NJM COVID-19 Resource Center

NJM Policyholder Relief Program FAQs

In April, the NJM Policyholder Relief Program allowed us to issue refunds to personal auto insurance customers who had a policy in force on April 1, 2020. Consistent with our policyholders' reduced driving, the refund represented 15% of the equivalent of three months of their annual premium — a total of $41.7 million. In July, the Program will refund an additional 15% of two months of annual premium payments to all voluntary personal auto policyholders who had an active policy with us as of July 1, 2020. Policyholders will receive their refunds via check or direct deposit.

Is NJM returning money to policyholders?

Yes. For the first refund, NJM returned a portion of premiums to all policyholders who had an active policy with us as of April 1, 2020. For the second refund, NJM will return a portion of premiums to all voluntary personal auto policyholders who had an active policy with us as of July 1, 2020. In mid-July, NJM Auto Insurance policyholders will receive a 15% refund on the equivalent of two months of annual premium in recognition of their reduced driving over this period.

How will I receive the payment?

The refund will be made either by check or a credit to a policyholder's bank account, depending on how you currently pay NJM.

When will I receive the payment?

The refund will be made by check or a credit to your bank account, depending on how you currently pay NJM. We plan to mail the second Policyholder Relief Program checks in mid-July. If you are eligible to receive direct deposit, you will receive your payment around the same time.

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. Each customer with an active NJM personal auto policy as of July 1, 2020, was 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 government-mandated shelter in place regulations. Many customers are continuing to limit their driving even as shelter in place regulations lift. 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 payment was sent to all policyholders who had an active NJM personal auto policy on April 1, 2020. The second payment will be sent to all voluntary policyholders who had an active NJM personal auto policy on July 1, 2020.

What if I didn't receive the first refund check?

The first refund check was issued in early May to NJM Auto Insurance policyholders who had an active policy on April 1, 2020. If you have not received your refund, 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 and an email announcing the NJM Policyholder Relief Program.

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

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, including special payment plans, 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.

Are we still doing payment arrangements?

Yes. We are taking additional steps to help affected NJM policyholders, including extending premium payment deadlines and using maximum flexibility to create special payment plans.

Why are New Jersey Indemnity policyholders receiving a smaller refund than NJM policyholders?

New Jersey Indemnity rates are set by the New Jersey Automobile Insurance Plan (NJAIP). Due to the coronavirus pandemic, NJAIP authorized a refund of two months' premium payments in April. No additional payments have been ordered as of July 1, 2020.