Allstate vs. NJM: Which Company is the Best Fit for You?

Quick Facts

• In general, NJM offers significantly more affordable rates than Allstate
• Allstate may help you save more money -- they offer more discounts than NJM Insurance Group
• NJM has cheaper prices for drivers who have below-average credit

Allstate or NJM: Which Company has the Cheapest Car Insurance?

So, you're considering switching to a new insurance policy. You've probably seen commercials and billboards from companies offering large savings, but exactly how much money can you save by switching?

You've maybe even narrowed it down to Allstate or NJM as your top options, but between the two, which one has less expensive premiums for insurance?

Looking at nationwide averages, NJM is quite a bit cheaper than Allstate, with rates averaging $137 a month compared to $199 with Allstate.

That being said, that doesn't mean NJM will necessarily be cheaper than Allstate for each driver. Car insurance carriers vary their prices depending on things like where you live, how clean your driving record is, how good your credit score is, how old you are, and a variety of other factors, so rates could change drastically from person to person.

Luckily, we've broken down average prices from both Allstate and NJM by lots of different rate factors, so read on to find out which company is the best for you.

Allstate vs. NJM: Average Car Insurance Rates by State

Allstate and NJM only compete against each other in New Jersey, where NJM offers the cheaper average premiums. NJM drivers tend to pay about $124 per month less on average compared to drivers who use Allstate for their auto insurance.

But there's more to insurance than just your home state. As we mentioned above, there's a lot of things that go into how car insurance companies determine your rates. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for auto insurance than any group out there on the road. It's because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

But that doesn't mean teen drivers can't still save money on their car insurance. For example, 18-year-old drivers pay an average of almost 40% less a month by choosing NJM over Allstate. It's worth noting that Allstate offers insurance in 47 different states compared to NJM's one, which can skew the average premiums a bit, but the difference here is still considerable.

However, with both carriers, you'll see your prices lower significantly once you turn 25. For example, average rates for Allstate policyholders reduce around $300 and NJM's premiums decrease nearly $150 over that time.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices you can find.

So, which carrier offers the best premiums to retired drivers? NJM gets the edge, with prices for drivers 65 and older $56 less expensive than the national average for Allstate.

Which is the Best Company for Married Drivers?

Those who are single tend to get offered slightly more expensive insurance rates than married drivers. This usually boils down to married couples having multiple vehicles on their policy -- something lots of auto insurance companies will reward with discounts.

For single drivers, the difference in average premiums between these two carriers is significant, with NJM prices coming in at a third less than Allstate's. The advantage is also clear for married policyholders - NJM offers the most affordable average rates.

Allstate or NJM: Average Rates by Gender

Men are statistically more likely than women to get pulled over for speeding or get into a collision, which means they'll normally end up paying more for car insurance than women.

Normally, men see premiums about 4% per month higher with Allstate, but with NJM, the difference is closer to 1% a month.

When it comes to the cheapest rates for each gender, NJM offers the lowest average prices for both men and women. On average, women save about $58 per month and men save around $66 with NJM compared to the average Allstate policyholder.

Allstate vs. NJM: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

Auto insurance isn't the easiest topic to understand. There are so many different terms and coverages that it can make it pretty confusing to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (which provides bodily injury and property damage coverage for other drivers and passengers if you cause an accident) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability).

Looking specifically at state minimum liability insurance, NJM has the edge, with average monthly rates coming in at $92. If you want a full coverage policy with the same state minimum limits, NJM again has the edge, with policies averaging about $181 a month to Allstate's $289.

Is Allstate or NJM Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance companies offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with collisions and speeding tickets on your record, but which of these two carriers offers the cheapest premiums to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Allstate for their auto insurance can generally expect their monthly bill to go up around 15% after getting a speeding ticket. NJM policyholders can expect a bit more drastic of an increase of about 19%.

Even so, NJM is typically the more affordable option for both drivers who have clean records and those with a recent ticket, offering rates that are 22% and 17% cheaper, respectively, compared to Allstate.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Allstate can expect to see around an $73 -- or about 32% -- rise in their insurance premiums. Drivers who use NJM for their auto insurance will see a monthly bill around $0 (or 0%) more expensive after reporting a collision to their car insurance company.

At the end of the day, drivers who use NJM end up with the cheaper prices after an accident, with average prices coming in at $122 compared to Allstate's $229.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly insurance bill -- usually a lot more than an accident or speeding ticket. Allstate drivers usually see a 31% raise in their car insurance premiums after a DUI charge, while NJM will normally increase rates by about 19%.

NJM has the overall most affordable prices for drivers with a DUI on their records at $151 per month, but it's worth noting that Allstate's average rates come from 47 states compared to just one for NJM, so the data may be skewed slightly.

How does Credit Score Impact Allstate and NJM Rates?

You may not realized it, but your credit score can come into play when companies calculate your monthly bill. Certain states and carriers do not allow for credit score to be used as an auto insurance factor, but it might come into play for a lot of drivers.

Insurance companies argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

So, which carrier offers the best premiums for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, NJM will generally reward you the most. For policyholders with "excellent" credit scores, NJM comes in more than 31.03 more affordable. Drivers with "good" credit scores typically save around 32% with NJM compared to average rates from Allstate.

Which Company is Best for Drivers with Bad Credit?

NJM typically offers lower prices than Allstate when it comes to drivers with a below average credit score. Drivers with "fair" credit pay about 34% per month less with NJM compared to Allstate, and those with "poor" scores normally save an average of around 29% monthly.

Is Allstate or NJM Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a big impact on your monthly auto insurance bill. Typically, those who drive less will end up with less expensive rates since there's less of a chance of causing a collision and filing an insurance claim.

NJM tends to be the more affordable option for both remote workers and those taking short commutes. Allstate's average prices for drivers with 6,000 annual miles come in more than $65 more expensive than NJM. Those who drive 12,000 miles annually can expect to pay nearly $60 more with Allstate over NJM.

Allstate or NJM: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a pretty big role in how much you pay for car insurance. Usually, if you live in an urban area with more cars on the road, you'll pay a little more for auto insurance, while the opposite is true for people in rural areas.

When comparing these two carriers side-by-side, NJM generally comes out as the cheapest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to save about $57 with NJM compared to Allstate. People who live in suburban areas pay around $68 less with NJM compared to Allstate. For drivers in urban ZIP codes, NJM Insurance Group's average premiums are about $61 less than Allstate.

Allstate vs. NJM Discounts

You want to save as much money as you can, right? The best way to do that is by taking advantage of as many insurance discounts as possible.

But with what seems like a million different discounts out there, it can be hard to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you qualify for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both Allstate and NJM so that you can see which company can save you the most money each month.

Allstate knocks NJM out of the park when it comes to the sheer number of discounts available, offering 26 more discounts than NJM.

There are a couple discounts both companies offer, but Allstate also offers discounts for advance quote, agency transfer, alert driving, and more.

On the other hand, NJM has a few proprietary discounts of their own for things like employee discounts, full coverage discounts, new business discounts, and more.

Final Thoughts: Is Allstate or NJM Best for You?

So, you've seen how different factors can affect your car insurance rates. We've broken down the different discounts each carrier offers, too. That's all well and good, but when it comes down to it, is Allstate or NJM the best carrier for you and your specific needs?

NJM might be best for you if....

• Your driving record includes a DUI charge.
• You want the most robust protection via a "full coverage" policy.
• You're of retirement age and want to take advantage of lower premiums.

Allstate might be best for you if...

• You value the experience that comes with a large national auto insurance company.
• You care about discounts (Allstate offers the most).

Hopefully, this guide helps you get a better idea of the difference between Allstate and NJM. We also hope we've given you the information you need to make the best decision when it comes to your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several carriers, not just Allstate and NJM. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of the top insurance companies in your area, all in just a few minutes.

Allstate vs. NJM FAQs

Is Allstate or NJM cheaper?

NJM is the cheaper of the two carriers when looking at national average prices, with policies averaging $137 a month with NJM and $199 for Allstate. That being said, that doesn't mean NJM will be the most affordable carrier for everyone, since there are a bunch of different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Allstate or NJM?

Sadly, the real answer is "it depends.". Neither company is "better" for everyone -- it all depends on what your unique car insurance profile looks like.

Why do Allstate and NJM offer me different rates?

Auto insurance companies use several different factors when determining the rates they charge. Things such as where your home is, age, gender, where you call home, and sometimes even things like your credit score can all come into play. Both Allstate and NJM calculate premiums using different formulas, so it's likely they'll offer different prices. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from many different carriers.

How do I know if Allstate or NJM is right for me?

The only way to find the insurance company that's right for you is by getting quotes from a handful of companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top car insurance carriers for free. With those, you can guarantee you're getting the cheapest rate. And maybe you'll find that the best carrier for you isn't Allstate or NJM at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.