Getting your driver’s licence and turning 16 at the same time is likely to be one of the most exciting milestones that young adults achieve.
It may be tough for you to find the most appropriate and cost-effective auto insurance policy in the state of New Jersey for your newly licenced teen driver. It’s nowhere near as exciting.
Teenagers and young people under the age of 25 often have some of the highest insurance costs. When compared to other drivers, this is especially true. This is due to the fact that insurance firms base their rates on statistics, which demonstrate that younger drivers with less experience are more likely to be involved in a car accident than their more senior colleagues who also drive. As a result, insurance firms charge greater prices to younger drivers.
In the following paragraphs, we will discuss the different options available to new drivers in the Garden State when it comes to the types of coverage available for their vehicle insurance. Furthermore, we will go over the minimum coverage requirements imposed by the state of New Jersey in order for drivers to receive a licence to operate a motor vehicle in the state.
Car Insurance for New Drivers New Jersey
When looking for the best deal on auto insurance for new drivers, it is in your best interest to compare many insurance policies and consider a number of variables.
A variety of factors can be compared, including but not limited to:
- Premiums on average
- Young drivers are eligible for cost-cutting measures on driver education.
- Excellent student discounts
- Savings are attainable with the completion of driver’s education.
- Accident forgiveness programmes
The premiums that motorists with differing degrees of driving experience must pay for automobile insurance are determined by a number of distinct criteria. These considerations can be summarised as follows:
- A description of the vehicle’s make and model.
- The degree of car safety coverage that a driver chooses to receive (minimum vs comprehensive)
The national average yearly insurance price for 16- and 17-year-olds who remain on their parents’ policy ranges from $2,000 to nearly $2,800, depending on the young person’s gender and state of residence. (Men are usually subject to higher premiums).
When an adolescent driver reaches the age of 18, he or she is legally permitted to obtain their own individual insurance coverage; nevertheless, it is typically more cost-effective for them to continue on their parents’ policy as long as they live in the same household as their parents. This is true as long as the teen driver lives in the same household as their parents.
Let’s take a look at three different insurance firms in New Jersey that offer policies that are suitable not just for newly licenced young drivers, but also for any licenced motorist in the state.
Geico is well-known for providing a wide range of discounts to their customers, and their rates for teen drivers are among the most competitive in the industry. Geico is also well-known for its excellent customer service. Check out the following to get an estimate of how much Geico will charge you for full coverage on a yearly basis if you are between the ages of 16 and 18:
- When a person is 16 years old, the policy premium is $1,897.
- The monthly cost for a 17-year-old insured is $1,675. (for parents).
- Age 18 – $3,891
When it comes to the specific discounts offered by Geico, parents who insure several vehicles can earn a discount of up to 25%, while children with a grade point average of B or higher may be eligible for a discount of up to 15%.
Geico achieved an 841 out of 1000 score from J.D. Power, the best standard in the corporate sector for acquiring consumer insights.
Progressive is well-known for offering excellent customer service, and the organisation provides assistance at all hours of the day and night. Furthermore, the organisation provides competitively cost auto insurance packages for young drivers.
Even though it is slightly more than the average yearly premium charged by Geico, the average annual premium charged by Progressive for complete coverage of 16-18 year olds is still significantly lower than the national average:
- When the policyholder turns 16, their monthly premium will increase to $1,955.
- The annual premium for a 17-year-old insured is $1,961 dollars.
- Age 18 – $6,022
This insurance company provides a one-of-a-kind tool called Snapshot, which can monitor a driver’s behaviour using either a plug-in device or an app on a mobile device. Snapshot can monitor a driver’s speed, braking, and acceleration. This not only makes it easier for parents to monitor their teen children’s driving behaviour, but it also has the potential to save families up to $145 per year on vehicle insurance costs.
Progressive had a customer satisfaction score of 828 out of a possible 1000 points from J.D. Power.
State Farm Insurance
State Farm is one of the most commonly available personal auto insurers in the country, in addition to offering low-cost car insurance in New Jersey. As a result, the company provides excellent discounts to new drivers.
Consider the following figures on the average annual premium charged by State Farm for comprehensive coverage for individuals aged 16 to 18:
- When the youngster turns 16, the premium on the parents’ policy will rise to $2,077.
- When the insured reaches the age of 17, the premium rises to $1,769 USD.
- Age 18 – $4,565
Steer Clear is a State Farm initiative that teaches young drivers how to build safe driving habits. As a result of this programme, you may be entitled for a 20% discount on your auto insurance rate. Furthermore, State Farm offers discounts to clients who maintain a particular grade point average and to drivers who have completed driving instruction.
J.D. Power awarded State Farm 855 points out of a possible 1000 on the customer satisfaction rating.
Minimum NJ Auto Insurance Requirements
Now that you have a better grasp of some of the top New Jersey auto insurance policies, let’s look at the basic standards that you must achieve regardless of which auto insurance provider you choose to work with. These requirements exist to guarantee that drivers are sufficiently protected.
According to study undertaken by the Insurance Institute for Highway Safety, New Jersey drivers are among the safest in the country. In 2018, there were only 6.3 deaths per 100,000 inhabitants in New Jersey that may be attributable to motor vehicle accidents (IIHS).
They in New Jersey who are responsible for their own transportation are required by law to maintain a specified level of liability coverage, which drivers can purchase as a basic or standard policy.
A policy will normally have the following elements:
- A minimum of $15,000 in bodily injury coverage is required for any one person per auto accident, or $30,000 per auto accident.
- Personal injury minimum of $15,000
- Minimum property damage of $5,000
Because basic coverage is substantially less comprehensive, you should only rely on it if you have no other option due to financial constraints. This is the only time it should be considered. This policy covers the following items:
- Physical harm must be compensated for at a minimum of $10,000 per person and per motor accident.
- For personal injury, a minimum of $15,000 is required per person per car crash.
- Keep in mind that statutory minimum coverage is only that: the bare minimum required by law.
When shopping for auto insurance in New Jersey, keep in mind how much money you may possibly save by paying a little higher monthly rate in return for more comprehensive coverage. This is something to keep in mind whether you are shopping for insurance for a new driver or an experienced driver.
Do Some Smart Shopping and Compare Quotes Online to Save Money on Auto Insurance
Finding vehicle insurance coverage that provides the maximum degree of protection at a price that is still within one’s financial means may be difficult for a new driver. Teens and drivers under the age of 25 have less experience, which contributes to higher rates, but there are insurance policies available that won’t break the bank if you need them.
If you are a new driver in the state of New Jersey looking for vehicle insurance, some of the firms you can pick from are Geico, State Farm, and Progressive. These are just a handful of the options you have.
When shopping for the greatest insurance, make sure to use tools like Online Auto Insurance to obtain the best offer.
You may quickly and easily compare a range of various estimates using our tools, which are also very simple to comprehend and use. With its assistance, you will be able to compile a list of your preferred insurance providers in a single day.
Comparison searching for auto insurance does not have to add to the stress of supervising a new driver; in fact, monitoring a new driver is difficult enough. In addition to the multiple options available on Online Auto Insurance, you should investigate the state of New Jersey’s new texting and driving legislation, which went into force today.