Cheap auto insurance for teenagers in New Jersey

The state of New Jersey’s mandatory minimum liability insurance is rather complicated. The state does not specifically set the amount of insurance you must carry but it does require specific types of coverage as well as setting recommended amounts of coverage. The state has a basic minimum policy and a standard minimum policy. These laws include your teenage driver. You must carry $15,000.00 for each individual injured or killed in an accident, $10,000.00 for all the people involved in the accident, and $5,000.00 to cover all property damages as well as carrying up to $250,000.00 for permanent or significant injury protection. The standard Policy limits are $15,000.00 for each individual injured or killed in an accident, $30,000.00 for all persons involved in the accident, $5,000.00 for property damage and up to $250,000.00 for permanent or significant injuries. Since statistics show that the first year behind the wheel of a car is the prime time for teenage automobile accidents, your insurance company may recommend that you carry comprehensive and collision on your teen as well as raising the limits on your liability insurance and uninsured/underinsured to more than the state requirements.

As the parent, you are required by the state of New Jersey to take financial responsibility for your teenage driver. Your teen driver must carry their proof of insurance in the vehicle at all times. You must produce proof of insurance upon request by the authorities. In New Jersey, this is the New Jersey Insurance Identification Card. Information supplied to the DMV by the insurance company will include the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder. The auto insurance needs to be authorized by a qualified auto insurance company. Even if the teen is not at fault for an accident, they must provide proof of insurance to the officer on the scene. They must also have proof of insurance for any regular traffic stop. This will result in fines and possibly the loss of their driver’s license as well as other costly penalties. The penalties will increase with repeat offenses.

Adding your teen to your policy will generally be less expensive than putting them on their own auto insurance policy. Even then, the cost of adding your teen to your insurance policy will raise your premiums from $1200.00 to $4900.00 per year. On average, the premium will raise approximately $2,171.00 per year.

For each successive year that your teen maintains a good driving record, the premiums will most likely go down. To maintain a good driving record, your teen cannot have any traffic violations or accidents on their driving record. They cannot be picked up for a DUI or talking on their cell phone. Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums.

In addition to a clean driving record, teens who maintain a “B” grade point average will also receive a discount on insurance premiums. Another discount available for teens will be given when the teen has successfully completed a state approved safe driving course. The type of car your teen drives will also affect your insurance premiums. Don’t put your teen in a luxury car or sports car. It may also help lower your premiums if you avoid the top 10 stolen cars in the state of New Jersey. These cars include:

1. 1991 Honda Accord
2. 2000 Honda Civic
3. 1990 Toyota Camry
4. 1994 Jeep Cherokee/Grand Cherokee
5. 1994 Dodge Caravan
6. 1995 Nissan Maxima
7. 1995 Acura Integra
8. 1993 Plymouth Voyager
9. 1996 Ford Taurus
10. 2000 Dodge Intrepid

Following these guidelines will save you between 10 to 15% on your auto insurance premiums for your teenage driver. Ways you can help your teen maintain a clean driving record are to eliminate the main causes of accidents for teens. These causes are overconfidence, passenger distractions, driving at night, impaired (drunk) driving, talking on a cell phone or texting, speeding, failing to buckle up, failure to anticipate potential hazards, and not taking proper care of the vehicle.