The vehicle model that is being insured is probably the largest consideration that determines if you can find low-priced coverage for first-time drivers. Vehicles with high performance engines, a lack of modern safety features, or a track record of large liability claims will cost significantly more to insure than safer models.
The data below illustrates car insurance costs for a handful of the most economical automobiles to buy insurance for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $6,657 |
| Honda CR-V LX 2WD | $6,662 |
| Ford Escape Limited 2WD | $6,726 |
| Toyota Prius | $7,230 |
| Chevrolet Silverado LS Regular Cab 4WD | $7,395 |
| Ford Explorer XLT 4WD | $7,465 |
| Jeep Wrangler Sahara 4WD 2-Dr | $7,471 |
| Ford F-150 STX Super Cab 4WD | $7,534 |
| Chevrolet Impala LS | $7,829 |
| Chevrolet Malibu Hybrid | $7,899 |
| Toyota RAV4 2WD | $7,909 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $7,968 |
| Dodge Grand Caravan Crew | $7,976 |
| Ford Edge Sport 2WD | $8,336 |
| Toyota Corolla XLE | $8,342 |
| Toyota Camry SE | $8,336 |
| Hyundai Elantra SE 4-Dr Sedan | $8,344 |
| Honda Odyssey EX-L | $8,336 |
| Volkswagen Jetta SEL 4-Dr Sedan | $8,406 |
| Chevrolet Equinox LTZ AWD | $8,414 |
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Data rating is based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in vehicle garaging location which can increase or decrease coverage rates substantially.
Based upon these rates, we can expect cars like the Honda Accord, Honda CR-V, and Ford Escape will definitely be the most economical vehicles to insure for new drivers. The cost of auto insurance will tend to be more expensive anyway because there is a higher risk for first-time drivers, but overall those particular models will tend to have the lowest insurance prices compared to other types of vehicles.
For new drivers, one of the more important criteria that help determine the amount you pay for auto insurance is your address in Newark. Cities with more crime and/or more people tend to have more expensive auto insurance rates, whereas areas with less congestion benefit from lower rates.
The following table rates the priciest cities in New Jersey for first-time drivers to purchase auto insurance in. Newark shows up at #1 with the yearly price of $2,522 on average, which is around $210 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Newark | $2,522 |
| 2 | East Orange | $2,495 |
| 3 | Paterson | $2,472 |
| 4 | Elizabeth | $2,470 |
| 5 | West New York | $2,431 |
| 6 | Union City | $2,378 |
| 7 | Hoboken | $2,353 |
| 8 | Kearny | $2,335 |
| 9 | Passaic | $2,325 |
| 10 | Jersey City | $2,322 |
| 11 | Clifton | $2,276 |
| 12 | Bayonne | $2,184 |
| 13 | Camden | $2,155 |
| 14 | Perth Amboy | $2,144 |
| 15 | Linden | $2,099 |
| 16 | Fort Lee | $2,081 |
| 17 | Atlantic City | $2,044 |
| 18 | Hackensack | $1,980 |
| 19 | Plainfield | $1,956 |
| 20 | New Brunswick | $1,932 |
| 21 | Sayreville | $1,920 |
| 22 | Trenton | $1,896 |
| 23 | Vineland | $1,860 |
| 24 | Lakewood | $1,819 |
| 25 | Toms River | $1,674 |
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Annual rates are comparative as vehicle location can modify prices significantly.
The example below highlights how deductible selection can affect insurance premiums when researching cheap insurance for first-time drivers. Data assumes a single female driver, full coverage, and no additional discounts are factored in.
As shown above, a 50-year-old driver could lower their policy premium by $516 a year by switching from a $100 deductible to a $500 deductible, or save $774 by selecting a $1,000 deductible. Even younger drivers, such as the 20-year-old chart data, could potentially save up to $1,322 every year by selecting a higher deductible.
When raising deductibles, it is a good idea to have plenty of discretionary funds to be able to pay the extra out-of-pocket expense, which deters some people from using high deductibles.
Get discounts on Newark insurance rates
Car insurance companies that provide policies for first-time drivers could also offer special discounts that can lower rates by as much as 35% if you meet the requirements. A list of auto insurance companies and the discounts they provide are detailed below.
- State Farm policyholders can earn discounts including multiple policy, multiple autos, passive restraint, accident-free, Drive Safe & Save, student away at school, and defensive driving training.
- American Family discounts include TimeAway discount, bundled insurance, air bags, Steer into Savings, early bird, defensive driver, and good driver.
- AAA may have discounts that include multi-car, pay-in-full, good driver, anti-theft, AAA membership discount, and education and occupation.
- GEICO may offer discounts for anti-theft, good student, air bags, federal employee, anti-lock brakes, and emergency military deployment.
- Mercury Insurance has discounts for ease of repair, type of vehicle, multi-car, professional/association, good student, and location of vehicle.
- Farmers Insurance offers premium reductions for early shopping, good student, distant student, alternative fuel, and multi-car.
- Progressive may include discounts for multi-vehicle, continuous coverage, online signing, homeowner, online quote discount, and multi-policy.
The diagram below visualizes the comparison of yearly insurance costs with and without discounts applied to the policy premium. The premium estimates are based on a female driver, no claims or driving citations, New Jersey state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with paperless filing, anti-theft, good student, paid-in-full, passive restraint, and continuous coverage discounts applied. In this example, the average amount saved each year on auto insurance for first-time drivers is 28% or $754.
Rate comparison of full coverage and liability-only
Lowering the price of auto insurance should be important to most vehicle owners, and one of the best ways to buy cheap insurance for first-time drivers is to buy liability only. The example below visualizes the comparison of insurance prices with and without full coverage. The price estimates are based on no claims or driving citations, $1,000 deductibles, drivers are not married, and no discounts are applied to the premium.
As an overall average, physical damage insurance costs $2,681 per year more than just buying liability only. That proposes the question if it’s worth it to buy full coverage. There is no set rule of when to stop paying for physical damage coverage on your policy, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is more than around 10% of replacement cost minus your deductible, then it might be time to consider dropping full coverage.
There are some cases where removing full coverage is not in your best interest. If you still owe money on your vehicle, you have to carry full coverage in order to prevent your loan from defaulting. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should not opt for liability only.
The agents listed below can probably help you make a decision which insurance coverage you need, as some people prefer to get help from a professional when comparing insurance rates for new drivers. It can be challenging to find the cheapest rate yourself, so professional agents can give you peace of mind knowing your policy gives you decent coverage if you have a claim.
To locate a Newark car insurance agency in your neighborhood, click the button after the list or click here to compare price quotes now.
Knight Insurance Consulting Group
454 Washington St – Newark, NJ 07102 – (973) 704-1024
Astor C Wilson Insurance Agency
88 Pacific St – Newark, NJ 07105 – (973) 491-0002
Costa Do Sol Agency
650 Newark Ave – Elizabeth, NJ 07208 – (908) 352-3623
Arabo Insurance Group Inc
675 Bergen St – Newark, NJ 07108 – (973) 391-9595
ESTIR Inc
326 Bloomfield Ave – Newark, NJ 07107 – (973) 481-5300
View more Newark, NJ insurance agents
How to find budget-friendly insurance for first-time drivers
The list below summarizes some of the recommended money-saving ideas that can help you quote low-cost coverage.
- Prevent price hikes by avoiding at-fault accidents
- Speeding tickets and other violations increase rates
- Safe vehicles generally have lower rates
- Pay less by remaining claim-free
- Bundle home and auto and earn a discount
- Look for cheaper rates once a year by shopping around
The last tip is notably important, as was emphasized in this write-up. Auto insurance rates in Newark can change considerably based on profitability, so don’t be afraid to buy from a different company if a cheaper rate is available. Having brand loyalty is commendable, but is isn’t recommended if that inflexibility results in costing you a small fortune. If you have a few minutes, compare rates to find cheaper insurance for first-time drivers.