Insurance

Every vehicle registered in the State of New Jersey must be insured. Check with your insurance company to ensure that your teen is fully covered.

Saving Money on Car Insurance

Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.

  • Raise deductibles to lower premiums. Ask your auto insurance representative how much you could save by increasing your deductible. If you file a claim after raising your deductible, you’ll pay a larger share of the costs.
  • Investigate discounts. Many insurers offer discounts for students with a “B” or higher grade average and for teens who complete driver education or defensive driving courses.
  • Share vehicles. How you classify your new driver—as the main or an occasional driver of one vehicle, for example, will affect auto insurance premiums, so consider sharing vehicles.
  • Just say “no” to sports cars and SUVs. TThe kind of car your teen drives can impact safety. Many experts agree that mid-sized sedans are the best choice for teens. Small cars don’t offer as much protection in crashes, sporty cars may encourage speeding or recklessness, and SUVs and pick-up trucks are more difficult to maneuver and more likely to have roll-over crashes.
  • Practice, practice, practice. Now is the time to drive a lot with your teen under varied conditions so there will be fewer surprises (and potential crashes) when you’re no longer in the vehicle.
  • Be involved. Research shows that teens with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your insurance rates down. A parent-teen driving agreement can help you set rules and stay involved.

Car Insurance Requirements in New Jersey

All New Jersey registered vehicles must be covered by an automobile liability insurance policy that insures against loss resulting from liability for bodily injury, death and property damage where coverage amounts shall be at least: (1) $15,000 for injury or death of one person in any one accident; (2) $30,000 on account of injury or death of more than one person in any one accident; and (3) $5,000 for property damage in any one accident. Please visit the New Jersey Department of Banking and Insurance website for detailed information on automobile insurance.

Learn about car insurance available through AAA for teen drivers and the whole family.