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

Quick Facts

• Looking at the national averages for car insurance, Njm offers significantly more affordable prices than Penn National
• Njm tends to be a much cheaper option for drivers who have a speeding ticket on their driving record
• Penn National may help you save more money -- they offer more discounts than NJM Insurance Group

Njm or Penn National: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to 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 it down to Njm or Penn National as your top options, but between the two, which carrier will offer you less expensive rates?

Looking at nationwide averages, Njm is quite a bit cheaper than Penn National, with premiums averaging $137 a month compared to $218 with Penn National.

That being said, Njm may not be the cheapest or best option for each driver out there. Auto insurance carriers use a variety of complex algorithms to determine rates, so depending on where you live or how clean your driving record is (among quite a few other factors), you could see wildly different prices from the ones above.

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

Njm vs. Penn National: Average Car Insurance Rates by State

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

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

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for auto insurance than any other group of drivers out there on the road. It's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But 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 45% less a month by choosing Njm over Penn National.

Even so, with both companies, you'll see your rates decrease significantly by the time you turn 25. For example, average premiums for Njm policyholders reduce more than 50% and Penn National's prices drop almost 60% over that time.

Which is the Best Company for Retired Drivers?

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

When looking at Njm and Penn National specifically, which company is best for retired drivers? Njm gets the edge, with prices for drivers 65 and older over 40% more affordable than the national average for Penn National.

Which is the Best Company for Married Drivers?

Did you know that auto insurance rates are usually cheaper for married couples than they are for those who are single? That's typically because married policyholders tend to own and insure several vehicles, which can often earn you a discount.

For single drivers, the difference in average premiums between these two carriers is significant, with Njm prices coming in at a third less than Penn National's. The advantage for married drivers with Njm is also obvious, where drivers save around $65 per month.

Njm or Penn National: Average Rates by Gender

Men are statistically more likely than women to get into accidents and get speeding tickets. That means when it comes to insurance men will normally end up paying a little more.

With Njm, women generally pay about $1 a month less than men, and around $5 less with Penn National.

Looking at the data for each carrier specifically, Njm offers the lowest average rates for both men and women, with average premiums 38% less for men and 37% cheaper for women.

Njm vs. Penn National: 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 car insurance can be pretty complicated. There are so many different limits and coverages that it can make it pretty confusing to find the right policy for you.

However, the most common policies that drivers look at fall into two categories -- liability coverage (that covers bodily injury and property damage for other drivers and passengers if you cause a collision) and full coverage (which usually refers to having collision and comprehensive coverages in addition to what you get with liability).

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 about $181 per month to Penn National's $292.

Is Njm or Penn National Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto 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.

It's no secret secret that accidents and speeding tickets lead to higher premiums, but which company -- Njm or Penn National -- has the cheapest rates for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Njm for their car insurance can typically expect their monthly bill to go up around 19% after getting a speeding ticket. Penn National policyholders can expect a bit more drastic of an increase of about 22%.

But Njm tends to offer the best prices for drivers both with clean records and with a ticket -- their rates are around 12% less expensive for drivers with clean records and 16% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

Njm drivers who get in an accident can expect to see their prices rise by 0%, while those who have insurance through Penn National will see around a 35% increase.

At the end of the day, drivers who use Njm end up with the cheaper prices after an accident, with average premiums coming in at $122 compared to Penn National Insurance's $206.

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 insurance bill. For example, Penn National increases average rates by more than $200 a month -- that's nearly a 60% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Njm tends to be cheaper for the average driver, with monthly premiums coming in at about $151 to Penn National's $346.

How does Credit Score Impact Njm and Penn National Rates?

Often times, your credit score can come into play when carriers calculate your monthly bill. This isn't true for everyone (for example, Massachusetts and California are two states that ban the practice entirely), but it does affect many policyholders out there.

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

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Njm or Penn National 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 carriers will charge for coverage. Usually, those who drive less will end up with less expensive prices since there's less of a chance of causing a collision and filing an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Penn National charges. However, there's a small difference in monthly premiums for Njm, with policyholders who drive 6,000 miles each year paying around $11 less every month compared to those who drive 12,000 miles annually. Still, for drivers in both categories, Njm is the cheaper company.

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

Where your home is can play a big role in how much you pay for insurance. Generally, those who live in urban areas will pay more than policyholders in rural areas due to the number of cars that are on the roads where they live.

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

If you live in a rural area, you can expect to pay about $117 a month with Njm and $165 with Penn National. Drivers in suburban ZIP codes pay a monthly rate of around $131 with Njm compared to $212 with Penn National. In urban areas, Njm's average rates are about $161 while Penn National offers premiums around $275.

Njm vs. Penn National Discounts

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

The difficult 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 Njm and Penn National so that you can easily see which company offers the most discounts and, therefore, the largest savings.

Overall, Penn National comes out ahead with 16 discounts to Njm's 14.

Both companies offer many of the same discounts -- like discounts for being a defensive driver, discounts for getting driver training, and paid in full discounts -- but Penn National also offers discounts for added pip option , advance quote, distant student, and more.

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

Final Thoughts: Is Njm or Penn National Best for You?

So, you've seen how different variables can affect your car insurance prices. We've broken down the different discounts each carrier offers, too. But, when it comes down to it, is Njm or Penn National the right company for you and your specific driver profile?

Njm might be best for you if....

• You have a clean driving record, free of collisions, tickets, or DUIs.
• Your neighborhood is in the suburbs.
• You're of retirement age and want to take advantage of lower rates.

Penn National might be best for you if...

• You're looking for the company with the most discounts.

Hopefully, this guide helps you get a good idea of the differences between Njm and Penn National. 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 sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just Njm and Penn National. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

Njm vs. Penn National FAQs

Is Njm or Penn National cheaper?

Njm is the less expensive of the two carriers when looking at national average premiums, with policies averaging $137 per month with Njm and $218 for Penn National. That being said, that doesn't mean Njm will be the most affordable carrier for each driver, since there are multiple different factors that come into play when it comes to your auto insurance cost.

Who is better, Njm or Penn National?

Sadly, the real answer is "it depends.". Neither company is "better" for every policyholder -- it all boils down to your unique insurance profile.

Why do Njm and Penn National offer me different rates?

Auto insurance companies use a lot of different variables when determining the rates they charge. Factors like gender, age, your driving record, where you call home, and sometimes even things like your credit score can all be taken into consideration. Both Njm and Penn National calculate prices differently, 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 many different carriers.

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

The only way to find the car insurance company that's right for you is by getting quotes from several companies 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 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 Njm or Penn National 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.