The words “affordable” and “auto insurance” really shouldn’t be used in the same sentence, especially when you are shopping around for the best price on coverage for 20 year old guys. Let’s introduce you to a few of the things that can significantly affect auto insurance prices, and see if we can help you cut the cost of the next policy you buy.
The vehicle model you are insuring is a large factor that determines whether or not you find economical car insurance for 20 year old guys. Vehicles with more horsepower, poor safety features, or a track record of large liability claims will cost quite a bit more to insure than safer models. The information below illustrates coverage premiums for some of the most budget-friendly vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $4,187 |
| Honda Accord EX 4-Dr Sedan | $4,197 |
| Honda CR-V EX 2WD | $4,187 |
| Ford Escape Limited 4WD | $4,562 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $4,599 |
| Toyota Prius | $4,622 |
| Honda Odyssey EX | $4,912 |
| Volkswagen Jetta SE 2.5 Station Wagon | $4,932 |
| Toyota Tacoma Double Cab 4WD | $4,975 |
| Chevrolet Malibu Hybrid | $4,983 |
| Toyota RAV4 2WD | $4,975 |
| Chevrolet Impala LT | $4,984 |
| Ford Explorer Eddie Bauer 4WD | $5,035 |
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Data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in the specific area where the vehicle is garaged which can affect coverage rates substantially.
Looking at the data, you can conclude that makes and models like the Hyundai Elantra, Honda Accord, Honda CR-V, and Ford Escape should be the cheaper vehicles to insure for young men. The price for an auto insurance policy will be higher anyway because of the fact that there is more risk for 20 year old guys, but generally speaking those specific models will probably have the cheapest rates compared to other types of vehicles.
For young men, one of the big components that are looked at to help calculate the amount you pay for auto insurance is where you live in Newark. Larger areas tend to have higher auto insurance costs, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.
The illustration below lists the most expensive areas in New Jersey for 20 year old guys in which to purchase auto insurance. Newark shows up at #3 costing $2,496 for car insurance, which is about $208 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | East Orange | $2,597 |
| 2 | West New York | $2,531 |
| 3 | Newark | $2,496 |
| 4 | Paterson | $2,448 |
| 5 | Elizabeth | $2,446 |
| 6 | Passaic | $2,395 |
| 7 | Union City | $2,378 |
| 8 | Kearny | $2,335 |
| 9 | Hoboken | $2,307 |
| 10 | Clifton | $2,299 |
| 11 | Jersey City | $2,276 |
| 12 | Bayonne | $2,184 |
| 13 | Linden | $2,163 |
| 14 | Camden | $2,155 |
| 15 | Fort Lee | $2,144 |
| 16 | Perth Amboy | $2,102 |
| 17 | Atlantic City | $2,044 |
| 18 | Trenton | $1,954 |
| 19 | Sayreville | $1,939 |
| 20 | Hackensack | $1,921 |
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Prices are estimated as the specific garaging location can modify auto insurance rates substantially.
Should you buy full coverage?
Reducing premiums for auto insurance is probably important to the majority of drivers, and one easy way to find cheap insurance for 20 year old guys is to buy only liability coverage. The chart below visualizes the comparison of premium costs with full physical damage coverage compared to only buying the minimum liability limits required in New Jersey. The costs are based on no claims or driving citations, $500 deductibles, drivers are not married, and no policy discounts are applied.
If the expense is averaged for all age categories, physical damage insurance costs $2,471 per year over having just liability coverage. That amount may make you wonder if you should buy full coverage at all. There is no clear-cut rule of when to drop comprehensive and collision coverage on your policy, but there is a general convention. If the yearly cost of full coverage is more than about 10% of replacement cost minus your deductible, then it may be the right time to buy liability only.
For example, let’s say your vehicle’s replacement cost is $4,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $3,500 after paying the physical damage deductible. If premiums are more than $350 a year for physical damage coverage, the it may be a good time to stop paying for full coverage.
There are a few cases where buying only liability insurance is not advised. If you haven’t satisfied your loan, you are required to maintain full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not remove full coverage.
The chart below highlights how deductible selection can raise or lower premium costs when researching cheap insurance for 20 year old guys. The prices are based on a married male driver, comprehensive and collision coverage, and no discounts are factored in.
The data above shows that a 50-year-old driver could lower their car insurance rates by $400 a year by increasing from a $100 deductible up to a $500 deductible, or save $604 by selecting a $1,000 deductible. Young drivers, like the 20-year-old, could save up to $1,336 annually by choosing a higher deductible. If you make the decision to raise deductibles, it will now be necessary to have enough savings set aside to be able to pay the extra out-of-pocket expense that comes with higher deductibles.
How to find low-cost insurance for 20 year old guys
The list below shows many money-saving suggestions that can help Newark drivers buy low-cost coverage.
- Good credit can mean cheaper rates
- Raise comprehensive and collision coverage deductibles
- Tickets and violations raise rates
- Full coverage may not be needed on older vehicles
- Vehicles with good safety ratings have lower liability rates
- Prevent price hikes by avoiding at-fault accidents
- Compare rates once a year for cheaper prices
The last suggestion is certainly valuable, as was affirmed in this article. Insurance prices in Newark fluctuate considerably, so don’t be hesitant to buy a policy from a new company if a lower-cost policy is available. Many drivers tend to have loyalty to a certain company, but it’s not recommended if that faithfulness ends up costing you thousands of dollars over the life of your policy. Now is a great time to shop around to find cheaper auto insurance for 20 year old guys.
The Newark car insurance agencies listed below can most likely provide answers to your questions and help you determine which coverages you need, since some drivers wish to get some professional advice when shopping for cheaper insurance for young men. It can be difficult to do it yourself, so getting professional guidance from a licensed agent can add comfort knowing you have adequate protection. To locate a Newark auto insurance agent close to you, click the button at the bottom of the list or click here to compare price quotes now.
- Atlantis Agency
177 Adams St – Newark, NJ 07105 – (973) 466-9090 - METROPLUS INSURANCE AGENCY-BELLEVILLE
338 Washington Ave – Belleville, NJ 07109 – (973) 759-8291 - Astor C Wilson Insurance Agency
88 Pacific St – Newark, NJ 07105 – (973) 491-0002