- Received 5 stars out of 5 for overall performance according to NerdWallet’s analysis.
- Has far fewer than the expected number of complaints to state regulators relative to its size for auto and home insurance.
- Available in Connecticut, New Jersey and Pennsylvania.
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, renters and umbrella insurance to anyone in Connecticut, New Jersey or Pennsylvania. NJM sells policies directly to customers by phone and online rather than through agents.
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 pros and cons
|Customer satisfaction is historically high.||Not available in all states|
|Complaints are low.||No mobile app for managing policy|
|Possible dividend payments for New Jersey policyholders|
NJM auto insurance
NJM auto insurance earned 5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account pricing and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.
Based on these star ratings, NJM is among NerdWallet’s best car insurance companies for 2021.
Common types of car insurance coverage
When you’re shopping for car insurance, it’s important to understand what car insurance coverage you want and what you’re required to buy. Most states require car insurance to drive a vehicle, although minimum coverage requirements vary from state to state. This generally includes liability insurance and uninsured and underinsured motorist coverage.
If you want extra protection, you may be interested in full coverage insurance. Full coverage isn’t a specific policy you can buy, but rather a combination of coverage types like liability, collision and comprehensive insurance.
Check out the most common types of car insurance coverage below to see how they work:
|Coverage type||What it pays for||Required?|
|Bodily injury and property damage liability||Costs for injuries, deaths or property damage from an accident you caused.||Typically required.|
|Uninsured or underinsured motorist coverage||Medical and property damage costs after an accident with a driver who has insufficient insurance or none at all.||Often required.|
|Collision coverage||Repair expenses from traffic-related accidents, regardless of who's at fault.||A car loan or lease may require it.|
|Comprehensive coverage||Repair costs from events outside your control — including weather events, hitting an animal while driving, theft and vandalism.||A car loan or lease may require it.|
NJM offers all the usual coverages, including liability, other state-required coverage types, comprehensive and collision, as well as roadside assistance. If you buy comprehensive and collision coverage, NJM’s policies also include a few extras:
- New car replacement. If you’re the original owner of a new car with fewer than 15,000 miles on it at the time of the claim, and it’s 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.
- 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. You can elect coverage up to $100 a day and $4,000 total.
- Pet coverage. NJM will pay up to $1,000 for treating your dog or cat if it’s injured in a covered car accident. This is available with comprehensive or collision coverage; it isn’t necessary to buy both.
If you buy comprehensive and collision coverage, you can also add gap insurance, which helps pay off your loan or lease balance if your vehicle is totaled or stolen.
NJM also offers rideshare insurance, which 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.
Auto insurance discounts from NJM include:
- Multi-policy discount.
- Multi-vehicle discount.
- Discount for paying your premium in full, upfront.
- Discount for receiving documents electronically (in Connecticut and Pennsylvania).
- Discount for enrolling in an automatic payment plan.
- Discount for buying both collision and comprehensive coverage.
- Discount for vehicle safety features like anti-lock brakes and anti-theft devices.
- Discount for driving a car no more than two model years old.
- Student discount for having good grades and for leaving the car at home while living at a school more than 100 miles away.
- Young driver training discount.
- Discount for taking a defensive driving class (in New Jersey).
- Discount for policyholders 55 and older taking a driver improvement course (in Pennsylvania).
- Discount for drivers 60 and older taking an accident prevention course (in Connecticut).
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.
» MORE: Compare car insurance rates
Auto insurance buying guide
Before you compare car insurance companies, you’ll need to collect basic information, such as the driving history of everyone on the policy and facts about your car, including safety features and annual mileage driven. You’ll also want to understand which types of coverage you need. For example, do you want only the bare minimum insurance that your state requires, or do you need more extensive coverage, such as gap insurance or rideshare coverage? Check that each company you’re considering has the options you want.
When comparing rates among insurers, make sure each is offering the same coverage limits and deductibles. You may not want to decide based on price alone. Look at how many consumer complaints each company has, as high numbers can be a red flag about the quality of service you might receive.
Depending on which company you choose, you may be able to buy insurance online, over the phone or through an agent. For more guidance, see how to get car insurance.
NJM homeowners insurance
NJM policies for homeowners offer all the standard coverages, including liability coverage, personal property insurance and protection for your home and other structures like sheds. You can also buy add-ons such as:
- Extra coverage for valuable items like jewelry and heirlooms.
- Extra fraud protection in case you’re a victim of credit card fraud, a forged check or counterfeit money.
- Identity fraud coverage, which pays up to $15,000 for expenses you encounter if your identity is stolen.
- Earthquake insurance, which pays for damage to your home or belongings from an earthquake.
- Water backup coverage, which pays up to $5,000 if your sump pump overflows.
- Coverage for fungi damage or issues such as wet or dry rot.
- Supplemental loss assessment, which covers up to $5,000, depending on your policy, when your condo or homeowners association is liable for an injury or property damage and you must pay your share.
Homeowners insurance discounts from NJM include:
- Multi-policy discount.
- Discount for features such as smoke detectors, burglar alarms and automatic sprinkler systems.
- Nonsmoking discount.
- Discount for being 65 or older.
- Discount for having an automatic backup power supply or portable generator.
- Paid-in-full and electronic payment discount.
- Paperless discount (Pennsylvania and Connecticut only).
- Discount for having impact-resistant glass in all windows (New Jersey and Connecticut only).
NJM complaints and customer satisfaction
NJM had significantly fewer than the expected number of complaints to state regulators relative to its size for both home and auto insurance, according to three years’ worth of data from the National Association of Insurance Commissioners.
NJM gets high marks for auto insurance customer satisfaction. It was the first company to earn J.D. Power’s Personal Auto Claims Certification, based on customer satisfaction with claims and J.D. Power’s audit of the company’s practices.
NJM ranks among the top three auto insurers nationwide in Consumer Reports’ most recent car insurance satisfaction survey.
More about NJM 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 doesn’t offer a mobile app for managing its policies.
NJM SafeDrive mobile app: This app monitors your acceleration, speed, braking, cornering and distracted driving as part of the optional SafeDrive discount program. You get scores in each category, along with an overall score for each trip. A “leaderboard” lets you see how your scores compare to others’.
|Other types of insurance from NJM include:|
|Condo insurance||Umbrella insurance|
|Renters insurance||Some types of business insurance in select states|
NJM offers other policies through third parties. Here are types of insurance you can get from NJM’s partners:
|Third-party insurance through NJM includes:|
|Classic and collector car insurance||Boat and personal watercraft insurance|
|Motorcycle and ATV insurance||Flood insurance|