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NJM auto insurance

NJM Insurance

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 New Jersey or Pennsylvania. NJM sells policies directly to customers by phone and online rather than through agents, and it 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.

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 a number of details including pricing, discounts and ease of filing a claim. Other factors analyzed include website transparency, financial strength and complaint data from the National Association of Insurance Commissioners.

Basted on these star ratings, NJM is among NerdWallet’s Best Car Insurance Companies for 2020.

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 own a new car with fewer than 15,000 miles on it and it 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.

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. In Pennsylvania, the policy includes coverage of $20 a day, to a maximum of $600.  In New Jersey, you get coverage of $30 a day, to a maximum of $1,200. In both states you can buy increased coverage, with a top limit of $100 a day and a $4,000 total payout.

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:

  • Multipolicy discount.
  • Multivehicle discount.
  • Discount for paying your premium in full, upfront.
  • 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 New Jersey).
  • Discount for drivers 55 and older taking a driver improvement course (in Pennsylvania).
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.

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:

  • Multipolicy 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.
  • Paid-in full and electronic payment discount.
  • Paperless discount (Pennsylvania only).
  • Discount for having impact-resistant glass in all windows (New Jersey only).

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