NJM Insurance prides itself on being the “No Jingles or Mascots” insurance company. It offers competitive rates, is financially stable and has excellent customer reviews. However, it’s only available in five states – Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.
NJM overview
NJM insurance company is headquartered in West Trenton, New Jersey. It began as a workers’ compensation insurer in 1913 to provide medical care and wage replacement for injured workers. A subsidiary was formed in 1921 to offer personal and commercial auto as well as homeowners insurance.
NJM is now available in five states for personal insurance, with workers’ compensation policies the only option available in Delaware. Despite its small size, NJM earns above-average customer and claims satisfaction scores, with low customer complaints and competitive prices, even among industry giants like Progressive, State Farm and GEICO.
Keep reading this NJM car insurance review to determine if this regional insurer is right for you.
NJM pros and cons
Pros:
- Cheap average premiums.
- Excellent customer service and claims satisfaction scores
- Fewer customer complaints compared to the auto insurance industry average
Cons:
- Only available in five states
- No mobile app available except for the SafeDrive program
- Defensive driving discount only available in New Jersey
NJM coverage options
NJM policyholders can get the standard car insurance coverages you’ve come to expect, like liability, collision coverage, comprehensive coverage, personal injury protection PIP and uninsured motorist coverage.
But NJM offers optional insurance coverage, too, so you can customize your policy to meet your specific needs. These add-ons include:
- New car replacement coverage: If your vehicle is totaled in a covered accident, NJM will pay to replace your car with the same year, make and model.
- Pet coverage: This coverage can pay vet bills if your pet is injured in a car crash.
- Gap insurance: Gap coverage will pay the difference between the actual cash value of your totaled car and the loan or lease payoff.
- Roadside assistance: Get 24/7 help if you need emergency towing, a jump start, flat tire change, fuel delivery or lock yourself out of the car.
- Rental car reimbursem*nt coverage: This coverage provides transportation expense coverage while your vehicle is in the shop for repairs from a covered claim.
- Rideshare coverage: If you drive for Uber, Lyft or another rideshare company, this coverage can cover the gap that the transportation insurance policy doesn't cover.
NJM discounts
The best way to keep car insurance rates low without sacrificing coverage is by applying discounts. Customers of NJM can enjoy the following discounts, though availability can vary by state:
- Defensive driving course discount (only available in New Jersey).
- Driver training discount.
- Automatic payment discount.
- Full coverage discount.
- Good student discount.
- Multi-policy discount.
- Mature driver discount.
- Multi-car discount.
- New car discount.
- Vehicle safety discount.
- Paperless discount.
- Paid in full discount.
Drivers who regularly practice safe driving habits may want to consider the NJM SafeDrive program. It monitors your driving behaviors, like fast accelerations, hard brakes, cornering, driving over the speed limit and distracted driving through the NJM SafeDrive mobile app. You’ll receive a participation discount for enrolling.
NJM bundling options
Bundling more than one insurance policy with the same insurance company makes it easier to keep track of your coverage and file claims that involve multiple policies. It can also help you get lower rates.
NJM offers a bundle discount if you combine your auto insurance with any of the following insurance policies:
- Homeowners insurance.
- Renters insurance.
- Condo insurance.
- Umbrella insurance.
NJM customer service and claims ratings
When shopping for the best car insurance company, consider other factors besides price, like customer satisfaction. How insurers treat customers (especially during the claims process) is a good indicator of your experience if you choose an insurer like NJM.
Luckily, NJM has excellent customer service and claims satisfaction scores. It earned 900 out of 1,000 in the J.D. Power 2023 Auto Claims Satisfaction Study, outranked only by Amica and Erie by a few points. It also earned fourth place in the Mid-Atlantic region for overall customer satisfaction in the 2023 Auto Insurance Study, with 834 out of 1,000 points.
It also has far fewer customer complaints through the National Association of Insurance Commissioners (NAIC). The NAIC complaint index of 1.00 is the national average for all industry competitors. NJM has a 0.16 complaint index, which is much lower than many larger insurance companies.
Clearsurance consumer reviews are also overwhelmingly positive, earning the insurer 4.67 out of 5 stars. Almost all (94%) of customers expect to renew their policy and would recommend NJM to a friend, and 90% had a positive claims experience.
However, NJM didn’t fare as well in the Crash Network 2023 Insurer Report Card. Body repair shops rate insurers by how well they handle customer service and quality repairs. NJM is in 67th place out of 87, with a score of 524, below the 599 average.
It also has a Better Business Bureau (BBB) rating of C-, earning 1.5 out of 5 stars after 12 customer reviews.
How much does NJM car insurance cost?
Cost is an important factor for many drivers, and NJM has competitive average rates for many driving profiles. Its average annual rate is $1,366 for full coverage, almost 29% cheaper than the national average of $1,760.
As you can see in the table below, young drivers pay the most with NJM, which is common in the insurance industry. For all driver profiles, NJM beats the national average. These sample rates will differ from your price, which is based on specific details like your age, driving record, type of coverage and the limits you choose.
| Driver age/profile | NJM full coverage annual premium | National average full coverage annual premium |
|---|---|---|
Teen driver | $2,928 | $5,340 |
20-year-old driver | $1,716 | $2,284 |
30-year-old driver | $1,320 | $1,744 |
40-year-old driver | $1,236 | $1,668 |
60-year-old driver | $1,104 | $1,570 |
Clean driving record | $1,366 | $1,760 |
Source: The Zebra
Other insurances offered by NJM
Although New Jersey Manufacturers Insurance is most well-known for its auto insurance policies, it also offers other personal and business insurance products, including:
- Homeowners insurance.
- Renters insurance.
- Condo insurance.
- Boat and personal watercraft insurance.
- Motorcycle insurance.
- Classic and collector car insurance.
- Personal umbrella insurance.
- Flood insurance.
- Commercial auto insurance.
- Commercial general liability insurance.
- Workers’ compensation insurance.
- Businessowners policy (BOP).
- Commercial excess and umbrella insurance.
- Commercial package insurance.
How NJM compares
NJM is just one of many auto insurance companies you can purchase a policy from. Price, while important, isn’t the only criterion you should consider. A company’s financial stability rating shows its historical record of paying claims and managing its finances. You’re paying for your claims experience, so considering a company’s claims satisfaction scores can give you an idea of how they’ll handle any claims you submit in the future.
The table below shows how NJM compares to other regional competitors. Only Erie beat NJM in price, while other competitors average hundreds of dollars more per year. Erie is also the only competitor to beat NJM in claims satisfaction, and it was only by two points.
| Insurance company | Average premium | AM Best financial stability rating | J.D. Power claims satisfaction score |
|---|---|---|---|
$1,366 | A+ | 900 | |
Erie | $1,296 | A+ | 902 |
Farmers | $1,788 | A | 878 |
Mercury | $2,190 | A | 848 |
$1,728 | A- | N/A |
Sources: The Zebra, AM Best, J.D. Power
How to file a claim with NJM
NJM offers two options to file an auto insurance claim. You can call 1-800-367-6564 or submit the claim online.
Each option is available 24/7. Be prepared with information such as:
- Your NJM auto insurance policy number.
- The date, time and location of the accident.
- Description of the incident.
- Other relevant information, like contact information for the other driver and eyewitness and police report.
Methodology
We relied on the company’s and publicly available websites to gather service, data and policy information. This review does not include policy offerings, discounts, additional features or service options not actively promoted on the company’s website. Policy pricing data is provided by Quadrant Information Services via The Zebra.
Third-party rankings and reviews were gathered from expert insurance industry sources AM Best, Clearsurance, Crash Network, NAIC and J.D. Power. The data is provided for informational purposes only and does not reflect the policy premiums you will receive from any listed insurance companies.
Frequently asked questions (FAQs)
Is NJM car insurance worth it?
NJM car insurance is an excellent choice, but comparing car insurance quotes with other insurers is a good idea. Comparing insurance quotes can help you decide which insurer offers the best price for you. NJM has a solid track record of financial stability and excellent customer satisfaction scores, suggesting an auto policy may be worth it, even if NJM isn’t the cheapest option.
How to contact NJM car insurance?
You can contact NJM car insurance by phone at 1-800-232-6600. You can also call NJM claims 24/7 at 1-800-367-6564. NJM has a contact form you can fill out online.
Does NJM have a good reputation?
NJM has a good reputation, with competitive average rates and mostly positive consumer reviews. After over 12,000 reviews on Trustpilot, it has an excellent rating, earning 4.7 out of 5 stars. NJM has been around for over 100 years and has an A+ financial strength rating with AM Best, suggesting the insurer is stable and can afford to meet its financial obligations.
Who is NJM’s biggest competitor?
Competitive analysis website Owler shows NJM’s biggest competitors are GEICO, Travelers and Chubb. These national insurers have a much larger footprint than NJM, but rates are competitive.
