Deciphering which insurers offer the cheapest insurance rates for high school students will take more work than just picking a company at random. Every car insurance company has a proprietary formula to determine rates, so we will examine the insurance companies with the overall best prices in New Jersey.
Find the Cheapest Car Insurance for Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Palisades | $1,354 |
| 5 | Penn National | $1,366 |
| 6 | Allstate | $1,493 |
| 7 | California Casualty | $1,495 |
| 8 | The Hartford | $1,536 |
| 9 | USAA | $1,553 |
| 10 | Mercury | $1,651 |
| 11 | Amica | $1,813 |
| 12 | Esurance | $1,894 |
| 13 | Progressive | $1,919 |
| 14 | MetLife | $1,932 |
| 15 | GEICO | $2,174 |
| 16 | State Farm | $2,226 |
| 17 | Encompass | $2,374 |
| 18 | Liberty Mutual | $2,920 |
| 19 | Hanover | $4,027 |
| Compare Rates Now Go | ||
21st Century offers some of the lowest car insurance rates in Newark at around $1,067 a year. This is $785 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National also are some of the most economical Newark, NJ insurance companies.
In this example, if you are currently insured with Palisades and switched to 21st Century, you could see yearly savings of approximately $287. Policyholders with Penn National might save as much as $299 a year, and Allstate policyholders might lower prices by up to $426 a year.
If you want to find out if you’re overpaying, click here or click several companies below for low rates.
These rates are averages for all ages of drivers and types of vehicles and and are not figured with a specific location for high school students. So the auto insurance company that has the cheapest price for you may not even be in the list above. That affirms the importance of why you need to get quotes using your own personal information and vehicle type.
For teenagers, one of the more important criteria that aid in calculating the price you pay for insurance is where your residence is. Regions with larger populations or more claims tend to pay slightly more, whereas areas with less people or fewer weather incidents tend to receive slightly lower rates.
The information below sorts the most costly cities in New Jersey for high school students to buy an auto insurance policy in. Newark shows up at #1 having an annual price of $2,598 for the average insured, which is approximately $217 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Newark | $2,598 |
| 2 | West New York | $2,506 |
| 3 | East Orange | $2,495 |
| 4 | Elizabeth | $2,470 |
| 5 | Paterson | $2,448 |
| 6 | Union City | $2,426 |
| 7 | Passaic | $2,395 |
| 8 | Hoboken | $2,377 |
| 9 | Clifton | $2,368 |
| 10 | Jersey City | $2,276 |
| 11 | Kearny | $2,266 |
| 12 | Bayonne | $2,251 |
| 13 | Camden | $2,155 |
| 14 | Perth Amboy | $2,144 |
| 15 | Linden | $2,121 |
| 16 | Atlantic City | $2,106 |
| 17 | Fort Lee | $2,081 |
| 18 | Hackensack | $1,940 |
| 19 | Plainfield | $1,918 |
| 20 | Trenton | $1,916 |
| 21 | Lakewood | $1,874 |
| 22 | Sayreville | $1,863 |
| 23 | New Brunswick | $1,856 |
| 24 | Vineland | $1,842 |
| 25 | Toms River | $1,725 |
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Premium costs are estimated as zip code location can modify price quotes significantly.
The car, truck, or SUV that is being insured is one of the biggest factors when shopping around for the best coverage for high school students. Vehicles with lower acceleration and performance, a great safety record, or low incidents of liability claims will cost much less to insure than fast, unsafe models.
The next list illustrates car insurance costs for a selection of the most affordable vehicles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $7,988 |
| Ford Escape Limited 4WD | $8,473 |
| Toyota Prius | $8,549 |
| Ford F-150 XLT Regular Cab 2WD | $8,826 |
| Volkswagen Jetta SE 2.5 Station Wagon | $9,034 |
| Chevrolet Impala LS | $9,311 |
| Honda Odyssey EX | $9,318 |
| Ford Edge SEL 2WD | $9,311 |
| Dodge Grand Caravan Hero | $9,386 |
| Toyota RAV4 Sport 4WD | $9,392 |
| Chevrolet Malibu LT | $9,461 |
| Toyota Tacoma Double Cab 4WD | $9,468 |
| Ford Explorer Eddie Bauer AWD | $9,461 |
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Table data represents 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. Rate quotes do not factor in vehicle garaging location which can impact premium rates greatly.
Looking at the data, you can conclude that cars like the Honda CR-V, Ford Escape, Toyota Prius, and Ford F-150 are most likely going to be a few of the most economical vehicles to insure for teenagers. The price of auto insurance will tend to be more expensive anyway just due to the fact that there is more liability risk for high school students, but generally speaking those models will have the cheapest auto insurance rates compared to all other vehicles.
Get discounts on Newark auto insurance
Car insurance companies that provide policies for high school students may also provide rate discounts that could reduce prices by as much as 25% or more if you qualify. Large insurance companies and a summarized list of policyholder discounts are outlined below.
- The Hartford may include discounts for air bag, anti-theft, driver training, bundle, vehicle fuel type, defensive driver, and good student.
- American Family has discounts for good driver, Steer into Savings, mySafetyValet, accident-free, multi-vehicle, and good student.
- Progressive policyholders can earn discounts including good student, online quote discount, multi-policy, continuous coverage, online signing, and homeowner.
- Travelers discounts include save driver, early quote, good student, IntelliDrive, and multi-car.
- Farmers Insurance may offer discounts for good student, early shopping, homeowner, business and professional, youthful driver, distant student, and pay in full.
- USAA includes discounts for loyalty savings, family discount, vehicle storage, annual mileage, and multi-vehicle.
- Liberty Mutual has savings for hybrid vehicle, newly married, multi-car, new move discount, safety features, multi-policy, and newly retired.
The diagram below shows the comparison of car insurance rates with and without discounts being applied to the rates. Data assumes a female driver, no violations or accidents, New Jersey state minimum liability limits, full physical damage 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, good student, paid-in-full, anti-theft, paperless filing, and passive restraint discounts applied. When taking advantage of discounts, the average savings per year on insurance for high school students is 28% or $924.
Does full coverage make sense?
Saving money on insurance should be important to most drivers, and one way to lower the cost of insurance for high school students is to only buy liability insurance. The chart below illustrates the difference between auto insurance rates with full coverage compared to only the New Jersey minimum liability coverage. The prices are based on no violations or claims, $1,000 deductibles, drivers are not married, and no discounts are applied to the premium.
Averaged out for all age groups, full coverage costs an additional $2,010 per year over and above liability only. Many drivers may wonder when is it safe to stop buying full coverage. There is no specific rule that works best for making the decision to drop full coverage, but there is a guideline you can consider. If the annual cost of your full coverage insurance is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you might want to consider buying only liability coverage.
Last year’s bargain might be this year’s rip off
Newark insurance rates are based on many factors that may substantially change the policy premium. Improving your credit rating, getting married, or getting a ticket for careless driving may prompt premium changes that can now make some companies cheaper than before.
And not only may your rating factors change, but auto insurance companies file new New Jersey car insurance rates every year in order to be able to pay unexpected claims. Heavy losses may cause more expensive prices, while long-term profits can cause lower-cost Newark car insurance rates.
To illustrate this point, the chart below demonstrates which company has the cheapest car insurance in Newark, NJ for a 45-year-old female driver with a clear driving record, no claims, and great credit. When quoting prices based on her current risk profile, 21st Century offers the lowest car insurance rates in Newark at $1,673 per year. This is $179 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are the remainder of the most affordable Newark, NJ auto insurance companies.
Now we will give the driver from the above example a claim surcharge, a lower credit rating, and a traffic ticket or two. Since every car insurance company uses their own method to establish rates, getting updated rate quotes may now present a substantially altered list of affordable Newark car insurance companies as shown below.
California Casualty now has the lowest price on auto insurance in Newark with Allstate, Mercury, USAA, and Travelers now rounding out the top five. This shows why it is important to compare many different companies to get the lowest insurance rates for high school students. Prices can be determined by many risk factors and change substantially, so the cheapest rate two years ago may now be quite expensive.