Encompass vs. Njm: Which Company is the Best Fit for You?

Quick Facts

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

Encompass or Njm: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? With so many ads from all sorts of companies offering hefty savings, you're probably wondering exactly how much you might be able to save.

You might be considering Encompass or Njm as your top options, but which carrier will save you the most?

Looking at the national average rates for both carriers, Encompass is quite a bit more expensive than Njm, with premiums averaging $466 a month compared to just $137 with Njm.

Even so, Njm may not be the cheapest or best option for each driver out there. Auto insurance companies use all sorts of complex algorithms to determine rates, so depending on how good your credit score is or where you live (among a lot of other factors), you could see wildly different premiums from the ones above.

Wanting to know if Encompass or Njm is really the right company for you? Keep on reading to see how average rates can change based on all of the factors we've mentioned above.

Encompass vs. Njm: Average Car Insurance Rates by State

Encompass and Njm only compete against each other in New Jersey, where Njm offers the cheaper average prices. Njm drivers tend to pay about $296 per month less on average compared to drivers who use Encompass for their insurance.

But there's more to car insurance than just where you live. As we mentioned above, there's a lot of things that go into how auto insurance carriers calculate your rates. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance premiums of any other group of drivers out there on the road. It's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

However, that doesn't mean teen drivers can't still save money on their insurance. For example, 18-year-old drivers pay an average of over 75% less a month by choosing Njm over Encompass. It's worth noting that Encompass offers auto insurance in 31 different states compared to Njm's one, which can skew the average prices a bit, but the difference here is still considerable.

That being said, both companies will lower premiums once you turn 25. For example, average rates for Encompass policyholders drop around $500 and Njm's prices decrease about $150 over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest premiums you'll ever see.

So, which carrier offers the best prices to retired drivers? Njm gets the edge here, with average rates coming in at around $96 a month compared to Encompass's $335.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are generally more expensive for single policyholders than they are for married drivers? That's normally because married policyholders tend to own and insure several vehicles, which can often earn you a discount.

For those who are single, the difference in average rates between these two carriers is significant, with Njm prices coming in at about a quarter of Encompass's. The advantage for married couples with Njm is also obvious, where drivers save more than 65% per month.

Encompass or Njm: Average Rates by Gender

Did you know women typically pay less for car insurance than men? That's because men are more likely to get tickets and get into accidents, which increases the chances of filing a claim with insurance.

Normally, women see premiums around 5% a month less with Encompass, and about 1% less with Njm when compared to their male counterparts.

Looking at the data for each company specifically, Njm offers the most affordable average rates for both men and women, with average prices $340 less for men and $318 cheaper for women.

Encompass 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.

It's no secret that auto insurance can be pretty complicated. Everyone needs car insurance, but there are so many different terms and coverages that it can be hard to find the right policy for you.

But the most common policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers and passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with a liability policy).

Looking specifically at state minimum liability insurance, Njm has the significant 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 around $181 per month to Encompass's $629.

Is Encompass or Njm Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their insurance. But that's not to say you can't save money if you don't have the best driving record, either.

It's no secret secret that speeding tickets and collisions lead to higher prices, but which carrier -- Encompass or Njm -- has the lowest premiums for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Encompass for their car insurance can usually expect their monthly bill to go up about 21% after getting a speeding ticket. Njm policyholders can expect a less drastic increase of around 19%.

Even so, Njm is generally the less expensive option for both drivers who have a recent ticket and those with clean records. With NJM Insurance Group, drivers with a clean record can save about $105 a month and drivers with a speeding ticket can save around $137 per month.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through Encompass can expect to see about an $101 -- or around 31% -- rise in their insurance prices. Drivers who use Njm for their auto insurance will see a monthly bill about $0 (or 0%) more expensive after reporting an accident to their car insurance company.

At the end of the day, the more affordable rates come from Njm, with average premiums coming in at $122 compared to Encompass Insurance's $328.

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 a collision or ticket. For example, Encompass increases average rates by more than $500 a month -- that's nearly a 80% increase.

Njm has the overall cheapest prices for drivers with a DUI on their records at $151 per month, but it's worth noting that Encompass's average rates come from 31 states compared to just one for Njm, so the data may be skewed slightly.

How does Credit Score Impact Encompass and Njm Rates?

Did you know many auto insurance companies take into account your credit score when determining premiums? This isn't true for everyone (for example, Hawaii and California are two states that ban the practice entirely), but it will come into play for a lot of drivers.

Insurance carriers argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with cheaper prices.

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

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Njm will normally reward you the most. For policyholders with "excellent" credit scores, Njm comes in more than 71.43 less expensive. Drivers with "good" credit scores typically save around 70% with Njm compared to average rates from Encompass.

Which Company is Best for Drivers with Bad Credit?

Njm typically offers lower premiums than Encompass when it comes to drivers with bad credit. Drivers with "fair" credit pay about 72% per month less with Njm compared to Encompass, and those with "poor" scores generally save an average of around 70% monthly.

Is Encompass or Njm Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a large impact on your monthly rates? Normally, those who drive fewer miles will end up with more affordable prices since there's less of a chance of causing an accident and filing an insurance claim.

For both remote workers and those taking short commutes, Njm tends to be the less expensive option. Encompass's average rates for drivers with 6,000 annual miles come in nearly $350 more expensive than Njm. Those who drive 12,000 miles every year can expect to pay just under $350 more with Encompass over Njm.

Encompass or Njm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your car can play a considerable role in how much you pay for car insurance. Usually, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because of the small number of vehicles that are on the roads where they live.

When comparing these two companies side-by-side, Njm typically comes out as the most affordable option for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, NJM Insurance Group's average prices are about 71% less than Encompass Insurance. People who live in suburban areas pay around 70% less with Njm compared to Encompass. Those in rural areas can expect to save about 71% with Njm compared to Encompass.

Encompass vs. Njm Discounts

No matter why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many car insurance discounts as possible.

But where do you even start? With what seems like a million different discounts out there, it may be difficult to find all the ones you're eligible for.

Luckily, we did the hard work for you and looked at all of the different discounts Encompass and Njm offer their customers so that you can see which company can save you the most money each month.

Encompass knocks Njm out of the park when it comes to the sheer number of discounts available, offering 26 different discounts to Njm's 14.

There are a couple discounts both carriers offer, but Encompass also offers discounts for advance quote, distant student, DRL, and more.

On the other hand, Njm has a few proprietary discounts of their own like full coverage discounts and new business discounts.

Final Thoughts: Is Encompass or Njm Best for You?

So, we've broken down the average premiums for many of the variables insurance companies look at, and we've shown you all the discounts each carrier offers. But, at the end of the day, which company is the best one for you and your specific driver profile?

Njm might be best for you if....

• Your driving record includes a DUI charge.
• Your credit is below-average.
• You live in a rural area.

Encompass might be best for you if...

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

Hopefully, this guide helps you get a good idea of the differences between Encompass and Njm and that you can now make a more informed decision when it comes to your car insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just Encompass and Njm. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best car insurance companies in your area, all for free.

Encompass vs. Njm FAQs

Is Encompass or Njm cheaper?

Njm is the cheaper of the two carriers when looking at national average rates, with policies averaging $137 a month with Njm and $466 for Encompass. But that doesn't mean Njm will be the cheapest company for everyone, since there are multiple different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Encompass or Njm?

Sadly, the real answer is "it depends.". No single carrier is "better" for each policyholder -- it all comes down to what your unique insurance profile looks like.

Why do Encompass and Njm offer me different rates?

Auto insurance companies use quite a few different variables when calculating the prices they charge. Things like age, your driving record, where your home is, gender, and sometimes even things like your credit score can all come into play. Both Encompass and Njm use different formulas, so it's likely they'll offer different premiums. The best way to determine which company is the lowest for you is by comparing personalized quotes from a range of different carriers.

How do I know if Encompass or Njm is right for me?

The only way to find the insurance carrier that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your information once and you'll get quotes from dozens of your local top car insurance carriers for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't Encompass 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.