Who Has the Cheapest Car Insurance for Teenagers in New Jersey?

Figuring out which companies quote the cheapest insurance rates for teenagers takes more work in order to find the most economical policy. Every auto insurer has a different formula to determine premium rates, so let’s examine the insurance companies that tend to be cheaper in New Jersey.

Keep in mind that New Jersey insurance rates are influenced by many factors that may substantially change the cost of coverage. Simply getting older, adding a teenager to your policy, or getting into an accident may cause policy rate changes that can now make some companies affordable when they were higher priced.

Best Car Insurance Prices for Teens

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21st Century generally has some of the lowest car insurance rates in New Jersey at around $1,078 each year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the cheapest New Jersey auto insurance companies.

As the rates illustrate above, if you are a policyholder with New Jersey Manufacturers and switched to 21st Century, you might achieve annual savings of around $219. Drivers with Penn National may save as much as $247 a year, and Palisades customers might cut rates by $276 a year.

It’s important to note that these estimates are averages for all drivers and vehicles in New Jersey and do not factor in a rate surcharge for teenagers. So the auto insurance company that has the cheapest rates for you may not even be shown in the chart above. That is why you need to compare prices as often as possible using your own specific driver information and vehicle.

The cost and performance of the vehicle you are insuring is one of the main factors when consumers are trying to find low-cost auto insurance for teenagers. Vehicles with higher performance, poor safety ratings, or high incidents of liability claims will cost significantly more to insure than safer models. The lists below ranks car insurance premiums for a handful of the most cost-effective vehicles to buy coverage for.

Table data represents single female driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in your specific New Jersey location which can impact price quotes noticeably.

Data rating is based on single female driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in specific location which can change premium rates greatly.

Data based on single female driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in specific location which can influence premium rates considerably.

Driving violations and accidents

A great way to find cheap insurance premiums for teen drivers is to drive safe and not have accidents or get tickets. The information below shows how violations and accidents impact insurance costs for each age group. The data is based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no policy discounts are applied.

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The chart shows that the average cost of an auto insurance policy in New Jersey per year with no accidents or violations is $2,605. Get written up for two speeding tickets and the average cost swells to $3,594, an increase of $989 each year. Now add in one accident along with the two speeding tickets and the annual cost of insurance for teenagers goes up to an average of $4,596. That’s an increase of $1,991, or $166 per month, just for a couple of infractions!

Types of discounts on New Jersey car insurance

Insurance companies that sell the cheapest car insurance for teenagers in New Jersey may provide discounts that could reduce prices by 30% or more if you meet certain criteria. A few of the larger companies and a selection of discounts are outlined below.

The information below illustrates the difference between insurance costs with and without discounts applied. The data is based on a female driver, no claims or driving citations, New Jersey state minimum liability limits, comp and collision included, and $500 deductibles. The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with passive restraint, continuous coverage, paperless filing, anti-theft, good student, and paid-in-full discounts applied. When discounts are factored in, the average amount saved each year on insurance for teenagers is 16% or $325.

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Which major car insurance company is best?

When researching car insurance for teen drivers in New Jersey, four good companies to start with are State Farm, Progressive, Geico, and Allstate. If you put them all together, they insure about 50% of all car insurance policies written. All offer liability and physical damage insurance, but each one has different optional coverages and features that may steer you one way or another. The data below compares and contrasts some of the different options and features you can expect with each one.