NJM Auto Insurance Review 2024
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NJM
Discounts
Ease of use
NAIC complaints
NJM
Discounts
Ease of use
NAIC complaints
NJM earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.
Until recently, New Jersey Manufacturers Insurance was available only to members of certain groups. NJM dropped those restrictions in 2018 and now offers auto, homeowners, condo, renters and umbrella insurance to anyone in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania. NJM sells personal policies directly to customers and through independent agents. You can purchase one online or by phone.
While NJM is incorporated as a stock company, it operates more like a mutual insurance company. Its stock is held in trust, and it pays out dividends and premium credits to policyholders in New Jersey, though those payments aren’t guaranteed.
NJM ranked first in J.D. Power’s 2024 survey for auto insurance claims satisfaction.
Compare to other insurers
Current Product
|  |  |
|---|---|---|
NerdWallet rating 4.5 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 |
Complaints to NAIC Far fewer than expected | Complaints to NAIC Far fewer than expected | Complaints to NAIC Fewer than expected |
Ease of use Above average | Ease of use Above average | Ease of use Above average |
Discounts Great set of discounts | Discounts Great set of discounts | Discounts Average set of discounts |
Bottom line NJM boasts high customer satisfaction and low complaints, but it is available in only five states. | Bottom line American Family offers a wide range of coverage, including rideshare and gap insurance, but doesn’t sell policies in all states. | Bottom line With generous coverage and discounts for good driving habits, State Farm is a popular insurer with fewer complaints compared to other large competitors. |
NJM auto insurance coverage
When you're shopping for car insurance coverage, it's important to understand what car insurance coverage you want and what you’re required to buy. For instance, most states require a minimum amount of car insurance to drive a vehicle. Alternatively, if you want extra protection, you may be interested in full coverage insurance. Read about the most common types of car insurance coverage to see how they work.
NJM offers all the usual coverage, including liability, other state-required coverage types, comprehensive and collision, and roadside assistance. If you buy comprehensive and collision coverage, NJM’s policies also include a few extras:
New car replacement. If your car is totaled or stolen within 12 months after you buy it, NJM’s new-car replacement coverage will pay what it costs to replace it, less your deductible. To qualify, you must be the vehicle’s original owner, maintain comprehensive and collision coverage and your car must have had fewer than 1,000 miles on it at the time of purchase and 15,000 miles on it at the time of the claim.
Transportation expense reimbursement. NJM gives you three temporary transportation options when your car is being repaired as a result of a covered loss: You can take a taxi, use a rideshare company or rent a car. The insurer will reimburse you up to $100 a day, $4,000 in total, depending on your selected coverage.
Pet coverage. NJM will pay up to $1,000 toward treatment for your dog or cat if it’s injured in a covered car accident.
If you buy comprehensive and collision coverage, you can add gap insurance for an additional cost, which helps pay off your loan or lease balance if your vehicle is totaled or stolen.
Rideshare insurance. This add-on beefs up your coverage when you drive for a company like Uber or Lyft. The rideshare company’s insurance kicks in when you have a passenger, but it doesn’t fully cover you when you have the app on and haven’t accepted a ride request. Rideshare coverage bridges the gap.
Accident forgiveness. If you are a Pennsylvania driver, NJM offers free accident forgiveness when you meet certain conditions, including having an auto policy (with your most recent insurer) for at least five years, having no paid claims for at least 5 years and having no traffic violations for three years or more. You must also have at least five years of driving experience and be currently insured to qualify for this coverage.
» MORE: Compare car insurance rates
Auto insurance discounts
You may be able to earn a discount on your NJM auto policy by:
Insuring more than one vehicle.
Buying multiple insurance products from NJM.
Paying your premium in full, upfront.
Receiving documents electronically.
Enrolling in an automatic payment plan.
Buying both collision and comprehensive coverage.
Owning a vehicle with safety features like anti-lock brakes, passive restraints and anti-theft devices.
Driving a car no more than two model years old.
Maintaining good grades if you’re a student or have one on your policy.
Leaving your car at home while attending a school more than 100 miles away.
Taking a driver training or young driver training course (not offered in Ohio).
Taking a defensive driving class (in New Jersey only).
Taking an approved accident prevention course if you’re over a certain age (mature driver).
Participating in NJM's SafeDrive telematics program.
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.First time shopping for auto insurance? Unsure of where to start? Check out our guide on how to shop for car insurance.
Pricing based on tracked driving habits
NJM SafeDrive is a usage-based program that tracks your acceleration, braking, cornering, distracted driving and speed. It’s voluntary, and you get a discount for participating. Plus, your rates won’t go up based on your participation in SafeDrive.
Complaints and customer satisfaction
NJM had far fewer than the expected number of complaints about auto insurance to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners.
The insurer's customer satisfaction rating is above average in J.D. Power's 2024 auto insurance shopping and auto insurance claims satisfaction studies.
J.D. Power study | NJM ranking |
|---|---|
Auto insurance shopping, Mid-Atlantic insurers (2024) | No. 2 out of 14 companies. |
Auto insurance claims satisfaction (2024) | No. 1 out of 21 companies. |
More about NJM auto insurance
Website: NJM’s website is user-friendly and easy to navigate. Policyholders can log in to see policy information, make payments, report a claim and more.
However, tech-savvy customers might be disappointed that NJM’s only mobile app is for tracking driver behavior. It doesn’t offer the ability to manage policies, for instance.
Mobile app: The NJM SafeDrive app monitors your acceleration, speed, braking, cornering and distracted driving as part of an optional discount program. A “leaderboard” lets you see how your scores compare to others’.
Homeowners insurance from NJM
NJM policies for homeowners offer all the standard coverage, plus a number of add-ons. Learn more in our NJM home insurance review.
Other insurance from NJM
NJM also sells the following types of insurance:
Condo.
Renters.
Umbrella.
Business.
Landlord.
Commercial auto.
NJM sells these policy types through third party American Modern:
Classic car.
Motorcycle and ATV.
Boat and personal watercraft.
Methodology
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2021-2023. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Auto insurance ratings methodology
NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints and discounts. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines and full ratings methodology for auto insurance.
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