NJM vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for car insurance, NJM offers more affordable prices than State Farm
• NJM offers more affordable rates for drivers with a DUI charge on their record
• State Farm offers more discounts than NJM Insurance Group

NJM vs. State Farm: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering large discounts. But exactly how much can you save by switching?

You've maybe even narrowed your search down to NJM or State Farm for your next policy, but which carrier will save you the most?

As you can see, State Farm is about $21 more per month than NJM when looking at the national average rates for auto insurance.

But that doesn't necessarily mean NJM will be the less expensive option for every single driver. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like your credit score, your age, your driving record, or even where you call home (among other things). So, at the end of the day, premiums from every company will differ quite a bit from person to person.

Wanting to know if NJM or State Farm is really the right carrier for you? Keep on reading to see how average prices can change based on all of the factors we've mentioned above.

NJM or State Farm: Average Car Insurance Rates by State

NJM and State Farm only compete against each other in New Jersey, where NJM offers the cheaper average rates. For New Jersey residents, undefined offers car insurance for undefined monthly on average. undefined's average premiums come out to be more expensive, at undefined a month.

But there's more to auto insurance than just where you live. As we mentioned above, there's a lot of things that go into how car insurance carriers calculate your rates. Read on to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

However, that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. As you can see above, teens who use NJM save more than $85 a month compared to those who use State Farm.

That being said, both companies will drop premiums by the time you turn 25. For example, average rates for NJM policyholders decrease over 50% and State Farm's prices reduce nearly 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 premiums you'll ever find. After all, they've likely been driving for quite some time, which usually reduces their chances of accidents and other infractions that can increase prices.

When looking at NJM and State Farm specifically, which company is best for retired drivers? NJM gets the edge here, with average rates coming in at around $96 per month compared to State Farm's $111.

Which is the Best Company for Married Drivers?

Did you know that insurance prices are typically more expensive for single policyholders than they are for married drivers? That's usually because married policyholders tend to own and insure more than one car, which can often earn you a discount.

When it comes to relationship status, NJM is the clear winner for those who are single, with rates about $26 per month cheaper than State Farm, on average. For married couples, the advantage is clear again - NJM has the edge when it comes to average premiums.

NJM vs. State Farm: Average Rates by Gender

Women tend to pay less for auto insurance than men. This is because men are statistically more likely than women to get into an accident or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher rates.

Usually, men see prices around $1 a month higher with NJM, and more than $10 with State Farm.

Looking at overall affordability, NJM offers the lowest average premiums for both men and women. On average, women save about $16 per month and men save about $27 with NJM compared to the average State Farm policyholder.

NJM or State Farm: 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 can be a complicated subject for most people. There are so many different terms and coverages that it can make it pretty confusing to find the right policy.

The two most common policies end up falling into two different types of coverage -- liability only (that covers property damage and bodily injury for other drivers and passengers if you cause a collision) and full coverage (which typically refers to having comprehensive and collision coverages in addition to what you get with liability coverage).

If you're looking for state minimum limits for liability insurance, NJM generally offers slightly less expensive rates of $92 compared to State Farm's $99. When it comes to full coverage policies with similar limits, NJM again has the edge, with policies around $35 a month cheaper than State Farm, on average.

Is NJM or State Farm 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.

It's no secret secret that tickets and collisions lead to higher prices, but which carrier -- NJM or State Farm -- has the cheapest premiums for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

NJM policyholders can expect their prices to go up an average of $29 per month if they get a ticket, while State Farm normally raises premiums about $21 a month, on average.

Even so, NJM tends to offer the best prices for both drivers who have a recent speeding ticket and those with clean records -- their rates are around 9% more affordable for drivers with clean records and 3% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through NJM can expect to no increase in their car insurance rates. Drivers who use State Farm for their auto insurance will see a monthly bill around $29 (or 18%) more expensive after reporting an accident to their car insurance company.

Overall, drivers who use NJM end up with the cheaper prices after an accident, with monthly prices averaging $122 compared to State Farm's $163.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even a collision. On average, State Farm will raise your premiums about 25% after a DUI, while NJM's average rates rise by just under 20%.

How does Credit Score Impact NJM and State Farm Rates?

Did you know that many insurance carriers take your credit score into account when calculating prices? This isn't always the case (for example, Massachusetts and California are two states that ban the practice entirely), but it does affect lots of drivers out there.

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

Looking at NJM and State Farm specifically, which one has the most affordable premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is NJM or State Farm Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a pretty big impact on your monthly rates. Usually, those who drive fewer miles will end up with less expensive premiums since there's less of a chance of getting into an accident and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, NJM tends to be the more affordable option. State Farm's average prices for drivers with 6,000 annual miles come in nearly 15% more expensive than NJM. Those who drive 12,000 miles yearly can expect to pay just under 15% more with State Farm over NJM.

NJM vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your vehicle can have a sizable impact on your monthly car insurance payment. Generally, those who live in urban areas will pay more than drivers in rural areas due to the number of cars that are on the roads in those areas.

NJM boasts the most affordable average premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the lowest prices from both carriers, but NJM comes out on top with average rates around $117 monthly. NJM also has cheaper average premiums for drivers in urban and suburban ZIP codes -- a $24 and $30 per month respective difference when compared to State Farm policyholders in similar areas.

NJM vs. State Farm 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. That's where auto insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be challenging to find all the ones you qualify for or to nail down the company that has the most discounts for your unique driver profile.

In the table below, we've broken down all of the different discounts offered by both NJM and State Farm so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

State Farm blows NJM away when it comes to the sheer amount of discounts available, offering nine more discounts than NJM.

There are a couple discounts both companies offer, but State Farm also offers annual mileage discounts, distant student discounts, drive safe & save discounts, and more that NJM does not.

On the flip side, NJM has a couple unique discounts of its own -- EFT discounts, employee discounts, full coverage discounts, and more.

Final Thoughts: Is NJM or State Farm Best for You?

So, we've broken down the average rates for many of the factors insurance carriers look at, and we've shown you all the discounts each carrier offers. But, at the end of the day, which company is the right carrier for you, your vehicle, and your wallet?

NJM might be best for you if....

• You have a DUI charge on your record.
• You want basic auto insurance coverage at the state minimum limits.
• You're buying car insurance for a teen and looking for a wallet-friendly option.

State Farm might be best for you if...

• You're planning on moving to another state soon -- undefined only offers policies to residents.
• Your credit score is high.
• You're looking for discounts -- State Farm has the most.

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

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on auto insurance -- comparing quotes from multiple companies, not just NJM and State Farm. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of top car insurance carriers in your area, all in just a few minutes.

NJM vs. State Farm FAQs

Is NJM or State Farm cheaper?

Looking just at the national average prices, NJM is the less expensive of the two companies, offering average rates of $137 a month compared to $158 for State Farm. That being said, NJM won't necessarily be the cheapest carrier for everyone, since there are many different variables that come into play when it comes to your insurance cost.

Who is better, NJM or State Farm?

Unfortunately, the only answer we can give you is "it depends.". No single company is "better" for everyone -- it all depends on the makeup of your unique auto insurance profile. For example, NJM offers more affordable premiums for drivers with a recent DUI, while State Farm is less expensive for drivers with excellent credit.

Why do NJM and State Farm offer me different rates?

Car insurance carriers take a look at quite a few different factors when determining the rates they charge drivers. Variables such as your driving record, where your home is, age, gender, and sometimes even things like your credit score can all come into play. Both NJM and State Farm use different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a range of different companies.

How do I know if NJM or State Farm is right for me?

The only way to find the auto insurance company that's right for you is by getting quotes from several carriers 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 free quotes from dozens of the best insurance companies in your area. That way, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be NJM or State Farm 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.