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NJM Insurance Review

Aug. 26, 2019
Auto Insurance, Insurance
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  • Places high in NerdWallet's rankings.
  • Had far fewer than the median number of complaints to state regulators in 2018 relative to its size for auto and home insurance.
  • Available in New Jersey and Pennsylvania.

Until last year, 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 New Jersey or Pennsylvania. NJM sells policies directly to customers by phone and online rather than through agents, and gets top marks for customer satisfaction.

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.

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NJM auto insurance

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 your new car has fewer than 15,000 miles on it and 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.
  • Rental reimbursement. In New Jersey the policy includes coverage of $30 a day, to a maximum of $1,200, to rent a car while yours is out of commission after a covered accident. Pennsylvania drivers get coverage of $20 a day, up to $600. You can buy increased coverage in both states.
  • 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.

Pennsylvania policies offer accident forgiveness, an option NJM doesn’t offer in New Jersey. With accident forgiveness, one at-fault accident won’t cause your rates to go up if you’ve previously been a safe driver and meet other qualifications.

Auto insurance discounts from NJM include:

  • Multi-policy discount.
  • Multi-vehicle discount.
  • Discount for paying your premium in full, up front.
  • Discount for paying your premium electronically.
  • Discount for buying both collision and comprehensive coverage.
  • Discount for vehicle safety features like anti-lock brakes and air bags.
  • Discount for driving a car no more than two model years old.
  • Student discounts 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 NJ).
  • Discount for drivers 55 and older taking a driver improvement course (in PA).

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

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.

Homeowners insurance discounts from NJM include:

  • Multi-policy discount.
  • Discount for features such as smoke detectors, burglar alarms and automatic sprinkler systems.
  • Discount for insuring a new construction home.
  • Nonsmoking discount.
  • Discount for being 65 or older.
  • Discount for having an automatic backup power supply or portable generator.

Other types of insurance from NJM

In addition to auto and homeowners insurance, you can get the following types of policies directly from NJM:

NJM Insurance policy options
Condo insuranceUmbrella insurance
Renters insuranceSome 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
Classic and collector car insuranceBoat and personal watercraft insurance
Motorcycle and ATV insuranceFlood insurance

NJM at a glance

COMPLAINTS

NJM had far fewer than the median number of complaints to state regulators in 2018 relative to its size for both home and auto insurance, according to the National Association of Insurance Commissioners.

CUSTOMER SATISFACTION

NJM gets high marks for auto insurance customer satisfaction:

  • It is 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.
  • J.D. Power rates NJM “among the best” for the mid-Atlantic region in its 2019 U.S. Auto Insurance Study of customer satisfaction.
  • 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’.

Recap: NJM pros and cons

ProsCons
Customer satisfaction is highNot available in all states
Complaints are lowNo mobile app for managing policy
Possible dividend payments for New Jersey policyholders

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