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You won’t find month-to-month
car insurance
from major providers in New Jersey
—or any other U.S. state. But if you only need temporary car insurance
, you may have other options to explore.Your best solution for temporary auto insurance in New Jersey depends on why you need it
Short-term car insurance comprises diverse coverage options tailored to meet or surpass the state's auto insurance requirements. These are New Jersey’s minimum coverage requirements:
- $50,000 bodily injury liability insurance per accident
- $25,000 per person and $50,000 per accidentuninsured/underinsured motorist coverage
If you’re buying a car
Avoid short-term dealership policies:
Many New Jersey car dealerships offer temporary coverage to car buyers in need of a policy—but it’s not your best option.
Temporary car insurance benefitsDealer policies are usually good for 28 to 30 days—plenty of time to establish permanent coverage.
Temporary car insurance drawbacks You’ll pay more for a dealer policy and likely get less coverage than you would with standard coverage.
A much better option than purchasing a dealer policy is to get your own coverage
before buying a car
. Getting same-day coverage is simple, especially if you’re working with an online broker like Jerry
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If you don’t drive often
Pay-per-mile insurance.
Maintaining continuous coverage without paying for more coverage than you need makes pay-per-mile policies a great option for those who don’t have a daily commute or only use their vehicle for pleasure.
- Pro: Pay-per-mile policies usually feature a low, fixed monthly car insurance rate with a surcharge added for each mile you drive.
- Con: Your car insurance premium will vary from month to month. Plus, these policies typically only provide cheap car insurance if you drive less than 10,000 miles per year.
If you’re renting
Rental car insurance.
You’ll have a variety of coverage options to choose from at rental car companies if you don’t own your own car and don’t have your own insurance policy.
- Pro: Purchasing coverage from a rental agency is fast and easy.
- Con: Renters pay much more for coverage from a rental agency than with a standard non-owner policy.
Learn More:
Rental car insurance, explained
If you have a credit card, check the details—you may already have rental coverage as a cardholder perk.
If you have a credit card, check the details—you may already have rental coverage as a cardholder perk.
If you borrow cars regularly
Non-owner insurance.
If you don’t own a car but you do rent or borrow vehicles frequently, a
non-owner insurance
policy is ideal.- Pro: Non-owner car insurance providesliability coverageto meet or exceed New Jersey’s state insurance requirements.
- Con: Non-owner policies typically offer secondary coverage, which means they only kick in to cover damages outside of what the vehicle-owner’s policy limits cover.
Your personal car insurance policy may not cover you if you rent from a peer-to-peer (P2P) service like Turo, ZipCar, or Getaround. P2P services include basic liability coverage as part of the rental rate—though purchasing increased coverage is a good idea. As with standard insurance, you'll be charged a deductible (usually between $1,000 and $3,000) if you need to file a claim.
Your personal car insurance policy may not cover you if you rent from a peer-to-peer (P2P) service like Turo, ZipCar, or Getaround. P2P services include basic liability coverage as part of the rental rate—though purchasing increased coverage is a good idea. As with standard insurance, you'll be charged a deductible (usually between $1,000 and $3,000) if you need to file a claim.
Rental car insurance vs non-owner insurance:
If you rent cars frequently, a non-owner policy may end up being cheaper than the fees for rental car liability coverage—but you might still want a Collision Damage Waiver (CDW) since non-owner insurance won’t cover damage to the car you’re driving.
If you borrow a car occasionally
You’re already covered!
Permissive use allows a car owner’s existing policy to extend to anyone given permission to drive their vehicle.
- Pro: Permissive use is a built-in feature of most standard auto insurance policies. All you need is the vehicle-owner’s permission to use the vehicle, and you’ll be covered by their policy while you do.
- Con: If you’re named as an excluded driver on an owner’s insurance plan, you will not be covered when you drive their car. Permissive use only covers occasional use.
If you regularly borrow a specific car:
Named driver.
If you live with a family member, friend, or other roommate who owns a vehicle or you borrow the same vehicle regularly from the same person, you should be added to their policy.
- Pro: Named drivers are covered anytime they borrow the insured’s vehicle.
- Con: If you have a poor driving record, adding you to their policy could increase the policyholder’s auto insurance rates.
If you stop driving temporarily
Standard policy with adjusted coverage levels.
Insurance providers usually allow options for policyholders to make temporary adjustments to their policies to suit their needs. Whether you need to increase or decrease a deductible, add a named driver, or drop collision coverage, your insurance agent can likely give you the help you need.
Here are some situations that might call for a policy adjustment:
- If you’re the parent of a college student who only drives when they’re home on break: If you have a college student on your insurance who won’t be taking their vehicle to campus, you can change their status while they're away and home to ensure you’re never overpaying for coverage.
- If you own a car you only drive during certain seasons: If you have a vehicle you only use during certain times of the year, check into a“parked car” or “storage” policyto protect your car without the cost of collision coverage while it’s not in use.
- If you’re a military member who only drives between deployments: Many providers offer military storage plans with reduced, and cheaper, coverage while you’re deployed andfull coveragewhen you return home.
- If you’re a young driver just beginning your career and need cheaper coverage than you can get with a standard policy: Check out New Jersey’sBasic Policy—you’ll have less protection, but you’ll also have much lower car insurance costs than with a standard policy.
New Jersey’s Basic Policy should not be confused with the state’s Special Automobile Insurance Policy (SAIP) or “Dollar-a-Day” policy. SAIP only provides extremely limited medical coverage to qualified drivers on Medicaid, and could land you in serious financial danger if you’re in an at-fault accident with only this coverage.
New Jersey’s Basic Policy should not be confused with the state’s Special Automobile Insurance Policy (SAIP) or “
Dollar-a-Day
” policy. SAIP only provides extremely limited medical coverage to qualified drivers on Medicaid, and could land you in serious financial danger if you’re in an at-fault accident with only this coverage.
The worst way to get temporary car insurance
Standard policy with early cancellation.
If you’re looking for short-term coverage, you’ve probably heard you can just purchase a standard six- or twelve-month policy, then cancel it when you no longer need it. Though this is an option, we can’t recommend it for most people, and here’s why:
- Refusal of coverage: Binding and canceling policies costs insurers money. If a provider sees a number of early cancellations on your insurance history, they may be less likely to offer you coverage. In some cases, it may even be seen as rate evasion—a form of insurance fraud.
- Gaps in your insurance history:Lapses in car insurance coveragefor any period of time raise serious red flags for insurance companies, which could result in you being labeled a high-risk customer. High risk equals high rates.
- Lack of protection: New insurance policies don’t always offer full protection from day one. If you’re in an accident before your new policy fully kicks in, you may not be able to file a claim for damages.
- Cancellation fee or loss of down payment: While most providers don’t charge a fee for early cancellation, some do. Plus, if your policy requires a downpayment, you’re not likely to get it back if you cancel early.
While we can’t recommend early policy cancellation for most drivers in need of short-term coverage, it could be a good option in two specific situations:
- If you’re buying a car you’ll be re-selling soon, and you don’t plan to buy another new one.
- You’re visiting the US and want to drive while you’re here.
You may see insurance providers offering temporary car insurance policies online—often in seven-day or one-month increments. However, these aren’t usually reputable companies. In the best case, they’ll redirect you to an agent who’ll tell you that you can only buy a standard 6- or 12-month policy. Worst case, it could be a scam that leaves you uninsured.
You may see insurance providers offering temporary car insurance policies online—often in seven-day or one-month increments. However, these aren’t usually reputable companies. In the best case, they’ll redirect you to an agent who’ll tell you that you can only buy a standard 6- or 12-month policy. Worst case, it could be a scam that leaves you uninsured.
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FAQs
Is temporary car insurance legit?
Generally speaking, if you see an insurance company offering terms less than six to 12 months, it’s probably a scam. If it’s not, you’ll usually be directed to an agent who’ll recommend a six-month policy.
Can you get temporary car insurance in New Jersey?
As is the case throughout the U.S., temporary automobile insurance isn’t really an option in New Jersey. Drivers seeking short-term coverage do have low-cost options though, in the form of rental car insurance, permissive use clauses, and non-owner policies.
How to get $1 a day car insurance in NJ?
To qualify for New Jersey’s Dollar-A-Day Special Auto Insurance Policy (SAIP), drivers must prove enrollment in a qualified Medicaid with hospitalization plan. To learn more, applicants can call the Personal Auto Insurance Plan (PAIP) customer service line at 1-800-652-2471.
What is the minimum New Jersey car insurance?
Standard New Jersey car insurance laws require drivers to have 25/50/25 liability coverage, 25/50 uninsured motorist protection, and $15,000 in personal injury protection to meet the state-mandated minimums. The state also offers a basic policy and “dollar-a-day” insurance, though this isn’t recommended.
