NJM Insurance Review: Is It the Best Choice for Car Insurance in 2023?

New Jersey Manufacturers Insurance: At a Glance

New Jersey Manufacturers — NJM for short — has an A+ (Superior) financial strength rating from AM Best and scores above average in terms of customer service and claims satisfaction. What’s more, the company typically offers highly competitive rates.

You’ll also find a few unique features, like their dividend policy, which returns a portion of insurance premiums to policyholders when the company performs well. And you’ll likely be able to get the coverage options you need.

Though there’s a lot to love about NJM, the company falls behind technologically speaking. It has a telematics app (to monitor your driving habits and potentially earn a discount), but you won’t get a mobile app to manage your policy or file a claim.

Is NJM a Good Choice for Car Insurance?

NJM has a strong reputation for offering low-cost policies with excellent customer service, but the company won’t be right for everyone. You should compare quotes from competitors to know if NJM is the best choice for you.

Where NJM Insurance stands out

You’ll find plenty of discount opportunities to lower the already lower-than-average rates at NJM. The company has earned top marks from customer review sites and J.D. Power for its excellent claims service as well.

Where NJM Insurance falls short

If you’re a high-risk driver or have lapses in insurance coverage, you may have trouble getting a policy from NJM. The company is potentially more selective than competitors when offering policies, based on recent customer reviews.

NJM Insurance Customer Reviews

As with most insurance companies, reviews for NJM are a bit mixed. One common complaint — both at NJM and the industry as a whole — was from customers who didn’t get the level of service they deserved. Several reviewers complained of unexpected price increases.

And, as the reviewer below pointed out, the company can be highly selective in offering rates to drivers — even threatening to drop a customer for having too many accidents.

The good news is that the company responded to many of the negative reviews on Trustpilot and BBB. The great news is that I found many glowing reviews from longtime customers. The following two reviews come from customers who have been with the company for more than 30 years and more than 40 years, respectively.

With this level of loyalty, NJM is definitely worth a look.

NJM National Average Rates

At this point, you’re probably wondering how much it costs to get a policy at NJM. Here are the average rates for typical liability and full-coverage insurance policies from the popular New Jersey-based insurer.

Rates at NJM are well below the national average of $131 per month for liability policies and $271 for full coverage. That spells potential savings, but keep in mind that averages aren’t always an accurate representation of the rate that NJM will offer to you.

After all, these figures don’t account for the many factors that influence car insurance costs, such as your age, driving record, gender, and more.

We’ll cover the most influential factors and how much NJM charges for each a little later.

NJM Insurance Rates Compared to Top Competitors

We know NJM offers much cheaper rates than the national average, but how do its rates compare to similar insurers? Here’s how average rates from NJM stack up compared to its closest competitors.

NJM’s rates hit in the middle of the pack when compared to companies of similar size. GEICO appears to offer much lower rates, but that may not necessarily be the case for everyone.

NJM’s limited coverage map makes it hard to compare to national insurers like GEICO. Low rates in states where NJM doesn’t offer policies may be lowering these averages. For example, GEICO provides policies in Maine — the state with the cheapest average insurance prices — while NJM doesn’t.

What Types of Coverage Does NJM Offer?

NJM offers a full suite of auto insurance coverage, including the following options:

• Bodily injury liability: Covers injuries to others when you’re at fault in an accident.
• Property damage liability: Covers repair and replacement costs to property you damage when you’re at fault in an accident.
• Comprehensive coverage: Pays for damage to your vehicle caused by non-collision events, such as theft, vandalism, and natural disasters.
• Collision coverage: Covers the cost of repairing or replacing your vehicle if it’s damaged in a collision with another vehicle or object.
• Uninsured and underinsured motorist protection: Pays for damages if you’re in an accident caused by a driver with little or no insurance.
• Personal injury protection: Pays for medical expenses and lost wages for you and your passengers after an accident, regardless of fault.
• First-party medical: Pays for your medical expenses after an accident, no matter who’s at fault.
• Gap insurance: Covers some or all of the difference between what your car is worth and what you owe on your car loan if it’s totaled.
• Transportation expense: NJM’s rental car reimbursement coverage pays all or part of the cost of a rental when your car is in the shop for a covered loss.
• New car replacement: Provides a new car if your recently purchased vehicle is totaled in an accident.
• Limited pet coverage: Offers partial coverage for veterinary bills if your pet is injured in a car accident.
• Roadside assistance: Provides help with common car-related issues, such as flat tires or lockouts, while you’re on the road.
• Rideshare endorsement: Covers you while driving for rideshare companies like Uber or Lyft.
• Trailer/camper body coverage: Protection for damage to a trailer or camper you’re towing with your vehicle.

Coverage availability and other factors depend on your state.

NJM Car Insurance Discounts

NJM offers a dozen discounts that you can use to lower your premiums.

• Defensive driving: Complete an approved defensive driving course to qualify for a discount (only available in NJ).
• Driver training: Completing an approved driver training course to qualify for this discount (only available in CT, MD, NJ, and PA).
• Electronic payment: Sign up for automatic electronic payments to get a discount.
• Full coverage: Purchase a full-coverage policy to save even more. Discount is automatically applied based on your policy type.
• Good student: High school and college students who make the honor roll or dean’s list or get a B average (3.0 GPA) or better get a discount.
• Home and auto bundle: Get a discount for bundling dwelling and car insurance coverage. Purchase an auto policy and either condo, renters, or homeowners insurance through NJM to qualify.
• Mature driver: Drivers 60 and older get an automatic discount.
• Multi-vehicle: Get a discount for insuring more than one vehicle on the same policy. Insure at least two vehicles to earn the discount.
• New car: Save money on your policy by insuring a car that’s two years old or newer.
• Paid in full: Earn a discount for paying for your entire policy period up front.
• Paperless: Save more for receiving policy documents, including bills, electronically.
• Vehicle safety equipment: If your car has factory-installed anti-theft and safety equipment (anti-lock brakes, passive restraints, etc.), you could save with NJM.
• SafeDrive: Earn savings for safe driving habits when monitored by NJM. Sign up for the company’s telematics program, download the app, and practice safe habits to save.

Rules, availability, and other details change depending on your state, so check with your local NJM agent to determine what you qualify for and how to maximize your savings.

NJM Car Insurance Rates by Age Group

Your car insurance rate depends heavily on your age and your overall experience on the road. The table below shows how NJM’s average rates can change depending on your age group.

Rates are highest for teens and young drivers due to their lack of experience (and higher frequency of at-fault claims), but they usually decrease through your 30s, 40s, and 50s, leveling off and remaining low well into your 60s. Sometime in your 70s, rates begin to increase due to factors such as declining physical abilities, slower reaction times, and a higher likelihood of accidents.

NJM insurance rates for teens and young drivers

The average 18-year-old pays $184 per month for liability and $304 for full coverage with NJM — well below the national average of $263 and $530 per month, respectively. The average 25-year-old NJM driver also pays less than the national average, at just $91 per month for liability and $155 for full coverage. Even with these cheap rates, the company still offers several ways to lower your premium.

Teens and young drivers can use NJM’s good student, defensive driving, and other discounts to lower their rates significantly. Don’t be afraid to speak directly with an NJM agent about how to save on your car insurance.

NJM insurance rates for seniors and retirees

Following a similar trend, 65-year-olds can likely save big at NJM, with rates $14 per month less than the national average for liability and $54 less for full coverage. NJM’s discount programs make it even easier to save — seniors should look into the mature driver discount, and all drivers 40 and older should inquire about additional discounts they may qualify for.

NJM Car Insurance Rates by Driving Record

Your driving record has one of the largest effects on your car insurance rate. Let’s take a look at how it affects average rates from NJM.

To no one’s surprise, drivers with clean records pay the lowest rates. Interestingly, NJM appears to be more lenient with drivers with an at-fault accident than with drivers with a speeding ticket. But people with a recent speeding ticket or a DUI on their records pay significantly higher rates compared to those with clean records.

NJM Insurance rates after an accident

A single fender bender often raises rates significantly — about 44%, according to Compare.com data. But drivers at NJM can often find a great deal, paying as much as 46% less than the national averages of $122 and $256 per month for liability and full coverage, respectively. And even with an accident, drivers can often access great discounts through NJM to lower their rates even more.

NJM Insurance rates after a speeding ticket

Despite rates being more expensive for drivers with a single speeding ticket, they’re still fairly low with NJM. The company’s average liability rates are $16 per month less than the national average, while its full-coverage rates are $75 less. The fastest way to lower your rate is to keep a clean record going forward, but you can also leverage NJM’s driver training discount for cheaper premiums.

NJM Insurance rates after a DUI

DUIs are all-around expensive, with most drivers seeing their premiums nearly double after a DUI conviction. Luckily, rates increase less substantially at NJM, and they’re much lower than the national average. Compare NJM’s $94 per month for liability with the national average of $167, and the difference is clear. Savings are even better on full-coverage policies, which are $161 per month at NJM but $348 nationwide after a DUI.

But keep in mind that Ohio drivers needing an SR-22 won’t find one from NJM, since the company doesn’t currently file SR-22 forms for its policyholders. (Ohio is the only state in the company’s service area that requires this form for high-risk drivers.)

NJM Car Insurance Rates by Credit Score

Did you know your credit history can also affect your car insurance rates? Car insurance companies often reference your credit history to calculate a “credit-based insurance score” that factors into your overall rates. Companies see drivers with worse credit as riskier to insure, so these drivers unfortunately tend to see higher rates.

Let’s look at how credit scores correspond to rates from NJM.

Statistically, drivers with lower credit scores tend to file more claims and have a higher likelihood of accidents, leading insurers to charge them higher premiums to mitigate potential losses. NJM follows the industry standard, but it still offers lower rates on average to drivers with all credit histories. Drivers with poor credit scores stand to save the most money with NJM — nearly $30 per month on liability and more than $150 on full coverage.

If you’re facing higher rates because of your credit, you still have options. First, work on improving your credit score. You should also use all eligible discounts to lower your premiums in the meantime.

How to Purchase a Car Insurance Policy from NJM

You can get a quote and buy a car insurance policy entirely online with NJM. You can even customize most aspects of your policy, including deductibles and coverage limits. But if you prefer to work with a person, you can call 1 (800) 232-6600 between 7 a.m. and 9 p.m. Monday through Friday and from 8:30 a.m. to 4:30 p.m. on Saturday. NJM also has several local offices if you want to work with an agent face-to-face.

Purchasing a policy is easy with the company’s online form, and you can get car insurance the same day if you need to.

The whole process can be completed in less than 10 minutes if you know what type of policy you want. And if you don’t, NJM provides information about your coverage options on the quote page to make it easy for even first-time insurance shoppers to choose the best coverage options.

Let’s take a closer look at the online buying experience.

Getting a quote from NJM Insurance

I started the insurance-buying process by going to NJM’s car insurance home page and entering my ZIP code.

NJM wanted to confirm that I’m not already a customer, which would make the quoting process faster (since they’d already have my personal information) and provide me with a discount. I’m not, so I hit “No” and continued.

I liked that the personal details were all listed together on the next page. I personally think it’s easier to fill out a form when I can see everything at once. The form auto-filled my location based on my ZIP code — a nice touch.

Next, I was asked to enter information about my driving record. To confirm my information, NJM requested my driver’s license number. Not every company requires this information up front, but the ones that do often give a more accurate quote because they’re able to verify your record immediately.

Next, I was prompted to sign up for NJM SafeDrive, the company’s usage-based telematics program. I wanted to see my rates without this discount (though I may try it later), so I clicked “No” and “Next” to continue to my quote.

The next page had my quote, which showed me the annual cost — first with the pay-in-full discount and then the total cost for paying in installments. I found this to be strange and not very helpful since I had to get out my calculator to determine the monthly rate (it’s $148.66, by the way, for my full-coverage policy).

It would have also been nice to see the list of discounts applied to my premium. For example, I should be getting the full-coverage discount but can’t verify that without getting policy documents or talking to an agent.

Despite this, I found the rest of the page super helpful. It was easy to see which coverage options my quote included and the limits of each option.

I could easily customize my policy using the drop-down menus as well. I noticed that changing my options caused the itemized cost of the option to populate under the “Premium” column, highlighted in green. I don’t know why it didn’t do this immediately, but I’m glad that this feature is available. It makes it extremely helpful to see how each coverage affects my overall price.

I also noticed that several of the coverage terms were hyperlinked. Clicking one of them brought me to the page shown below, which had a full glossary of car insurance terms. Terms with dotted underlining even offered a small pop-up with a definition when I hovered my mouse over them.

This is a great touch — especially for people who aren’t as knowledgeable about the often-confusing world of insurance.

With my new coverage limits in place, I refreshed my quote by hitting “Get Quote” at the bottom of the page. I was happy to learn that increasing my limits to maximum coverage only increased the premium by $25 per month.

After that, I was ready to purchase my policy. The best part is that the whole process only took about 10 minutes. Not bad.

NJM Insurance Customer Service

NJM’s customer service isn’t open 24/7 (though roadside assistance and claims service are). But getting in touch with someone is easy during operating hours — as long as you have a policy number or quote ID.

I waited less than two minutes when I called the company — once in the morning and once during lunchtime. The people I spoke with were courteous and knowledgeable as they answered my questions as a prospective buyer.

But when I called to ask if NJM would file an SR-22 (proof of financial responsibility document required in some states for high-risk drivers), my experience was radically different.

Without a quote ID, it was difficult to get through the phone tree. When I got to customer service, the person I spoke with didn’t know what the form was and tried to end the call. I asked if I could speak to someone who would know the answer, and I was cold-transferred to an operator who sent me back to the same department. Frustrating.

The next customer service agent also didn’t know what an SR-22 form was and put me on hold to ask a supervisor. After waiting on hold for six minutes, I was told that the company doesn’t file these forms for its policyholders. It was a dead end.

The phone call took a total of 18 minutes, and the service was far less friendly than my previous calls.

Even so, J.D. Power ranked NJM above average in its most recent customer satisfaction survey. And despite plenty of positive comments among customer reviews, I found that more than half of the time, five-star reviews focused on the company’s claims processing. Customer service reviews were generally less positive, with some reviewers highlighting some surprising issues.

Take the below reviewer’s experience. Their license was suspended shortly after switching to NJM because the DMV didn’t have their new policy on record. When the customer contacted customer service, they were surprised to find themself in an argument on more than one occasion.

The below reviewer was surprised to learn that their policy was canceled the day of a missed payment, even though they were allegedly signed up for auto pay. Apparently, the company kicks you off auto pay if you’re not already signed up for paperless billing.

Even though the customer caught the mistake right away, the company was unable to reinstate the policy immediately.

Even so, NJM has plenty of positive reviews — many from longtime customers (as we saw earlier) that mention how friendly, knowledgeable, and customer-centered the service is. The two reviews below illustrate exactly that.

So while customer service can be a bit hit-or-miss, it appears there are more hits than misses.

Filing a Claim with NJM

You can file your car insurance claim online through your NJM customer account or by calling the 24/7 claims service line. The company doesn’t offer a mobile app for filing claims, but many customers are satisfied with the process. This is illustrated by the company’s top marks for claims service from J.D. Power six years in a row.

The online reviews tend to back this up. I found quite a few auto glass claims reviews that were glowing based on how fast and easy it was to get the repair completed. NJM sends an auto glass specialist to your home, which is relatively uncommon in the industry. Here’s one such review:

And despite the fact that you can’t submit or manage a claim through a mobile app, like at some larger insurers, I was surprised to learn that a new claims text-line feature is available. This makes it easy to check on your claim without having to call, as this reviewer points out.

But, as with any company, results vary. Take the below reviewer’s experience, where the claims agent went on leave without notifying the customer or telling them where their car was towed, forcing them to wait a week for answers.

Does NJM Offer Other Types of Insurance?

Yes, NJM offers quite a few personal and commercial insurance products to cover you and your business. You can also bundle most of the following insurance products with your auto insurance policy to earn a discount.

• Motorcycle and ATV
• Classic car
• Boat
• Home
• Condo
• Renters
• Personal umbrella
• Workers’ compensation
• Commercial auto
• Commercial package policy
• Business income insurance
• Commercial general liability
• Commercial excess and umbrella coverage

Within its commercial line, NJM also has industry-specific coverage options. The insurer also offers tools to businesses to help prevent losses, including a video training library, safety materials, and safety presentations.

Bottom Line: Is NJM Insurance Right for You?

New Jersey Manufacturers offers car insurance coverage with excellent customer service and competitive rates, making it a great choice for many drivers. That said, NJM falls a bit behind competitors in terms of its technology.

While it has an app for its telematics program, it doesn’t offer one for managing your policy or having proof of insurance on the go.

To know if NJM is right for you, gather and compare quotes from several competitors. Examine differences in coverage options and limits to find the one right for you.

There’s a good chance NJM will be a great option, but only you can make that decision.

NJM Insurance FAQs

New Jersey Manufacturers has been around for a long time, but prospective policyholders still have questions. Here are the answers to some of the most common.

Does NJM have the cheapest car insurance?

NJM’s average car insurance rates are lower than the national average, but it may not be the cheapest option for you. Compare car insurance quotes to decide if it’s the cheapest car insurance option for your unique insurance profile.

Where is NJM available?

NJM is available in seven states in the Mid-Atlantic and Northeast region: Connecticut, Delaware, Maryland, New Jersey, New York, Ohio, and Pennsylvania.

What’s the best insurance to have in New Jersey?

The best insurance in New Jersey depends on your needs. Of smaller insurance companies, NJM, Plymouth Rock Assurance, and The Hartford are popular choices. Larger companies, like GEICO, Progressive, and State Farm, also do well.

How does NJM compare to bigger companies like GEICO?

NJM usually offers competitive rates compared to larger insurance companies, like GEICO, Progressive, and State Farm. NJM also scores higher than GEICO and Progressive for customer service satisfaction, according to J.D. Power, and is the No. 2 company for claims satisfaction (behind Amica).

Does NJM offer auto and home insurance bundling?

Yes, you can bundle NJM car insurance with homeowners insurance (and renters and condo) for a discount.

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 September 28, 2023.
2. J.D. Power, “Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase,” Accessed September 28, 2023.
3. Trustpilot, “NJM Insurance Group,” Accessed September 28, 2023.
4. ConsumerAffairs, “NJM Auto Insurance Reviews,” Accessed September 28, 2023.