For drivers on welfare, one of the largest criteria that are used to help calculate the price you pay for insurance is where you live. More populated areas tend to have higher auto insurance costs, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of lower rates.
The following table shows the most costly cities in New Jersey for welfare recipients to purchase a policy in. Jersey City shows up at #9 with the yearly price of $2,345 for the average policyholder, which is about $195 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Newark | $2,598 |
| 2 | East Orange | $2,571 |
| 3 | West New York | $2,531 |
| 4 | Elizabeth | $2,470 |
| 5 | Hoboken | $2,377 |
| 6 | Paterson | $2,376 |
| 7 | Kearny | $2,358 |
| 8 | Union City | $2,354 |
| 9 | Jersey City | $2,345 |
| 10 | Passaic | $2,301 |
| 11 | Clifton | $2,276 |
| 12 | Bayonne | $2,251 |
| 13 | Camden | $2,199 |
| 14 | Linden | $2,185 |
| 15 | Fort Lee | $2,123 |
| 16 | Perth Amboy | $2,102 |
| 17 | Atlantic City | $2,044 |
| 18 | Plainfield | $1,956 |
| 19 | Trenton | $1,954 |
| 20 | Hackensack | $1,940 |
| 21 | New Brunswick | $1,932 |
| 22 | Sayreville | $1,882 |
| 23 | Vineland | $1,842 |
| 24 | Lakewood | $1,819 |
| 25 | Toms River | $1,691 |
| Find Cheaper Rates Go | ||
Premium costs are approximated as the specific Jersey City residence address can affect price quotes noticeably.
The car, truck, or SUV needing coverage is probably the largest consideration when consumers are trying to find cheaper insurance for welfare recipients. Vehicles with lower performance, a great safety record, or a low likelihood of liability claims will cost substantially less to insure than adrenaline junky models. The list below illustrates car insurance premiums for a number of the cheaper automobiles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $1,521 |
| Ford Escape XLT 4WD | $1,555 |
| Chevrolet Impala LS | $1,771 |
| Toyota RAV4 4WD | $1,804 |
| Ford F-150 Lariat Super Cab 2WD | $1,838 |
| Ford Explorer Limited 2WD | $1,844 |
| Hyundai Elantra GLS Touring Station Wagon | $1,869 |
| Toyota Corolla S | $1,897 |
| Honda Civic Hybrid 4-Dr Sedan | $1,930 |
| Nissan Rogue S 2WD | $1,933 |
| Hyundai Sonata SE 4-Dr Sedan | $2,026 |
| GMC Sierra 2500HD SLT Extended Cab 4WD | $2,032 |
| Honda Accord EX 2-Dr Coupe | $2,026 |
| Kia Optima EX | $2,059 |
| Toyota Camry LE | $2,065 |
| Start Your Quote Go | |
Premium data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, claim-free, and multi-vehicle. Table data does not factor in specific location which can impact coverage rates greatly.
Based upon these rates, vehicles like the Honda CR-V, Ford Escape, Chevrolet Impala, Toyota RAV4, and Ford F-150 should be the less-costly vehicles to insure for drivers on welfare.
Buying reasonably-priced auto insurance is easier said than done, and finding out which companies offer the best car insurance rates for welfare recipients takes more quotes for comparison. Every auto insurer uses their own formula for setting prices, so let’s rank the most affordable car insurance companies in Jersey City.
Best Insurance Companies in New Jersey
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,100 |
| 2 | Travelers | $1,180 |
| 3 | New Jersey Manufacturers | $1,297 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,382 |
| 6 | California Casualty | $1,495 |
| 7 | The Hartford | $1,521 |
| 8 | Allstate | $1,538 |
| 9 | USAA | $1,538 |
| 10 | Mercury | $1,587 |
| 11 | Esurance | $1,838 |
| 12 | Progressive | $1,862 |
| 13 | Amica | $1,887 |
| 14 | MetLife | $2,010 |
| 15 | State Farm | $2,226 |
| 16 | GEICO | $2,262 |
| 17 | Encompass | $2,303 |
| 18 | Liberty Mutual | $2,978 |
| 19 | Hanover | $4,027 |
| Find Your Rate Go | ||
21st Century normally has some of the cheapest car insurance rates in Jersey City at around $1,100 per year. This is $752 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the cheapest Jersey City, NJ car insurance companies.
As depicted above, if you currently have coverage with Penn National and switched to Travelers, you could earn a yearly price reduction of in the vicinity of $145. New Jersey drivers with Palisades could save as much as $202 a year, and California Casualty insureds might reduce prices by as much as $315 a year.
Be aware that those rates are averages across all types of insureds and vehicles and and are not figured with an exact zip code location for welfare recipients. So the car insurance company that has the cheapest rates for you may not even be in the top 19 companies shown above. That’s why you need to quote rates from many companies using your own driver and vehicle profiles.
The chart below illustrates how choosing a deductible can raise or lower insurance premiums when getting quotes for cheap insurance for welfare recipients. The costs are based on a single male driver, comprehensive and collision coverage, and no discounts are factored in.
A 30-year-old driver could cut expenses by $618 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $932 by changing to a $1,000 deductible. Even younger drivers, like the Age 20 chart data, could save $1,820 each year just by using higher deductibles.
When insureds make the decision to increase the deductibles on their policy, it will be important to have plenty of savings on hand to satisfy the extra out-of-pocket expense that is associated with using high deductibles.
Comparison of full coverage and liability-only policies
Reducing premiums for car insurance is probably important to most drivers, and one easy way to reduce the cost of insurance for welfare recipients is to only pay for liability coverage. The diagram below illustrates the comparison of insurance premiums with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. The price estimates are based on no claims or driving citations, $500 deductibles, marital status is single, and no other discounts are factored in.
If all age groups are averaged, physical damage coverage on your policy costs $3,012 per year more than just buying liability only. That brings up the question if buying full coverage is a waste of money. There is no exact formula to drop physical damage coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is 10% or more of the settlement you would receive from your company, the it may be a good time to stop paying for full coverage.
The importance of comparing Jersey City car insurance rates
Jersey City car insurance rates are impacted by many factors that may substantially change the price you have to pay. Simply turning a year older, getting divorced, or getting a few speeding tickets can trigger rate changes that may make certain companies cheaper than others. In addition to those changes, insurance companies file new New Jersey car insurance rates multiple times each year to adjust for gains or losses. An extended period of higher than normal claims can cause rate increases, while a better loss history may cause more affordable Jersey City car insurance rates.
As an example, the data below shows the companies that have the cheapest car insurance in Jersey City, NJ for a 30-year-old female driver with no prior accidents, a clean driving record, and good financial standing. Based on her personal risk profile, 21st Century has the best car insurance rates in Jersey City at $1,541 each year. This is $311 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National are the rest of the best Jersey City, NJ auto insurance companies.
Now we will give the driver from above a couple of claims, poor credit, and a blemish on her driving record. Due to the fact that every auto insurer has a different formula to establish rates, comparing prices may now result in a slightly different list of the cheapest companies as shown below.
California Casualty now has the best price on car insurance in Jersey City, NJ with The Hartford, USAA, Mercury, and Travelers completing the list. This example shows why it is so important to spend some time comparing rates to find the most economical car insurance rates for welfare recipients.
Insurance rates are calculated by many things and change frequently, so the best option six months ago may now cost much more than other companies.