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

Quick Facts

• Based on national averages for insurance, Njm offers significantly cheaper prices than Selective
• Njm has less expensive premiums for policyholders who haven't received any speeding tickets or been in an accident in the last few years
• Njm offers more affordable prices for residents of urban areas

Njm vs. Selective: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. After all, you've seen ads from all sorts of companies offering big discounts. But exactly how much can you save by switching?

You might have narrowed your search down to Njm or Selective for your next policy, but between the two, which company will save you the most?

As you can see, Njm has average rates that are about 25% per month more affordable than those from Selective when looking at the national average rates for auto insurance.

That being said, that doesn't mean Njm will necessarily be less expensive than Selective for each driver. After all, car insurance companies can offer drastically different rates to each driver depending on rating factors like your credit score, your age, where you call home, or even your driving record (among other things), so rates could change drastically from person to person.

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

Njm or Selective: Average Car Insurance Rates by State

Both Njm and Selective only offer insurance in New Jersey, so you'll see that the average figures here will mirror the ones we mentioned above. For New Jersey residents, Njm offers auto insurance for $137 monthly on average. Selective's average prices come out to be over 30% more expensive, at $184 per month.

Typically, your home state will play a sizable role in how much you pay for insurance, but since both companies only do business in New Jersey, quite a few other factors will come into play when you compare Njm and Selective. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for car insurance than any other group of drivers. It's because young, inexperienced drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of nearly $200 less a month by choosing Njm over Selective.

However, both carriers will offer you dramatically lower premiums by the time drivers turn 25. Selective offers the steepest decrease, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, Njm still has the cheapest prices at $130 a month.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the most affordable auto insurance premiums you'll ever see. After all, they've likely been driving for quite some time, which generally reduces their chances of accidents and other infractions that can increase rates.

So, which carrier offers the best prices to retired drivers? Njm gets the edge, with rates for drivers 65 and older around 20% cheaper than the national average for Selective.

Which is the Best Company for Married Drivers?

Single policyholders tend to get offered slightly more expensive insurance premiums than married couples. This usually boils down to married policyholders having more than one car on their policy -- something many car insurance companies will reward with discounts.

When it comes to relationship status, Njm is the clear winner for single drivers, with rates about $61 per month more affordable than Selective, on average. The advantage for married drivers with Njm is also obvious, where drivers save almost $30 a month.

Njm vs. Selective: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents, which means they'll usually end up paying more for auto insurance than women.

Men typically pay around $1 per month more than women with Njm, while with Selective, the difference is closer to $10 a month.

When it comes to the cheapest premiums for each gender, Njm comes out as the most affordable option for both genders, with average prices 28% less for men and 24% cheaper for women.

Njm or Selective: 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 isn't the easiest topic to understand. Everyone needs auto insurance, but there are so many different coverages and limits that it can be hard to find the right policy.

The two most common policies end up falling into two different types of coverage -- liability only (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which normally refers to having comprehensive and collision coverages in addition to what you get with liability).

If you're looking for state minimum limits for liability insurance, Njm generally offers significantly cheaper rates of $92 compared to Selective's $127. When it comes to full coverage policies with similar limits, Njm again has the edge, with policies about $60 per month less expensive than Selective, on average.

Is Njm or Selective Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with tickets and collisions on your record, but which of these two carriers offers the lowest premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Njm policyholders can expect their prices to go up an average of $29 a month if they get a ticket, while Selective usually raises premiums around $76 per month, on average.

Even so, Njm has cheaper prices for drivers in both categories, offering rates that are 13% and 30% less expensive, respectively, compared to Selective Insurance.

Which Company is Best for Drivers After an Accident?

Njm drivers who get in an accident can expect to see their premiums rise by $0, while those who have insurance through Selective will see about a $20 increase.

Overall, the more affordable rates come from Njm, with monthly prices averaging $122 compared to Selective Insurance's $162.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or speeding ticket when it comes to your insurance bill. On average, Selective will increase your premiums around 35% after a DUI, while Njm's average prices increase by just under 20%.

If you have a DUI on your record and are looking for more affordable rates, Njm tends to be the much cheaper option with average premiums of $151 monthly compared to $217 from Selective.

How does Credit Score Impact Njm and Selective Rates?

Did you know that many car insurance companies take into account your credit score when calculating rates? This isn't always the case (Hawaii, for example, has banned the use of credit score as a rating factor) but it will come into play for quite a few policyholders.

Auto insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which decreases the risk involved on their end, while the opposite is true for those with bad credit.

So, which company offers the best prices for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with Njm. Policyholders with "excellent" credit can save nearly 45% compared to Selective, and those with "good" scores can also expect to see savings -- about $63 or 35% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

If you have less-than-perfect credit, it can be somewhat of a toss-up as far as which company offers you the best rates. Drivers with "fair" credit pay around $50 less with Njm than Selective, but those whose credit is considered "poor" have it flipped -- saving about $1 a month with Selective.

Is Njm or Selective 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 your monthly prices. Generally, those who drive fewer miles will end up with more affordable premiums since there's less of a chance of getting into a collision and causing an insurance claim.

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

Njm vs. Selective: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a considerable role in how much you pay for car insurance. Usually, if you live in a rural area with fewer cars on the road, you'll pay a little less for auto insurance, while the opposite is true for people in urban areas.

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

Drivers in rural ZIP codes see the lowest rates from both companies, but Njm comes out on top with average premiums about $117 a month. Njm also has cheaper average prices for policyholders in urban and suburban ZIP codes -- a 23% and 36% per month respective difference when compared to Selective drivers in similar areas.

Njm vs. Selective Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by utilizing as many car insurance discounts as you can.

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

Below, we've compared all of the different discounts offered by Njm and Selective so that you can see which carrier can save you the most money each month.

Overall, Njm comes out ahead with 14 discounts to Selective's 13.

There are a couple discounts both carriers offer, but Njm also offers ABS discounts, EFT discounts, employee discounts, and more that Selective does not.

On the flip side, Selective has a couple unique discounts of its own -- advance quote discounts, distant student discounts, discounts for being a good driver, and more.

Final Thoughts: Is Njm or Selective Best for You?

You've seen the role certain factors have on your auto insurance and the different discounts companies offer. But, at the end of the day, which carrier is the best fit for you?

Njm might be best for you if....

• You have above-average credit.
• You're looking for more protection with "full coverage" insurance.
• You have a short commute.

Selective might be best for you if...

• You have a more unique driver profile than those we mentioned above.

We hope this guide helps you get a good idea of the differences between Njm and Selective and that you can now make a more informed decision when it comes to your auto insurance.

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

Njm vs. Selective FAQs

Is Njm or Selective cheaper?

Looking just at the national average rates, Njm is the more affordable of the two carriers, offering average rates of $137 a month compared to $184 for Selective. But Njm won't necessarily be the most affordable company for each driver, since there are a variety of different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Njm or Selective?

Unfortunately, the answer truly is "it depends.". No single carrier is "better" for every driver -- it all boils down to your unique auto insurance profile. For example, Njm offers less expensive premiums for policyholders with an at-fault collision on their record, while Selective is cheaper for drivers who have less-than-stellar credit scores.

Why do Njm and Selective offer me different rates?

Car insurance companies take a look at lots of different factors when determining the prices they charge drivers. Things like where you live, where you park your vehicle, age, gender, and sometimes even things like your credit score can all be taken into consideration. Both Njm and Selective calculate premiums using different formulas, so each one will most likely offer different rates. The only real way to see which company is the cheapest for you is by comparing personalized quotes from several different carriers.

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

The only way to find the insurance carrier 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 ZIP code and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the lowest price. And who knows, the best company for you might not be Njm or Selective at all!

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.