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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
NJM and State Farm both have strong reputations for value but differ in service area and coverage options. NJM offers affordable policies, top-tier customer service, and the potential to earn dividends. But it’s available only in select Northeast states.
State Farm operates across the country, with 19,000 local agents, well-rated mobile tools, and exclusive benefits like pet injury coverage. But it has more customer complaints than other large insurers.
We’ll compare NJM’s and State Farm’s coverage options, premium costs, discounts, and customer reviews to help you choose the best car insurance company for you.
NJM offers lower-than-average premiums, excellent claims service, and potential dividends. But it’s available only in select Northeast states.
State Farm provides nationwide coverage, a large agent network, and robust digital tools. That said, service quality can vary by agent.
Both companies offer great coverage options and discount programs. NJM offers more coverage options, while State Farm offers more discounts.
| User Reviews | 4.2 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $69/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $93/mo |
Drivers appreciate the overall service but note a recent increase in prices.
Drivers appreciate the overall service but note a recent increase in prices.
NJM delivers strong customer satisfaction and claims service. Plus, as a mutual insurance company, some NJM customers earn dividends. Compare.com data suggests that NJM beats State Farm’s already low rates for a variety of drivers.
That said, NJM offers fewer discounts than State Farm. NJM doesn’t offer a safe driver discount, which is usually one of the biggest discounts available. The company operates primarily in the Northeast, so drivers outside the region will need to look elsewhere.
Few customer complaints
Offers gap coverage
Cheaper average rates than State Farm
Availability limited to seven Northeast states
May deny policies to high-risk drivers
Fewer car insurance discounts available
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $57/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $109/mo |
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
State Farm is an insurance powerhouse with an extensive agent network and a long-standing reputation for reliability and customer service.
The company is ideal for drivers who want solid coverage options and the ability to bundle auto insurance with homeowners, renters, or life insurance. Plus, with its 19,000 insurance agents, you can get expert personal service from someone in your community.
But State Farm lacks gap coverage, and its customer experience largely depends on your local agent. Though State Farm offers policies in most states, it doesn’t offer new policies in Rhode Island or Massachusetts.
Available in most states
Extensive agent network
Affordable rates for high-risk drivers
Above-average number of customer complaints[1]
Gap coverage not available
Not available in Massachusetts or Rhode Island
Price is always an important factor when it comes to car insurance, but it isn’t everything. A cheap premium isn’t worth much if you can’t get help when you need it. That’s why we scored each company in five different categories, like availability and industry reputation.
Here’s an overview of how NJM and State Farm compare across each category.
Category  | NJM | State Farm |
|---|---|---|
| Cost | 5/5 | 5/5 |
| Customer satisfaction | 5/5 | 4.7/5 |
| Policy management | 4.2/5 | 5/5 |
| Availability | 3/5 | 5/5 |
| Industry reputation | 3.5/5 | 5/5 |
| Overall Score | 4.63/5 | 5/5 |
Both companies score well for affordability and customer satisfaction. But State Farm earns a slight edge in policy management thanks to its robust online and mobile tools. NJM also trails State Farm in terms of availability due to its smaller size. Still, if you live in one of the states where NJM offers policies, both insurers remain solid options.
Our editorial team analyzes and grades each insurer based on factors like its average rates, customer reviews, policy management features, availability, industry standing, and more. This includes countless hours of research and in-depth analysis of thousands of auto insurance quotes from real Compare.com customers.
We grade each factor on a weighted five-point scale to determine an insurer’s proprietary Compare.com Rating, which highlights its overall standing among the industry’s best companies.
Car insurance premiums vary widely — not just between companies, but between drivers, car models, and more. Factors like your age, driving record, credit history, and ZIP code can influence your premiums. That’s why it’s so important to compare quotes before buying a policy.
NJM generally offers lower-than-average premiums, especially for safe drivers and seniors. But State Farm’s discounts and national availability make it a potentially stronger contender, particularly for teens.
Below, you’ll find a breakdown of average full-coverage rates for both insurers based on driver type, according to Compare.com data.
Driver Type | NJM | State Farm | Industry Average |
|---|---|---|---|
| All drivers | $93 | $109 | $180 |
| Teens | $225 | $217 | $346 |
| Seniors | $54 | $79 | $155 |
| Recent ticket | $136 | $134 | $225 |
| Recent accident | $120 | $138 | $234 |
| DUI conviction | $128 | $165 | $272 |
| Poor credit | $113 | $173 | $219 |
Get quotes from 100+ top insurers and find the best coverage.
Your car insurance policy can include both essential protection and optional add-ons. Beyond basic liability — which covers only the injuries and damage you cause to others — common options include collision, comprehensive, personal injury protection (PIP), and uninsured/underinsured motorist (UM/UIM).
While all insurers provide liability coverage, extras like gap insurance, new car replacement, and pet injury protection vary. The table below shows which coverages each company offers.
Both NJM and State Farm offer collision, comprehensive, MedPay, PIP, UM/UIM, roadside assistance, and rental reimbursement. The add-ons are where the differences become apparent — NJM offers gap insurance and new car replacement, while State Farm provides pet injury coverage. Neither offers accident forgiveness, mechanical breakdown coverage, or vanishing deductibles.
Every insurer offers different discounts to lower your costs. Most companies apply them automatically when you purchase your policy. Insurers typically offer premium reductions for things that reduce your risk of an accident or filing a claim.
The table below shows which discounts NJM and State Farm offer. We’ve grouped similar discounts together under generic names for easier comparison.
Discount Type | NJM | State Farm |
|---|---|---|
| Affinity | ✔ | ✔ |
| Alternative energy | X | X |
| Anti-theft | ✔ | ✔ |
| Automatic payments | ✔ | X |
| Customer loyalty | X | ✔ |
| Defensive driver | ✔ | ✔ |
| Good student | ✔ | ✔ |
| Early shopper | X | X |
| Federal employee | X | X |
| Homeowner | X | X |
| Low mileage | X | ✔ |
| Military | X | X |
| Multi-policy | ✔ | ✔ |
| Multi-vehicle | ✔ | ✔ |
| New car | ✔ | X |
| Paperless billing | ✔ | X |
| Paid-in-full | ✔ | ✔ |
| Safe driver | X | ✔ |
| Safety equipment | ✔ | ✔ |
| Student away at school | X | ✔ |
| Teacher | X | X |
| Usage-based/telematics | ✔ | ✔ |
State Farm offers 13 of the 22 discounts shown, while NJM offers 12. Both give drivers plenty of ways to save, with safe driver, multi-policy, and student discounts. That said, it’s always a good idea to speak with an insurance agent about whether you can qualify for more savings.
Reading recent customer reviews is one of the best ways to gauge how an insurer actually treats its customers. Past and current customers often post about claims service, billing problems, and customer care.
Below, you’ll find verified reviews from recent Compare.com customers who’ve had experiences with NJM or State Farm. Use their feedback to get a feel for what it’s like to work with each company.
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Telematics programs use smartphone apps to monitor how safely you drive. The apps track things like speed, acceleration, braking, and phone use and can earn you discounts on your auto insurance.
NJM SafeDrive can save you money based on your driving habits. The SafeDrive app tracks your driving and gives you trip scores to help you track your potential discount.
State Farm Drive Safe & Save also tracks your driving habits. You get a 10% discount for signing up and can earn up to 30% off based on how you drive. Some states allow the Drive Safe & Save discount to exceed 30%, while others cap savings.
If you’re still not sure which insurer is right for you, we’re here to help. We answered some common questions about how NJM and State Farm compare in rates, service, and overall value.
It depends. The right insurer for you depends on your budget, coverage needs, and driving habits. Compare.com ranks NJM higher for customer satisfaction, while it ranks State Farm higher for availability and discounts. State Farm also ranks higher for industry reputation and policy management.
It depends. No single insurance company is best for every driver. The best company for you depends on many factors, like your budget, location, and coverage needs. Using an insurance-comparison site can help you narrow down your options and find the right company for you.
It can be. NJM’s liability rates average $69 per month, compared to State Farm’s average of $57 per month, according to Compare.com data. But which will offer the cheapest rate for you depends on various factors like your age, location, driving record, and more.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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