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

Quick Facts

• Looking at the national averages for insurance, Njm offers significantly more affordable rates than Esurance
• Esurance may help you save more money -- they offer more discounts than NJM Insurance Group
• Njm offers less expensive average prices for policyholders who drive fewer than 12,000 miles every year

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

Are you in the market for a new insurance policy? After all, you've seen ads from all sorts of companies offering large savings. But exactly how much can you save by switching?

You might have narrowed your search down to Esurance or Njm, but between the two, which one has cheaper premiums for auto insurance?

Looking at nationwide averages, Njm has average rates that are around 55% a month more affordable than those from Esurance.

Even so, Njm may not be the cheapest or best option for every single driver out there. Insurance carriers use a ton of complex algorithms to determine rates, so depending on how old you are or how good your credit score is (among numerous other factors), you could see wildly different prices from the ones above.

Luckily, we've broken down average premiums from both Esurance and Njm by multiple different rate factors, so read on to find out which carrier is the best for you.

Esurance vs. Njm: Average Car Insurance Rates by State

Esurance and Njm only compete against each other in New Jersey, where Njm offers the cheaper average rates. Njm drivers tend to pay about $159 per month less on average compared to drivers who use Esurance for their car insurance.

That being said, there's a lot more that goes into your auto insurance payment than just where you call home. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's typically because teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

However, 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 65% less a month by choosing Njm over Esurance. It's worth noting that Esurance offers auto insurance in 11 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, with both companies, you'll see your premiums drop significantly by the time you turn 25. Njm offers the steepest reduction, with 25-year-olds paying less than half what 18-year-old drivers are charged. Esurance's average rates decrease over 65% during that same period.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the most affordable car insurance prices you can find. After all, they've likely been driving for quite some time, which normally decreases their chances of collisions and other infractions that can raise premiums.

When looking at Esurance and Njm specifically, which company is best for retired drivers? Njm gets the edge, with prices for drivers 65 and older nearly 60% cheaper than the national average for Esurance.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are typically more expensive for those who are single than they are for married policyholders? That's because policies for married drivers generally cover multiple vehicles, which many carriers will give you a discount for.

For single policyholders, the difference in average premiums between these two companies is significant, with Njm prices coming in at about half of Esurance's. For married couples, the advantage is clear again - Njm has the edge when it comes to average rates.

Esurance or Njm: Average Rates by Gender

Because women are less likely to get into collisions and get speeding tickets, they run a lower risk of filing a claim with insurance. So, women usually pay less for auto insurance than men.

On average, women see premiums around $20 per month less expensive with Esurance, and about $1 less with Njm.

Looking at the data for each carrier specifically, Njm offers the lowest average rates for both men and women. On average, male drivers save about $172 a month and women save around $152 with Njm compared to the average Esurance policyholder.

Esurance 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.

Insurance can be a complicated subject for most people. There are so many different terms and coverages that it can make it pretty confusing to find the right policy for you.

But most policies end up falling into two different types of coverage -- liability coverage (that covers property damage and bodily injury for other drivers and passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to liability coverage).

Looking specifically at state minimum liability insurance, Njm has the significant edge, with average monthly prices 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 per month to Esurance's $396.

Is Esurance or Njm Better for Drivers with Spotty Records?

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

Speeding tickets and accidents will most likely raise your premiums, but is Esurance or Njm more affordable for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Esurance for their insurance can normally expect their monthly bill to go up around 16% after getting a speeding ticket. Njm policyholders can expect a bit more drastic of an increase of about 19%.

Even so, Njm has less expensive prices for drivers in both categories. With NJM Insurance Group, drivers with a clean record can save around $120 a month and drivers with a ticket can save about $136 per month.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Esurance can expect to see around an $122 -- or about 34% -- rise in their auto insurance rates. Drivers who use Njm for their insurance will see a monthly bill around $0 (or 0%) more expensive after reporting an accident to their auto 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 Esurance's $364.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your car insurance bill. For example, Esurance increases average rates by nearly $60 a month -- that's nearly a 20% increase.

Njm has the overall most affordable premiums for drivers with a DUI on their records at $151 a month, but it's worth noting that Esurance's average rates come from 11 states compared to just one for Njm, so the data may be skewed slightly.

How does Credit Score Impact Esurance and Njm Rates?

You may not realized it, but your credit score can be used as one of the factors to calculate your monthly insurance prices. 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 several drivers.

Auto insurance carriers argue that those with poor credit scores are less likely to pay their bills on time each month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking at Esurance and Njm specifically, which company has the best premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Njm will generally reward you the most. For drivers with "excellent" credit scores, Njm comes in just under 53.27 cheaper. Drivers with "good" credit scores normally save about 56% with Njm compared to average rates from Esurance.

Which Company is Best for Drivers with Bad Credit?

Njm typically offers lower prices than Esurance when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 56% per month less with Njm compared to Esurance, and those with "poor" scores typically save an average of about 54% per month.

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

The amount of time you spend behind the wheel of your car plays a big role in how much car insurance companies will charge for coverage. That's because the more milage you put on your car each year, the more likely you are to be in a collision and file an insurance claim.

For both remote workers and those taking short commutes, Njm tends to be the less expensive option. Njm's average premiums for drivers with 6,000 annual miles come in around $167 cheaper than Esurance. Those who drive 12,000 miles annually can expect to pay about $157 less with Njm over Esurance.

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

Where you live can play a large role in how much you pay for auto insurance. Usually, those who live in urban areas will pay more than policyholders in rural areas since there are a lot more vehicles on the road where they live, which increases the chances of an accident.

Njm boasts the most affordable average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For drivers in urban ZIP codes, NJM Insurance Group's average rates are around 59% less than Esurance. People who live in suburban areas pay about 55% less with Njm compared to Esurance. Those in rural areas can expect to save around 45% with Njm compared to Esurance.

Esurance 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.

The challenging part is finding all of the discounts you qualify for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both Esurance and Njm so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Esurance knocks Njm out of the park when it comes to the sheer number of discounts available, offering 24 different discounts to Njm's 14.

Both carriers offer several of the same discounts -- like anti-theft discounts, discounts for being a good student, and multi-policy discounts -- but Esurance also offers discounts for advance quote, agency transfer, DRL, and more.

On the other hand, Njm has a few proprietary discounts of their own for things like driver training discounts, EFT discounts, employee discounts, and more.

Final Thoughts: Is Esurance or Njm Best for You?

So, you've seen how different variables can affect your car insurance premiums. We've broken down the different discounts each carrier offers, too. But, when it comes down to it, is Esurance or Njm the right carrier for you, your vehicle, and your wallet?

Njm might be best for you if....

• You haven't received any speeding tickets or been in an accident in the last few years.
• Your credit score is high.
• You're of retirement age and want to take advantage of lower rates.

Esurance might be best for you if...

• You are considering moving to another state -- NJM Insurance Group is only available to New Jersey residents.
• You're looking for the company with the most discounts.

Hopefully, this guide helps you get a good idea of the differences between Esurance and Njm. We also hope we've given you the information you need to make the best decision about your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on car insurance -- comparing quotes from multiple companies, not just Esurance and Njm. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

Esurance vs. Njm FAQs

Is Esurance or Njm cheaper?

Njm is the more affordable of the two companies when looking at national average prices, with policies averaging $137 a month with Njm and $299 for Esurance. However, that doesn't mean Njm will be the cheapest carrier for every driver, since there are several different factors that come into play when it comes to your auto insurance cost.

Who is better, Esurance or Njm?

Sadly, the real answer is "it depends.". No single company is "better" for each policyholder -- it all boils down to your unique car insurance profile.

Why do Esurance and Njm offer me different rates?

Insurance carriers use a lot of different variables when determining the premiums they charge. Things such as where you park your car, gender, where your home is, age, and sometimes even things like your credit score can all be taken into consideration. Both Esurance and Njm calculate rates 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 a range of different companies.

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

The only way to find the auto insurance company that's right for you is by getting quotes from a handful of carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code and you'll get quotes from dozens of your local top car insurance companies for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best carrier for you isn't Esurance 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.