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NJM vs. GEICO: Which Company Is Best for You?

NJM is typically a cheaper option for car insurance than GEICO, but that’s not the whole story. In this guide, we’ll compare these two insurers’ discount options, customer reviews, and rates based on popular driver profiles.

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NJM and GEICO have kept drivers covered on the road for decades. While GEICO is a well-known national insurer with a large market share and auto policies in all 50 states, NJM is a smaller regional insurer that mainly offers policies in New Jersey, Connecticut, Maryland, Ohio, and Pennsylvania.

Different drivers have different needs — and average premiums — when it comes to car insurance coverage. While NJM has lower average rates, you may find GEICO to be the better option for your unique needs. In the following sections, we’ll take a closer look at both insurers’ rates across driver profiles, as well as explore discount options and reviews from real customers.


Key Takeaways:

  • In general, NJM offers cheaper average auto insurance rates than GEICO.
  • Although NJM is cheaper, GEICO offers more discounts.
  • NJM’s customer satisfaction ratings are higher than GEICO’s.

NJM vs. GEICO: Which Has Cheaper Car Insurance Rates?

Car insurance companies consider factors like your age, driving record, ZIP code, credit history, and more when determining your car insurance rates. Prices vary from driver to driver, but on average, GEICO has higher rates than NJM for liability insurance and full coverage.

The table below shows how much each company charges the average driver for liability and full-coverage policies.

Company Liability-Only Policies Full-Coverage Policies
NJM $39 $58
GEICO $56 $119

While NJM has the best rates across every driver category, some drivers may still consider GEICO, given its wide range of discounts. For instance, teen drivers should consider GEICO for its good student discount, which can save you up to 15%.


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NJM vs. GEICO: Compare Rates by Driver Age

Man is adjusting his rearview mirror

Age plays a big role in how much you pay for car insurance. Generally, younger drivers pay more for coverage because of their general inexperience and a higher likelihood of causing a collision.

Here’s how NJM’s and GEICO’s rates compare across different age groups.

Age Group NJM GEICO Winner
Teens $80 $121 NJM
20s $55 $100 NJM
30s $46 $84 NJM
40s $42 $84 NJM
50s $37 $74 NJM
60s $34 $67 NJM
70s $32 $66 NJM

NJM’s average rates beat out GEICO’s for all age groups. Average monthly rates are closest among older drivers — separated by $33 for drivers in their 60s. For both companies, young drivers pay the highest rates — but car insurance costs fall as you get older.

Which company has lower rates for young drivers?

Young drivers have a higher rate of car accidents, and auto insurers often charge them higher rates to offset these risks. NJM’s rates are $41 cheaper per month than GEICO’s for teens and $45 less for drivers in their 20s.

Which company has lower rates for senior drivers?

Car insurance companies see older drivers as lower-risk and charge them the cheapest car insurance rates as a result of their experience behind the wheel and their tendency to practice safe driving habits.

NJM offers cheaper insurance policies for older drivers, on average, with monthly rates around $35 cheaper for drivers in their 50s, 60s, and 70s.

GEICO vs. NJM: Which Is Better for Drivers with Bad Records?

Driving record is one of the most important rating factors car insurance companies weigh when determining your rates. The table below compares GEICO’s and NJM’s liability-only rates for drivers with a clean driving history, a speeding ticket, an at-fault accident, or a DUI.

Driving Record NJM GEICO Winner
Clean record $49 $88 NJM
Speeding ticket $57 $101 NJM
At-fault accident $61 $108 NJM
DUI $76 $136 NJM

Once again, NJM has the cheapest average rates for each category, but let’s take a closer look at both company’s premiums for drivers with different infractions.

Which company is cheaper for drivers with a speeding ticket?

Insurance companies see drivers with speeding tickets as riskier to insure, and they’ll generally charge you higher insurance rates if you’ve had a ticket in the past three years.

Looking at these two insurers specifically, GEICO drivers pay $44 more per month after a speeding ticket compared to NJM.

Which company is cheaper for drivers after an accident?

Car insurance companies will classify you as a high-risk driver after an at-fault accident, and they’ll raise your rates accordingly. On average, NJM policyholders with an accident pay 44% lower premiums than GEICO’s drivers.

Which company is cheaper for drivers with a DUI?

As the table shows, DUIs raise your average rates more than other traffic violations. Drivers with GEICO pay $60 more per month after a DUI compared to NJM.

NJM and GEICO: Compare Rates by Credit Score

Young woman is typing on her laptop

Many states allow car insurance companies to look at your credit history when determining your rates. Insurers generally see drivers with poor credit as having a greater risk of not paying their premiums on time, so they charge them higher premiums to manage this risk.

The table below shows how NJM’s and GEICO’s rates compare by credit tier.

Credit Tier NJM GEICO Winner
Excellent $44 $76 NJM
Good $49 $87 NJM
Average $51 $93 NJM
Poor $51 $103 NJM

GEICO again falls short for drivers in each credit tier, but let’s take a closer look at the average rates for each.

Which company is best for drivers with good credit?

NJM offers cheaper rates overall to drivers with “good” or “excellent” credit. In fact, its average rates are around 40% cheaper for drivers in both tiers.

Which company is best for drivers with average credit?

Drivers with NJM who have “average” credit pay cheaper car insurance rates than similar drivers who have car insurance through GEICO. NJM charges the average driver $42 less per month if they have a middle-of-the-road credit score.

Which company is best for drivers with bad credit?

GEICO’s average rates are more than double NJM’s for drivers with “poor” credit scores — the largest gap of any credit tier, according to our data.


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How GEICO and NJM Compare for Discounts

Woman holds and reads two pieces of paper

In the competitive insurance industry, companies offer countless discounts to attract new clients and grow their market share. Insurers offer discounts for things like insuring multiple cars, purchasing multiple policies from the same company, or going accident-free for a certain period of time.

NJM and GEICO offer the following car insurance discounts:

Discount Type NJM GEICO
Driver training course
Electronic payment
Emergency deployment
Federal employee
Good student
Mature driver
Military
Multi-car
Multi-policy
New car
Paid in full
Paperless billing
Safety features

Both companies offer a wide array of discounts, but GEICO takes the slight edge with 13 advertised discounts to NJM’s 10. Emergency deployment, federal employee, and military discounts are what sets GEICO apart.

Which Company Has Better Perks?

While both insurers provide plenty of discounts, GEICO offers more policy perks than NJM. For example, drivers with GEICO can enroll in the DriveEasy telematics program, which helps you save money by driving safely.

Both companies offer roadside assistance programs, which provide towing or lockout services if you’re stranded on the side of the road. Additionally, both companies offer electronic billing and auto pay. Neither company offers a vanishing deductible at this time.

What Do NJM and GEICO Customers Have to Say?

NJM has a 4.7 out of 5 rating on Trustpilot from more than 12,000 reviews, while GEICO’s website promotes a 97% customer satisfaction rate based on an independent study. Here’s how they compare across some of the most common review platforms.

Platform NJM GEICO
Trustpilot 4.7/5 1.3/5
Clearsurance 4.7/5 4.3/5
Better Business Bureau 1.38/5 1.13/5

In the 2023 J.D. Power customer satisfaction study, NJM earned an above-average score of 834 out of 1,000, while GEICO earned a below-average score of 818.

Below are some customer reviews for each company. These first two reviews show how GEICO customer experiences can vary — from impressive customer service to frustrating price hikes.

4-star customer review of GEICO 1-star customer review of GEICO

Meanwhile, NJM’s customer reviews are generally strong. The following reviewers praise the company’s exceptional customer service and smooth claims process.

5-star customer review of NJM 3-star customer review of NJM


Find Out Which Company is Best for You


NJM vs. GEICO FAQs

Here are some answers to commonly asked questions about insurance from NJM and GEICO and how the two insurance companies compare.

Is GEICO better than NJM?

It depends. NJM beats GEICO on average price and customer service. But if you’re looking for a large insurance company with agents nationwide, GEICO is the better option. GEICO also offers more discounts and has a usage-based insurance program, DriveEasy, that can save you even more.

Is NJM a good insurance company?

NJM has above-average customer satisfaction ratings and affordable car insurance rates. While it isn’t available in many states, NJM’s quality and affordability make it a good choice for many drivers in the Northeast.

Who’s GEICO’s biggest competitor?

State Farm — the largest car insurance company by market share — is GEICO’s biggest competitor, alongside other notable insurers like Progressive, Allstate, and Liberty Mutual. Each of these insurers is a top company that offers affordable car insurance rates, generous discounts, a massive nationwide footprint, and popular telematics programs.

What insurance company is better than GEICO?

The best car insurance company for you depends on your specific wants and needs. For example, Liberty Mutual offers gap insurance and has above-average customer satisfaction scores. Drivers looking for gap insurance and exceptional customer service might choose Liberty Mutual over GEICO.

What are the best car insurance companies?

State Farm, USAA, and Liberty Mutual score high on J.D. Power’s annual customer satisfaction surveys and offer good coverage options to a wide range of drivers. Average costs will vary from company to company, so it’s a good idea to compare rates from a wide range of car insurers to find the best deal.


Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.


Sources

  1. J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed March 6, 2024.
  2. National Association of Insurance Commissioners, “2023 Property and Casualty Insurance Market Share Report,” Accessed March 6, 2024.

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