Saving on Insurance Costs
When you’re ready to hit the road alone, you’ll need insurance coverage. New Jersey requires all motor vehicles to be insured.
Saving Money on Car Insurance
Risk of a crash is significantly higher for teen drivers, particularly during the first year of driving. So, their auto insurance rates usually cost more. Here are a few ways you can help your family save some money.
- Keep your grades up. Most auto insurers offer lower auto insurance rates for students with a “B” or higher grade average.
- Investigate discounts. Many insurers also offer discounts for teen drivers who complete driver’s education or defensive driving courses.
- Drive carefully! Avoid crashes and tickets, which can cause a teen driver’s auto insurance rates to jump. Plus, it’s the safe thing to do.
- Don’t get your own car yet. If you won’t be the main driver for any of your family’s vehicles and can be classified as an occasional driver of one car, you could save your family hundreds of dollars.
- If you need a car, get a sensible one. Many experts agree that mid-sized sedans are the safest choice for teen drivers, and the cars often have the lowest auto insurance rates, too.
- Partner with your parents. Using a Parent-Teen Driving Agreement could help you avoid a crash or ticket that would increase your rates.
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:
- $15,000 for injury or death of one person in any one accident;
- $30,000 on account of injury or death of more than one person in any one accident; and
- $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 more about car insurance available through AAA.