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If you’re moving away for college and planning to bring a car, remember to check how this change might impact your car insurance. You might need to purchase your own car insurance policy, for example, or you may be able to stay on your parents’ policy if you meet certain conditions. Having the right coverage in place can help ensure you’re covered in case of an accident.

The best car insurance for college students

While many of the best car insurance companies provide discounts to college students, some are more generous than others. Below, Bankrate’s insurance editorial team selected five top car insurance providers that offer competitive rates to college-aged drivers on their parents’ policy, according to 2023 auto insurance rate data pulled from Quadrant Information Services.

Each company is listed with its Bankrate Score, which shows how well each insurance provider performs overall, on a five-point scale. Our team calculates Bankrate Scores by analyzing each company’s average premiums, coverage offerings, discount options, complaints filed with the National Association of Insurance Commissioners (NAIC), mobile app, J.D. Power score for customer service and AM Best rating for financial strength. The closer a company scores to five, the better it performs across each category.

Insurance company Bankrate Score Average full coverage premium with a student discount on their parents’ policy Average full coverage premium without a student discount on their own policy
Geico 4.4 $2,523 $4,048
State Farm 4.2 $2,689 $7,089
Progressive 4.2 $3,163 $7,088
Farmers 3.8 $2,762 $6,567
Allstate 3.8 $4,184 $7,089

*Rates calculated for 18-year-olds students, either on their parents’ joint policy with a student discount applied or on their own policy without a student discount applied

Geico

Why we picked this carrier: Geico offers a low average full coverage rate when adding an 18-year-old college student to their parents’ car insurance policy.

If you’re looking for cheap car insurance, you may want to get a quote from Geico. Geico’s average annual cost for full coverage car insurance for 18-year-olds on their parents’ policy is $2,523 per year with a good student discount. College students may also be able to qualify for other discounts to further bring down the cost, like Geico’s discounts for membership in several organizations. The company received a high Bankrate Score of 4.4 for its wide range of discounts and low average premiums. However, the company lost a few points for its lack of optional endorsements. Unlike some of its competitors, Geico does not offer a 24-hour helpline.

PROS


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    Offers discounts for fraternity, sorority, honor society and other membership organizations


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    Several student discounts available


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    Low average rates for college students added to their parents’ policy

CONS


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    No 24/7 helpline


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    Few optional endorsements

Learn more: Geico insurance review

State Farm

Why we picked this carrier: State Farm offers a generous potential discount percentage for good students.

Parents with 18-year-old students on their State Farm auto policy pay an average annual cost of $2,689 for full coverage car insurance with a good student discount. State Farm offers savings for eligible college students who can maintain a GPA of at least 3.0. Students attending school away from their primary residence without a car may also be eligible for a distant student discount, and combining these two discounts could result in an even lower premium. The company received one of the highest Bankrate Scores on our list for its low average premiums, accessible mobile app and excellent online policy management. However, if you’re interested in buying accident forgiveness coverage, a State Farm policy wouldn’t be ideal. The company only offers the coverage as a perk earned by having a certain number of claim-free years on your record, which can’t be bought.

PROS


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    Low average rates for college students added to their parents’ policy


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    Good student and distant student discounts available


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    Offers a safe driving program for teens called Steer Clear

CONS


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    Gap insurance unavailable


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    Accident forgiveness can’t be purchased, only “earned”

Learn more: State Farm insurance review

Progressive

Why we picked this carrier: Progressive’s Snapshot telematics program could be a great savings opportunity for college students who drive safely and infrequently.

Progressive’s average annual cost of full coverage car insurance for 18-year-olds on their parents’ policy is $3,163 with a good student discount. In addition to the standard good student and distant student discounts, Progressive also offers Snapshot, a usage-based car insurance program — which could help lower your rate based on your driving habits. The company earns a high Bankrate Score for its exceptionally wide range of coverage options, plentiful discounts and seamless online policy management. However, the company tends to have lower-than-average customer satisfaction ratings according to J.D. Power.

PROS


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    Usage-based car insurance available


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    Good student and distant student discounts available


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    Offers an automatic teen discount for drivers age 18 and younger

CONS


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    Typically ranks lower than the average in J.D. Power customer satisfaction


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    Rates may differ between online and agency quotes

Learn more: Progressive insurance review

Farmers

Why we picked this carrier: Farmers offers several discount opportunities to students.

Parents with 18-year-old college students on their policy pay an average of $2,762 for their insurance each year with Farmers with a good student discount applied. Farmers also offers a youthful driver discount for anyone under 25 who is a child or grandchild of a current policyholder. While Farmers scored well in terms of mobile app and policy management, the company doesn’t have 24/7 customer support and is not available nationwide.

PROS


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    Students who make the dean’s list or honor roll may be able to save


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    Several student and young driver discounts available, such as the Youthful Driver discount


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    Offers a telematics program called Signal

CONS


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    Not available nationwide


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    No 24/7 support

Learn more: Farmers insurance review

Allstate

Why we picked this carrier: Allstate has multiple discount opportunities for college students.

Although Allstate has a high average premium for a student on their parents’ policy, college students may be able to apply discounts to bring down the cost of auto insurance. College students who can maintain a GPA of at least 2.7 may qualify for a good student discount, which is more generous than many other insurers’ good student discount qualifications. The company’s Bankrate Score was impacted by its high premiums. However, it gained points for its A+ (Superior) AM Best financial strength rating and user-friendly policy management.

PROS


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    Money-saving programs such as Smart Student and teenSMART available


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    Several student discounts available


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    Robust digital tools

CONS


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    High average premiums


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    Fewer additional coverage options than other carriers

How can college students lower their car insurance premium?

Because car insurance rates for young drivers are significantly higher than the national average cost of car insurance, finding ways to save money may be critical. To find cheap car insurance for college students, you may want to get several quotes to give you an idea of what you will pay. Some other ways to save include:

Student discounts

Many car insurance companies offer discounts designed specifically for college students, such as:

Earning good grades in school demonstrates to insurers that you are responsible, making it more likely that you are a responsible driver and often earning you a discount.

Another way to save money on car insurance is to complete a driver’s education course. For example, drivers with a Geico insurance policy could save by completing a defensive driving course to refresh their memory on the rules of the road.

You could save money by leaving your car at home when you are away at school. Most car insurance carriers will discount your rate if you a a certain number of miles away without a car, prorating your premium to reflect the months you are away at school and not using your vehicle.

Students can often save by demonstrating their safe driving practices through insurance programs designed for young drivers. For instance, there are savings programs like American Family’s Teen Safe Driver, for drivers under age 21, and State Farm’s Steer Clear program, for young drivers up to age 25. After completing the program, drivers could get a discount on their car insurance.

Affiliation discounts for students

Many insurance companies also offer discounts for students who participate in certain organizations or associations, such as:

Geico offers car insurance discounts for fraternities, sororities and even honor societies, along with an extensive list of other organizations.

Some companies may offer discounts if you are an alumni of a certain university or even if you’ve simply completed a two- or four-year degree.

If a parent is a veteran or military member, you might save extra money on your car insurance through military discounts. As a military-only provider, USAA is one option for military discounts for your car insurance, but a few other companies offer military discounts, too, such as Geico, The General and Liberty Mutual.

Other ways to save

In addition to student and affiliation discounts, there are other ways college students can help lower car insurance premiums using these additional savings programs:

  • Lower your mileage: When you spend less time on the road, there’s a lower risk of accidents happening, so many carriers will offer lower car insurance premiums to drivers who rack up fewer miles.
  • Drive a used car: Newer cars may be more expensive to repair or replace, so rates could be higher. A used car is generally cheaper to fix and may qualify you for lower car insurance premiums than a new car. Driving a vehicle with extra safety features is another way to potentially earn lower premiums, so explore models with safety features like anti-lock brakes, electronic stability control, forward-collision warnings and automatic emergency braking.
  • Explore pay-as-you-go insurance: Instead of paying full price for car insurance, you might be able to sign up for pay-per-mile insurance, which monitors your driving and charges your car insurance accordingly. It’s a popular option with several car insurance companies: Allstate offers its Milewise program and Nationwide has its SmartMiles program.
  • Car additions: Some additions and upgrades may make your car safer and help you save money on car insurance premiums.
    • Dash cams: Dash cameras could help reduce car insurance rates by reducing the likelihood of crime involving your vehicle and also protecting you against false liability claims that could cost your insurer money. Discounts for dash cams aren’t common, but you may find a carrier that offers one.
    • Navigation systems: A GPS navigation system can help keep you feel more prepared when driving, helping you drive slower and more safely, which could translate to lower rates.
    • Anti-theft device: A car alarm or other anti-theft device may earn you extra discounts by lowering the risk of theft or vandalism.

Ways to save on driving

Driving can be expensive, especially so for college students on tight budgets. Keeping transportation costs low can help students afford to keep their cars and maintain insurance on the vehicle. Here are some ways to save on gas and vehicle maintenance. 

How to save on gas

Gas can be pricey, especially if you drive often. Here are some ways to lower your gas costs:

  • Choose a car with good gas mileage: College students often commute between home and school, so a car with excellent gas mileage can easily save hundreds of dollars each year. 
  • Use a rideshare service: Using rideshare services like Uber and Lyft can help you save on gas costs, and may be especially cost-effective if you opt for group ridesharing, where you split the cost with others.
  • Utilize public transportation: Public transportation can almost entirely eliminate transportation expenses. Buses, trains or subways are often a fraction of the cost of driving and are usually accessible at most colleges or universities.
  • Invest in a bicycle: A bicycle can be an even better substitute for public transportation, especially for students in urban areas. Using a personal bicycle is free after purchase, and there are also typically lots of options for low-cost bike sharing or rentals in more populated areas.
  • Carpool with your classmates or colleagues: If you must drive, consider setting up a carpool or car-sharing arrangement with classmates or colleagues who live along your route. They will probably appreciate the opportunity to save money and it gives you the added benefit of some company during the commute. Just be sure to talk to your insurer if you’re exchanging money for gas and maintenance, to make sure you’re still covered.

How to save on maintenance

Maintenance costs should be factored into buying a vehicle as well, as they can be a large portion of your car budget. Here are some tips to save on maintenance:

  • Find car deals for new graduates: Many car manufacturers offer special purchase deals for current college students or recent graduates to buy a new car. There may also be short-term leasing specials available for students for those not ready to purchase a vehicle.
  • Ask about student savings programs for oil changes: Another potential place to save is regular oil changes. College students can burn through many miles and require more frequent oil changes, but many of the larger chains, such as Jiffy Lube, offer students discounts.
  • Utilize free tire and air fill-up services: To save extra money on diagnostic and professional services, check your tire pressure yourself. Most gas stations offer free or cheap stations to check tire pressure and add air if necessary.
  • Research DIY repairs: There are several basic car repairs that can be done at home. Learning how to do essential maintenance can save money on parts and high labor costs. It will also save time to repair the car on your own schedule. These basic repairs are easy to learn and can save hundreds of dollars. Before attempting them, it’s worth researching potential safety hazards so that you can avoid complications:
    • Change the battery.
    • Change the oil.
    • Change your spark plugs.
    • Replace tail lights or headlights.
    • Swap out windshield wipers.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes. 

Age: Rates were calculated by evaluating our base profile with age 18 (base: 40 years) applied. The 18-year-old driver on their own policy is a renter. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Source: thesimpledollar.com

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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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Save more, spend smarter, and make your money go further

According to the National Highway Traffic Safety Administration (NHTSA) there were more than 5.6 million police-reported crashes in the U.S. in 2013. No doubt these crashes can take a huge emotional and financial toll on those impacted – and you might be surprised to learn what your policy covers, and doesn’t cover. The price tag for those crashes: $871 billion in economic loss and societal harm in 2010 also according to the NHSTA.

If you find yourself in an accident, it’s easy to feel frustrated, overwhelmed and scared. But there are a few things you can do to protect you and your money before and after an accident.

Prevention Before an Accident

Consider purchasing rental car coverage. This will pay for you to have a rental car for the time your car is in the shop being repaired. The coverage is inexpensive, but paying for a rental during a long repair can add up quickly.

Many car insurance policies offer coverage that you may not know about, so make sure your auto insurance policy is up-to-date and provides the right amount of coverage for you and your vehicle. Many minor details can make a huge difference when you need to file a claim after a collision.

Keep copies of your insurance policy and registration in your vehicle at all times.

Steps to Take After an Accident

Safety is paramount. Get you and all passengers to a safe spot and wait for help to arrive.

Get everything documented as quickly as possible and share information with the other driver including make, model and license plate. You’ll also want to get the other person’s contact and car insurance information so the claims process will go much more smoothly.

Take photos and gather witnesses. If you have a smartphone, it can be helpful to take photos of the damages, especially if you know you weren’t at fault and want to prove it. If you can find eyewitnesses and collect their contact information to give to the police and to your insurance company, that’s even better.

You may see a rate hike on your monthly insurance premiums if you are found to be at fault. Keep in mind if you have been accident free for a long time, many carriers will forgive your first at-fault accident.

If you are working with an independent agency like CoverHound, ask them to check all of their carrier partners for a better policy. Many carriers specialize in different risk profiles, so it’s possible another carrier they represent may have a better policy for you. Not all wrecks will result in a rate hike, but being proactive and working with your insurer is important after an accident. If you’re looking to get more from your provider, then you can switch insurers to take advantage of low rates.

This article was written and sponsored by CoverHound, where you can compare car insurance rates in as little as 3 minutes.

Save more, spend smarter, and make your money go further

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The Worst Cities to Own a Car- SmartAsset

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The number of Americans driving to work alone is on the rise, according to data from the U.S. Census Bureau. With the increase in drivers comes traffic, which means more time and money spent idling in cars. Some cities are better equipped to deal with the mass of drivers, managing to keep traffic delays and congestion to a minimum. Other cities are equipped with walkable streets and reliable mass transit options, making car ownership less necessary.

Check out mortgage rates in your area.

We considered these and other factors to find the worst cities to own a car. Specifically, we looked at hours spent in traffic per year for the average driver, the annual cost of traffic for the average driver, the rate of motor vehicle theft, the number of repair shops and parking garages per driver, the commuter stress index and the non-driving options a resident has for getting around. To understand where we got our data and how we put it together to create our final ranking, see the data and methodology section below.

Key Findings

  • Cities on the coasts – The entire top 10 is comprised of cities on or close to the coasts. This makes sense as many of the largest cities in the country are located on the coasts. Plus, on the East Coast in particular, these cities tend to be older which means they were not built to handle car traffic.
  • Grin and bear it – Traffic can get pretty bad. However, in some cities getting around by car is just about the only option you have if you want to leave your house. Thus some cities with really bad traffic like Los Angeles or Long Beach didn’t quite crack the top 10.

1. Newark, New Jersey

Brick City tops our ranking of the worst cities to own a car. What’s tough about being a car owner in Newark is the traffic. It’s part of the New York City metro area which has 19 million people, 5 million of whom drive to work. Newark is stuck right in the middle of this bumper-to-bumper traffic. Plus, if you’re a car owner in Newark, the risk of having your car stolen is much higher than it is in other cities. Newark ranks eighth in the country for motor vehicle thefts per 1,000 residents.

Related Article: The States With the Worst Drivers

2. San Francisco, California

The City in the Bay grabs the second spot for worst places to own a car. Being stuck in traffic costs the average commuter in San Francisco $1,600 per year. That cost includes both the value of the time spent in traffic and the cost of gas. SF is also one of the 10 worst cities for motor vehicle thefts per resident, another reason to forgo car ownership.

3. Washington, D.C.

The District and the surrounding metro area sees some of the worst traffic in the country. The average D.C. commuter spends 82 hours per year in traffic. Depending on how you slice it, that’s either two working weeks or almost three-and-a-half days of doing nothing but shaking your fist at your fellow drivers. That traffic is equal to an annual cost of $1,834 per commuter.

4. Oakland, California

One argument against car ownership in Oakland is the crime. There were almost 6,400 motor vehicle thefts in the city of Oakland or 15 auto thefts per 1,000 residents. That’s the highest rate in the country. The average Oakland driver can also expect to spend 78 hours per year in traffic. On the plus side, if something goes wrong with your wheels in Oakland, it shouldn’t be too difficult to get it fixed. There are more than six repair shops per 10,000 drivers in Oakland – the highest rate in the top 10.

5. Arlington, Virginia

As previously mentioned, the Washington, D.C. metro area has the worst traffic in the country. Unfortunately for the residents of Arlington, they are a part of that metro area. They face the same brutal 82 hours per year spent in traffic, on average. It costs Arlington residents $1,834 per year, on average, waiting in that traffic. For residents of Arlington, a car is more of a necessity than it is for people living in D.C., which is why it ranks lower in our study.

6. Portland, Oregon

Of all the cities in our top 10, Portland is the least onerous for the driving commuter. Commuters driving around the Portland metro area can be thankful that, on average, they spent only 52 hours per year in traffic. That traffic still costs each driver about $1,200. However, drivers in Portland looking for a parking garage may be out of luck. Portland has the second-lowest number of parking garages per driver in our study, and if you are looking to get your car fixed, Portland ranks in the bottom 13 for repair shops per capita.

7. Anaheim, California

Anaheim commuters are well-acquainted with traffic. Anaheim (and the rest of the Los Angeles metro area) ranks third in average hours per year spent in traffic, first for commuter stress index and fifth for annual cost of idling in traffic. Anaheim only ranks seventh because Walkability.com gives the city a 46 out of 100 for non-driving options. That’s the lowest score in our top 10 meaning, while owning a car here is a pain, not owning one makes getting around a true struggle.

8. New York, New York

New York is the rare American city where public transportation is usually your best bet for getting from point A to point B. All that accessibility makes car ownership unnecessary here. For New Yorkers who do drive, the traffic is not pleasant. New York drivers spend $1,700 per year, on average, waiting in traffic. That’s the third-highest cost in our study.

Not sure if you’re ready to buy in NYC? Check out our rent vs. buy calculator.

9. Seattle, Washington

Seattle has pretty bad traffic. Commuters here probably aren’t surprised to hear the average driver spends 63 hours per year in traffic. And coupled with the traffic is the high number of motor vehicle thefts. Seattle has the fourth-highest rate of motor vehicle thefts per 1,000 residents in the country.

10. Boston, Massachusetts

Boston ranked well in our study on the most livable cities in the U.S. partially based on how easy it is to get around without a car. After New York and San Francisco, Boston is the most walkable city in the country, making the cost of having a car one expense which Bostonians can possibly go without. Although occasionally maligned, the Massachusetts Bay Transit Authority is a great option for commuters who want to avoid the 64 hours per year Boston drivers spend in traffic.

Data and Methodology

In order to rank the worst cities to own a car, we looked at data on the 100 largest cities in the country. Specifically we looked at these seven factors:

  • Average total hours commuters spend in traffic per year. Data comes from the Texas A&M Transportation Institute 2014 Mobility Score Card.
  • Cost of time spent in traffic per person. This measures the value of extra travel time and the extra fuel consumed by vehicles in traffic. Travel time is calculated at a value of $17.67 per hour per person. Fuel cost per gallon is the average price for each state. Data comes from the Texas A&M Transportation Institute 2014 Mobility Score Card.
  • Commuter stress index. This metric is developed by the Texas A&M Transportation Institute 2014 Mobility Score Card. It measures the difference in travel time during peak congestion and during no congestion. A higher ratio equals a larger difference.
  • Non-driving options. This metric measures the necessity of owning a car in each city by considering the city’s walk score, bike score and transit score. We found the average of those three scores for each city. Higher scores mean residents are less reliant on cars. Data comes from Walkability.com.
  • Motor vehicle thefts per 1,000 residents. Data on population and motor vehicle thefts comes from the FBI’s 2015 Uniform Crime Reporting Program and from local police department and city websites. We used the most up to date data available for cities where 2015 data was not available.
  • Number of repair shops per 10,000 drivers. Data on drivers comes from Texas A&M Transportation Institute 2014 Mobility Score Card. Data on repair shops comes from the U.S. Census Bureau’s 2014 Business Patterns Survey.
  • Parking garages per 10,000 drivers. Data on drivers comes from Texas A&M Transportation Institute 2014 Mobility Score Card. Data on parking garages comes from the U.S. Census Bureau’s 2014 Business Patterns Survey.

We ranked each city across each factor, giving double weight to non-driving options and half weight to motor vehicle thefts per driver, repair shops per driver and parking garages per driver. All other factors received single weight. We then found the average ranking across each city. Finally we gave each city a score based on their average ranking. The city with the highest average received a score of 100 and the city with the lowest average received a score of 0.

Questions about our study? Contact us at [email protected].

Photo credit: ©iStock.com/seb_ra

Derek Miller, CEPF®
Derek Miller is a graduate of the University of Edinburgh where he studied economics. He is passionate about using data to help people make better financial decisions. Derek is a Certified Educator in Personal Finance® (CEPF®) and a member of the Society for Advancing Business Editing and Writing. He is a data journalist whose expertise is in finding the stories within the numbers. Derek’s writing has been featured on Yahoo, AOL, and Huffington Post. He believes the biggest financial mistake people make is waiting too late to save for retirement and missing out on the wonders of compounding interest. Derek lives in Brooklyn.

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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Source: thesimpledollar.com

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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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How to find the best car insurance in California

While price is important to many people, you might also want to consider other factors when choosing an auto insurance company. The best car insurance policy looks different for everyone and will depend on your needs, lifestyle and financial responsibilities. To see which car insurance company might provide the best fit and options for you, here are some steps you can take.

Consider minimum insurance requirements in California

California requires drivers to carry at least minimum levels of liability insurance coverage on their vehicles to drive legally in the state. This includes the required minimum amounts of bodily injury liability and property damage liability coverage. According to the California Department of Motor Vehicles, all California motorists must carry at least:

  • $15,000 in bodily injury liability coverage per person
  • $30,000 in bodily injury liability coverage per accident
  • $5,000 in property damage liability per accident

California also requires that insurance companies offer you uninsured and underinsured motorist bodily injury coverage, along with uninsured motorist property damage, but you can decline in writing if you do not want to have them. Understanding California’s car insurance laws can help you understand if you need additional coverage or higher limits.

Consider lender requirements

If you finance or lease your vehicle, you may need to purchase a car insurance policy that complies with your financial institution’s requirements. For example, collision and comprehensive insurance are typically optional coverage types, but if your car is financed, most lenders will require you to purchase them. This is commonly known as a “full coverage” policy. Your financial institution may also require you to purchase higher liability limits, especially if you lease your vehicle. You might also want to consider gap insurance, which is designed to pay the difference between your vehicle’s actual cash value and the loan or lease amount if your car is totaled or stolen. According to the Insurance Information Institute (Triple-I), it is typically cheaper to purchase gap insurance from your insurer instead of from an auto dealer.

Consider your individual needs

Every driver has a different set of auto insurance considerations. You might live in an area where traffic and tourism are heavy, like Los Angeles or San Francisco, have a teen driver to insure or maybe have a few accidents or moving violations on your driving record. Based on your unique needs, it could make sense to have collision coverage and comprehensive coverage, uninsured motorist coverage or towing and rental reimbursement. Understanding your individual coverage needs might help you narrow down the companies you request quotes from. Households with teen drivers might look for companies with specialized young driver discounts, for example.

Source: thesimpledollar.com

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How much is car insurance in New Jersey?

The average cost of car insurance in New Jersey is $1,754 per year for full coverage, according to 2022 data obtained from Quadrant Information Services. Minimum coverage costs an average of $782 each year. This means that New Jersey’s minimum coverage is above the national average of $622, while full coverage is well below the national average of $2,014. The higher minimum rate may be related to the high number of urban areas there are in the state, where you will often see elevated rates to reflect the increased possibility of accidents. Additionally, New Jersey has just implemented Phase I of a two-phased approach to raising the minimum levels of liability coverage required to drive legally in the state. You should keep in mind that your rates will likely differ from the averages based on your individual rating factors.

Also, compared to the rates of nearby states, New Jersey’s premiums come in below average. Take Pennsylvania, for instance. Although Pennsylvania and New Jersey are neighbors, the average cost for a full coverage policy in Pennsylvania is $2,040 per year, more than $200 higher than New Jersey. New York, one of the most expensive states for car insurance in the country,  is even higher, averaging a whopping $3,139 annually for full coverage.

How to find the best car insurance in New Jersey

Drivers in New Jersey must maintain continuous coverage to avoid potential hefty fines and suspensions to their driver’s licenses and vehicle registrations. In addition to complying with the law, a sufficient car insurance policy could provide essential financial protection if you are involved in a car accident. Since every driver has their own needs when it comes to auto insurance, no one company will be best for all. For this reason, it may be a good idea to shop around and request quotes from multiple companies. We’ve compiled some things you might want to keep in mind while you’re shopping so that you can find auto insurance in New Jersey that fits your needs.

Consider minimum insurance requirements in New Jersey

New Jersey car insurance laws are unique, and it is a no-fault state. There are two options for minimum required coverage: the basic policy and the standard policy. Basic policies include just a required level of property damage liability per accident and personal injury protection (PIP) coverage and come with the option to purchase bodily injury liability coverage. If you choose a basic policy, your ability to add other coverage types could be limited.

Standard policies include bodily injury liability, property damage liability and PIP, and also come with a broader range of optional endorsements to choose from. Understanding New Jersey’s car insurance laws could help you decide if you need to purchase more coverage than just the minimum required. In 2023 and again in 2026, the minimum liability levels required to drive legally are increasing, which will likely mean a corresponding increase in your premium if you opt for minimum coverage car insurance.

Consider lender requirements

Drivers with loans or leases may have additional car insurance requirements to consider. Financing and leasing companies want financial protection for their asset (your vehicle) until it is paid off and in your name. They often do this by imposing insurance requirements that you must meet to comply with your financing or leasing agreement. To satisfy lender requirements, you may need to have full coverage insurance, which includes comprehensive coverage and collision coverage on your car insurance. Although not required, you could also consider gap insurance, which helps pay the difference between your loan balance and your vehicle’s cash value if your car is totaled.

Consider your individual needs

Auto insurance is a highly personalized product. Each driver has their own needs, but you might find that not every company offers what you are looking for. If you have a youthful driver in your home, you may need to tailor your search toward companies that offer cheap car insurance rates for teens. Those who work remotely may find savings by purchasing pay-per-mile insurance. If you drive for a ridesharing company like Uber or Lyft, you may need to find a company that offers rideshare insurance. Before you shop, it can be helpful to list your priorities and use this as a guide while requesting car insurance quotes.

Source: thesimpledollar.com

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Whether you’re getting married, putting your teen behind the wheel for the first time, or buying your first home, a big life change can have a ripple effect on your finances.

While it might not be top of mind, one of those effects could be your car insurance. There’s a lot more that goes into calculating your rates than the standard questions about age, gender, and driving record. When you hit a major milestone in life, your new status can impact those rates in unexpected ways.

Here are five events that might trigger a change in your insurance.

1. Getting Married

Good news for honeymooners: in most cases, being married will lower your car insurance rates! Adding a partner to your insurance could spell savings for your household, especially for younger couples. It turns out that married people are less likely than single people to get into accidents. Ah, the perks of true love.

2. Buying a Home

One of the biggest milestones in life is buying your first home. While homeowners coverage is a must, becoming a homeowner might actually affect your car insurance, too.

Like married people, homeowners tend to see better rates on car insurance. Those savings could be even higher when you bundle your auto and homeowners policies with the same insurer (not to mention more convenient).

Buying a home also means that you might want to take a look at boosting your auto coverage. Look for polices that protect your assets and take care of legal costs-bodily injury, uninsured/underinsured motorist bodily injury and property damage are your best options. As you build up equity in your home, you’ll want to make sure your investment is safe, no matter what happens.

3. Adding a Teen Driver

As nervous as you may be to see your teenage child in the driver’s seat for the first time, you’ll feel better when they’re protected under your insurance policy.

Teen drivers need to be covered as soon as that driver’s license is in their hands. Your rates will probably increase, because this age group has much higher accident rates than older drivers, which makes them riskier to insure.

However, there are a few things you can do to help keep your rates low. For instance, when you add your teen to your policy, check to see if you qualify for a multi-driver discount. Likewise, if your teen has his or her own car, you could get the multi-car discount. Good students can help lighten the load as well. Many insurers offer discounts to young drivers who keep their grades up.

4. Getting Divorced

If you and your spouse are parting ways, it’s important to make sure both of you-and any dependents you might have-are still covered.

Once you’ve divvied up the cars, you and your ex will need to get separate policies. The change in circumstances makes this a good time to comparison shop, especially because you may be losing out on discounts you enjoyed as a married couple (for instance, a multi-car discount).

If you’ll be sharing custody of teen drivers, check with your insurance company to find out whether you both need to list your teen on your policy-and factor that into any quotes you get.

5. Getting a Raise

Now that you’ve got a little extra cash in your pocket (and perhaps some financial benefits, like stock), it’s time to take another look at your policy. Consider upping some of your coverages, like bodily injury and property damage, to make sure that if an accident happens, your income (and growing savings) will be protected. These policies cover medical bills as well as legal fees if someone involved decides to sue. Putting a little extra money toward your premium today can pay off big time down the road.

During a major life event, there’s a lot to think about. If you need help figuring out how to handle the big changes (insurance-wise, that is), talk to your insurer to make sure you’re adequately protected-and getting the best deal possible.

Eric Madia is Vice President of Product Design at Esurance, where he is responsible for designing the company’s personal lines products. Eric has 23 years of experience in the industry, focused primarily on underwriting, pricing, and product innovation. You can follow him on twitter @Erictheactuary.

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