What is the Cheapest Auto Insurance in Jersey City, New Jersey?

One of the many criteria that aid in calculating the annual cost of car insurance is your address. Cities with larger populations or higher claim trends are more likely to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims benefit from lower coverage costs.

The following table sorts the highest-priced areas in New Jersey to purchase auto insurance in. Jersey City ranks #9 costing $2,322 for the average insured, which is approximately $194 per month.

Premium costs are estimated as the vehicle garaging location can impact insurance rates greatly.

Considering where Jersey City ranks on price, comparing quotes for low-cost car insurance is not most people’s favorite thing to do, and finding out which companies have the best auto insurance rates in Jersey City involves a bit more work. Every insurance provider uses their own formula for filing rates in each state, so first we will examine the auto insurance companies that tend to be cheaper in New Jersey.

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21st Century has some of the lowest car insurance rates in Jersey City at around $1,078 a year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also qualify as some of the best Jersey City, NJ auto insurance companies.

As shown above, if you are currently insured with Travelers and switched to 21st Century, you could earn an annual premium reduction of around $102. New Jersey drivers with New Jersey Manufacturers may save as much as $219 a year, and Penn National policyholders might reduce prices by as much as $260 a year.

It’s important to note that these estimates are averages for all ages of drivers and types of vehicles and do not take into consideration an exact zip code location in Jersey City. So the insurer that is most affordable for your situation may not even be in the top 19 companies in the list above. That is why you need to get rate quotes from many companies using your own driver information and specific vehicle type.

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Jersey City, NJ auto insurance rates are calculated based on many things that control the price of your policy. Simply turning a year older, filing a claim, or having an accident can trigger rate changes resulting in some companies being more affordable than before. Not only may things change on your end, but auto insurance companies modify pricing as needed in order to remain profitable. Higher than usual claims may result in more expensive prices, while lower claims can result in cheaper Jersey City car insurance rates.

To illustrate this point, the bar chart below demonstrates which company has the cheapest car insurance in Jersey City, NJ for a 30-year-old female driver with a clean driving record, no accidents, and excellent credit. If we estimate rates based on her current risk factors, 21st Century quotes the best car insurance rates in Jersey City at $1,510 annually. This is $342 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National are the remainder of the top five cheapest Jersey City, NJ auto insurance companies.

Now let’s give the driver from above some claims, a little lower credit rating, and a traffic ticket or two. Since every insurance provider has a unique formula to set policy rates, comparing prices may now present a significantly different list of affordable Jersey City car insurance companies as shown below.

Allstate now has the best car insurance rate in Jersey City with The Hartford, USAA, Mercury, and Travelers now rounding out the top five. This shows why Jersey City drivers need to do a thorough rate comparison when trying to find the most affordable auto insurance quotes in Jersey City. Prices can be altered by many factors and can increase or decrease at any time, so the cheapest company when you bought your policy may now be costing you a lot of money.

The type of vehicle requiring insurance is one of the biggest factors that determines if you can find the most economical insurance in Jersey City. Vehicles with higher performance, poor safety ratings, or a track record of large liability claims will cost more to insure than more modest models.

The list below presents car insurance rates for a handful of the most cost-effective automobiles to buy coverage for.

Data based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, multi-vehicle, claim-free, multi-policy, and homeowner. Rate quotes do not factor in your specific Jersey City, NJ location which can affect coverage rates substantially.

Based on these rates, models like the Ford Escape, Chevrolet Malibu, Chevrolet Silverado, and Toyota RAV4 will be some of the more affordable vehicles to insure for drivers in Jersey City.

The diagram below highlights how deductible choice can influence yearly insurance costs when searching for cheap insurance in Jersey City. The information is based on a married female driver, full coverage, and no discounts are applied to the premium.

As shown above, a 50-year-old driver could save $394 a year by switching from a $100 deductible to a $500 deductible, or save $594 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old, have the ability to save up to $976 or even more by using a higher deductible. When using a larger deductible, it is necessary to have additional funds squirreled away to pay the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.

Careless Jersey City drivers pay higher rates

The easiest way to snag low car insurance prices in Jersey City for drivers in Jersey City is to be an attentive driver and avoid accidents and traffic violations. The illustration below highlights how traffic violations and at-fault collisions can drive up insurance rates for different age groups. The premium estimates are based on a single female driver, full coverage, $100 deductibles, and no discounts are taken into consideration.

In the chart above, the average cost of an auto insurance policy in Jersey City per year with no accidents and a clean driving record is $2,602. Get one speeding ticket and the average cost rises to $2,949, an increase of $346 each year. Now add two accidents along with the one speeding ticket and the annual cost of car insurance in Jersey City jumps again to an average of $5,865. That’s an increase of $3,262, or $272 per month, just for being a little careless behind the wheel!

Do you need full coverage?

Lowering the price of car insurance is the goal of most vehicle owners, and one common way to pay lower rates for insurance in Jersey City is to not insure for full coverage. The diagram below visualizes the comparison of insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. The costs are based on no violations or accidents, $500 deductibles, drivers are not married, and no discounts are applied.

If averaged out across all ages, physical damage coverage on your policy costs an extra $3,060 per year more than just buying liability only. Many of you may wonder if it’s a good idea to buy full coverage. There is no clear-cut formula of when to exclude comp and collision coverage, but there is a general convention. If the yearly cost for physical damage coverage is more than 10% of any settlement you would receive from your insurance company, then it’s probably a good time to buy liability coverage only.

If you would rather have a little guidance when buying car insurance for drivers in Jersey City, the agencies below are willing to help you make a decision which coverages you need.

To locate an agency closest to you, click the button after the list or click here to compare price quotes.

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