NJM auto insurance review: Affordable, robust coverage
NJM offers lower-than-average rates ($105/month) for full-coverage car insurance in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania.
By
Rachael BrennanRachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.
Edited by
Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
4.7
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
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The bottom line
Founded in 1913 as New Jersey Manufacturers Casualty Insurance Company, NJM offers all the basic, necessary types of car insurance at lower-than-average rates, including liability, comprehensive, and collision coverage.
NJM also has a high claims satisfaction rating from trusted third-party J.D. Power, along with a lower-than-average number of customer complaints according to the NAIC. This means, overall, NJM customers are satisfied with their car insurance and with NJM’s customer service.
NJM’s biggest downside is its limited availability. NJM auto insurance is only available in five states: Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania.
Liability coverage: If you’re at fault in an accident, liability insurance covers the cost of bodily injuries or property damage you cause to someone else. Liability coverage is required in almost every state.
Personal injury protection: Required in no-fault states, personal injury protection (PIP) covers medical expenses (and other costs, like lost wages and funeral benefits) if you or your passengers are hurt in an accident, no matter who was at fault.
Uninsured/underinsured motorist coverage: Required in some states, uninsured/underinsured motorist coverage (UM/UIM) pays for your medical expenses if you’re hit by a driver who doesn’t have insurance, or doesn’t have enough insurance to cover all your medical expenses.
Collision coverage: Covers damage to your vehicle after a car accident, whether or not you were at fault.
Comprehensive coverage: Covers non-collision damage to your car, including damage caused by extreme weather, hail, flood, fire, falling objects, vandalism and theft.
Medical payments: Also known as MedPay, this covers medical costs for you and your passengers if you get into a covered accident, but the benefit is usually small, between $1,000 and $10,000.
Additional coverages offered
Gap insurance: Covers the difference between the actual cash value (ACV) of your vehicle and the amount left on your lease or loan in the event of a total loss.
Transportation expense: Drivers with comprehensive coverage can purchase a higher rental reimbursement limit.
Roadside assistance: Covers things you might need when your car breaks down, like locksmith services, battery jumpstart, towing, and fuel deliveries. There are two options available ($75 or $125 per covered emergency) with no deductible.
Trailer/camper body coverage: Provides coverage for damage to your towed trailer or camper, as well as damage to awnings, cabanas, plumbing, refrigeration, and other equipment and facilities.
Rideshare coverage: This endorsement covers you when you are on the clock with a rideshare company, like Uber or Lyft, but haven’t yet picked up a passenger.
Ratings methodology
Price
4.5/5
Using rate data provided by Quadrant, we compared the average cost of a full coverage policy from NJM (50/100/50 coverage limits and $500 deductibles for comprehensive and collision coverage) to competitor rates for the same coverage with the same driver profile (single drivers aged 30, 35, and 45 driving a 2017 Toyota Camry LE about 10,000 miles per year.)
Customer experience
5.0/5
NJM scored 896 out of 1,000 on J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, which is above average for the industry. And according to the National Association of Insurance Commissioners (NAIC) National Complaint Index Report, NJM also had significantly fewer customer complaints than average in 2021.
Coverage options
3.2/5
NJM offers 14 different types of auto insurance coverage, giving it a good score when it comes to coverage options. Beyond the standard auto insurance coverage types, including liability, comprehensive, and collision coverage, NJM offers add-ons like roadside assistance, new vehicle replacement coverage, and rental car reimbursement.
Financial strength
4.5/5
NJM has an excellent financial rating, scoring an A+ with AM Best. This means NJM is in a good financial position to pay out its customers’ claims, but it doesn’t have a financial rating with S&P or Moody’s.
NJM costs an average of $105 a month for full-coverage car insurance. That makes NJM less expensive than most of its competitors, with an average annual premium of $1,262 a year for a full-coverage policy with bodily injury liability limits of $50,000 per person and $100,000 per accident.
Annual car insurance rate
Monthly insurance rate
NJM average
$1,262
$105
National average
$1,638
$136
But car insurance rates are based on factors like your age, ZIP code, and driving history. The best way to make sure you are getting the lowest possible rate is to compare quotes from multiple companies.
What discounts does NJM offer?
Autopay discount: Enroll in NJM’s autopay program to get a discount on your car insurance.
Full coverage discount: Get a discount for having both comprehensive and collision coverage as part of your car insurance policy.
Good student discount: Save money on your car insurance with NJM if you have a high school or college student on your policy who's made honor roll, Dean's List, or has at least a 3.0 GPA.
Bundling discount: Save money by bundling your NJM car insurance with other types of coverage, like home, renters, or condo insurance.
Multi-vehicle discount: Insure two or more cars on the same NJM policy for a discounted rate.
New car discount: Get a discount if your car is two model years old or newer.
Paid in full discount: Pay your premium in full at the beginning of your NJM policy and get a discount.
Paperless discount: Agree to go paperless and get your NJM insurance documents electronically to get a discount.
Vehicle safety equipment discount: Save money if your car has certain safety equipment, like an anti-theft or vehicle recovery device, anti-lock brakes, or passive restraints.
Mature driver discount: Drivers over a certain age who have taken a qualified course can get a discount on their car insurance (not available in New Jersey).
Defensive driving discount: New Jersey drivers can earn a discount on their liability, PIP, and collision coverage if they complete a defensive driving course approved by the New Jersey Motor Vehicle Commission.
Driver training discount: New drivers who complete an approved training course are eligible for a discount (not available in Ohio).
NJM SafeDrive
NJM offers a usage-based discount program called SafeDrive. Like the usage-based savings programs available through bigger car insurance companies, drivers who opt-in to NJM SafeDrive download a tracking app that monitors their behavior behind the wheel and awards a discount for safe driving.
The NJM SafeDrive smartphone app monitors actions like acceleration, braking, cornering, distracted driving, and speed. Drivers get a score for every “trip,” as well as feedback on your driving habits.
NJM doesn’t provide much detail about what kind of discount customers can expect for signing up with the app, but it may be a good savings opportunity for drivers who don’t mind sacrificing some privacy.
NJM scored 896 out of 1,000 on the J.D. Power Claims Satisfaction Survey, which is an excellent score. It also has one of the lowest NAIC complaint index scores in the industry, so NJM customers seem to be pretty happy with the company and their customer service experiences, including claims.
Is NJM cheaper than GEICO?
GEICO is a little cheaper than NJM based on average rates, but every situation is different, so the company with the lowest average rates may not have the best rate for you. Compare car insurance quotes from multiple companies to make sure you are getting the best possible rate.
Does NJM raise rates after an accident?
NJM takes your driving record and claims history into account when setting your rates, so it is possible that your rates could go up after an accident. But whether or not your rates are affected by an accident depends on a variety of factors, so you’ll need to speak with your insurance expert about the specifics of your situation to know how much an accident may (or may not) impact your rates.
Does NJM have good rates?
The average rate for a full coverage policy with NJM is $1,262 per year, which is significantly lower than the national average of $1,638.
Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.
Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
