One of the more important considerations that are used to help calculate the annual cost of car insurance is where you keep your vehicle in Newark. More populated areas tend to pay slightly more, whereas areas with less people or fewer weather incidents have the enjoyment of a little cheaper coverage.
The table below ranks the priciest cities in New Jersey for a school permit to buy auto insurance in. Newark is ranked at #1 with an annual premium of $2,572 for the average policy, which is about $214 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | East Orange | $2,571 |
| 3 | West New York | $2,506 |
| 4 | Union City | $2,426 |
| 5 | Elizabeth | $2,398 |
| 6 | Hoboken | $2,377 |
| 7 | Paterson | $2,376 |
| 8 | Passaic | $2,371 |
| 9 | Clifton | $2,368 |
| 10 | Jersey City | $2,345 |
| 11 | Kearny | $2,335 |
| 12 | Bayonne | $2,274 |
| 13 | Camden | $2,221 |
| 14 | Perth Amboy | $2,165 |
| 15 | Linden | $2,163 |
| 16 | Fort Lee | $2,123 |
| 17 | Atlantic City | $2,086 |
| 18 | Hackensack | $1,999 |
| 19 | Trenton | $1,974 |
| 20 | Plainfield | $1,918 |
| 21 | Sayreville | $1,882 |
| 22 | New Brunswick | $1,875 |
| 23 | Lakewood | $1,874 |
| 24 | Vineland | $1,842 |
| 25 | Toms River | $1,674 |
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Price information shown is approximated as the specific geographic location can influence coverage rates significantly.
The type of vehicle requiring insurance is one of the largest factors when shopping for the most affordable insurance for a school permit. Vehicles with limited speed and performance, good safety features, or low incidents of liability claims will cost substantially less to insure than adrenaline junky models.
The information below features coverage rates for a number of the most budget-friendly vehicles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $6,920 |
| Honda CR-V EX-L 2WD | $6,994 |
| Honda Accord EX-L 4-Dr Sedan | $7,445 |
| Hyundai Elantra SE Touring Station Wagon | $7,455 |
| Toyota Prius | $7,516 |
| Ford F-150 STX Regular Cab 4WD | $7,758 |
| Dodge Grand Caravan CV | $7,763 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $7,758 |
| Ford Explorer XLT AWD | $7,764 |
| Ford Focus S 4-Dr Sedan | $8,136 |
| Chevrolet Malibu LS | $8,210 |
| Jeep Grand Cherokee Laredo 4WD | $8,215 |
| Chevrolet Silverado LT Extended Cab 4WD | $8,210 |
| Toyota RAV4 Limited 4WD | $8,216 |
| Toyota Tacoma Double Cab 4WD | $8,210 |
| Chevrolet Impala LT | $8,217 |
| Dodge Ram Quad Cab ST 2WD | $8,428 |
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Above prices assume single male driver age 17, 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 estimates do not factor in specific location which can increase or decrease coverage rates noticeably.
Based upon these rates, cars like the Ford Escape, Honda CR-V, Honda Accord, Hyundai Elantra, and Toyota Prius are a few of the most economical vehicles to insure for a learners permit. The price for an auto insurance policy will tend to be more expensive just because there is more liability risk for a school permit, but overall those makes and models will tend to have the cheapest auto insurance rates compared to other vehicles.
Finding out which companies offer the most affordable car insurance rates for a school permit will require a little more sweat in order to find the most economical policy. Each insurer has a different process to set premium rates, so let’s look at the rankings for the most affordable car insurance companies in New Jersey.
It’s a good idea to know that New Jersey car insurance rates are calculated based on many things that will increase or decrease the cost of a policy. Simply having another birthday, buying a new vehicle, or getting a driving violation can cause premium changes that can make some companies cheaper than competitors.
Find Cheaper Auto Insurance for Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,078 |
| 2 | Travelers | $1,156 |
| 3 | New Jersey Manufacturers | $1,297 |
| 4 | Palisades | $1,354 |
| 5 | Penn National | $1,379 |
| 6 | California Casualty | $1,437 |
| 7 | Allstate | $1,493 |
| 8 | The Hartford | $1,536 |
| 9 | USAA | $1,585 |
| 10 | Mercury | $1,603 |
| 11 | Amica | $1,813 |
| 12 | Esurance | $1,838 |
| 13 | Progressive | $1,862 |
| 14 | MetLife | $1,951 |
| 15 | State Farm | $2,182 |
| 16 | GEICO | $2,240 |
| 17 | Encompass | $2,374 |
| 18 | Liberty Mutual | $2,978 |
| 19 | Hanover | $3,869 |
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21st Century may offer some of the most affordable car insurance rates in Newark at around $1,078 per year. Travelers, New Jersey Manufacturers, Palisades, and Penn National also rank well as some of the lowest-priced Newark, NJ car insurance companies.
In the rate table above, if you currently buy coverage from Travelers and switched to 21st Century, you might achieve an annual savings of upwards of $78. Policyholders with New Jersey Manufacturers may save as much as $219 a year, and Palisades insureds might reduce prices by as much as $276 a year.
To get a quick, customized rate comparison, click here to start your free quote or feel free to get quotes from the companies below.
These rates are averages for all ages of drivers and types of vehicles and do not take into consideration an exact zip code location for a school permit. So the company that is most affordable for your situation may not even be in the list above. That points out the importance of why you need to compare rates from as many companies as possible using your own specific driver and vehicle information.
Types of discounts on Newark auto insurance rates
Insurance providers that sell policies for a school permit may also offer special discounts that could reduce prices by as much as 30% if you are eligible. A list of car insurance companies and a partial list of their discounts include:
- GEICO has savings for seat belt use, membership and employees, multi-vehicle, defensive driver, daytime running lights, and military active duty.
- Mercury Insurance offers discounts for type of vehicle, multi-policy, ease of repair, good student, and multi-car.
- Farmers Insurance offers discounts including early shopping, alternative fuel, electronic funds transfer, pay in full, and mature driver.
- Auto-Owners Insurance may offer discounts for safe driver, company car, safe vehicle, anti-lock brakes, and student away at school.
- Liberty Mutual may include discounts for teen driver discount, multi-policy, exclusive group savings, hybrid vehicle, preferred payment discount, new move discount, and newly retired.
- SAFECO discounts include anti-theft, anti-lock brakes, safe driver, multi-car, and teen safety rewards.
- Progressive includes discounts for continuous coverage, multi-policy, homeowner, good student, and online quote discount.
- USAA has discounts for new vehicle, driver training, military installation, loyalty savings, annual mileage, and safe driver.
The chart below illustrates the difference between insurance rates with and without discounts applied to the rates. The price estimates are based on a female driver, a clean driving record, no claims, New Jersey state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with anti-theft, continuous coverage, good student, vehicle safety, passive restraint, and paid-in-full discounts applied. In this example, the average savings per year on car insurance for a school permit is 28% or $1,223.
The chart below demonstrates how choosing different deductibles can influence insurance costs when searching for cheap insurance for a school permit. The rates are based on a married female driver, comp and collision included, and no policy discounts are applied.
The chart above illustrates that a 50-year-old driver could lower rates by $394 a year by switching from a $100 deductible up to a $500 deductible, or save $594 by choosing a $1,000 deductible. Even younger insureds, like the Age 20 chart data, can save $976 every year just by choosing higher deductibles when buying full coverage. If you do decide to increase your deductibles, it will be important to have additional funds in a savings account to allow you to cover the extra out-of-pocket expense that is associated with using high deductibles.
Cost of full coverage
Reducing premiums for car insurance should be important to the majority of people, and one of the best ways to lower the cost of insurance for a school permit is to only buy liability insurance. The example below shows the comparison of annual premium costs with liability coverage only compared to full coverage. The data assumes no accidents, no driving violations, $500 deductibles, single status, and no discounts are taken into consideration.
Averaged out for all age groups, full coverage on your policy costs $2,257 per year more than just buying liability insurance. That is a significant amount which raises the question when is the right time to remove full coverage. There isn’t a written rule to exclude comp and collision coverage, but there is a general guideline you can use. If the annual cost of coverage is more than about 10% of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s settlement value is $10,000 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, the most your company would pay you is $9,000 after paying your policy deductible. If you are currently paying more than $900 annually for full coverage, the it may be a good time to stop paying for full coverage.
You are probably paying too much for car insurance
Newark car insurance rates are determined by lots of factors that may substantially change the price you pay for coverage. Simply getting older, buying a different vehicle, or having a fender bender may cause policy rate changes that can cause some rates to be affordable when they were higher priced. Not only may things change on your end, but insurance companies change the rates they charge in New Jersey multiple times each year in order to offset underwriting gains or losses. Significantly higher claims may cause a rate increase, while better underwriting may cause lower-cost Newark car insurance rates.
To illustrate this point, the bar chart below shows which companies have the cheapest car insurance in Newark, NJ for a 45-year-old male driver with a clear driving record, no claims, and solid credit. If we compare prices based on his current risk factors, 21st Century may have the lowest car insurance rates in Newark at $1,591 per year. This is $261 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades round out the rest of the cheapest Newark, NJ auto insurance companies.
In this next rate comparison, we will give the driver in the first chart a claim, less-than-perfect credit, and a couple of points charged on his driving record. Since every insurance provider has a unique formula for setting rates, comparing insurance quotes may result in a substantially altered list of companies as shown below.
Allstate now has the lowest price in Newark with The Hartford, USAA, Mercury, and Travelers completing the list. This example demonstrates why it is critical to spend some time comparing rates when trying to find cheap auto insurance quotes for a school permit. Prices are impacted by many different factors and can change without notice, so the cheapest option the last time you shopped around may now be priced much higher than other options.