Cheap Car Insurance for Drivers Under 21 in New Jersey

Cheap Car Insurance for Drivers Under 21 in New Jersey

It’s hard to avoid all the catchy commercials from car insurance companies like Progressive and The General that guarantee the cheapest price. So you should just select the one with the best jingle, right?

It’s just not that easy, however, as there are a whole bunch of unknowns like the area you live in, if you need full coverage or just liability, what your desired deductibles are, and if you are a man or woman. The information below will cover the best ways to avoid overpriced car insurance and will hopefully give you a good start in finding the cheapest insurance.

Finding dependable, reasonably-priced insurance is easier said than done, and determining which insurers offer the cheapest car insurance rates for drivers under 21 may require even more diligence. Policy prices will most likely be much higher than the average policy in New Jersey due to the potentially higher risk associated with selling insurance for minors, but competitively-priced insurance should be obtainable with a little diligence. Each company uses slightly different criteria for setting rates, so let’s take a look at the most competitive car insurance companies in New Jersey.

It’s a good idea to be aware that New Jersey car insurance rates are impacted by many factors that will increase or decrease the policy premium. Price variation is why it is important to perform an extensive rate comparison to find affordable insurance rates for drivers under 21. Insurance rates are calculated by many different factors and can change without notice, so the most affordable company the last time you shopped around may now be wasting a lot of money.

Cheap Insurance Rates for Minors

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Rankings for the cheapest car insurance companies in New Jersey
Rank Company Cost Per Year
1 21st Century $1,078
2 Travelers $1,180
3 New Jersey Manufacturers $1,310
4 Palisades $1,341
5 Penn National $1,379
6 The Hartford $1,476
7 California Casualty $1,495
8 Allstate $1,538
9 USAA $1,585
10 Mercury $1,651
11 Amica $1,832
12 Esurance $1,913
13 Progressive $1,919
14 MetLife $1,991
15 GEICO $2,196
16 State Farm $2,226
17 Encompass $2,374
18 Liberty Mutual $2,978
19 Hanover $4,027
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21st Century may have some of the lowest car insurance rates in New Jersey at around $1,078 annually. Travelers, New Jersey Manufacturers, Palisades, and Penn National are also some of the cheapest New Jersey auto insurance companies.

In the rate table above, if you currently buy coverage from New Jersey Manufacturers and switched to 21st Century, you might see an annual savings of upwards of $232. Customers with Palisades may save as much as $263 a year, and Penn National policyholders might lower prices by $301 a year.

Understand that those estimates are averages for all types of drivers and the different vehicles they drive and do not take into consideration a price increase for drivers under 21. So the insurer that can offer you the lowest price may not even be featured in the list above. That is why you need to get quotes using your own driver information and specific vehicle type.

When buying auto insurance for minors, one of the key considerations that auto insurance companies use when figuring car insurance rates is where your car is garaged. Areas that are more densely populated like East Orange, Paterson, and West New York will most likely have higher rates, whereas areas that are not as densely populated generally have lower rates.

The information below sorts the most costly cities in New Jersey for drivers under 21 to purchase car insurance in.

How much does car insurance cost in New Jersey?
Rank City Average Per Year
1 East Orange $2,571
2 Newark $2,522
3 Paterson $2,448
4 Elizabeth $2,446
5 West New York $2,431
6 Union City $2,426
7 Kearny $2,358
8 Clifton $2,345
9 Passaic $2,301
10 Hoboken $2,283
11 Jersey City $2,276
12 Bayonne $2,274
13 Camden $2,221
14 Linden $2,163
15 Perth Amboy $2,144
16 Fort Lee $2,123
17 Atlantic City $2,106
18 Hackensack $1,980
19 Sayreville $1,939
20 New Brunswick $1,932
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Table data uses comparative as the specific geographic location can influence prices substantially.

New Jersey car insurance companies ranked

Finding a good quality insurance company is hard considering how many different companies insure vehicles in New Jersey. The company information shown below can help you analyze which providers to look at purchasing from. The ratings below only include the companies with a significant amount of written premium nationwide, so smaller companies that only insure vehicles in New Jersey are not factored into the list.

Top Car Insurance Companies in New Jersey
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Mercury Insurance 87 96 100 87% A+ 93.4
The Hartford 88 96 91 93% A+ 92.6
Progressive 84 94 99 90% A+ 92.4
Travelers 84 93 100 87% A++ 92.3
State Farm 84 93 95 87% A++ 91
Farmers Insurance 87 92 90 85% A 90.6
Safeco Insurance 85 91 87 86% A 88.4
USAA 71 93 98 87% A++ 88
GEICO 73 93 95 85% A++ 87.1
21st Century 85 85 91 89% A 86.9
Liberty Mutual 72 91 97 83% A 86.4
AAA Insurance 85 85 88 86% A 85.8
Nationwide 71 90 93 83% A+ 84.9
Allstate 69 92 92 83% A+ 84.4
American Family 77 96 80 85% A 83.8
Esurance 70 80 89 77% A+ 79.2
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Data Source: Insure.com Best Car Insurance Companies

Discounts on cheap car insurance for drivers under 21 in New Jersey

<img class="shadow floatright" src="http://www.quoteclickinsure.com/blog/wp-content/uploads/car-insurance-drivers-under-21-nj.jpg" alt="Cheaper New Jersey car insurance for minors” />Insurers that provide coverage for drivers under 21 may also give you special discounts that could potentially reduce rates by as much as 35% or more if you meet eligibility requirements. Larger car insurance companies and some of their more popular discounts can be read below.

Car Insurance Discounts by Company
Discount State Farm Progressive Allstate Geico Farmers Liberty Mutual Nationwide
Bundled policies Yes Yes Yes Yes Yes Yes Yes
Multiple vehicles Yes Yes No Yes Yes Yes Yes
Anti-theft Yes Yes Yes Yes Yes Yes Yes
Anti-lock brakes Yes No Yes Yes No Yes No
Air bags Yes No Yes Yes Yes Yes Yes
Daytime running lights Yes No No Yes Yes No No
New vehicle Yes No Yes No Yes No Yes
Safe driver Yes Yes Yes Yes Yes No Yes
Defensive driver training Yes Yes Yes Yes Yes No Yes
Low mileage Yes Yes Yes No No Yes Yes
Military Yes Yes No Yes Yes No No
Employment No No No Yes Yes Yes Yes
Full payment No Yes Yes Yes Yes Yes Yes
Paperless billing No Yes Yes Yes Yes Yes Yes
Customer loyalty Yes Yes No No Yes No Yes
Good student Yes Yes Yes Yes Yes Yes Yes
Student away from home Yes Yes Yes No Yes Yes Yes
Own your home No Yes No No Yes No No
Seat belt use No No No Yes No No No
Get quote online No Yes No No No No No
Teenage driver No Yes No No No Yes No
Federal employee No No No Yes No No No
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The chart below shows the difference between insurance rates with and without discounts. The information is based on a female driver, no accidents or driving violations, New Jersey state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.

The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with vehicle safety, anti-theft, continuous coverage, good student, paid-in-full, and passive restraint discounts applied. In this example, the average savings per year on car insurance for drivers under 21 is 13% or $218.

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State Farm vs Geico vs Progressive vs Allstate

If you are shopping around for car insurance, the first places to look would be State Farm, Geico, Progressive, and Allstate. Combined they make up almost half of all auto insurance written. The data below breaks down some of the different features offered by each company.

Comparison of Top U.S. Car Insurance Companies
State Farm Geico Progressive Allstate
Number of Discounts 3rd 2nd 4th 1st
Overall Satisfaction 4th 1st 3rd 2nd
Handling of Claims 2nd 3rd 4th 1st
Price Ranking 2nd 1st 3rd 4th
U.S. market share 18.3% 11.4% 8.8% 10%
Coverage for ridesharing Yes Yes Yes Yes
Accident forgiveness No Yes Yes Yes
Roadside service Yes Yes Yes Yes
New car replacement coverage No No No Yes
Rating based on usage Yes No Yes Yes
Mechanical breakdown insurance No Yes Yes No
Offered in New Jersey Yes Yes Yes Yes
Where you can buy State Farm-only agents Online or through a Geico agent Buy online or from an independent agent Only buy from Allstate agents
Number of agents 18,000+ 150+ 30,000+ 11,000+
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