NJM insurance review 2023

NJM car insurance

If you are looking for the best car insurance on a budget, New Jersey Manufacturers (NJM) might be a good option, but only if you live in the provider’s limited service area. NJM car insurance policies are only offered to residents of five states: Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.

Bankrate gave NJM a Bankrate Score of 4.1 out of 5.0. This score takes into account that the company ranks highly for customer and claims satisfaction in J.D. Power studies and offers low average rates. However, NJM lost points due to limited availability and lack of functional mobile tools.

NJM offers all the standard auto coverage types, like liability, comprehensive and collision. While NJM doesn’t offer a wide array of endorsements, there are a handful of options for policy customization, including ridesharing coverage, gap coverage, and physical damage coverage for trailers or campers.

Pros and cons of NJM car insurance

Making a list of pros and cons may help you identify your priorities when comparing car insurance quotes. These perks and drawbacks we identified for NJM car insurance could help you distinguish one company from the next:

NJM car insurance cost

The average annual cost of NJM car insurance is $357 for minimum coverage and $1,229 for full coverage. This is quite a bit lower than the national average cost of car insurance, which is $622 for minimum coverage and $2,014 for full coverage. NJM also comes in lower than the national average across a range of different rating factors, including having a speeding ticket conviction and insuring a 16-year-old driver. However, your premium will likely differ from the average based on your own unique combination of rating factors.

NJM car insurance rates by driving history

Auto insurance companies may consider more than a dozen factors to determine your premium, and your driving record is typically among the most significant. Incidents such as a recent at-fault accident or speeding ticket conviction usually increase your car insurance rates.

Bankrate’s insurance editorial team monitors average rates as provided by Quadrant Information Services to track premium trends over time. Below, you can see how different types of driving activity may impact your NJM car insurance premium. Please note that DUI rates have been excluded, as not all insurance companies will write a policy for drivers convicted of a DUI. Please contact the company for more information about NJM’s DUI premiums. The premium information presented in the incident tables below reflect average rates in 2022.

NJM car insurance quotes by age

In most states, your age may impact your car insurance premium. There is a strong correlation between age, lack of experience and auto accidents. In fact, statistics show the crash rate for teen drivers is approximately four times higher than the rate for other age groups. Car insurance companies typically charge younger drivers more expensive premiums to compensate for this higher risk, as demonstrated by the tables below. Rates for young drivers may also vary based on whether or not they are insured on their parents' auto policy.

Please note that this average premium data assumes that the young driver has a clean driving record.

Average cost of car insurance for drivers on their parents’ policy

Average cost of car insurance for drivers on their own policy

NJM car insurance discounts

NJM auto insurance offers a wide variety of car insurance discounts that might help you lower your premium. A local agent may help you determine what discounts apply to you by discussing your circumstances and plans. In addition to offering some of the most popular car insurance discounts such as multi-car, bundling and paid in full, featured discounts from NJM include:

Even though NJM is only available in a few states, the discount qualifications and availability do vary by location. Checking with an agent or NJM representative may help you determine which savings opportunities you qualify for.

NJM car tools and benefits

In addition to standard car insurance, NJM also offers classic and collector car, motorcycle and ATV, and boat and personal watercraft policies.

NJM home insurance

Finding the best home insurance company for your needs may seem daunting, but Bankrate's reviews may help you narrow down your choices. If you live in a state where NJM writes policies, the company's homeowners insurance could be an excellent choice if you're looking for low average premiums and customizable policies. NJM earned a Bankrate Score of 3.2 out of 5, thanks partly to its cheap rates and wide range of coverage options. However, just like with its auto insurance, NJM’s digital tools for home insurance aren’t as robust as the tools offered by many other companies on the market.

Along with the standard homeowners coverage types, NJM policyholders could choose to add identity fraud expense coverage, water backup coverage, scheduled personal property, enhanced other structures coverage and more. The company’s assisted living coverage is especially unique and provides liability and personal property coverage to eligible family members who live in an assisted living facility.

Pros and cons of NJM homeowners insurance

Comparing home insurance quotes may seem like a chore, but creating a pros and cons list might help streamline the process. Here are some notable benefits and drawbacks we identified with NJM homeowners insurance:

NJM home insurance cost

NJM home insurance costs, on average, $371 per year for a policy with $250,000 in dwelling coverage. This is much lower than the national cost of home insurance, which is $1,428 on average for the same coverage. NJM’s average premiums are consistently lower than the national average across a range of different coverage levels, but keep in mind that your own premium may vary based on your individual circumstances.

NJM home insurance discounts

In addition to offering cheap average premiums, NJM offers a range of home insurance discounts. Some of the more unique discounts offered by NJM include:

As with auto insurance, not all of NJM’s discounts apply to residents in all five of the states it services. Additionally, eligibility may vary, so working directly with an NJM agent is likely the best way to identify savings opportunities.

NJM home tools and benefits

If you don’t own a home, you may still be able to get coverage with NJM through its condo owners or renters insurance programs. NJM also offers earthquake insurance and may help you purchase a flood insurance policy through Wright Flood, which provides policies through the federally-backed National Flood Insurance Program (NFIP).

NJM customer satisfaction

For many shoppers, customer service may be as important as price when it comes to finding the right insurance company. To evaluate customer satisfaction, Bankrate’s insurance editorial team looks at a few different metrics. We analyzed customer and claims satisfaction scores from J.D. Power, the National Company Complaint Index Report from the NAIC and financial strength ratings from AM Best. NJM has a financial strength rating of A+ (Superior) from AM Best. Although this may not be a direct indicator of customer satisfaction, it does mean that, historically, the NJM has demonstrated the financial means to pay out claims when necessary.

Regarding J.D. Power scores, the best possible score is 1,000, so the more points a company receives, the more satisfied its customers may be. When it comes to the NAIC Complaint Index, a baseline (or average) amount of customer complaints equals an index of 1.0. An index higher than 1.0 indicates more customer complaints than expected for a company of its size and vice versa.

NJM auto satisfaction

Since NJM is a regional insurer that only operates in five states, J.D. Power did not include the company in every region of its 2022 U.S. Auto Insurance Study. However, in the region NJM was included, Mid-Atlantic, it ranked above the region average, coming in fourth place with a score of 844 out of 1,000 points. In the J.D. Power 2022 U.S. Auto Claims Study, the company did even better, coming in second place overall with a score of 896 out of 1,000.

NJM’s private passenger auto line of insurance scores well below the baseline on the NAIC National Company Complaint Index Report, with an index of 0.06. This means that, compared to other insurance companies of a similar size, NJM receives far fewer complaints on average.

NJM homeowners satisfaction

NJM was not included in any of J.D. Power’s 2022 home insurance studies. However, the company has an NAIC homeowner Complaint Index of 0.08, indicating that the NAIC gets much fewer complaints on average about the company’s homeowners insurance product.

How to file a claim with NJM

Filing an auto or homeowners insurance claim with NJM is relatively straightforward. The company will likely ask you for your personal and policy information as well as any documentation related to the incident.

When you’re ready, you can file a claim with NJM by:

• Calling 1-800-367-6564
• Logging into NJM’s online policy portal

NJM availability

NJM insurance is available in five states:

• Connecticut
• Maryland
• New Jersey
• Ohio
• Pennsylvania

Other NJM perks worth considering

While NJM’s digital tools may not be as impressive as some of its competitors', the company’s website does feature a helpful “Life Events” section, with articles on everything from getting your first job to having a baby, along with insight into how those events may impact your insurance needs. There’s also a “Safety Center” section that includes tips on personal safety, safe driving and home safety. NJM offers the following products along with its auto and home insurance offerings:

• Renters insurance: Renters insurance is sometimes overlooked, but this policy may provide renters with important liability protection as well as coverage for their personal property.
• Umbrella insurance: An umbrella policy provides extra liability coverage above and beyond what you carry on your home and auto policies.
• Business insurance: NJM’s business insurance offerings include workers' compensation, commercial auto and commercial umbrella policies.

NJM corporate sustainability

NJM is heavily involved in the communities it serves. The company supports numerous programs, including local arts organizations, food banks, the Special Olympics and the Ronald McDonald House Charities of the Philadelphia Region.

Additionally, NJM boasts an impressive sustainability program for a small company. The company aims to reduce its environmental impact through recycling initiatives, wetlands preservation projects, corporate giving, transportation shuttles for employees and a LEED-certified Hammonton office building.

Not sure if NJM is right for you?

If you're still wondering whether NJM insurance is the right choice for you, you may consider reaching out to these additional home and auto insurance companies:

NJM vs. Erie

Erie is another regional provider available in many of the same states as NJM. Erie boasts competitive auto and home insurance rates as well as robust coverage options. It also offers some auto endorsement options that you won’t find with NJM, including accident forgiveness and diminishing deductible. However, Erie also lacks in terms of digital tools and does not offer a robust mobile app.

Learn more: Erie Insurance review

NJM vs. Auto-Owners

Available in 26 states, Auto-Owners could be a good option if you are drawn to NJM’s list of coverage options and discounts, but live in a state outside of its service area. Auto-Owners provides plenty of policy customization options, and it also sells term, whole and universal life insurance. Unfortunately, Auto-Owners did not perform as well in J.D. Power's claims satisfaction study.

Learn more: Auto-Owners Insurance review

NJM vs. Liberty Mutual

If you move frequently or value more developed digital tools, you might consider a national carrier like Liberty Mutual. This company provides a highly-rated mobile app for hands-on policy management and offers auto, home and life insurance options. However, Liberty Mutual did score below average in J.D. Power's auto claims study and in the mid-Atlantic region of the overall customer satisfaction study.

Learn more: Liberty Mutual Insurance review

Is NJM a good insurance company?

Three of Bankrate’s editorial staff are licensed agents, and the team has decades of insurance industry experience between us. We understand how much thought goes into gathering insurance quotes and choosing the best company. For this reason, we conduct detailed, holistic insurance carrier reviews — our goal is to provide our readers with the information they need to make the most educated decision about their insurance needs.

Whether NJM is a good company likely depends on your priorities. Based on proprietary premium data, NJM may be among the cheapest car insurance companies, but it only sells insurance in five states. It also offers robust homeowners insurance coverage options, but it's missing a few endorsements for auto. Lastly, policyholders who value digital tools may want to look elsewhere — although the company has an online policy portal, the system doesn't allow for policy changes, and the company lacks a mobile app capable of policy management. Perhaps the best way to determine if NJM can provide what you need is to contact the company for a quote.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the ages 16–60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

The rates for drivers ages 16–20 added to their parents’ policy reflect the good student and driver's training discounts applied. The rates for drivers aged 16–20 on their own policy do not include the good student and driver's training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident.

Homeowners

• Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Score

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.