NJM Car Insurance Review
NJM is a 1913-founded New Jersey mutual, no shareholders, direct-only, and the J.D. Power 2025 double-credential winner: Mid-Atlantic #1 at 721 (65 above regional average, #1 in all 7 dimensions) and national Auto Claims Satisfaction #2 at 731 (behind only Erie). Three facts shape a 2026 decision: the 5-state footprint (NJ, PA, CT, MD, OH), the SafeDrive telematics promise that rates will not go up based on participation even after an accident, and the AM Best Negative ICR outlook assigned May 1, 2025 citing underwriting-earnings pressure and dividend drag. Modeled NJ premiums run roughly 40% below the state average.
YesWeSure Bottom Line
NJM is a direct-only policyholder-owned mutual that holds a J.D. Power 2025 regional #1 (Mid-Atlantic 721) AND a national Claims top-3 (second at 731) in the same year — a rare pairing. The honest counterweight is the Negative Long-Term ICR outlook assigned by AM Best in May 2025 citing underwriting-earnings pressure and the NJ dividend drag.
Strong at
J.D. Power 2025 regional #1 plus national Claims #2
Mid-Atlantic #1 at 721, 65 points above regional average; #1 in all seven study dimensions. National Auto Claims Satisfaction #2 at 731 behind only Erie (743) and ahead of Liberty Mutual (730). SafeDrive telematics is a true no-rate-up program per NJM.
Watch for
AM Best Negative ICR outlook and narrow footprint
AM Best revised the Long-Term ICR outlook to Negative from Stable on May 1, 2025 citing underwriting-earnings volatility, 2024 underwriting loss (the largest in the series), weather and inflation pressure, and the ~9.2-point five-year combined-ratio drag from NJ policyholder dividends. "A downgrade of the Long-Term ICR is likely" absent improvement. NJM writes personal auto in only 5 states.
Worth comparing if
Mid-Atlantic and Ohio shoppers who want direct + no-agent-pressure
Worth quoting if you live in NJ, PA, CT, MD, or OH, want a direct-only mutual, value SafeDrive's no-rate-up promise, and are a NJ resident who could receive the annual dividend. Less compelling if you want a named local agent, live outside the 5-state footprint, or expect the ICR outlook to be Stable.
Quote-dependent
State, dividend eligibility, and your current carrier's exit cost
Whether your address falls in one of the 5 NJM states, whether NJ-dividend eligibility applies to you specifically, which NJM entity writes your policy (NJM Insurance Company for public, New Jersey Manufacturers for members), and how your current carrier's cancellation terms interact with the switch.
At a glance
Parent
NJM Insurance Group (mutual, policyholder-owned, no shareholders); founded 1913
Availability
5 states: NJ, PA, CT, MD, OH
Distribution
Direct-to-consumer only; no independent agents; eligibility opened to general public starting 2018
AM Best FSR
A+ (Superior); aa ICR; affirmed May 1, 2025; FSR Stable, ICR outlook Negative2
Market share (2024)
~0.47% group PPA DWP; #20 nationally1
J.D. Power 2025 Mid-Atlantic
#1 at score 721; 65 points above regional average; #1 in all seven dimensions5
J.D. Power 2025 Claims
#2 nationally at 731 (behind Erie 743; ahead of Liberty Mutual 730)8
Telematics program
SafeDrive (SafeDrive Go in Maryland) — rates do NOT go up based on telematics, even after an accident4
Dividend history
NJ policyholders receive annual dividends; 23+ consecutive years of special dividends2
Strengths & considerations
Strengths
- J.D. Power 2025 Mid-Atlantic #1 and Claims #2 nationally. Mid-Atlantic #1 at 721 (65 above regional average; #1 in all 7 study dimensions). National Claims Satisfaction #2 at 731 behind only Erie. Few carriers hold a regional #1 and a national Claims top-3 in the same year.5
- NJ premiums materially below state average. NerdWallet modeled NJM at $2,209/yr full-coverage vs the $3,664 NJ state average — roughly 40% below. Minimum coverage $859/yr vs $1,597 state average.6
- SafeDrive is a true no-rate-up telematics program. NJM states explicitly that rates will NOT go up based on SafeDrive participation, "even after an accident." Discount-only; one of the strongest structural telematics promises in the family.4
- Mutual, no shareholders, NJ dividends. Non-profit mutual structure; NJ policyholders receive annual dividends (23+ consecutive years of special dividends per NJM). Profits are returned to policyholders rather than distributed to equity holders.2
Considerations
- Negative ICR outlook signals underwriting pressure. AM Best revised the Long-Term ICR outlook to Negative on May 1, 2025 citing underwriting-earnings volatility, 2024 underwriting loss (largest in series), weather and inflation, UIM drag, and the dividend-driven 9.2-point five-year combined-ratio drag. "A downgrade of the Long-Term ICR is likely" absent improvement.2
- 5-state footprint — narrow geography. NJM writes personal auto only in New Jersey, Pennsylvania, Connecticut, Maryland, and Ohio. If you move outside these states your NJM policy may not be transferable.3
- No agents. Direct-only distribution. You will quote and buy via njm.com or by phone. For buyers who want a named local agent as the primary servicing relationship, this is friction.3
- Dividend not guaranteed; declared annually. NJ policyholder dividends are declared annually by NJM's Board and depend on company performance. The dividend drag has pressured underwriting margins (AM Best cited +9.2 points on five-year combined ratio).2
Coverage options
NJM writes standard personal auto coverages plus carrier-specific products listed below. State availability and endorsement limits vary; confirm at quote time.
- Bodily injury and property damage liability3
- Collision3
- Comprehensive3
- Uninsured and underinsured motorist3
- Personal injury protection: New Jersey full-tort / limited-tort elections apply.3
- Medical payments3
- Rental reimbursement3
- Roadside assistance3
- New-vehicle replacement3
- Gap coverage3
- OEM parts option3
- Pet coverage3
Discounts
- Multi-policy: Bundle auto with home/renters/umbrella. (up to 15%)6
- Multi-vehicle: More than one vehicle on policy.6
- Good Student: B average or better / honor roll / Dean's list / 3.0+ GPA. (up to 15%)6
- Paid-in-full: Pay full policy premium up front. (up to 12%)6
- Autopay / paperless: Electronic payment and policy delivery.6
- Safety features: Qualifying anti-theft and safety equipment.6
- Driver training / defensive driving: Approved course completion.6
- New vehicle: For newer-model vehicles.6
- SafeDrive telematics: Smartphone-based safe-driving program; rates do NOT go up based on SafeDrive data, per NJM.4
SafeDrive (telematics)
SafeDrive is NJM's smartphone-based telematics program. The app tracks hard acceleration, hard braking, hard cornering, phone use while driving, speed NJM states explicitly that rates will NOT go up based on SafeDrive participation, "even after an accident." Discount-only program with per-trip scoring and a leaderboard. "SafeDrive Go" is the Maryland variant. This structural promise is one of the strongest consumer-facing fit facts in the file.4
- Enrollment discount: participation discount at enrollment4
- Max renewal discount: variable, based on driving score4
- Can it raise your rate? SafeDrive is reported as a discount-only program; the headline savings are the only published outcome. Confirm your state's rules at enrollment.4
Pricing
Every NJM quote is personal. What follows are modeled premiums for defined driver profiles from reputable publisher analyses — not personalized quotes. Use them to calibrate what to expect, not to replace a real quote in your state.
NerdWallet (January 2026): New Jersey-only model; NJM is dominant in NJ.6
- Full coverage (New Jersey): $2,209 per year ($184/mo)
- Minimum coverage (New Jersey): $859 per year ($72/mo)
Publisher national benchmark: $3,664/yr
Insure.com (June 2025): 100/300/100 limits, $500 deductibles.7
- Full coverage: $2,134 per year
How to read these numbers. Different publishers model different profiles and may use different underlying data (Quadrant Information Services is the most common dataset). Your quote depends on your driving record, credit-based insurance score where allowed, vehicle, garaging ZIP, mileage, prior insurance history, age, household composition, telematics participation, and the coverages and deductibles you select.
Complaints and regulatory record
The National Association of Insurance Commissioners publishes a complaint index that normalizes complaint counts against a company's share of premium written. A value of 1.0 represents the baseline expected complaint volume for a company of that size; lower is generally better.
NAIC complaint indices for NJM entities run well below the 1.0 industry baseline. Secondary summaries cite values from ~0.05 to ~0.20 depending on vintage. Pull current per-entity values on NAIC CIS before signing.9
To look up the current complaint index for the specific NJM underwriting entity that writes policies in your state, use the NAIC Consumer Information Source or your state Department of Insurance. The entities most commonly rated for NJM are:
- New Jersey Manufacturers Insurance Company (NAIC #12122)
- New Jersey Re-Insurance Company (NAIC #35432)
- New Jersey Indemnity Insurance Company (NAIC #10978)
- NJM Insurance Company
- New Jersey Casualty Insurance Company
Complaint index measures regulator-filed complaints, not overall service quality; treat it as one input among several. Index values vary by underwriting entity and by state and can shift year over year, so pull the current number for your state before signing.
Financial strength
AM Best affirmed NJM at Financial Strength Rating A+ (Superior) and Long-Term Issuer Credit Rating aa (Superior) on May 1, 2025 with a stable outlook2. AM Best affirmed FSR A+ (Superior) and ICR aa (Superior) with Stable outlook on the FSR on May 1, 2025. The ICR outlook was revised to NEGATIVE from Stable at the same time, citing continued volatility in pre- and post-dividend operating performance, consecutive underwriting losses (2024 the largest), weather plus inflation pressure, uninsured-motorist loss drag, and the ~9.2 point five-year combined-ratio drag from NJ policyholder dividends. AM Best stated "a downgrade of the Long-Term ICR is likely" absent improvement.
What these ratings mean and do not mean. A high financial-strength rating indicates the insurer has the resources to pay claims under a wide range of adverse scenarios. It is not a guarantee of any specific claim outcome, service quality, or price competitiveness in your quote. Ratings can change; check the affirmation date.
Material news (last 24 months)
- AM Best affirmed A+ (Superior); ICR outlook revised to Negative (May 2025): FSR Stable; Long-Term ICR outlook moved to Negative from Stable citing underwriting-earnings volatility, 2024 underwriting loss (the largest in the series), weather/inflation pressure, UIM loss drag, and the ~9.2-point five-year combined-ratio drag from NJ policyholder dividends. "A downgrade of the Long-Term ICR is likely" absent improvement.2
- J.D. Power 2025 Mid-Atlantic #1 at 721; #1 in all seven dimensions (June 2025): 65 points above regional average. Signature consumer-facing credential.5
- J.D. Power 2025 U.S. Auto Claims Satisfaction #2 nationally at 731 (October 2025): Second nationally behind Erie (743) and ahead of Liberty Mutual (730). Study average 700.8
YesWeSure Fit Check
Is NJM a fit worth quoting?
NJM tends to fit if you
- You live in New Jersey and want a direct mutual with NJ policyholder dividends — the signature NJM structural feature.
- You live in Pennsylvania, Connecticut, Maryland, or Ohio and want the J.D. Power 2025 Mid-Atlantic #1 result applied to your profile.
- SafeDrive's no-rate-up telematics promise is a decision factor for you.
- You are comfortable buying direct via njm.com or phone with no agent in the loop.
Look carefully if you
- You live outside the 5 NJM states (NJ, PA, CT, MD, OH) — NJM does not write for you.
- The May 2025 AM Best Negative ICR outlook is a decision factor; "a downgrade of the Long-Term ICR is likely" absent improvement.
- You want a named local agent as the primary servicing relationship.
- You are weighing NJM dividend expectations as part of the premium calculation; dividends are declared annually and are not guaranteed.
This is decision-support reasoning, not personalized advice. Your real decision depends on your quote in your state, current regulator data, and how much of your total budget an incident could disrupt.
Ready to compare NJM against alternatives?
Compare car insurance quotesCommon questions
Is NJM available where I live?
NJM writes personal auto in five states: New Jersey, Pennsylvania, Connecticut, Maryland, and Ohio. Eligibility opened to the general public in New Jersey and Pennsylvania starting 2018, Ohio in January 2021, and Maryland in 2021. If your address is outside these states, NJM does not write for you.
Can SafeDrive raise my premium?
No. NJM states explicitly that rates will NOT go up based on SafeDrive participation, "even after an accident." SafeDrive is a smartphone-based program that measures acceleration, braking, cornering, distracted driving, and speed, with a per-trip score and leaderboard. "SafeDrive Go" is the Maryland variant. Participation gives a discount; it cannot be used to surcharge the base rate.
How is NJM rated by AM Best?
AM Best affirmed NJM at Financial Strength Rating A+ (Superior) and Long-Term Issuer Credit Rating aa (Superior) on May 1, 2025 — but revised the ICR outlook to Negative from Stable at the same time, citing continued volatility in operating performance, consecutive underwriting losses (2024 the largest), weather and inflation, UIM loss drag, and the ~9.2-point five-year combined-ratio drag from NJ policyholder dividends. The FSR outlook remains Stable; AM Best stated a Long-Term ICR downgrade is likely absent improvement.
Do I get a NJM dividend?
NJ policyholders may receive an annual dividend declared by NJM's Board; NJM has paid special dividends for 23+ consecutive years. Dividends are not guaranteed; they are declared based on company performance. Policyholders in Pennsylvania, Connecticut, Maryland, and Ohio do not receive the NJ-specific dividend.
How does NJM compare on price?
For NJ specifically, NerdWallet modeled NJM full-coverage at $2,209 per year versus the NJ state average of $3,664 — roughly 40% below. Minimum coverage $859/yr vs the $1,597 NJ state average. Treat as modeled; your quote depends on profile.
Did NJM win J.D. Power in 2025?
Yes, twice. In the 2025 U.S. Auto Insurance Study, NJM ranked #1 in the Mid-Atlantic region at score 721, 65 points above the regional average, and finished #1 in all seven study dimensions (trust, price, people, ease of doing business, product/coverage, problem resolution, digital channels). In the 2025 U.S. Auto Claims Satisfaction Study, NJM ranked #2 nationally at score 731, behind only Erie (743) and ahead of Liberty Mutual (730).
Does NJM have agents?
No. NJM is direct-only: quote and buy at njm.com or by phone. No independent agents and no captive-agent force.
Sources & methodology
- [TIER 1] AM Best affirms NJM A+ (Superior); revises ICR outlook to Negative (May 1, 2025) (Insurance Journal (AM Best reporting))
- [TIER 1] NJM Insurance: Auto Insurance product page (NJM Insurance)
- [TIER 1] NJM SafeDrive telematics (no-rate-up disclosure) (NJM Insurance)
- [TIER 1] NJM: J.D. Power 2025 Mid-Atlantic #1 Customer Satisfaction award (NJM Newsroom)
- [TIER 3] NerdWallet: NJM Auto Insurance Review (updated January 6, 2026) (NerdWallet)
- [TIER 3] Insure.com: New Jersey average cost (NJM rate anchor) (Insure.com)
- [TIER 2] J.D. Power 2025 U.S. Auto Claims Satisfaction Study (NJM #2 at 731) (J.D. Power)
- [TIER 1] NAIC Consumer Information Source (per-entity complaint and financial lookup) (National Association of Insurance Commissioners)
Evidence hierarchy on this page: Tier 1 (regulators, insurer documentation, rating agencies), Tier 2 (independent authoritative research including J.D. Power and industry datasets), Tier 3 (reputable publishers with transparent methodology). Every material claim traces to a source in this list, with the tier shown next to each source. Modeled rate figures are premiums produced from Quadrant Information Services or publisher proprietary data for defined driver profiles; they are not personalized quotes. Last reviewed .