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Last updated on Apr 03, 2020

NJM Auto Insurance Review

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NJM Auto Insurance

  • Award-winning claims service
  • Unique coverage options
  • Available only in New Jersey and Pennsylvania
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How We Reviewed NJM Auto Insurance

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3 companied compared

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5 features evaluated

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6 ratings analyzed

NJM Auto Insurance Review

Founded in 1913 as New Jersey Manufacturers Insurance, NJM was originally designed to provide medical coverage and wage replacement to New Jersey manufacturing workers. The company began offering auto insurance in 1921. NJM offers various types of personal line insurance, such as homeowners insurance, renters insurance, and car insurance, to residents of New Jersey and Pennsylvania.

NJM is best known for its stellar customer service. While it might not be large enough to be rated by all of the industry’s most popular rating services, it does have an A+ financial strength from A.M. Best. And, despite not meeting qualification criteria for an official score, NJM was profiled in the J.D. Power 2019 U.S. Auto Claims Satisfaction Study, where it earned five out of five stars. NJM is also currently the only auto insurance company in the country to receive an Auto Claims Certification from J.D. Power.

If you value a good mobile experience with your insurance provider, NJM may not be the right choice for you — its driving-behavior-tracking app is poorly reviewed, and there is no additional app for policy management or claim filing. However, even with these flaws, NJM is still well worth considering.

The Claim

NJM doesn’t claim to offer the lowest possible rates on auto insurance, but it claims to pride itself on “being committed to [its] customers.”

Is it true?

NJM’s commitment to its customers presents itself in the easy quote and enrollment process, the fast and friendly customer service, and, most of all, in the claims service.

NJM has been certified by J.D. Power for providing “an outstanding auto claims experience,” and online customer reviews seem to support that certification. Sure, there will always be some negative reviews (that’s how you know the reviews come from real people), but most of these negative reviews appear to stem from policyholder confusion about what is and is not covered by their policy, which is a standard insurance industry complaint. And when more than 11,000 auto insurance customers were polled by J.D. Power on claims satisfaction, NJM tied with USAA for the top spot among 23 other providers (although neither one was officially included in the rankings due to their limited availability).

The only source that gives pause to NJM’s claim is the Better Business Bureau, where NJM holds less than a two-star rating and has 30 registered complaints. However, many of those complaints cite NJM’s homeowners insurance, and the low rating is fairly common in the insurance industry — State Farm, another reputable national provider, has the same score and many more complaints registered, so take the Better Business Bureau profile with a grain of salt.

Product Overview

  • In business since: 1913
  • A.M. Best financial strength rating: A+
  • Moody’s financial strength rating: Not rated
  • S&P Global financial strength rating: Not rated
  • J.D. Power 2019 U.S. Auto Claims Satisfaction Study score: 5/5
  • Better Business Bureau Rating: A-
  • States served: 2
  • Pros: Stellar claims satisfaction, unique coverage
  • Cons: Poor app experience

Features

Coverage options
Pennsylvania First Party Medical Benefits
Personal Injury Protection
Bodily Injury Liability
Property Damage Liability
Combined Single-Limit Liability
Uninsured/Underinsured Motorist
Extended Medical Expense Coverage Limit
Lost Wages
Funeral Expenses
Accidental Death
Collision
Comprehensive
Gap Insurance
Roadside Assistance
Pet Coverage
New Car Replacement
Accident Forgiveness
Transportation Expense
Roadside Assistance
Advertised discounts
Driver Training
Electronic Payment
Full Coverage
Good Student
Away at School
Home and Auto Bundle
Mature Driver Improvement
Multi-Vehicle
New Car
Paid in Full
Vehicle Safety Equipment
Defensive Driving
Passive Restraint
Anti-Lock Braking System
Anti-Theft Device
Extra Vehicle — One-Driver Household
NJM Homeowner Policyholder

Coverage and discounts may vary by state.

Stellar claims satisfaction

Winning a J.D. Power Auto Claims Certification is a big deal. To qualify, NJM was subjected to “a rigorous independent audit of the claims process, which included a survey of customers who recently had a claim, and an evaluation of claims performance across five key areas: First Notice of Loss; Estimation; Repair Process; Claims Servicing; and Settlement.” To date, NJM is the only auto insurance company to receive this prestigious certification, and NJM has done so two years in a row. Customer reviews also indicate high levels of satisfaction with NJM’s claims service, further supporting NJM’s commitment to claims satisfaction, and the company tied for the top spot in J.D. Power’s study on auto claims satisfaction. It’s likely that the most interaction you’ll have with your insurance provider is when you need to file a claim, so it’s good to see that NJM makes a tough situation a little less stressful.

Expanded coverage options

In addition to the standard coverage options like liability, collision, and comprehensive, NJM offers expanded coverage options to better serve its policyholders. NJM offers gap insurance for drivers who owe more on the car than the car is worth. This policy will pay the difference between the amount your car is worth and the amount owed so you don’t have to pay the difference out-of-pocket. New car replacement is an option for policyholders with brand-new vehicles who want to make sure they can replace their new car in the event of an accident or theft without absorbing the depreciation cost of driving the new car off the lot. And if you have a particularly prized vehicle you’re looking to insure, NJM also provides coverage for classic cars — a fairly unique option among insurance providers.

NJM SafeDrive program

NJM SafeDrive is a voluntary program in which driving behavior is tracked and analyzed to help drivers be more aware of their existing driving habits and build safer driving habits. Through a mobile app, SafeDrive tracks behaviors like acceleration, braking, cornering, speed, and distracted driving (handling your phone while operating your vehicle). In addition to gaining useful insight into driving behaviors, drivers who participate in the SafeDrive program will also receive a discount on their car insurance. While SafeDrive is not unique — apps that track driving behavior are become more and more commonplace among insurers — it’s an easy way to get a discount and become a better driver.

Possible drawbacks

Inaccurate NJM SafeDrive app

As useful as the SafeDrive program is, the SafeDrive app could use a little improvement. Customers report inaccurate recordings, like mistaking bike rides for drives, and are concerned that the app is accusing them of unsafe driving when they need to swerve around potholes or break unexpectedly as a defense against other drivers’ bad driving. The app currently holds a dismal 1.6 out of five rating on the Apple App Store and 2.2 out of five on Google Play. The SafeDrive developers have been made aware of these issues through app store reviews and they are working on ways to improve the accuracy of the app, but it’s still disappointing to see — especially with better-reviewed usage-based apps on the market, like State Farm’s Drive Safe and Save app.

Additionally, aside from the SafeDrive app, NJM doesn’t have any mobile offerings. Most insurance companies provide an app that lets you access ID cards, manage your policy, and file a claim. With NJM, you’ll have to conduct all of your business through the website or over the phone. It’s a glaring omission in a company that otherwise caters to its customers’ needs.

Limited availability

Because NJM is only available in New Jersey and Pennsylvania, most people will not be able to take advantage of its stellar customer service, and there doesn’t appear to be any push to expand business to other states. If you live outside of NJM’s service area and are looking for similarly good customer service, we recommend getting quotes from State Farm, Amica, or Geico.

The Competition

NJM State Farm Amica Geico
Our review Our review Our review
A.M. Best financial strength rating
A+ A++ A+ A++
J.D. Power 2019 U.S. Auto Claims Satisfaction Study score
5/5 3/5 5/5 3/5
Customer complaints*
Fewer complaints than average Fewer complaints than average Fewer complaints than average Average number of complaints
24/7 claims support
Number of states served
2 50 50 50
Pros
Top claims satisfaction Excellent coverage Great online resources Thousands of agents nationwide Excellent customer satisfaction scores Excellent add-on coverage options Award-winning digital experience Strong claims satisfaction score
Cons
Only available in New Jersey and Pennsylvania Limited mobile app functionality Slightly buggy mobile app Limited online experience Fairly basic coverage options
Get a quote Get a quote Get a quote Get a quote

*Customer complaints are registered by the NAIC and measured relative to the company’s market share.

NJM Auto Insurance FAQ

What do I need to get an auto quote from NJM Insurance?

You can get a quote online in about 10 minutes from NJM. Be prepared to answer the standard questions about all drivers in the household: name, birthdate, driving record information, etc. You’ll also need to enter a valid driver’s license, so make sure you have your driver’s license on hand. Then you’ll enter basic information about your vehicle(s) with optional VIN(s). You can purchase your policy immediately upon receiving your quote.

How will my NJM SafeDrive data be used?

The data collected by the SafeDrive app is owned by NJM and is primarily used to analyze participants’ driving behavior and help drivers practice safe driving habits. The data will not be used for claims purposes without the consent of the policyholder. However, the data may be released if legally required by court order. NJM will not sell your SafeDrive data to third parties.

Do I have coverage with NJM Insurance if I rent a car?

As long as you have either collision or comprehensive for at least one vehicle on your NJM auto insurance policy, a rental car will be covered while driving anywhere in the United States (and its territories), Puerto Rico, or Canada. The same deductible applies to your rental car as to the vehicle(s) on your policy. If you only have liability on your vehicle(s) insured with NJM, rental car coverage is not included.

The Bottom Line

NJM is a solid auto insurance option for residents of Pennsylvania and New Jersey. In an industry where customer service complaints are commonplace, NJM has made a name for itself as an exceptional customer service provider by consistently receiving strong customer reviews. And being the only auto insurance provider to earn J.D. Power’s Auto Claims Certification speaks very highly of NJM’s claims service. NJM falls slightly short in digital experience, with low ratings on its SafeDrive app and no other mobile app to speak of — but if that’s not a deal breaker for you, we recommend including NJM Insurance as you gather auto insurance quotes.

About the Authors

Michelle Clardie

Michelle Clardie Contributing Writer

Michelle Clardie has an MBA in management and strategy, and has worked in real estate. Her work has been featured on sites like Yahoo! News and Inman.