Writing this article would sure be easy if we could simply give you the name of the one company in New Jersey that has the cheapest coverage in New Jersey. It’s not that easy, however, as there are a ton of unknown elements like whether you are female or male, how well you maintain your credit, the safety ratings of your vehicle, and what your desired deductibles are. We will try to teach you about the best ways to save on auto insurance and will hopefully give you a good beginning to your search for cheaper coverage.
The vehicle model you are insuring is one of the main factors that determines the availability of the best cheap insurance for drivers under 25. Vehicles with lots of speed or power, poor safety features, or an increased likelihood of liability claims will cost much more to insure than safer models.
The next list ranks coverage rates for a number of the most affordable automobiles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $2,977 |
| Honda CR-V EX-L 4WD | $3,019 |
| Jeep Wrangler Sport 4WD 2-Dr | $3,103 |
| Toyota Prius | $3,254 |
| Ford Explorer XLT 4WD | $3,335 |
| Dodge Grand Caravan SE | $3,340 |
| Ford Focus SE 4-Dr Sedan | $3,483 |
| Honda Odyssey EX W/Rear Entertainment | $3,493 |
| Chevrolet Impala LT | $3,525 |
| Toyota RAV4 Limited 4WD | $3,533 |
| Chevrolet Equinox LS AWD | $3,525 |
| Nissan Altima 2.5 4-Dr Sedan | $3,533 |
| Toyota Tacoma Double Cab 4WD | $3,570 |
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Prices above based on single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific location which can change price quotes greatly.
Looking at the rates, you can see that makes and models like the Ford Escape, Honda CR-V, and Jeep Wrangler are going to be some of the cheaper vehicles to insure for drivers age 25 and younger. The price for car insurance will trend higher because of the fact that there is more inherent risk for drivers under 25, but in general those makes and models will most likely have the cheapest car insurance rates compared to other vehicles.
For drivers age 25 and younger, one of the more important criteria that determine the annual cost of car insurance is where you live in Jersey City. Areas with more people or more claims tend to have higher auto insurance costs, whereas areas that tend to be more rural tend to receive slightly lower rates.
The following table sorts the priciest cities in New Jersey for drivers under 25 to purchase a policy in. Jersey City makes the list at #8 costing $2,345 for the average insurance policy, which is around $195 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | East Orange | $2,521 |
| 2 | Newark | $2,496 |
| 3 | West New York | $2,431 |
| 4 | Union City | $2,378 |
| 5 | Paterson | $2,376 |
| 6 | Elizabeth | $2,374 |
| 7 | Passaic | $2,371 |
| 8 | Jersey City | $2,345 |
| 9 | Clifton | $2,345 |
| 10 | Kearny | $2,335 |
| 11 | Hoboken | $2,283 |
| 12 | Bayonne | $2,274 |
| 13 | Camden | $2,221 |
| 14 | Linden | $2,185 |
| 15 | Perth Amboy | $2,102 |
| 16 | Fort Lee | $2,060 |
| 17 | Atlantic City | $2,044 |
| 18 | Hackensack | $1,980 |
| 19 | Sayreville | $1,939 |
| 20 | Trenton | $1,916 |
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Premium costs are comparative as the garaging address in Jersey City can modify coverage rates significantly.
Drive responsibly or pay higher rates
A great way to get good auto insurance rates for drivers age 25 and younger is to be a safe driver and avoid accidents and traffic citations. The information below highlights how speeding tickets and at-fault fender-benders raise annual premium costs for different age categories. The rates are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no additional discounts are factored in.
In the chart above, the average cost of auto insurance per year with a clean driving record and no accidents is $2,390. Add in one speeding ticket and the average cost increases to $2,709, an increase of $319 each year. Then throw in one accident along with the one speeding ticket and the 12-month cost of auto insurance for drivers under 25 jumps again to an average of $3,599. That’s an increase of $1,210, or $101 per month, just for not being a responsible driver!
Selecting the top auto insurance company can be challenging considering how many different companies insure vehicles in Jersey City. The ranking information listed below could help you choose which coverage providers to look at comparing rates from. The rankings below are only made up of large, nationwide insurance companies, so smaller companies that only insure vehicles in New Jersey are not taken into consideration for these rankings.
Top 10 Large Auto Insurance Companies Overall in Jersey City
- Mercury Insurance
- The Hartford
- Progressive
- Travelers
- State Farm
- Farmers Insurance
- Safeco Insurance
- USAA
- GEICO
- 21st Century
The chart below illustrates how your choice of deductibles can raise or lower insurance rates when trying to find cheap insurance for drivers under 25. The premiums are based on a married male driver, comp and collision included, and no discounts are taken into consideration.
In the chart above, a 30-year-old driver could pocket $516 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $778 by changing to a $1,000 deductible. Youthful drivers, like the Age 20 chart data, could save up to $1,562 annually by choosing a higher deductible. When using a larger deductible, it is important to have enough savings set aside to satisfy the extra out-of-pocket expense, which deters some people from using high deductibles.
Here’s why price comparisons are so important
Jersey City auto insurance rates are determined by lots of factors which can substantially change the policy price. Simply turning a year older, moving to a new city, or getting a ticket for careless driving can trigger changes in premium that can make some companies affordable when they were higher priced.
Not only that, but car insurance companies file new New Jersey car insurance rates as often as every three months in order to offset underwriting gains or losses. A period of increased losses can result in rate hikes, while lower claims can produce more affordable Jersey City car insurance rates.
The bar chart below shows the company with the cheapest car insurance in Jersey City, NJ for a 40-year-old female driver with a good driving record, no prior claims, and a high credit rating. Based on her current situation, 21st Century might offer the cheapest car insurance rates in Jersey City at $1,408 annually. This is $444 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National round out the rest of the best Jersey City, NJ auto insurance companies.
In this next rate comparison, we will give the driver from above an accident claim, a lower credit rating, and a couple of points charged on her driving record. Because each company uses their own formula for determining prices, analyzing rate quotes may result in a slightly different list of cheap Jersey City auto insurance companies as shown below.
The Hartford now has the best price in Jersey City, NJ with Allstate, USAA, Mercury, and New Jersey Manufacturers now being in the top five. This illustrates why consumers need to shop around to find affordable auto insurance quotes for drivers under 25. Car insurance prices are calculated by many different factors and change frequently, so the best price the last time you shopped your coverage around may now be an over-priced policy.