For new drivers, one of the big things that determine auto insurance rates is the neighborhood you call home. Areas with high crime rates or more dense population tend to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper auto insurance prices.
The following table lists the most expensive cities in New Jersey for a learners permit to buy auto insurance in. Jersey City shows up at #10 with the annual price of $2,276 for the average policyholder, which is approximately $190 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | West New York | $2,531 |
| 3 | East Orange | $2,495 |
| 4 | Union City | $2,450 |
| 5 | Paterson | $2,448 |
| 6 | Hoboken | $2,377 |
| 7 | Elizabeth | $2,374 |
| 8 | Clifton | $2,345 |
| 9 | Passaic | $2,301 |
| 10 | Jersey City | $2,276 |
| 11 | Kearny | $2,266 |
| 12 | Camden | $2,221 |
| 13 | Bayonne | $2,207 |
| 14 | Linden | $2,185 |
| 15 | Fort Lee | $2,144 |
| 16 | Perth Amboy | $2,144 |
| 17 | Atlantic City | $2,086 |
| 18 | Hackensack | $1,940 |
| 19 | Sayreville | $1,939 |
| 20 | Plainfield | $1,918 |
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Prices are approximated as specific location information can modify coverage rates greatly.
The type of vehicle that needs insurance is one of the biggest factors when comparing low-cost auto insurance for a learners permit. Vehicles with reasonable performance levels, excellent safety ratings, or a positive history of liability claims will cost much less to insure than adrenaline junky models. The next list shows car insurance premiums for a selection of the most budget-friendly vehicles to insure in New Jersey.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $5,871 |
| Jeep Wrangler Sport 4WD 2-Dr | $6,137 |
| Ford Escape Limited 4WD | $6,317 |
| Toyota Prius | $6,377 |
| Ford Edge SE 2WD | $6,521 |
| Ford F-150 XL Regular Cab 4WD | $6,583 |
| Toyota Tacoma 4WD | $6,589 |
| Chevrolet Impala LS | $6,904 |
| Chevrolet Equinox LS 2WD | $6,967 |
| Dodge Grand Caravan Hero | $6,977 |
| Volkswagen Jetta S 4-Dr Sedan | $6,967 |
| Toyota RAV4 Sport 2WD | $6,973 |
| Chevrolet Silverado LT Extended Cab 4WD | $6,967 |
| Ford Explorer Limited 2WD | $7,027 |
| Chevrolet Malibu LT | $7,034 |
| Ford Focus SEL 4-Dr Sedan | $7,288 |
| Hyundai Elantra Blue 4-Dr Sedan | $7,295 |
| Toyota Corolla XLE | $7,350 |
| Honda Odyssey EX-L W/Rear Entertainment | $7,360 |
| GMC Sierra SL Crew Cab 2WD | $7,410 |
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in specific Jersey City, NJ garaging location which can change coverage prices considerably.
Based upon the rates shown, models like the Honda CR-V, Jeep Wrangler, Ford Escape, and Toyota Prius are going to be some of the cheaper vehicles to insure for new drivers. The price for car insurance will be more costly because of the fact that there is more inherent risk for a learners permit, but in general those particular vehicles will most likely have the lowest prices compared to other vehicles.
Buying low-cost insurance is not most people’s favorite thing to do, and deciding which companies have the lowest-priced insurance rates for a learners permit will take a little more work. Every car insurance company uses a different method to set premium rates, so let’s take a look at the insurance companies that tend to be cheaper in Jersey City.
Cheapest Insurance Rates in New Jersey
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,111 |
| 2 | Travelers | $1,180 |
| 3 | New Jersey Manufacturers | $1,258 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,354 |
| 6 | California Casualty | $1,451 |
| 7 | Allstate | $1,478 |
| 8 | The Hartford | $1,491 |
| 9 | USAA | $1,538 |
| 10 | Mercury | $1,587 |
| 11 | Progressive | $1,862 |
| 12 | Amica | $1,869 |
| 13 | Esurance | $1,894 |
| 14 | MetLife | $1,991 |
| 15 | GEICO | $2,174 |
| 16 | State Farm | $2,248 |
| 17 | Encompass | $2,303 |
| 18 | Liberty Mutual | $2,920 |
| 19 | Hanover | $3,869 |
| Quote Your Rates Go | ||
21st Century offers some of the best car insurance rates in Jersey City at around $1,111 per year. Travelers, New Jersey Manufacturers, Penn National, and Palisades would also be considered some of the most economical Jersey City, NJ car insurance companies.
In the above example, if you are a policyholder with Palisades and switched to Travelers, you might realize savings of about $174. New Jersey drivers with California Casualty may save as much as $271 a year, and Allstate policyholders might cut rates by $298 a year.
These prices are averaged for all insureds and vehicles and do not factor in an exact vehicle garaging location for a learners permit. So the insurer that fits your age and vehicle best may not even be in the list above. That underscores the importance of why you need to get car insurance quotes using your own personalized driver profile and vehicle information.
The information below illustrates how choosing a deductible can change yearly insurance costs when getting quotes for cheap insurance for a learners permit. The price estimates are based on a married female driver, comp and collision included, and no other discounts are factored in.
The data above shows that a 30-year-old driver could save $516 a year by switching from a $100 deductible up to a $500 deductible, or save $774 by changing to a $1,000 deductible. Young drivers, like the age 20 example, could drop their prices as much as $1,098 or even more just by choosing larger deductibles. When raising deductibles, it’s a good idea to have enough savings set aside to cover the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
How careless driving impacts insurance rates
The common sense way to earn low insurance prices in Jersey City for new drivers is to be a safe driver and avoid accidents and traffic violations. The chart below demonstrates how citations and at-fault claims raise yearly insurance costs for each age group. The information is based on a single female driver, full coverage, $1,000 deductibles, and no discounts are taken into consideration.
In the chart above, the average cost of an auto insurance policy in New Jersey per year with no accidents or violations is $1,920. Get one speeding ticket and the average cost increases to $2,179, an increase of $259 each year. Then throw in one accident along with the one speeding ticket and the annual cost of insurance for a learners permit increases to an average of $2,893. That’s an increase of $973, or $81 per month, just for not being more responsible behind the wheel!
Discounts on Jersey City insurance
Auto insurance companies that offer quotes for a learners permit may have special discounts that could reduce prices by 25% or more if you are eligible to receive them. A few of the larger companies and their offered discounts include:
- AAA may include discounts for AAA membership discount, good driver, education and occupation, good student, and anti-theft.
- Progressive has discounts for continuous coverage, multi-vehicle, homeowner, online signing, and online quote discount.
- State Farm offers discounts including driver’s education, accident-free, student away at school, good driver, Drive Safe & Save, good student, and Steer Clear safe driver discount.
- Esurance may have discounts that include online quote, emergency road assistance, online shopper, anti-lock brakes, DriveSense, and renters.
- Nationwide policyholders can earn discounts including accident-free, good student, Farm Bureau membership, anti-theft, defensive driving, and family plan.
The information below visualizes the comparison of insurance premiums with and without discounts. The rate quotes are based on a female driver, no claims or driving violations, New Jersey state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with vehicle safety, continuous coverage, paid-in-full, good student, paperless filing, and anti-theft discounts applied. When discounts are applied, the average amount saved each year on insurance for a learners permit is 28% or $1,238.
Low rates today, overpriced tomorrow
Jersey City insurance rates are based on many factors which can significantly increase or decrease the price you have to pay. Improving your credit score, having a teenage driver, or getting a ticket for careless driving can cause premium changes resulting in some rates now being much cheaper than others. In addition, insurance companies amend pricing without warning in order to remain profitable. Unexpectedly high claims can result in higher priced premiums, while a better claims history may cause cheaper Jersey City car insurance rates.
To illustrate this example, the chart below demonstrates which company has the cheapest car insurance in Jersey City, NJ for a 45-year-old male driver with a clear driving record, no claims, and great credit. If we estimate rates based on his current situation, 21st Century quotes the cheapest car insurance rates in Jersey City at $1,451 annually. This is $401 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National are also included in the cheapest Jersey City, NJ auto insurance companies.
The example below compares rates after we give the driver from the first rate comparison a claim or two, a lower credit rating, and a couple of points charged on his driving record. Since each company has a different formula to establish rates, analyzing rates may now show a different set of the cheapest Jersey City car insurance companies as shown below.
The Hartford now has the best car insurance rate in Jersey City, NJ with Allstate, USAA, Travelers, and Mercury completing the list. This example demonstrates why drivers need to compare many different companies to get the most affordable insurance rates for a learners permit. Car insurance prices are calculated by many things and change substantially, so the most economical company two years ago may now not even be in the top five.