, as some drivers aren’t sure which coverage they need and prefer to have a consultation when buying car insurance for drivers under 21. It can be challenging to find the best coverage on your own, so getting advice from a licensed agent can provide peace of mind knowing your policy gives you enough coverage if you have a claim. To find a Jersey City insurance agent by location nearest to you, click the button below the list or click here to compare price quotes.
- Mansa Nicome – State Farm Insurance Agent
86 NJ-35 – Neptune City, NJ 07753 – (732) 776-9999
- Petrocci Agency
1674 John F. Kennedy Blvd # A – Jersey City, NJ 07305 – (201) 434-4760
- Blake Agency
370 Pacific Ave – Jersey City, NJ 07304 – (201) 209-0065
- AllState Agent
07305, 701 NJ-440 – Jersey City, NJ 07304 – (201) 515-3499
- Allstate Insurance: Emad Soliman
844 Bergen Ave – Jersey City, NJ 07306 – (201) 332-6999