How Much Does Car Insurance Cost for 16 Year Olds in New Jersey?

For new drivers, one of the big things that control the price of your policy is where you keep your vehicle. Areas with increased crime or more people like East Orange, Paterson, and Elizabeth will most likely have higher rates, whereas more rural areas can boast about having cheaper rates.

The following table rates the priciest cities in New Jersey for 16 year olds in which to purchase auto insurance.

Rate information is comparative as specific New Jersey zip code can raise or lower coverage prices considerably.

The type of vehicle to be insured is probably the most important factor that determines the availablility of cheap car insurance for 16 year olds. Vehicles with limited speed and performance, an excellent safety record, or a low likelihood of having liability claims will cost significantly less to insure than higher performance models.

The next list presents insurance prices for a number of the cheaper vehicles to insure in New Jersey.

Data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific location which can modify price quotes considerably.

Based upon the rates shown, models like the Honda CR-V, Ford Escape, Honda Accord, Chevrolet Traverse, and Toyota Prius should be the cheapest vehicles to insure for new drivers. The cost of auto insurance will trend higher because there is more claim risk for 16 year olds, but overall those models will most likely have the cheapest car insurance rates possible.

The chart below highlights how deductible choice can affect insurance premiums when searching for cheap insurance for 16 year olds. The costs are based on a single female driver, comp and collision included, and no other discounts are factored in.

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The data above shows that a 50-year-old driver could cut expenses by $382 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $576 by changing to a $1,000 deductible. Younger drivers, like the 20-year-old category, have the ability to save as much as $966 each year by using a higher deductible. When using a larger deductible, it is important to have enough savings to allow you to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.

Who is cheaper: Allstate, Progressive, Geico, or State Farm?

If you’re looking for the cheapest car insurance for new drivers in New Jersey, four companies to consider are Allstate, Progressive, Geico, and State Farm. All four offer physical damage and liability coverage, but each has a different combination of discounts, features, and options that you can select from. The data below illustrates ratings for price, service, and claims, in additional to some of the optional coverages that may be available in your state.