The words “low-priced” and “auto insurance” really shouldn’t be used together, in particular when trying to find the best insurance rates for a learners permit. Because it’s not cheap, let’s start the ball rolling by going over a few of the factors the can have a considerable influence on insurance rates, and find a way to lower the price of the next policy you buy.
The type of vehicle you are buying coverage for is a significant factor when looking for the cheapest car insurance for a learners permit. Vehicles with average performance, a great safety record, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models. The data below ranks coverage premiums for a handful of the cheaper automobiles to insure in New Jersey.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$7,916|
|Ford Escape Limited 4WD||$8,476|
|Honda Accord EX-L 4-Dr Sedan||$8,486|
|Toyota Tacoma 4WD||$8,904|
|Chevrolet Impala LS||$9,314|
|Honda Odyssey EX||$9,320|
|Jeep Grand Cherokee Laredo 2WD||$9,389|
|Dodge Grand Caravan Hero||$9,394|
|GMC Sierra SL Extended Cab 2WD||$9,389|
|Toyota RAV4 2WD||$9,398|
|Chevrolet Equinox LT AWD||$9,389|
|Chevrolet Silverado LS Extended Cab 4WD||$9,398|
|Chevrolet Malibu LS||$9,389|
|Toyota Camry LE||$9,398|
|Ford Explorer Eddie Bauer AWD||$9,464|
|Ford F-150 XLT Crew Cab 4WD||$9,469|
|Hyundai Elantra Blue 4-Dr Sedan||$9,799|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$9,862|
|Ford Edge Sport AWD||$9,874|
|Toyota Corolla LE||$9,880|
|Nissan Altima 3.5 SR 4-Dr Sedan||$9,949|
|Volkswagen Jetta SEL 4-Dr Sedan||$9,956|
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Prices above based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific Newark, NJ garaging location which can change coverage rates noticeably.
Based on these rates, you can assume that makes and models like the Honda CR-V, Ford Escape, and Honda Accord are most likely to be a few of the less-costly vehicles to insure for new drivers. The cost of auto insurance will tend to be more expensive because there is more risk for a learners permit, but in general those specific models will probably have the cheapest auto insurance rates compared to other types of vehicles.
For new drivers, one of the more important things that determine the annual cost of car insurance is where you normally keep your vehicle. Regions with larger populations or more claims will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.
The next table shows the most expensive cities in New Jersey for a learners permit in which to purchase auto insurance. Newark makes the list at #1 with the annual price of $2,598 for the average insurance policy, which is approximately $217 monthly.
|4||West New York||$2,431|
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Price information shown is approximated as vehicle location can modify coverage prices substantially.
Determining which companies have the most affordable car insurance rates for a learners permit requires a little more sweat in order to find the best policy. Every insurance company has a proprietary method for determining prices, so to begin we’ll rank the car insurance companies that tend to have lower prices in Newark, NJ.
We do need to point out that Newark car insurance rates are impacted by many things which can substantially decrease or increase your annual premium. Simply improving your credit, having a teen driver, or having an accident may cause policy rate changes that can cause some rates to be more affordable than others.
Find Cheaper Car Insurance in New Jersey
|Rank||Company||Cost Per Year|
|3||New Jersey Manufacturers||$1,310|
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21st Century has some of the lowest car insurance rates in Newark at around $1,100 a year. This is $752 less than the average price paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the cheaper Newark, NJ auto insurance companies.
As shown above, if you have coverage with Travelers and switched to 21st Century, you may realize an annual premium reduction of roughly $91. Policyholders with New Jersey Manufacturers could save as much as $210 a year, and Penn National insureds might realize rate reductions of up to $238 a year.
Be aware that those policy prices are averages across all insureds and vehicles and and are not figured with an exact vehicle garaging location for a learners permit. So the auto insurance company that can offer you the lowest price may not even be in the top 19 companies in the list above. That affirms the importance of why you need to get rate quotes from many companies using your own driver information and specific vehicle type.
Cost difference between full coverage and liability
Paying a lower price for car insurance is important to the majority of people, and an easy way to pay less for insurance for a learners permit is to not buy comprehensive and collision coverage. The diagram below shows the comparison of annual premium costs with full physical damage coverage and with liability coverage only. The price estimates are based on no driving violations, no at-fault accidents, $1,000 deductibles, single status, and no discounts are taken into consideration.
If all age groups are averaged, physical damage insurance costs $2,681 per year more than carrying just liability coverage. At some point, almost every driver questions if physical damage coverage is worth the money. There isn’t a steadfast formula for dropping physical damage coverage on your policy, but there is a general convention. If the yearly cost for physical damage coverage is more than about 10% of any settlement you would receive from your insurance company, then it may be the right time to buy liability only.
What is the best car insurance company in Newark?
Insuring your vehicle with a good quality car insurance provider can be difficult considering how many different insurance companies sell coverage in New Jersey. The ranking data below could help you pick which insurers you want to consider comparing price quotes from. These ratings include companies that insure vehicles nationwide, so smaller companies that only insure vehicles in New Jersey are not factored into this list.
Top 10 Major Auto Insurance Companies in Newark Ranked by A.M. Best Rating
- GEICO – A++
- Travelers – A++
- State Farm – A++
- USAA – A++
- Allstate – A+
- Nationwide – A+
- Mercury Insurance – A+
- Progressive – A+
- The Hartford – A+
- Esurance – A+
Top 10 Major Auto Insurance Companies in Newark Ranked by Customer Service
- Mercury Insurance
- The Hartford
- American Family
- State Farm
- Farmers Insurance
Discount Newark car insurance rates
Auto insurance companies that offer coverage for a learners permit may have special discounts that could reduce prices by as much as 35% if you meet specific eligibility requirements. A few popular companies and the discounts they provide are:
- State Farm has discounts for Drive Safe & Save, good student, multiple autos, safe vehicle, driver’s education, multiple policy, and defensive driving training.
- Nationwide discounts include Farm Bureau membership, family plan, multi-policy, good student, defensive driving, and accident-free.
- GEICO may offer discounts for five-year accident-free, seat belt use, federal employee, military active duty, daytime running lights, and emergency military deployment.
- AAA offers discounts including AAA membership discount, anti-theft, good driver, good student, multi-car, multi-policy, and pay-in-full.
- 21st Century has savings for theft prevention, anti-lock brakes, defensive driver, teen driver, and automatic seat belts.
- The Hartford offers discounts for driver training, anti-theft, good student, bundle, vehicle fuel type, air bag, and defensive driver.
The information below compares insurance costs with and without discounts applied to the policy premium. Data assumes a male driver, no violations or claims, New Jersey state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with continuous coverage, passive restraint, good student, vehicle safety, paid-in-full, and anti-theft discounts applied. With discounts applied, theaverage amount saved on car insurance for a learners permit is 28% or $1,240.