One of the more important factors that help determine the amount you pay each year for auto insurance is where you live. Regions with more people or even just more weather-related claims likely pay more, whereas more rural areas tend to receive slightly lower rates.
The information below shows the most expensive places in New Jersey for teenagers in which to buy car insurance. Newark makes the list at #1 with the yearly price of $2,522 for coverage, which is about $210 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Newark | $2,522 |
| 2 | East Orange | $2,521 |
| 3 | West New York | $2,456 |
| 4 | Paterson | $2,400 |
| 5 | Hoboken | $2,377 |
| 6 | Elizabeth | $2,374 |
| 7 | Passaic | $2,371 |
| 8 | Clifton | $2,368 |
| 9 | Kearny | $2,358 |
| 10 | Union City | $2,354 |
| 11 | Jersey City | $2,276 |
| 12 | Bayonne | $2,207 |
| 13 | Camden | $2,133 |
| 14 | Fort Lee | $2,123 |
| 15 | Linden | $2,099 |
| 16 | Perth Amboy | $2,081 |
| 17 | Atlantic City | $2,044 |
| 18 | Trenton | $1,954 |
| 19 | Sayreville | $1,939 |
| 20 | New Brunswick | $1,932 |
| 21 | Hackensack | $1,921 |
| 22 | Plainfield | $1,898 |
| 23 | Lakewood | $1,819 |
| 24 | Vineland | $1,806 |
| 25 | Toms River | $1,742 |
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Premium amounts are approximated as the specific area where the vehicle is garaged can lower or raise coverage prices considerably.
Finding out which companies have the best auto insurance rates for teenagers calls for a little more sweat in order to find the best policy.
Each auto insurer has a unique approach to determine premium rates, so let’s examine the auto insurance companies with the overall best prices in Newark. It’s important to know that Newark auto insurance rates are impacted by many factors that may substantially change the cost of a policy. Simply improving your credit, moving to a new city, or having an accident can trigger price changes resulting in some rates now being cheaper in comparison to the competition.
Best Auto Insurance Prices for Teens
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,100 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,341 |
| 6 | California Casualty | $1,451 |
| 7 | Allstate | $1,478 |
| 8 | The Hartford | $1,536 |
| 9 | Mercury | $1,587 |
| 10 | USAA | $1,600 |
| 11 | Amica | $1,832 |
| 12 | Esurance | $1,838 |
| 13 | Progressive | $1,919 |
| 14 | MetLife | $1,932 |
| 15 | State Farm | $2,248 |
| 16 | GEICO | $2,262 |
| 17 | Encompass | $2,303 |
| 18 | Liberty Mutual | $3,008 |
| 19 | Hanover | $3,869 |
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21st Century may offer some of the most affordable car insurance rates in Newark at around $1,100 per year. This is $752 less than the average rate paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also are some of the most economical Newark, NJ auto insurance companies.
In this example, if you are a customer of Palisades and switched to Travelers, you may realize a yearly price reduction of upwards of $150. New Jersey drivers with California Casualty could save as much as $260 a year, and Allstate insureds might realize rate reductions of up to $287 a year.
Be aware that those estimates are averaged across all types of drivers and the different vehicles they drive and are not factoring in an exact vehicle garaging location for teenagers. So the insurer that has the cheapest price for you may not even be in the top 19 companies shown above. That point stresses why you need to get rate quotes using your own driver data and vehicle information.
The vehicle on the policy is a large consideration in finding low-cost coverage for teenagers. Vehicles with lower acceleration and performance, excellent safety ratings, or low incidents of liability claims will cost quite a bit less to insure than high performance models. The next table presents car insurance costs for the cheaper vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $7,304 |
| Honda CR-V EX 2WD | $7,314 |
| Honda Accord EX 4-Dr Sedan | $7,304 |
| Ford Escape XLS 2WD | $7,312 |
| Volkswagen Jetta S 2.5 Station Wagon | $7,819 |
| Toyota Prius | $7,889 |
| Ford Edge SE 2WD | $8,143 |
| Chevrolet Silverado LS Regular Cab 4WD | $8,149 |
| Ford F-150 XLT Regular Cab 4WD | $8,213 |
| Toyota Tacoma 4WD | $8,222 |
| Ford Focus S 4-Dr Sedan | $8,589 |
| Chevrolet Malibu LS | $8,659 |
| Chevrolet Equinox LT AWD | $8,669 |
| Jeep Grand Cherokee Laredo 2WD | $8,659 |
| Dodge Grand Caravan Hero | $8,665 |
| Toyota RAV4 4WD | $8,659 |
| Ford Explorer Eddie Bauer 4WD | $8,728 |
| Dodge Ram Quad Cab ST 2WD | $8,942 |
| Honda Civic LX 4-Dr Sedan | $9,038 |
| Chevrolet Impala LTZ | $9,107 |
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific location information which can raise or lower rates noticeably.
Based on these rates, we can tell that vehicles like the Hyundai Elantra, Honda CR-V, Honda Accord, and Ford Escape are likely to be the less-costly vehicles to insure for teen drivers. The cost of a car insurance policy will trend higher because of the fact that there is more inherent risk for teenagers, but generally speaking those specific models will most likely have the cheapest car insurance rates compared to all other vehicles.
Best auto insurance company in New Jersey
Choosing the highest-rated auto insurance provider can be difficult considering how many companies sell insurance in Newark. The rank data in the next section may help you pick which car insurance companies you want to consider when shopping car insurance rates for teenagers.
The rankings below are for companies with a nationwide focus, so smaller companies are not included in this list. If you wish to compare rates and find the cheapest rates for teenagers, just click here.
| 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 |
| Liberty Mutual | 72 | 91 | 97 | 83% | A | 86.4 |
| AAA Insurance | 85 | 85 | 88 | 86% | A | 85.8 |
| Nationwide | 71 | 90 | 93 | 83% | A+ | 84.9 |
| Allstate | 69 | 92 | 92 | 83% | A+ | 84.4 |
| American Family | 77 | 96 | 80 | 85% | A | 83.8 |
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Data Source: Insure.com Best Car Insurance Companies
Discounts on Newark insurance rates
Auto insurance companies that offer coverage for teenagers may additionally offer premium discounts that may potentially lower prices by 35% or more if you qualify for them. Larger auto insurance companies and a partial list of their discounts are outlined below.
- State Farm may have discounts that include good student, Steer Clear safe driver discount, defensive driving training, good driver, multiple autos, anti-theft, and multiple policy.
- American Family offers premium reductions for air bags, defensive driver, mySafetyValet, good student, bundled insurance, and Steer into Savings.
- AAA discounts include multi-policy, good driver, anti-theft, multi-car, and good student.
- GEICO may offer discounts for membership and employees, seat belt use, military active duty, driver training, five-year accident-free, and good student.
- Mercury Insurance policyholders can earn discounts including age of vehicle, low natural disaster claims, good driver, anti-theft, multi-car, and ease of repair.
- Farmers Insurance may include discounts for youthful driver, homeowner, teen driver, business and professional, mature driver, alternative fuel, and multi-car.
- Progressive offers discounts including online signing, homeowner, multi-vehicle, online quote discount, multi-policy, continuous coverage, and good student.
The illustration below illustrates the comparison of yearly insurance costs with and without discounts applied to the policy rates. The price estimates are based on a female driver, no claims or driving violations, New Jersey state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with paid-in-full, vehicle safety, paperless filing, passive restraint, anti-theft, and continuous coverage discounts applied. When drivers take advantage of discounts, theaverage amount saved on auto insurance for teenagers is 28% or $1,149.
The diagram below shows how choosing a deductible can increase or decrease insurance costs when trying to find cheap insurance for teenagers. The data assumes a married female driver, full physical damage coverage, and no discounts are factored in.
The data above shows that a 50-year-old driver could reduce rates by $456 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $690 by changing to a $1,000 deductible. Youthful drivers, like the Age 20 category, have the ability to save as much as $1,134 every year just by using higher deductibles.
If you do decide to increase your deductibles, it will be necessary to have additional funds squirreled away to be able to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Tips for finding cheaper car insurance for teenagers
The list below shows some of the recommended money-saving ideas that can help drivers locate cheap auto insurance.
- Vehicles with safetly features generally cost less to insure
- Older vehicles may not need full coverage
- Bundle home and auto and earn a discount
- Good credit can help you save money
- Pay for smaller claims out-of-pocket
- Higher deductibles save money
- Comparison shop at least once a year
The last tip is notably significant, as was emphasized in this article. Prices charged by car insurance companies can change considerably based on profitability, so don’t hesitate to change insurance companies if you find a better deal. Many drivers tend to have loyalty to a certain company, but we do not recommend it if it’s costing you a fortune every year. It takes less than five minutes to shop around to find cheaper auto insurance for teenagers in Newark.
The Newark car insurance agencies listed below can most likely help you make a decision which policy is best, as lots of people like to have the advice of a professional agent when comparing insurance rates for teen drivers. It can be complicated to find the best coverage on your own, so getting advice from a licensed New Jersey insurance agent can give peace of mind knowing you have enough coverage when you need it.
To locate a Newark insurance agent nearest to you, click the button after the list.
- State Farm Insurance
360 Chestnut St – Newark, NJ 07105 – (800) 701-5909 - N J Insurance Underwriting
744 Broad St # 1100 – Newark, NJ 07102 – (973) 622-3838 - Acosta Agency
568 Broadway # B – Newark, NJ 07104 – (973) 482-5898 - Collection Agency BandA
744 Broad St #1903 – Newark, NJ 07102 – (862) 218-0319