For youthful drivers, one of the big things that are looked at to help calculate the amount you pay each year for auto insurance is where you choose to live. Areas with increased crime or more people tend to pay slightly more, whereas areas that tend to be more rural have the benefit of cheaper car insurance.
The next table ranks the most expensive places in New Jersey for young drivers to buy auto insurance in. Newark shows up at #1 with a yearly cost of $2,572 for the average policyholder, which is approximately $214 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | West New York | $2,506 |
| 3 | East Orange | $2,495 |
| 4 | Union City | $2,450 |
| 5 | Elizabeth | $2,446 |
| 6 | Paterson | $2,400 |
| 7 | Hoboken | $2,377 |
| 8 | Jersey City | $2,345 |
| 9 | Clifton | $2,345 |
| 10 | Kearny | $2,335 |
| 11 | Passaic | $2,301 |
| 12 | Camden | $2,221 |
| 13 | Bayonne | $2,184 |
| 14 | Linden | $2,163 |
| 15 | Perth Amboy | $2,144 |
| 16 | Fort Lee | $2,123 |
| 17 | Atlantic City | $2,106 |
| 18 | Hackensack | $1,999 |
| 19 | Plainfield | $1,956 |
| 20 | Trenton | $1,916 |
| 21 | Sayreville | $1,882 |
| 22 | New Brunswick | $1,875 |
| 23 | Vineland | $1,842 |
| 24 | Lakewood | $1,819 |
| 25 | Toms River | $1,691 |
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Table data uses comparative as zip code location can alter coverage prices greatly.
Comparing quotes for affordable car insurance is difficult, and determining which companies quote the lowest-priced insurance rates for young drivers takes additional perseverance. Each insurance company uses slightly different criteria for determining rates in each state, so let’s begin by taking a look at the overall cheapest insurance companies in Newark, NJ.
It’s a good idea to know that Newark, NJ insurance rates are calculated based on many things which can substantially decrease or increase the price of coverage. Turning one year older, adding a teenager to your policy, or getting a couple of tickets can trigger rate changes resulting in some rates now being cheaper than others.
Best Cheap Insurance Rates for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,067 |
| 2 | Travelers | $1,191 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Palisades | $1,341 |
| 5 | Penn National | $1,366 |
| 6 | California Casualty | $1,437 |
| 7 | The Hartford | $1,491 |
| 8 | Allstate | $1,538 |
| 9 | USAA | $1,538 |
| 10 | Mercury | $1,651 |
| 11 | Amica | $1,869 |
| 12 | Progressive | $1,881 |
| 13 | Esurance | $1,894 |
| 14 | MetLife | $1,932 |
| 15 | State Farm | $2,160 |
| 16 | GEICO | $2,174 |
| 17 | Encompass | $2,374 |
| 18 | Liberty Mutual | $2,890 |
| 19 | Hanover | $3,987 |
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21st Century generally has some of the most affordable car insurance rates in Newark at around $1,067 each year. This is $785 less than the average policy premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Palisades, and Penn National also are some of the cheaper Newark, NJ insurance companies.
In this example, if you are currently insured with New Jersey Manufacturers and switched to 21st Century, you could see annual savings of upwards of $204. Insureds with Palisades might save as much as $274 a year, and Penn National policyholders might cut rates by $299 a year.
Remember that these policy rates are averages for all drivers and vehicles and are not factoring in a specific location for young drivers. So the company that is most affordable for your situation may not even be in the list above. That is why you need to compare prices as often as possible using your own specific driver information and vehicle.
The vehicle requiring coverage is probably the biggest factor in finding cheaper auto insurance for young drivers. Vehicles with more horsepower, poor passenger safety features, or an increased likelihood of liability claims will cost quite a bit more to insure than more modest models. The next table showcases car insurance prices for a handful of the more affordable vehicles to insure.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $6,373 |
| Ford Escape XLT 2WD | $6,380 |
| Honda CR-V LX 2WD | $6,373 |
| Hyundai Elantra SE Touring Station Wagon | $6,838 |
| Toyota Prius | $6,901 |
| Dodge Grand Caravan CV | $7,160 |
| Ford Explorer XLT 4WD | $7,169 |
| Volkswagen Jetta 2.0T Station Wagon | $7,303 |
| Honda Odyssey EX W/Rear Entertainment | $7,500 |
| Honda Civic DX 4-Dr Sedan | $7,510 |
| Ford Edge Limited 2WD | $7,500 |
| Chevrolet Malibu LS | $7,563 |
| Toyota Tacoma Double Cab 4WD | $7,573 |
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Data variables include single female 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. Estimates do not factor in vehicle garaging location which can lower or raise auto insurance rates significantly.
Looking at the numbers, you can figure that models like the Honda Accord, Ford Escape, and Honda CR-V will be some of the more affordable vehicles to insure for youthful drivers. Car insurance rates will be higher anyway just because there is more liability exposure for young drivers, but overall those specific models will tend to have the cheapest auto insurance rates compared to other types of vehicles.
Get discounts on Newark auto insurance
Insurance companies that offer quotes for young drivers may also give you price discounts that could potentially reduce rates by as much as 35% or more if you are eligible for them. The best insurance companies and a selection of discounts are detailed below.
- Progressive may offer discounts for good student, multi-policy, online quote discount, online signing, and multi-vehicle.
- AAA offers discounts including education and occupation, pay-in-full, multi-car, anti-theft, good student, and AAA membership discount.
- Farmers Insurance offers premium reductions for early shopping, youthful driver, pay in full, alternative fuel, multi-car, and business and professional.
- GEICO has discounts for emergency military deployment, federal employee, five-year accident-free, anti-theft, anti-lock brakes, multi-policy, and membership and employees.
- Esurance has savings for claim free, Switch & Save, defensive driver, good driver, good student, and anti-lock brakes.
- SAFECO includes discounts for drive less, multi-car, teen safety rewards, safe driver, anti-lock brakes, bundle discounts, and homeowner.
- State Farm may include discounts for Steer Clear safe driver discount, passive restraint, defensive driving training, good student, anti-theft, and Drive Safe & Save.
The information below shows the difference between insurance rates with and without policy discounts. The rates are based on a female driver, a clean driving record, no claims, New Jersey state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with anti-theft, paperless filing, paid-in-full, passive restraint, vehicle safety, and continuous coverage discounts applied. When taking advantage of discounts, theamount saved on insurance for young drivers is 28% or $832.
Safe drivers pay less for insurance
The obvious way to find low insurance rates in New Jersey for youthful drivers is to drive attentively and have a clean driving record. The example below demonstrates how citations and at-fault fender-benders impact premium costs for different age groups. The prices are based on a single male driver, comprehensive and collision coverage, $100 deductibles, and no discounts are applied to the premium.
The data above shows the average cost of a car insurance policy per year with no violations or accidents is $3,679. Receive two speeding tickets and the average cost jumps to $4,891, an increase of $1,212 each year. Now get one accident along with the two speeding tickets and the annual cost of insurance for young drivers jumps again to an average of $6,133. That’s an increase of $2,454, or $205 per month, just for being a careless driver!
How to find the cheapest car insurance for young drivers
Here are a few thrifty ideas that can help drivers get more affordable auto insurance.
- Get cheaper liability coverage by choosing a safer vehicle
- Claim-free policyholders usually earn a discount
- Buy your homeowners policy from the same company as your auto insurance
- Raise comprehensive and collision coverage deductibles
- Better credit scores save money
- Do not pay for comprehensive and collision coverage on older vehicles
- Comparison shop at least every other year
The last tip in the list is very significant, as we noted in the prior article. Coverage rates change frequently, so drivers shouldn’t hesitate to switch to a new company if a more affordable rate is found.
Sticking with a specific company is fine, but is isn’t recommended if that inflexibility results in costing you major coinage every year. Take a couple minutes and shop around to find cheaper insurance for young drivers in Newark.
If you aren’t clear which coverage you need and would like to have some advice when shopping for cheaper insurance for youthful drivers, the insurance agencies below are willing to help you make a decision which coverage meets your needs best. To locate a Newark insurance agent by location nearest to you, click the button after the list.
Farmers Insurance: Anthony Pugliese
217 Chestnut St – Newark, NJ 07105 – (973) 536-2060
Knight Insurance Consulting Group
454 Washington St – Newark, NJ 07102 – (973) 704-1024
Massey Insurance
46 Lyons Ave – Newark, NJ 07112 – (973) 926-6300