It’s hard to miss the catchy commercials from companies like Allstate and State Farm that make claims of enormous savings, so you just need to choose the one with the best commercial, right?
It’s just not that simple, as there are a whole bunch of unknown elements such as whether you just need liability insurance, any driving violations you may have, if you are currently insured, and your age, that all impact the price you pay. In this article, we will cover some of these things and will give you a solid foundation to find cheaper car insurance in New Jersey.
The vehicle model on the policy is probably the most important factor when shopping for low-cost insurance for homeowners. Vehicles with reasonable performance levels, good crash test ratings, or a track record of few liability claims will cost quite a bit less to insure than fast, unsafe models.
The information below illustrates insurance prices for a selection of the more affordable automobiles to insure in New Jersey.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Edge SE 2WD | $1,486 |
| Ford Explorer XLT 2WD | $1,517 |
| Ford Escape XLS 2WD | $1,549 |
| Honda CR-V EX 2WD | $1,554 |
| Chevrolet Equinox LT AWD | $1,602 |
| Dodge Grand Caravan Crew | $1,631 |
| Chevrolet Malibu LT | $1,640 |
| Toyota Camry XLE | $1,686 |
| Ford F-350 Super Cab Harley Edition 2WD | $1,776 |
| Chevrolet Silverado 3500HD LTZ Crew Cab 2WD | $1,785 |
| Honda Odyssey EX | $1,800 |
| Hyundai Sonata SE 4-Dr Sedan | $1,802 |
| Ford Focus SE 2-Dr Coupe | $1,808 |
| Kia Optima SX | $1,831 |
| Volkswagen Jetta LE 4-Dr Sedan | $1,834 |
| Toyota Prius | $1,842 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $1,860 |
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Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, claim-free, safe-driver, homeowner, and multi-vehicle. Estimates do not factor in specific Jersey City, NJ garaging location which can alter prices significantly.
Looking at the numbers, you can expect makes and models like the Ford Edge, Ford Explorer, Ford Escape, and Honda CR-V are most likely going to be a few of the most budget-friendly vehicles to insure for people who own their homes.
Shopping around for budget auto insurance is not easy, and figuring out which company has the most affordable auto insurance rates for homeowners involves even more shopping around. Each auto insurer uses their own formula to set their prices, so we’ll take a look at the auto insurance companies with the most affordable rates in Jersey City, NJ.
Cheapest Insurance Rates for Homeowners
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,078 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,297 |
| 4 | Penn National | $1,366 |
| 5 | Palisades | $1,395 |
| 6 | The Hartford | $1,476 |
| 7 | California Casualty | $1,481 |
| 8 | Allstate | $1,493 |
| 9 | USAA | $1,538 |
| 10 | Mercury | $1,651 |
| 11 | Esurance | $1,838 |
| 12 | Amica | $1,869 |
| 13 | Progressive | $1,919 |
| 14 | MetLife | $1,991 |
| 15 | State Farm | $2,182 |
| 16 | GEICO | $2,196 |
| 17 | Encompass | $2,303 |
| 18 | Liberty Mutual | $3,008 |
| 19 | Hanover | $3,987 |
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21st Century generally has some of the most affordable car insurance rates in Jersey City at around $1,078 per year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also qualify as some of the cheapest Jersey City, NJ car insurance companies.
As shown in the table above, if you currently have coverage with Travelers and switched to 21st Century, you might see savings of upwards of $113. Policyholders with New Jersey Manufacturers may save as much as $219 a year, and Penn National customers might realize rate reductions of up to $288 a year.
Remember that these policy rates are averaged for all drivers and vehicles and are not factoring in a specific zip code for homeowners. So the insurer that can offer you the best price may not even be in the list above. That’s why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
One of the many components that are used to help calculate the cost of insurance is where you call home in Jersey City. Areas with more people or even just a higher incidence of claims will most likely pay more, whereas areas with less crime or weather claims benefit from lower rates.
The illustration below ranks the priciest cities in New Jersey for homeowners to buy auto insurance in. Jersey City ranks #12 with the annual price of $2,253 for the average policy, which is around $188 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | East Orange | $2,597 |
| 2 | Newark | $2,496 |
| 3 | Elizabeth | $2,470 |
| 4 | Union City | $2,450 |
| 5 | Paterson | $2,448 |
| 6 | West New York | $2,431 |
| 7 | Passaic | $2,395 |
| 8 | Hoboken | $2,307 |
| 9 | Clifton | $2,299 |
| 10 | Bayonne | $2,274 |
| 11 | Kearny | $2,266 |
| 12 | Jersey City | $2,253 |
| 13 | Camden | $2,221 |
| 14 | Linden | $2,185 |
| 15 | Perth Amboy | $2,165 |
| 16 | Atlantic City | $2,106 |
| 17 | Fort Lee | $2,081 |
| 18 | Plainfield | $1,956 |
| 19 | Trenton | $1,954 |
| 20 | Hackensack | $1,940 |
| 21 | Sayreville | $1,939 |
| 22 | New Brunswick | $1,932 |
| 23 | Lakewood | $1,819 |
| 24 | Vineland | $1,806 |
| 25 | Toms River | $1,691 |
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Rates are comparative as the specific Jersey City residence address can influence premiums noticeably.
What is the best auto insurance company in New Jersey?
Ending up with a high-quality company can be a challenge considering how many companies sell coverage in Jersey City. The ranking data in the lists below could help you choose which coverage providers you want to consider shopping prices with. These ratings include large nationwide companies, so companies that have a smaller presence will not be included in this list.
| 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 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Should you buy full coverage?
Finding the cheapest auto insurance should be important to most drivers, and an easy way to lower the cost of insurance for homeowners is to only buy liability insurance. The chart below visualizes the comparison of insurance premiums when comparing full coverage to liability only. The premium estimates are based on a clean driving record, no claims, $1,000 deductibles, drivers are single, and no policy discounts are applied.
As an average, physical damage coverage costs $2,010 per year over liability only. That proposes the question if it’s a good idea to buy full coverage. There is no definitive rule to stop buying full coverage on your policy, but there is a general convention. If the annual cost of your full coverage insurance is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it may be the right time to buy liability only.
There are some circumstances where removing full coverage is not in your best interest. If you still have a loan on your vehicle, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not opt for liability only.
How to find economical car insurance for homeowners
Lowering your rates is not difficult, and here are some of the recommended money-saving ideas that can help New Jersey drivers get cheaper coverage.
- Being accident-free can lower rates significantly
- Home or renters coverage can save on auto insurance
- Drive a car with a high safety rating
- Violations like speeding or DUI increase rates
- Discounts for being claim-free can be substantial
- Drop full coverage on older vehicles
- Compare rates regularly and switch companies to save money
That last idea is highly critical, as we noted in this article. Prices charged by auto insurers can change considerably based on profitability, so don’t be unwilling to change insurance companies if a more affordable price is available. Many drivers have brand loyalty and that’s fine, but it isn’t a good idea if your bullheadedness ends up costing you major coinage every year. Take a couple minutes and shop around to find cheaper car insurance for homeowners in Jersey City.