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NJM COVID-19 Resource Center

NJM Policyholder Relief Program FAQs

During the COVID-19 pandemic, NJM recognized that many of our policyholders remained at home and drove less. Through the NJM Policyholder Relief Program, in May and July the Company returned $69.4 million in premiums to personal auto customers. In November, NJM issued special dividends/refunds to voluntary personal auto customers, consistent with our mission to return profits to policyholders. This special dividend/refund was the equivalent of 7% of each policyholder’s annual premium.

For commercial auto customers, the Program refunded the equivalent of 15% of two months of annual premium for policyholders with active policies as of October 1, 2020.

Is NJM returning money to policyholders?

Yes. For the first refund, NJM returned a portion of premiums to all personal auto policyholders who had an active policy with us as of April 1, 2020. For the second refund, NJM returned a 15% refund on the equivalent of two months of annual premium to all voluntary personal auto policyholders who had an active policy with us as of July 1, 2020. For the third refund, NJM issued a 7% refund of current annual premium to voluntary personal auto policyholders with active policies as of November 1, 2020.

Why am I receiving a refund check instead of a credit to my policy?

NJM wanted to put the money directly into your hands so you could decide how to use it.

Do I have to contact NJM to receive this payment?

No. There is no need to call. Eligible customers were automatically enrolled in the Program.

Why is NJM doing this?

NJM operates as a mutual insurer for the sole service and benefit of our policyholders. Many of our customers have reduced their driving due to the pandemic. This refund helps ensure that the premiums paid this year for auto insurance more accurately reflect the changes policyholders have made to their daily lives.

Will new policyholders receive a refund?

The first refund was sent to all policyholders who had an active NJM personal auto policy on April 1, 2020. The second refund was sent to all voluntary policyholders who had an active NJM personal auto policy on July 1, 2020. The third refund will be sent to all voluntary personal auto policyholders who had an active policy on November 1, 2020.

What if I didn't receive the refund check?

If you are eligible for a refund and have not received it, please call us at 1-800-232-6600.

Will there be any other communication to customers (email, letters)?

Yes. Customers eligible for a refund will receive a letter.

Are we still doing payment arrangements?

Yes. We are taking additional steps to help affected NJM policyholders. Please call 1-800-232-6600 to speak with a representative.

Will commercial auto insurance policies also be eligible for the NJM Policyholder Relief Program?

In October 2020, the NJM Policyholder Relief Program refunded the equivalent of 15% of two months of annual premium to commercial auto insurance policyholders who had active policies as of October 1, 2020.

Business insurance policyholders in need of assistance should call us at 1-800-232-6600. We are considering each customer's individual circumstances and using maximum flexibility to assist affected customers. We will consider month-to-month changes to commercial auto policies for businesses that are not using their vehicles due to coronavirus-related closures. Learn more by visiting the FAQs for Business Insurance Policyholders.