Finding out which insurers offer the cheapest insurance rates for young drivers takes more work than just picking a company at random. Each company uses their own method to set premium rates, so to begin we’ll rank the insurance companies that tend to be cheaper in New Jersey.
It’s a good idea to be aware that Jersey City, NJ insurance rates are influenced by many factors which can significantly increase or decrease the cost of coverage. Turning one year older, buying a different home, or getting a few speeding tickets can trigger price changes resulting in some companies being more affordable than the competition.
Best Cheap Insurance Rates for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,078 |
| 2 | Travelers | $1,156 |
| 3 | New Jersey Manufacturers | $1,310 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,382 |
| 6 | The Hartford | $1,476 |
| 7 | California Casualty | $1,495 |
| 8 | Allstate | $1,538 |
| 9 | USAA | $1,538 |
| 10 | Mercury | $1,635 |
| 11 | Amica | $1,832 |
| 12 | Progressive | $1,881 |
| 13 | Esurance | $1,894 |
| 14 | MetLife | $1,932 |
| 15 | State Farm | $2,226 |
| 16 | GEICO | $2,240 |
| 17 | Encompass | $2,327 |
| 18 | Liberty Mutual | $2,978 |
| 19 | Hanover | $4,027 |
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21st Century normally has some of the best car insurance rates in Jersey City at around $1,078 a year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also are some of the cheaper Jersey City, NJ auto insurance companies.
As depicted above, if you are insured with New Jersey Manufacturers and switched to 21st Century, you could realize a yearly price reduction of in the vicinity of $232. Drivers with Penn National could save as much as $247 a year, and Palisades insureds might reduce rates by $304 a year.
To discover how much you can save, click here to get quotes or feel free to get quotes from the companies below.
Remember that these rates are averages for all drivers and vehicles in New Jersey and do not factor in a specific zip code for young drivers. So the company that fits you best may not even be in the top 19 companies shown above. That illustrates why you need to get quotes using your own specific driver and vehicle information.
For youthful drivers, one of the more important considerations that aid in calculating the price you pay for insurance is where you choose to live. More densely populated places tend to pay slightly more, whereas areas with less congestion tend to receive cheaper rates.
The next table shows the most costly cities in New Jersey for young drivers to buy car insurance in. Jersey City is ranked at #10 with the yearly price of $2,322 for the average insured, which is about $194 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | East Orange | $2,571 |
| 2 | Newark | $2,522 |
| 3 | West New York | $2,456 |
| 4 | Paterson | $2,448 |
| 5 | Union City | $2,378 |
| 6 | Hoboken | $2,377 |
| 7 | Elizabeth | $2,374 |
| 8 | Clifton | $2,368 |
| 9 | Passaic | $2,325 |
| 10 | Jersey City | $2,322 |
| 11 | Kearny | $2,266 |
| 12 | Bayonne | $2,207 |
| 13 | Camden | $2,199 |
| 14 | Linden | $2,163 |
| 15 | Fort Lee | $2,144 |
| 16 | Perth Amboy | $2,144 |
| 17 | Atlantic City | $2,044 |
| 18 | Hackensack | $1,980 |
| 19 | Trenton | $1,974 |
| 20 | Sayreville | $1,939 |
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Rate information is comparative as the specific zip code location can change auto insurance rates noticeably.
Buying coverage from a high-quality auto insurance provider is hard considering how many different companies insure vehicles in Jersey City. The information below can help you decide which car insurance companies to look at when comparing insurance rates for young drivers. The rankings below are only made up of insurance companies that insure vehicles in the majority of U.S. states, so companies with more of a regional focus are not taken into consideration for these rankings.
Top 10 Major Auto Insurance Companies in Jersey City Ranked by Customer Satisfaction
- The Hartford – 93%
- Progressive – 90%
- 21st Century – 89%
- USAA – 87%
- Mercury Insurance – 87%
- State Farm – 87%
- Travelers – 87%
- Safeco Insurance – 86%
- AAA Insurance – 86%
- American Family – 85%
Top 10 Major Auto Insurance Companies in Jersey City Ranked by Customer Service
- Mercury Insurance
- The Hartford
- American Family
- Progressive
- GEICO
- USAA
- State Farm
- Travelers
- Farmers Insurance
- Allstate
Impact of citations and accidents on insurance rates
A great way to get low insurance rates in New Jersey for youthful drivers is to be a safe driver and avoid accidents and traffic violations. The chart below demonstrates how citations and at-fault claims can affect auto insurance rates for each different age group. The rate quotes are based on a married female driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.
In the previous example, the average cost of a car insurance policy per year with a clean driving record and no accidents is $1,735. Get written up for one speeding ticket and the average cost increases to $2,024, an increase of $289 each year. Now include one accident along with the one speeding ticket and the 12-month cost of insurance for young drivers increases to an average of $2,823. That’s an increase of $1,088, or $91 per month, just for not driving safely!
Cost difference between full coverage and liability
Paying less for insurance is the goal of the majority of vehicle owners, and one of the fastest ways to find cheap insurance for young drivers is to not pay for full coverage. The example below illustrates the comparison of yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. The data assumes no driving violations, no at-fault accidents, $500 deductibles, drivers are single, and no discounts are applied to the premium.
Averaged for all age groups, comprehensive and collision coverage on your policy costs $2,257 per year more than just insuring for liability. Many of you may wonder if full coverage is worth the money. There isn’t a steadfast formula to drop full coverage, but there is a general guideline you can use. If the annual cost of coverage is more than about 10% of the replacement cost minus the deductible, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s settlement value is $7,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most your company would pay you is $6,000 after paying your deductible. If premiums are more than $600 a year for your policy with full coverage, the it may be a good time to stop paying for full coverage.