The vehicle you are buying coverage for is one of the main factors when comparing cheap auto insurance for 18 year olds. Vehicles with high performance, poor safety features, or an increased likelihood of liability claims will cost more to insure than safer models. The data below ranks coverage rates for a selection of the most affordable automobiles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $6,393 |
| Honda Accord EX 4-Dr Sedan | $6,400 |
| Honda CR-V EX-L 2WD | $6,467 |
| Toyota Prius | $6,963 |
| Ford Explorer Eddie Bauer 2WD | $7,158 |
| Jeep Wrangler Sahara 4WD 2-Dr | $7,168 |
| Volkswagen Jetta 2.0T Station Wagon | $7,391 |
| Ford Edge SEL 2WD | $7,509 |
| Chevrolet Impala LS | $7,519 |
| GMC Sierra SLE Crew Cab 2WD | $7,583 |
| Toyota RAV4 2WD | $7,591 |
| Dodge Grand Caravan Hero | $7,583 |
| Toyota Camry LE | $7,591 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $7,654 |
| Chevrolet Malibu LT | $7,660 |
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Price data assumes single male driver age 18, 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 specific zip code location which can impact auto insurance rates greatly.
Looking at the rates, cars like the Ford Escape, Honda Accord, Honda CR-V, and Toyota Prius are going to be a few of the most budget-friendly vehicles to insure for teen drivers. Auto insurance rates will trend higher just because there is more liability risk for 18 year olds, but in general those vehicles will most likely have the cheapest rates that you’ll find.
One of the many things that help determine car insurance rates is the neighborhood you call home. Cities with larger populations or higher claim trends tend to pay slightly more, whereas more rural areas have the gratification of cheaper auto insurance rates.
The illustration below ranks the priciest cities in New Jersey for 18 year olds in which to purchase auto insurance. Newark comes in at #3 having an annual price of $2,496 for the average policy, which is approximately $208 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | East Orange | $2,571 |
| 2 | West New York | $2,506 |
| 3 | Newark | $2,496 |
| 4 | Paterson | $2,472 |
| 5 | Elizabeth | $2,470 |
| 6 | Union City | $2,378 |
| 7 | Passaic | $2,371 |
| 8 | Jersey City | $2,322 |
| 9 | Hoboken | $2,307 |
| 10 | Clifton | $2,299 |
| 11 | Kearny | $2,289 |
| 12 | Bayonne | $2,274 |
| 13 | Perth Amboy | $2,165 |
| 14 | Linden | $2,163 |
| 15 | Camden | $2,133 |
| 16 | Atlantic City | $2,086 |
| 17 | Fort Lee | $2,060 |
| 18 | Hackensack | $1,999 |
| 19 | Plainfield | $1,976 |
| 20 | New Brunswick | $1,932 |
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Annual rates are estimated as the specific area where the vehicle is garaged can influence auto insurance rates noticeably.
Finding out which company quotes the cheapest auto insurance rates for 18 year olds calls for a bit more work than just quoting one company’s rates. Each auto insurance company has a proprietary method for establishing rates, so we will examine the overall cheapest auto insurance companies in Newark.
We do need to point out that New Jersey auto insurance rates are impacted by many factors which can substantially decrease or increase the price of coverage. Getting older, getting divorced, or getting a DUI can cause premium changes that can cause some rates to be cheaper than others.
Lowest Insurance Price Quotes for Teens
21st Century quotes some of the lowest car insurance rates in Newark at around $1,067 each year. This is $785 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the best Newark, NJ insurance companies.
As the example above demonstrates, if you are a policyholder with Penn National and switched to 21st Century, you could realize an annual premium reduction of in the vicinity of $271. Policyholders with Palisades might save as much as $315 a year, and Allstate insureds might lower prices by up to $426 a year.
Bear in mind that those estimates are averages across all types of drivers and the different vehicles they drive and and are not calculated with an exact location for 18 year olds. So the auto insurance company that fits your age and vehicle best may not even be in the list above. That is why you need to get auto insurance quotes using your own driver information and specific vehicle type.
Full coverage versus liability only rates
Saving money when shopping for auto insurance is probably important to the majority of people, and one good way to find cheaper insurance for 18 year olds is to only buy liability insurance. The example below illustrates the difference between insurance costs with full physical damage coverage compared to only buying liability only. The information is based on no claims or driving citations, $1,000 deductibles, single status, and no discounts are applied.
As an average for all age groups, comp and collision coverage costs an extra $2,717 per year more than carrying just liability coverage. Lot’s of drivers question if paying for full coverage is a waste of money. There is no set guideline for eliminating physical damage coverage, but there is a general convention. If the annual cost of having full coverage is more than about 10% of replacement cost minus your deductible, then it could be time to drop full coverage.
Impact of violations and accidents on rates
The common sense way to score good auto insurance prices in Newark for teen drivers is to drive carefully and not receive tickets or have accidents. The information below illustrates how speeding tickets and accident claims can drive up insurance premiums for each age group. The costs are based on a single male driver, full coverage, $100 deductibles, and no discounts are factored in.
In the example above, the average cost of auto insurance in Newark per year with no accidents or violations is $2,745. Get written up for two speeding tickets and the average cost hikes up to $3,646, an increase of $901 each year. Next add one accident along with the two speeding tickets and the 12-month cost of auto insurance for 18 year olds increases to an average of $4,547. That’s an increase of $1,802, or $150 per month, just for not being more responsible behind the wheel!
Comparing rates can save you money
New Jersey auto insurance rates are determined by lots of factors that will increase or decrease the cost of having a policy. Getting older, having a claim, or getting a driving violation can trigger price changes that can cause some rates to be more affordable than others.
In addition, insurers amend premium rates without warning to adjust for gains or losses. Higher than usual claims can cause higher rates, while profitable underwriting can result in lower-cost Newark car insurance rates.
To illustrate this example, the graph below analyzes the cheapest car insurance in Newark, NJ for a 40-year-old male driver with no prior claims, no tickets, and a good credit rating. Based on his personal risk profile, 21st Century offers the cheapest car insurance rates in Newark at $1,640 annually. This is $212 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades are also on the list of the cheapest Newark, NJ auto insurance companies.
In this example, we will give the driver from the first set of rates a claim surcharge, a lower credit score, and a speeding citation. Because each insurer uses a different method for determining rates in each state, comparing prices most likely will result in a different list of affordable Newark car insurance companies as shown below.
The Hartford now has the cheapest auto insurance in Newark, NJ with Allstate, USAA, Mercury, and New Jersey Manufacturers now being in the top five. This example shows why New Jersey drivers need to perform an extensive rate comparison to find the lowest car insurance rates for 18 year olds.
Rates can be altered by many things and can change without notice, so the most affordable company a year ago may now be one of the more expensive options.