NJM Auto Insurance Review

NJM Auto Insurance Review

NJM Insurance Pros

  • Competitive car insurance rates and offerings
  • High satisfaction with claims processing and coverage

NJM Insurance Cons

  • Insurance only available to employees of select organizations
  • Geographic limitations - only in New Jersey and Pennsylvania

NJM Auto Insurance Rate Comparisons

Below are sample rates from NJM and two other auto insurance competitors:

Driver Profile NJM 21st Century Liberty Mutual
Married Couple $2,063 $1,593 $1,526
Senior Married Couple 1,154 1,004 1,129
Single Male, 30 years old 1,272 1,268 1,633

Auto Insurance Policy

New Jersey Manufacturing is one of the most highly rated auto insurance companies that we've come across - both in terms of financial solvency, customer satisfaction, and value. We highly recommend it as an option for eligible insureds to consider, and therein lies the catch. Unfortunately, there are a couple of restrictions and eligibility requirements for people NJM will insure.

Great Auto Insurance Premiums and Value

As a mutual company, NJM returns value or excess profits back to policyholders in the form of dividends. In 2011, the company reported that it returned an average of $149 dollars in dividends to its insureds. This is similar to an extra 8% discount on insureds' premiums, based on the $1,742 aggregate average discussed below. NJM notes that dividends have been continuously distributed to customers since 1918 for a total of approximately $5B to date. 

Many customers like New Jersey Manufacturing Insurance Group for its affordable premiums, policy coverage, and value. Sample NJM premiums of $1,742 were 17% cheaper versus the overall state average. This makes NJM the 12th cheapest insurer in NJ. In particular, this is a great company for young and single male drivers to consider: sample premiums for this demographic are about 31% less than other insurers. However, a bit of comparison shopping around yielded companies with even cheaper premium quotes. For example, sample rates for married couples are $2,063 at NJM, but getting quotes at other places such as USAA Casualty Company or Liberty Mutual Fire Insurance Company show savings of 15% and 26%, respectively. For this reason, we always urge readers to look around at at least two other companies. To see which companies are offering cheap auto insurance in your area, enter your zip code in the box below.

Find the Cheapest Auto Insurance Quotes in Your Area

Currently Insured?

If motorists should ever encounter problems driving, roadside assistance is a standard offering with every auto insurance policy. NJM will cover reasonable and necessary costs up to $75 for each time a covered vehicle has mechanical breakdown, flat tire, or even lockout problem. This is a good benefit to have for any driver on a highway or road. 

What's remarkable is that NJM didn't have any justified complaints filed against it despite being the largest insurer in the Garden State in 2012 by insured vehicles. The NJ Department of Banking & Insurance reports zero cases for 2012. The next largest insurers, GEICO and Allstate, reported 19 complaints for 809,000 cars, and 35 for 657,000, respectively. NJM scored well above other car insurers in JD Powers' Auto Claims Experience survey. From the first notice of loss through repair, rental, and settlement NJM ranked as a top leader. Many customers shared positive experiences in reviews about timely investigations to fair repair experiences, although a few customers mentioned unfair judgments or valuations and poor communication. 

Eligibility Requirements for NJM

Prospective customers have to fulfill two requirements: employment and geography. Applicants must live in either New Jersey or Pennsylvania to qualify. Additionally, applicants must be employed by either the State of New Jersey, or a member organization of the New Jersey Business & Industry Association. People can also be eligible if they are current or prior policyholders, spouses, or operators of covered vehicles or houses.

The NJBIA does not provide a listing of its members, but it is 22,000 organizations strong. Interested applicants should check with their employers and HR teams for membership, or try calling the NJBIA at 609-393-7707. NJM covered over 800,000 vehicles, and was one of the largest insurers by vehicle count in New Jersey in 2012, so the likelihood that your job might qualify you is good. 

Insurer Ratings

Metric Rating
AM Best Financial Strength Rating A++
JD Power & Associates Rating 5 out of 5 (Among the Best)
Complaint Ratio per Vehicle (NJ, 2012) 0 / 817,632
NAIC Complaint Index (2012) 0.13 (Among the Best)

Insurance Discounts

There are several discounts available to NJM policyholders, and below are a few examples with the amount of savings. Note also that NJM distributes dividends to policyholders, which will effectively lower premiums as well. 

Discount Type Discount Amount
Bundled Homeowner's Insurance Policy 5%
Anti-Theft Discount 5 - 25% on Comprehensive premium
Defensive Driving Course (NJ) 5% for up to three years
Mature Driver Improvement (PA) 5% for up to three years

Source: NJM, Aug 2013

How to File a Claim

To reach NJM's claims office, follow the prompts below.

Phone Number: 800-232-6600

  • Press 2
  • Press 2 again
  • Enter your policy number or telephone number

To speak to a customer service representative at NJM, press 5 from the main menu, then 2, and finally 0.

About NJM Auto Insurance

New Jersey Manufacturer (NJM) Insurance was initially created in 1913 to provide fair and accessible workers compensation insurance, but has since broadened its scope to include auto insurance, commercial auto insurance, homeowners' insurance, and renters insurance. In addition to its traditional base, NJM also provides traditional banking services for both personal (individual consumers) and businesses. 

NJM is a mutual insurance company owned by its policyholders. Approximately 98% of its business is in the state of New Jersey. NJM has 2,500 employees who serve its approximately 820,000 vehicles and policyholders.

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