The words “bargain” and “insurance” really shouldn’t be used together, in particular when you are trying to find the best car insurance rates for 16 year olds. To save some money, let’s familiarize you with a few of the factors that have an impact on car insurance rates, and see if we can help you reduce the price of your next policy.
Buying reasonably-priced insurance is difficult, and determining which companies offer the best auto insurance rates for 16 year olds takes even more shopping around. Each auto insurer uses different criteria for filing rates in each state, so let’s take a look at the auto insurance companies with the overall best prices in New Jersey.
We do need to point out that Jersey City, NJ auto insurance rates are impacted by many things that control the policy price. Simply turning a year older, buying another vehicle, or having a fender bender can trigger changes in premium that can now make some companies more affordable than before.
Compare Cheap Insurance Quotes for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,258 |
| 4 | Palisades | $1,354 |
| 5 | Penn National | $1,366 |
| 6 | Allstate | $1,478 |
| 7 | California Casualty | $1,481 |
| 8 | The Hartford | $1,521 |
| 9 | USAA | $1,600 |
| 10 | Mercury | $1,603 |
| 11 | Esurance | $1,838 |
| 12 | Amica | $1,887 |
| 13 | Progressive | $1,919 |
| 14 | MetLife | $1,932 |
| 15 | GEICO | $2,174 |
| 16 | State Farm | $2,226 |
| 17 | Encompass | $2,397 |
| 18 | Liberty Mutual | $2,890 |
| 19 | Hanover | $3,909 |
| Compare Rates Now Go | ||
21st Century quotes some of the best car insurance rates in Jersey City at around $1,067 a year. Travelers, New Jersey Manufacturers, Palisades, and Penn National also qualify as some of the cheaper Jersey City, NJ insurance companies.
As shown above, if you have coverage with Penn National and switched to Travelers, you could realize an annual premium reduction of about $175. New Jersey drivers with Allstate might save as much as $287 a year, and California Casualty customers might reduce prices by as much as $290 a year.
To see how much you can save, click here or quote rates from the companies below.
These policy rates are averaged across all drivers and vehicles and do not take into consideration a specific zip code for 16 year olds. So the insurer that has the cheapest price for you may not even be in the top 19 companies shown above. That is why you need to get car insurance quotes using your own individual information.
One of the many considerations that are looked at to determine car insurance rates is where you choose to live. More populated areas will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from having to pay less for coverage.
The following table sorts the most expensive cities in New Jersey for 16 year olds to purchase car insurance in. Jersey City ranks #11 with an annual rate of $2,322 for the average policy, which is around $194 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | East Orange | $2,521 |
| 2 | West New York | $2,506 |
| 3 | Newark | $2,496 |
| 4 | Elizabeth | $2,470 |
| 5 | Paterson | $2,448 |
| 6 | Union City | $2,426 |
| 7 | Hoboken | $2,377 |
| 8 | Clifton | $2,345 |
| 9 | Kearny | $2,335 |
| 10 | Passaic | $2,325 |
| 11 | Jersey City | $2,322 |
| 12 | Bayonne | $2,184 |
| 13 | Camden | $2,155 |
| 14 | Linden | $2,099 |
| 15 | Fort Lee | $2,081 |
| 16 | Perth Amboy | $2,081 |
| 17 | Atlantic City | $2,044 |
| 18 | Sayreville | $1,939 |
| 19 | New Brunswick | $1,932 |
| 20 | Hackensack | $1,921 |
| Compare Prices Now Go | ||
Information shown are estimated as the garaging address in Jersey City can raise or lower price quotes significantly.
Drive safe and save
The obvious way to snag affordable auto insurance premiums for new drivers is to be a good driver and avoid getting tickets or having accidents. The illustration below illustrates how traffic citations and accident claims can raise insurance rates for different ages of insureds. The prices are based on a married male driver, full physical damage coverage, $250 deductibles, and no discounts are taken into consideration.
In the previous example, the average cost of car insurance per year with no violations or accidents is $2,917. Get two speeding tickets and the average cost hikes up to $4,037, an increase of $1,119 each year. Then add in one accident along with the two speeding tickets and the annual cost of auto insurance for 16 year olds goes up to an average of $5,163. That’s an increase of $2,246, or $187 per month, just for not keeping your driving record clean!
Types of discounts on Jersey City auto insurance rates
Insurance providers that provide policies for 16 year olds may also give you special discounts that may potentially lower prices by 40% or more if you qualify. A few of the larger companies and the discounts they provide are included below.
- Mercury Insurance offers discounts including anti-theft, professional/association, accident-free, age of vehicle, type of vehicle, and multi-car.
- Farmers Insurance offers discounts for youthful driver, business and professional, good student, distant student, homeowner, switch companies, and early shopping.
- Farm Bureau offers premium reductions for youthful driver, safe driver, good student, multi-policy, driver training, and 55 and retired.
- State Farm may offer discounts for safe vehicle, accident-free, Steer Clear safe driver discount, passive restraint, driver’s education, and multiple policy.
- Allstate policyholders can earn discounts including multi-policy, economy car, premier discount, good payer, and passive restraint.
- GEICO includes discounts for anti-theft, emergency military deployment, five-year accident-free, anti-lock brakes, and good student.
The diagram below illustrates the difference between car insurance costs with and without discounts applied to the rates. The data assumes a female driver, no claims or violations, New Jersey state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the price with no discounts. The lower bar shows the rates with passive restraint, paperless filing, paid-in-full, anti-theft, vehicle safety, and continuous coverage discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on auto insurance for 16 year olds is 28% or $772.
The information below illustrates how your choice of deductibles can influence insurance costs when quoting cheap insurance for 16 year olds. The rates are based on a single female driver, full coverage, and no discounts are applied to the premium.
The chart above illustrates that a 30-year-old driver could lower rates by $436 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $658 by choosing a $1,000 deductible. Youthful drivers, such as the Age 20 example, could save up to $966 or even more by choosing a larger deductible amount.
If you make the decision to raise deductibles, it will be required to have spare funds to offset the extra out-of-pocket expense, which is the main drawback of higher deductibles.