Cheapest Auto Insurance for Unemployed Drivers in New Jersey

The words “cheap” and “auto insurance” really shouldn’t be used together, in particular when you are looking for the cheapest car insurance for unemployed drivers. In an attempt to save some money, let’s learn about a few of the things the can have a considerable influence on auto insurance rates, and find out if you can take the sting out of the next policy you buy.

Comparing quotes for cheap auto insurance is not easy, and finding out which company has the lowest-priced insurance rates for unemployed drivers may require a little more work. Every insurance company has a proprietary formula to set premium rates, so first we will examine the insurance companies with the most affordable rates in New Jersey.

It’s important to understand that New Jersey insurance rates are influenced by many factors that may substantially change the cost of coverage. Things like getting older, having a teen driver, or getting a couple of tickets can trigger changes in premium that can make some companies more affordable than others.

Best Car Insurance Prices for Job Seekers

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21st Century normally has some of the lowest car insurance rates in New Jersey at around $1,100 each year. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the lowest-priced New Jersey car insurance companies.

In this example, if you are currently insured with Penn National and switched to 21st Century, you could see an annual savings of in the neighborhood of $238. New Jersey drivers with Palisades could save as much as $241 a year, and California Casualty policyholders might lower prices by $337 a year.

Understand that those rates are averaged for all insureds and vehicles and do not take into consideration a rate decrease for unemployed drivers. So the car insurance company that can offer you the best rate may not even be featured in the list of companies shown earlier. That emphasizes why you need to compare prices as often as possible using your own individual information.

The make and model of vehicle on the policy is one of the biggest factors when shopping around for the cheapest car insurance for unemployed drivers in New Jersey. Vehicles with reasonable performance levels, excellent safety ratings, or a positive history of liability claims will cost substantially less to insure than adrenaline junky models.

The table below ranks coverage rates for the cheaper vehicles to insure in New Jersey.

Price data assumes married male driver age 40, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, claim-free, safe-driver, multi-policy, and multi-vehicle. Prices do not factor in your specific New Jersey location which can alter insurance rates considerably.

Based on these rates, cars like the Honda Accord, Honda CR-V, and Toyota Prius should be a few of the cheaper vehicles to insure for the unemployed.

Cautious drivers save money

The easiest method to find the cheapest car insurance for unemployed drivers in New Jersey is to drive attentively and avoid traffic citations and accidents. The diagram below shows how speeding tickets and accident claims can impact insurance costs for each age group. The data assumes a married male driver, full coverage, $100 deductibles, and no policy discounts are applied.

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In the previous example, the average cost of car insurance in New Jersey per year with a clean driving record and no accidents is $2,346. Receive one speeding ticket and the average cost rises to $2,691, an increase of $345 each year. Then add one accident along with the one speeding ticket and the 12-month cost of insurance for unemployed drivers jumps again to an average of $3,670. That’s an increase of $1,324, or $110 per month, just for not paying attention while driving!

Progressive, Geico, Allstate, and State Farm compared

When comparing auto insurance, four companies to take a look at are Progressive, Geico, Allstate, and State Farm. When added together, they insure 48.5% of all car insurance policies written. All four offer physical damage and liability coverage, but each has a distinct set of features and optional coverages that may influence your buying decision. The following table breaks down pricing and service ratings, plus some optional coverages that may be available in New Jersey.

How to find budget-friendly insurance for unemployed drivers

It is possible to find better rates, and here are some of the better penny-pinching ideas that can help drivers find cheap car insurance.

• On older vehicles, drop full coverage
• Better credit rating means better rates
• Buying car and homeowners insurance together can save money
• Avoid preventable accidents
• Choose a safer vehicle and pay lower rates
• Keep rates low by shopping around frequently

The last tip in the list is extraordinarily valuable, as we pointed out in this article. Insurance prices in New Jersey vary considerably, so don’t be unwilling to change to a new company if you can find a cheaper rate.

Being loyal to a particular company is commendable, but we do not recommend it if your bullheadedness ends up costing you money that could be used for better things. In just a couple of minutes you could compare prices to find cheaper insurance for unemployed drivers.

Who has the cheapest insurance quotes for the unemployed?

Drivers have a lot of different ways to shop for and buy insurance in New Jersey, but the three most common ways are using an exclusive agency such as State Farm or Liberty Mutual, an independent or non-exclusive agent, or from a direct company like Geico or Progressive. All three ways are similar, but they are slightly different in how they give price quotes.

Independent agencies write business for many companies and can quote your policy with every one. These types of agents are able to provide multiple price quotes, which may give you improved chances of finding a lower rate. If the agent locates a cheaper price, they simply move your policy to a different company without you having to go to a different agency.

An exclusive ageny is only able to quote your policy with a single insurance company, two examples being Liberty Mutual and Allstate agents. These agents usually cannot provide multiple price quotes, so drivers will want to get other quotes as well.

The last way is buying direct, which means you do not use local agents and buy buying direct from a company like Progressive or Geico. This insurance option may be preferred by consumers who do not have complex finances and have some degree of understanding of what coverages they need.

So which one of the three ways works best to buy the cheapest car insurance for unemployed drivers in New Jersey? The majority of insurance shoppers assume that buying direct results in the cheapest rates since there isn’t an agent involved, but that is not always the case. We could also assume that using an independent agent guarantees the cheapest rates since they have access to many companies, but that assumption is also not accurate. In many circumstances, the exclusive agents have very competitive rates well below independent agents AND direct companies.

Since insurance rates vary so much, the guaranteed way to buy the cheapest coverage is to compare lots of quotes. Be sure to get rate quotes from independent agents, exclusive agents, and direct companies to get an idea of which is cheapest. For a list of companies offering online discounts in New Jersey, click here to view.