Turning 16 and getting your driver’s license may be one of the most exciting young adult milestones.
Finding the best or cheapest car insurance in New Jersey for the newly licensed teen driver in your household? Not as exciting.
Teens and young adults under 25 typically have some of the highest insurance coverage rates of all drivers. This is because an insurance carrier bases their rates on statistics that reveal that younger, less experienced drivers are more likely to have a car accident than their older counterparts.
In this guide, we’ll round up some of the best auto insurance coverage options for new drivers in the Garden State, plus we’ll cover what the minimum coverage requirements are for drivers in New Jersey.
Car Insurance for New Drivers New Jersey
When shopping for the best auto insurance rate for new drivers, you’ll want to consider several factors when comparing different insurance policies.
These factors include comparing:
- Average premiums
- Young driver safety training discounts
- Good student discounts
- Driver education discounts
- Accident forgiveness policies
Car insurance companies base their rates on a variety of factors for both new and veteran drivers. These factors include:
- Make and model of car
- How much coverage a driver chooses (minimum vs comprehensive)
The national average annual insurance premium for 16 and 17 year olds on their parents’ policy is between $2,000 and nearly $2,800 depending on gender (males typically have higher premiums).
Once they turn 18, a teen driver can purchase their own, separate insurance plan, though it’s typically cheaper to stay on a parents’ policy while everyone is under one roof.
Let’s look at three insurance companies that offer policies that are ideal for both young drivers and any licensed New Jersey driver.
Geico is known for offering a multitude of discounts to their drivers and provides some of the best rates for teen drivers. Check out Geico’s average annual premium for full coverage of 16-18 year olds:
- Age 16 – $1,897 (on parents’ policy)
- Age 17 – $1,675 (on parents’ policy)
- Age 18 – $3,891
As far as specific Geico discounts, the parents of teen drivers can get up to 25 percent off for insuring multiple vehicles and students with a B average or better may get a up to a 15 percent discount.
Geico receives a score of 841/1000 from global leader in consumer insights J.D. Power.
Progressive offers competitive auto insurance rates for teen drivers and is known for excellent customer service and 24/7 support.
Progressive’s average annual premium for full coverage of 16-18 year olds is a bit higher than Geico’s but still lower than the national average:
- Age 16 – $1,955 (on parents’ policy)
- Age 17 – $1,961 (on parents’ policy)
- Age 18 – $6,022
This insurance provider also offers a unique Snapshot program which uses an app or plug-in device to monitor a driver’s habits. This allows parents to monitor their new drivers and can also save everyone on the policy up to $145 a year.
Progressive receives a score of 828/1000 from J.D. Power.
One of the most widely available personal auto insurers in the country, State Farm offers excellent discount programs for new drivers as well as affordable New Jersey car insurance rates.
Check out State Farm’s average annual premium for full coverage of 16-18 year olds:
- Age 16 – $2,077 (on parents’ policy)
- Age 17 – $1,769 (on parents’ policy)
- Age 18 – $4,565
State Farm has their Steer Clear program, which helps teens develop safe driving habits and in turn can save you up to 20 percent off your insurance premium, and they also offer good student and driver training discounts.
State Farm receives a score of 855/1000 from J.D Power.
Minimum Requirements for NJ Auto Insurance
Now that you’ve learned a little more about some of the best New Jersey car insurance policies, let’s look at the minimum requirements you’ll need to meet no matter which auto insurer you choose.
According to 2018 data from the Insurance Institute for Highway Safety, New Jersey drivers are among the safest in the country, with only 6.3 motor vehicle-related deaths for every 100,000 people.
All of these safe drivers are legally required to carry a minimum amount of liability coverage, which falls under one of two policies in New Jersey: standard and basic.
The standard policy includes:
- $15,000 minimum bodily injury coverage for any one person per car accident or $30,000 per car accident
- $15,000 minimum personal injury
- $5,000 minimum property damage
The basic policy is even more bare bones and should only be relied upon if absolutely necessary for financial reasons. This policy includes:
- $10,00 minimum per person per car accident for bodily injury
- $15,000 minimum per person per car accident for personal injury
Remember, the minimum coverage required is just that: the minimum.
When shopping for auto insurance in New Jersey for either young drivers or experienced drivers, keep in mind how much money you could potentially save by paying a slightly higher premium each monthly for more comprehensive coverage.
Shop Smart: Compare Auto Insurance Rates Online
Choosing the most comprehensive coverage and least costly car insurance policy for a new driver can be tricky. Teens and drivers under the age of 25 typically will have higher rates due to their inexperience, but there are policies available that won’t break the bank.
Geico, State Farm, and Progressive are a few solid options to pursue if you are looking to insure a new driver in the state of New Jersey.
As you shop around for the best policies, be sure to utilize resources like Online Auto Insurance.
Our easy-to-use tools let you quickly compare multiple quotes for free, so you can create a list of your top insurance carriers in one afternoon.
Monitoring a new driver is enough of a headache—shopping for auto insurance doesn’t have to be. Check out texting and driving laws New Jersey implements along with other options on Online Auto Insurance today.
The Balance. New Jersey Car Insurance Laws. \ https://www.thebalance.com/new-jersey-car-insurance-laws-527380
Bankrate. Best Car Insurance for Teens. \ https://www.bankrate.com/insurance/car/young-drivers/
Bankrate. Best Car Insurance in New Jersey for 2021. \ https://www.bankrate.com/insurance/car/new-jersey/
Investopedia. Best Car Insurance Companies for Teens. \ https://www.investopedia.com/best-car-insurance-companies-for-teens-and-young-drivers-4788362