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The Hanover vs NJM: which is better for car insurance in 2026?

Q: Is The Hanover or NJM cheaper?

We cannot answer that with published data. NJM does not release public rate information, so no independent study — ours included — can put a national average next to The Hanover's $4,038/yr. The only way to know is to quote both.

Q: Which handles claims better, The Hanover or NJM?

Neither has a clear edge. The Hanover scores Not rated and NJM 731/1,000 on the claims measure we use — close enough that the individual adjuster you draw matters more than the company average.

Q: Is The Hanover better than NJM overall?

We can't put two scores side by side here. NJM does not publish enough of the underlying data for us to give it an overall score — we would rather say so than compute one from the two or three figures that do exist. The Hanover scores 2.8 out of 5. Compare them on the individual categories above, and on the quotes you actually get.

Q: Can I switch from The Hanover to NJM mid-policy?

Yes. Auto policies can be cancelled at any time, and most insurers refund the unused premium pro-rata — though some charge a short-rate cancellation fee, so check your policy before you cancel. The one rule worth following: get the new policy bound and in force before you cancel the old one. Even a single day uninsured can count as a coverage lapse, which raises your rate at the next renewal and, in some states, exposes you to a registration penalty.

The Hanover

NJMNot scored

Across our six scoring categories, The Hanover comes out ahead in 0, NJM in 1, with 5 too close to call. There is no overall score to compare, though: NJM does not publish enough of the underlying data to earn one, and we would rather leave it blank than build a number out of the two or three figures that happen to exist. The Hanover is the better-documented of the two, which is not the same as being the better insurer for you. Judge these two on the categories where both have real figures — and on what they actually quote you.

The Hanover vs NJM, side by side

Category

The HanoverRead the full review

NJMRead the full review

Overall scoreWeighted across the six categories below

Not scored

PriceAverage annual full-coverage premium · 25% of score

1.5$4,038/yr

Average full coverage vs. $2,356 national average

Not published

This company does not release public rate data

Claims satisfactionJ.D. Power 2025 claims study, out of 1,000 · 20% of score

Not rated

Below the sampling frame of the J.D. Power claims study, which covers only the largest insurers

4.5731/1,000

J.D. Power 2025 claims study, segment average 700

Complaint recordComplaints relative to company size · 15% of score

4.5Fewer than expected

Complaints relative to company size, NAIC data 2022–2024

5.0Far fewer than expected

Complaints relative to company size, NAIC data 2022–2024

Better

Financial strengthAM Best Financial Strength Rating · 10% of score

Not published

No AM Best rating we could verify — see the review

4.5A+

AM Best Financial Strength Rating

DiscountsBreadth of published discounts · 15% of score

4.012 published

Discounts on the carrier's own pages · No branded telematics program found

4.08 published

Discounts on the carrier's own pages · Telematics: NJM SafeDrive

Digital experienceApp ratings and self-service depth · 15% of score

2.01.99 iOS / 3.0 Android

App Store (154 ratings) and Google Play (173 ratings), August 2026

Not published

No app-store presence we could verify

Availability

19 states, through independent agents only

5 states in the Mid-Atlantic, sold direct with no agents

Best suited to

drivers whose independent agent recommends it for a specific reason

Mid-Atlantic drivers who weight claims handling above everything

Sources: average premiums from NerdWallet's August 2026 rate analysis (Quadrant Information Services), for a 35-year-old driver with a clean record and good credit in a 2023 Toyota Camry LE at 12,000 miles a year, 100/300/50 limits with $1,000 deductibles — national average $2,356. Claims satisfaction from the J.D. Power 2025 U.S. Auto Claims Satisfaction Study (segment average 700). Complaint record from NerdWallet's analysis of NAIC complaint data, 2022–2024. Financial strength from AM Best. Discounts and app data from each carrier's published pages and the Apple App Store / Google Play, retrieved August 2026. Updated August 2026.

The Hanover vs NJM across all six categoriesScored 1–5. Longer is better in every category — the price bar already accounts for cheaper being better.

The HanoverNJM

Category by category

Price

Too close to call

NJM does not release public rate data, so there is no like-for-like premium to set against The Hanover's $4,038/yr. That is a real gap in the comparison, not a rounding error — treat NJM's price as unknown until you have a quote in hand.

The Hanover

$4,038 a year for full coverage — 71% above the national average, and the highest figure of any carrier we review.

NJM

NJM's published average is a New Jersey figure, not a national one. New Jersey is a high-cost state, so setting it against a national benchmark would flatter NJM for reasons that have nothing to do with NJM. We have left it out rather than compare unlike things.

Claims satisfaction

Too close to call

Neither pulls ahead on claims satisfaction: The Hanover posts Not rated and NJM 731/1,000, a difference too small to choose on.

The Hanover

Not in the J.D. Power claims study, which samples only the largest insurers.

NJM

731 out of 1,000 in the J.D. Power 2025 claims study — second only to Erie among ranked insurers, and 31 points above the segment average.

Complaint record

NJM ahead

NJM takes complaint record on Far fewer than expected against The Hanover's Fewer than expected.

The Hanover

Fewer complaints than expected for its size, which is genuinely to its credit.

NJM

Far fewer complaints than expected for its size — the strongest band we assign.

Financial strength

Too close to call

Neither pulls ahead on financial strength: The Hanover posts Not published and NJM A+, a difference too small to choose on.

The Hanover

We could not verify an AM Best rating from any page we could read. AM Best blocks automated access and Hanover's rating is not published by the secondary sources we checked.

NJM

AM Best A+ (Superior). Note that AM Best revised the outlook on its separate issuer credit rating to negative in 2025, citing consecutive underwriting losses.

Discounts

Too close to call

Neither pulls ahead on discounts: The Hanover posts 12 published and NJM 8 published, a difference too small to choose on.

The Hanover

Twelve published discounts, several aimed specifically at households with teenage drivers — including one for keeping a teen off a particular vehicle.

NJM

Around eight published discounts, plus the NJM SafeDrive telematics program.

Digital experience

Too close to call

Neither pulls ahead on digital experience: The Hanover posts 1.99 iOS / 3.0 Android and NJM Not published, a difference too small to choose on.

The Hanover

1.99 on the App Store and 2.98 on Google Play. That iOS score is the lowest of any carrier in this review by a wide margin.

NJM

NJM publishes no general policyholder app on either store — only the SafeDrive telematics app. Policy servicing is web-only, so there is no app experience to rate.

So which one?

Pick The Hanover if…

You are among drivers whose independent agent recommends it for a specific reason.
Availability fits: 19 states, through independent agents only.

Read the full The Hanover review →

Pick NJM if…

You are among mid-atlantic drivers who weight claims handling above everything.
You want the lower complaint record — NJM sits at Far fewer than expected.
Availability fits: 5 states in the Mid-Atlantic, sold direct with no agents.

Read the full NJM review →

The Hanover vs NJM, answered

The questions people ask before switching between these two.

Is The Hanover or NJM cheaper?

Which handles claims better, The Hanover or NJM?

Is The Hanover better than NJM overall?

Can I switch from The Hanover to NJM mid-policy?

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