GEICO vs. NJM Insurance Group: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for insurance, NJM offers significantly less expensive prices than GEICO
• GEICO may help you save more money -- they offer more discounts than NJM Insurance Group
• NJM has cheaper premiums in NJ

GEICO 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 big savings, but exactly how much money can you save by switching?

You might be considering GEICO or NJM as your top options, but between the two, which one has more affordable prices for car insurance?

Looking at the national average rates for both carriers, GEICO has average rates that are around 25% a month more expensive than those from Njm.

However, that doesn't mean Njm will necessarily be cheaper than GEICO for every single driver. After all, insurance companies can offer drastically different rates to every driver depending on rating factors like your driving record, where you call home, your credit score, or even your age (among other things), so rates will vary quite a bit from person to person.

So, if you want to find out which of GEICO or Njm is really the best for you, keep reading to see average premiums for each company broken down by lots of different rate factors.

GEICO vs. NJM : Average Car Insurance Rates by State

GEICO and NJM only compete against each other in New Jersey, where NJM offers cheaper average rates. NJM drivers pay about $29 per month less on average compared to drivers who use GEICO for their auto insurance.

That being said, there's a lot more that goes into your insurance cost than just where you call home. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance prices of any group out there on the road. It's normally because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high premiums, teen drivers can find ways to save money. Just look at the table above -- where 18-year-old drivers with NJM for their car insurance pay over 30% less than those who use GEICO. It's worth noting that GEICO offers insurance in 50 different states compared to NJM's one, which can skew the average rates a bit, but the difference here is still considerable.

Even so, both carriers will offer you dramatically lower premiums by the time drivers turn 25. For example, average prices for GEICO policyholders decrease by about $200 and NJM 's rates drop by around $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 most affordable prices you can find.

But who has the best premiums for retired drivers between GEICO and NJM ? NJM gets the edge, with prices for drivers 65 and older more than 35% more affordable than the national average for GEICO.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are generally less expensive for married policyholders than they are for single policyholders? This usually boils down to married drivers having more than one vehicle on their policy -- something many car insurance companies will reward with discounts.

For single drivers, the difference in average rates between these two carriers is significant, with NJM prices coming in at a quarter less than GEICO's. For married couples, the advantage is clear again - NJM has the edge when it comes to average rates.

GEICO or NJM : Average Rates by Gender

Men usually pay more for auto insurance than women. This is because men are statistically more likely than women to get into collisions and file an insurance claim, which leads to increased risk for insurers and, therefore, higher premiums.

With GEICO, men typically pay almost $10 a month more than women, and about $1 with NJM .

When it comes to the cheapest rates for each gender, NJM comes out as the lowest option for both genders, with average premiums $52 less for men and $45 cheaper for women.

GEICO 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.

For most people, insurance can be pretty complicated. There are many different coverages that account for multiple different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

The two most common policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause an accident) and full coverage (which includes collision and comprehensive coverages that protect your own car, alongside liability coverage).

Looking specifically at state minimum liability limits, NJM has the slight 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 around $181 per month to GEICO's $269.

Is GEICO 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 at-fault accidents will most likely raise your rates, but is GEICO or NJM cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use GEICO for their auto insurance can generally expect their monthly bill to go up about 23% after getting a speeding ticket. NJM policyholders can expect a less drastic increase of around 19%.

But GEICO is usually the more affordable option for both drivers who have clean records and those with a recent ticket, offering premiums that are $7 and $1 less expensive, respectively, compared to NJM Insurance Group.

Which Company is Best for Drivers After an Accident?

Both companies will raise prices pretty significantly if you get into an at-fault collision with GEICO increasing by about 43%. NJM has a less extreme climb, but you can still expect to pay 0% more than you were prior to your first accident.

At the end of the day, the cheaper rates come from NJM , with average prices coming in at $122 compared to GEICO's $200.

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 -- normally a lot more than a collision or speeding ticket. On average, GEICO will increase your premiums around 58% after a DUI, while Njm's average prices increase by nearly 20%.

NJM has the overall cheapest rates for drivers with a DUI on their records at $151 per month, but it's worth noting that GEICO's average rates come from 50 states compared to just one for Njm, so the data may be skewed slightly.

How does Credit Score Impact GEICO and NJM Rates?

You may not realized it, but your credit score can come into play when carriers determine your monthly bill. This isn't true for everyone (Michigan, for example, has banned the use of credit score as an insurance factor) but it will come into play for a lot of drivers.

Car insurance companies 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.

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

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, NJM will typically reward you the most. For drivers with "excellent" credit scores, NJM comes in just under 23.66 less expensive. Drivers with "good" credit scores generally save about 29% with NJM compared to average rates from GEICO.

Which Company is Best for Drivers with Bad Credit?

NJM typically offers lower prices than GEICO when it comes to drivers with bad credit. Drivers with "fair" credit pay around 32% a month less with NJM compared to GEICO, and those with "poor" scores normally save an average of about 23% a month.

Is GEICO 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 premiums? Usually, the more milage you put on your vehicle, the more you can expect to pay for insurance.

NJM tends to be the more affordable option for both remote workers and those taking short commutes. NJM 's average rates for drivers with 6,000 annual miles come in at around $50 less expensive than GEICO. Those who drive 12,000 miles annually can expect to pay about $47 less with Njm over GEICO.

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

Where you live can have a considerable impact on your monthly auto insurance bill. Typically, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

NJM tends to offer the lowest premiums for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to save around $42 with NJM compared to GEICO. People who live in suburban areas pay about $54 less with NJM compared to GEICO. For policyholders in urban ZIP codes, NJM Insurance Group's average prices are around $50 less than GEICO.

GEICO 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 car 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're eligible for.

Luckily, we did the hard work for you and looked at all of the different discounts GEICO and NJM offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

GEICO blows NJM away when it comes to the sheer amount of discounts available, offering 28 different discounts to NJM 's 14.

There are a couple discounts both carriers offer, but GEICO also offers discounts for commercial drivers license, COVID-19 relief, deployed driver, and more.

On the other hand, NJM has a proprietary discount of its own -- a new business discount.

Final Thoughts: Is GEICO or NJM Best for You?

You've seen the role certain variables have on your auto insurance and the different discounts companies offer. But, at the end of the day, which insurance carrier is the best carrier for you and your specific profile and 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've started working from home and don't have much of a commute.

GEICO might be best for you if...

• You value the experience that comes with a large national car insurance company.
• You've received a ticket for speeding recently and don't want to see your rates climb.
• You're looking for discounts -- GEICO has the most.

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

At the end of the day, the best way to ensure you're getting the best deal on your auto insurance policy is to compare quotes from several carriers, not just GEICO and NJM. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best car insurance companies in your area, all for free.

GEICO vs. Njm FAQs

Is GEICO or NJM cheaper?

NJM is the cheaper of the two carriers when looking at national average prices, with policies averaging $137 per month with NJM and $185 for GEICO. That being said, that doesn't mean NJM will be the most affordable carrier for everyone, since there are a variety of different factors that come into play when it comes to your auto insurance payment.

Who is better, GEICO or NJM ?

Unfortunately, the real answer is "it depends.". Neither company is necessarily "better" for everyone -- it all depends on the makeup of your unique insurance profile.

Why do GEICO and NJM offer me different rates?

Car insurance companies use quite a few different variables when determining the premiums they charge. Factors like your driving record, where you call home, age, gender, and sometimes even things like your credit score can all come into play. Both GEICO and NJM calculate prices using different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from a bunch of different carriers.

How do I know if GEICO 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 make it easy for you to do just that. Just enter your area information and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the best price. And maybe you'll find that the best carrier for you isn't GEICO 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.