NJM Auto Insurance Review | Prons & Cons, Ratings and Mobile

When it comes to car insurance, finding a reliable provider with high customer satisfaction can make all the difference. NJM Auto Insurance has emerged as one of the best car insurance companies for 2024, renowned for its excellent performance and customer-centric approach.

However, its availability is limited to just five states. Let’s explore the pros and cons of NJM Auto Insurance and why it might be the right choice for you if you live in one of those states.

Pros and Cons of NJM Auto Insurance

Pros

High Customer Satisfaction: NJM has earned top marks in customer satisfaction surveys, indicating a strong track record of keeping policyholders happy.
Low Complaint Rates: The company boasts fewer complaints compared to its size, a testament to its commitment to resolving customer issues effectively.
Dividends for New Jersey Policyholders: Policyholders in New Jersey might receive dividends, adding an extra financial benefit.

Cons

Limited Availability: NJM is available only in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania, which restricts its accessibility.
No Mobile App for Managing Policies: Although there is an app for tracking driving behavior, it doesn’t allow for managing policies, which might be a drawback for tech-savvy customers.

NJM’s Impressive Performance

NJM has garnered a perfect 5-star rating for overall performance from Smart Study Squad. This high rating is determined by Smart Study Squad’s editorial team based on a comprehensive scoring formula that evaluates consumer experience, complaint data from the National Association of Insurance Commissioners (NAIC), and financial strength ratings.

Expanded Accessibility and Direct Sales Approach

Historically, NJM was accessible only to certain groups. However, since 2018, it has expanded its reach, offering auto, homeowners, condo, renters, and umbrella insurance to anyone in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. NJM sells personal policies directly to customers, bypassing the need for agents. This direct sales model allows you to purchase a policy easily online or by phone.

Operating Like a Mutual Insurance Company

Though NJM is technically a stock company, it operates much like a mutual insurance company. Its stock is held in trust, and it often pays out dividends and premium credits to policyholders in New Jersey. While these payments aren’t guaranteed, they offer a bonus to policyholders.

Why Trust Smart Study Squad’s Ratings?

Smart Study Squad’s ratings are crafted by a dedicated editorial team that follows strict guidelines to ensure accuracy and fairness. These ratings are designed to help you choose the best insurance policy tailored to your needs.

Therefore, It’s worth noting that these ratings are specific to auto insurance, and a company’s rating for other products might differ. You can review Smart Study Squad’s criteria for evaluating auto insurance companies for more detailed insights.

Comprehensive NJM Auto Insurance Coverage

Understanding your car insurance coverage is crucial when shopping for a policy. NJM offers a broad range of coverage options to meet your needs:

Standard Coverage

Liability Insurance: Covers bodily injury and property damage you may cause to others.
State-Required Coverage: Includes various types mandated by each state.
Comprehensive and Collision: Protects your vehicle against damage from accidents, theft, vandalism, and more.
Roadside Assistance: Provides help if your car breaks down.

Additional Coverage

New Car Replacement: If your car is totaled or stolen within 12 months of purchase, NJM’s new-car replacement coverage will pay to replace it, less your deductible. To qualify, you must be the vehicle’s original owner and the car must have had fewer than 1,000 miles at the time of purchase and 15,000 miles at the time of the claim.
Transportation Expense Reimbursement: Offers up to $100 per day, up to $4,000 in total, for a taxi, rideshare, or rental car while your car is being repaired due to a covered loss.
Pet Coverage: Covers up to $1,000 for treatment of your dog or cat if injured in a covered car accident.
Gap Insurance: Helps pay off your loan or lease balance if your vehicle is totaled or stolen, available for an additional cost.
Rideshare Insurance: Enhances your coverage when driving for companies like Uber or Lyft, covering the gap when the app is on, but you haven’t accepted a ride request.
Accident Forgiveness: Offered to Pennsylvania drivers, providing free accident forgiveness if you meet certain conditions, such as having an auto policy for at least five years and no traffic violations for three years.

Auto Insurance Discounts to Maximize Savings

NJM provides a variety of discounts that can help lower your premium. Here are some ways you might save:

Multi-Vehicle and Bundling Discounts

Insure More than One Vehicle: Receive a discount for insuring multiple vehicles with NJM.
Bundling Discounts: Save by buying multiple insurance products from NJM.

Payment and Document Discounts

Full Payment Discount: Pay your premium in full upfront to save money.
Electronic Documents Discount: Opt to receive documents electronically for a discount.
Automatic Payment Discount: Enroll in an automatic payment plan for additional savings.

Safety and Education Discounts

Safety Features Discount: Own a vehicle with features like anti-lock brakes, passive restraints, and anti-theft devices.
Newer Vehicle Discount: Drive a car no more than two model years old for a discount.
Good Student Discount: Maintain good grades if you’re a student or have one on your policy.
Distant Student Discount: Leave your car at home while attending a school more than 100 miles away.
Driver Training Discount: Take a driver training or young driver training course (not available in Ohio).
Defensive Driving Discount: Take a defensive driving class (available in New Jersey only).
Mature Driver Discount: Complete an approved accident prevention course if you’re over a certain age.
Safe Driver Discount: Meet NJM’s standards for being a safe driver.

NJM SafeDrive Program

NJM SafeDrive: This usage-based program tracks your driving habits, including acceleration, braking, cornering, distracted driving, and speed. Participation is voluntary, and you get a discount for participating. Your rates won’t increase based on your participation in SafeDrive.

Complaints and Customer Satisfaction

NJM has consistently had far fewer complaints than expected for its size, according to three years of data from the NAIC. Here’s how NJM fared in the 2023 J.D. Power studies:

Auto Insurance Shopping (Mid-Atlantic insurers): NJM ranked No. 4 out of 14 companies.
Auto Insurance Claims Satisfaction: NJM ranked No. 3 out of 24 companies.

User-Friendly Online Experience

NJM’s website is designed to be user-friendly and easy to navigate. Policyholders can log in to see policy information, make payments, report a claim, and more.

NJM Mobile App

The NJM SafeDrive app is designed to track driver behavior. It monitors your acceleration, speed, braking, cornering, and distracted driving as part of an optional discount program. The app includes a “leaderboard” feature to compare your scores with others. However, it does not offer policy management capabilities, which might disappoint tech-savvy customers.

Homeowners Insurance from NJM

NJM offers comprehensive homeowners insurance policies that include standard coverage and various add-ons. For more details, check out our NJM home insurance review.

Additional Insurance Products from NJM

NJM also provides a range of other insurance types:

Condo Insurance
Renters Insurance
Umbrella Insurance
Business Insurance
Landlord Insurance
Commercial Auto Insurance

Through a third-party partner, American Modern, NJM sells:

Classic Car Insurance
Motorcycle and ATV Insurance
Boat and Personal Watercraft Insurance

Methodology

Insurer Complaints Methodology

Smart Study Squad analyzed complaints received by state insurance regulators and reported to the NAIC from 2020 to 2022. To evaluate how insurers compare, the NAIC calculates a complaint index for each subsidiary, measuring its share of total complaints relative to its size (market share).

Smart Study Squad calculated a similar index for each insurer, weighted by market share, over the three years. This analysis is conducted independently and without NAIC endorsement. Ratios are determined separately for auto, home (including renters and condo), and life insurance.

Auto Insurance Rating Methodology

Smart Study Squad’s ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, and discounts. The “ease of use” category considers factors like website transparency and ease of filing a claim.

However, customer satisfaction surveys also influence ratings. These ratings serve as a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. Smart Study Squad does not receive compensation for any reviews. Learn more about our editorial guidelines and full ratings methodology for auto insurance.

Conclusion

NJM Auto Insurance stands out in 2024 for its high customer satisfaction and low complaint rates. Though its availability is limited to just five states, NJM offers comprehensive coverage options and valuable discounts. Its unique dividend payouts for New Jersey policyholders and customer-centric approach make it a top choice for those eligible for its services.

Whether you’re looking for standard auto insurance coverage or additional features like new car replacement and rideshare insurance, NJM provides a variety of options to suit your needs. While the lack of a policy management mobile app might be a drawback for some, NJM’s strong performance and customer satisfaction ratings make it worth considering if you live in one of the states it serves.

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