Finding reasonably-priced insurance is not the easiest thing to accomplish, and finding out which companies offer the cheapest car insurance rates for drivers with good credit involves even more work.
Each auto insurer has a different formula for setting rates, so let’s take a look at the car insurance companies that tend to be cheaper in Jersey City, NJ. It’s important to know that Jersey City, NJ car insurance rates are impacted by many factors that may substantially change the cost of coverage. This price fluctuation is why it is crucial to spend some time comparing rates to find the best auto insurance quotes for drivers with good credit. Insurance rates can be altered by many risk factors and can increase or decrease at any time, so the best price the last time you shopped your coverage around may now cost much more than other companies.
Best Insurance Companies for High Credit
21st Century may have some of the cheapest car insurance rates in Jersey City at around $1,111 per year. Travelers, New Jersey Manufacturers, Palisades, and Penn National are also some of the most economical Jersey City, NJ insurance companies.
In the above rates, if you are a policyholder with New Jersey Manufacturers and switched to 21st Century, you could earn yearly savings of approximately $160. Drivers with Palisades could save as much as $243 a year, and Penn National insureds might see rate reductions of $255 a year.
Remember that these policy prices are averaged across all types of insureds and vehicles and are not factoring in an exact zip code location for drivers with good credit. So the insurer that fits your age and vehicle best may not even be in the list above. That points out the importance of why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
For financially responsible drivers, one of the largest components that determine the annual cost of car insurance is where your car is garaged. Cities with larger populations tend to have more expensive car insurance rates, whereas areas that tend to be more rural tend to receive slightly lower rates.
The next table shows the highest-priced areas in New Jersey for drivers with good credit to purchase a policy in. Jersey City is ranked #11 with an annual premium of $2,276 for coverage, which is around $190 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | East Orange | $2,571 |
| 2 | West New York | $2,531 |
| 3 | Newark | $2,522 |
| 4 | Paterson | $2,448 |
| 5 | Elizabeth | $2,398 |
| 6 | Passaic | $2,371 |
| 7 | Union City | $2,354 |
| 8 | Kearny | $2,335 |
| 9 | Clifton | $2,299 |
| 10 | Hoboken | $2,283 |
| 11 | Jersey City | $2,276 |
| 12 | Camden | $2,221 |
| 13 | Bayonne | $2,184 |
| 14 | Perth Amboy | $2,165 |
| 15 | Fort Lee | $2,123 |
| 16 | Linden | $2,099 |
| 17 | Atlantic City | $2,024 |
| 18 | Hackensack | $1,980 |
| 19 | Plainfield | $1,956 |
| 20 | New Brunswick | $1,932 |
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Price information shown is estimated as the specific garaging location can increase or decrease price quotes significantly.
Ending up with a good quality auto insurance provider can be challenging considering how many different companies sell coverage in New Jersey. The company ratings listed below can help you analyze which coverage providers you want to consider comparing rates with. These rankings are only made up of major nationwide insurance companies, so companies without a large exposure are not included in these rankings.
| 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 |
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Data Source: Insure.com Best Car Insurance Companies
Impact of speeding/accidents on car insurance rates
The easiest method to score the cheapest car insurance premiums in Jersey City for financially responsible drivers is to drive safe and avoid at-fault accidents and violations. The example below illustrates how speeding tickets and at-fault fender-benders can drive up annual premium costs for each age group. The costs are based on a single male driver, full coverage, $1,000 deductibles, and no other discounts are factored in.
In the previous chart, the average cost of an auto insurance policy in Jersey City per year with no accidents or violations is $2,010. Get one speeding ticket and the average cost rises to $2,269, an increase of $259 each year. Then include one accident along with the one speeding ticket and the yearly cost of car insurance for drivers with good credit increases to an average of $2,983. That’s an increase of $973, or $81 per month, just for not driving safely!
Full coverage rates compared to liability only
Paying less for car insurance should be important to the majority of people, and one common way to reduce the cost of insurance for drivers with good credit is to buy liability only. The chart below compares auto insurance costs with and without physical damage coverage. The price estimates are based on no claims, a clean driving record, $100 deductibles, single marital status, and no discounts are applied.
As an average for all age groups, physical damage coverage on your policy costs $3,744 per year over having just liability coverage. That brings up the question if it’s a good idea to buy full coverage. There is no exact formula to delete comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of the replacement cost minus the deductible, then it might be time to buy liability only.