Cheap Auto Insurance Quotes for a School Permit in New Jersey

One of the key components that influence the annual cost of car insurance is the neighborhood you call home in New Jersey. Larger areas like East Orange, Elizabeth, and West New York tend to have higher auto insurance costs, whereas cities that are not as densely populated receive better rates.

The next table shows the most expensive cities in New Jersey for a school permit to buy car insurance in.

Prices are estimated as the vehicle garaging location can raise or lower auto insurance rates greatly.

The make and model of vehicle you are insuring is one of the primary factors when comparing quotes for affordable car insurance for a school permit. Vehicles with lots of horsepower, poor safety ratings, or an increased likelihood of liability claims will cost more to insure than safer, lower-performance models.

The next table outlines coverage rates for a handful of the cheapest vehicles to insure.

Table data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in vehicle location which can influence premiums considerably.

Looking at the data, we can assume that models like the Ford Escape, Honda CR-V, Honda Accord, and Hyundai Elantra are most likely going to be a few of the less-costly vehicles to insure for a learners permit. The cost of auto insurance will be more costly just because there is a higher risk for a school permit, but generally speaking those specific models will have the cheapest auto insurance rates that you are likely to find.

Liability-only versus full coverage

Finding cheap auto insurance for a school permit in New Jersey is probably important to the majority of vehicle owners, and one way to pay less for insurance is to not insure for full coverage. The information below visualizes the comparison of yearly insurance costs with full phyical damage coverage and with liability coverage only. The data assumes no claims or driving violations, $1,000 deductibles, single status, and no additional discounts are factored in.

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Averaged out for all age groups, comp and collision coverage costs an extra $2,176 per year over liability only. At some point, almost every driver questions if you should buy full coverage at all. There is no clear-cut rule that works best for making the decision to drop physical damage coverage on your policy, but there is a broad guideline. If the annual cost of having full coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it may be the right time to buy liability only.

There are a few situations where dropping physical damage coverage is not a good plan. If you haven’t paid off your loan, you must maintain physical damage coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should not eliminate full coverage.

The illustration below highlights how deductible choice can change insurance prices when quoting cheap insurance for a school permit. The premiums are based on a single male driver, full physical damage coverage, and no discounts are factored in.

google.charts.setOnLoadCallback(drawDfdqcibChart);function drawDfdqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘$100 Deductible’,’$250 Deductible’,’$500 Deductible’,’$1,000 Deductible’],[‘Age 20’, 4709,4295,3841,3413],[‘Age 30’, 2445,2251,2025,1805],[‘Age 40’, 2419,2213,1975,1749],[‘Age 50’, 2199,2015,1803,1605],[‘Age 60’, 2123,1945,1747,1555],[‘Age 70’, 2577,2373,2149,1935]]);var options = {title: ‘Effect of Higher Deductibles on Insurance Rates in New Jersey’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 700,’chartArea’: {left:100,top:50,’width’: ‘100%’,’height’: ‘80%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},bar: {groupWidth: ‘80%’},colors: [‘#6791b9′,’#75a8d8′,’#98bee2′,’#bad4ec’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);formatter.format(data,3);formatter.format(data,4);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdfd’));chart.draw(data, options);}

A 50-year-old driver could lower rates by $396 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $594 by using a $1,000 deductible. Younger drivers, like the 20-year-old category, can cut as much as $1,296 or more just by choosing higher deductibles.

When insureds make the decision to increase the deductibles on their policy, it is necessary to have enough spare savings to be able to cover the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

How to find cheaper insurance for a school permit

The list below details some thrifty suggestions that can help you locate more affordable coverage.

• Discounts for being claim-free can be substantial
• Drop full coverage on older vehicles
• Increase physical damage deductibles
• Speeding tickets and other violations increase rates
• Prevent rate increases by staying accident-free
• Shop around for lower rates once a year

That final tip is incredibly valuable, as we noted in the article above. Rates in New Jersey change frequently, so don’t hesitate to buy from a new company if you find a better deal. Having brand loyalty is commendable, but is isn’t recommended if that loyalty ends up costing hundreds every year. It only take a few minutes to shop around and find cheaper insurance for a school permit.

Cheapest insurance quotes for a learners permit

Drivers have many ways to find affordable insurance in New Jersey, but the most frequently used ways are from an independent agent, an exlusive agent like Allstate or Auto-Owners, or direct online or over the phone from a company like Geico or Progressive. Each way has the same basic process, but insurance shoppers should know the differences in how they price policies.

Independent agents write business for many companies and can do rate comparisons with every one. These types of agencies can sell policies from many different companies and can give you more rates, which may provide you with better odds of saving money. If prices rise, it’s simple to move the policy and you don’t have to do anything.

An agent who is captive is only able to quote rates from one insurance company like an Auto-Owners or Allstate agent. These agents are not able to compare rates from other companies, so drivers will want to get other quotes as well.

When you buy insurance direct, you forego local agents and buy direct online or over the phone from a company like Geico or Progressive. Shopping for insurance direct may be good for people who do not have a lot of assets and know more than average about what insurance covers and what it doesn’t.

So comparing independent agents, exclusive agents, and direct, which one works best to buy cheap auto insurance for a school permit in New Jersey? Most people assume that shopping direct saves money since there is no middleman, but unfortunately, that is not always true. And we’d like to say going through an independent agent guarantees the cheapest rates due to having more companies to select from, but again, it’s not a sure thing. In a lot of cases, the exclusive agents have price quotes that cannot be beaten by either independent or direct companies.

Since insurance rates vary so much, really the best method to get the lowest rate is to get quotes and compare. To find the best rates, be sure to get quotes from all three to give yourself enough choices. For a list of companies with online discounts, click here to view.