Non-Owner Car Insurance in New Jersey (2026)
New Jersey drivers who regularly borrow or rent vehicles might need a non-owner policy.
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What to know about non-owner car insurance in New Jersey
Non-owner car insurance is a type of insurance for New Jersey drivers who don’t own a vehicle but who have a driver’s license and regularly borrow vehicles to get around. This type of insurance includes liability coverage to help pay for another party’s property damage or medical bills after an accident you cause.
For example, let’s say you sometimes borrow a friend’s car to get to work. If you use the vehicle regularly, it might be a good idea to purchase a non-owner policy.
Non-owner car insurance requirements in New Jersey
If you regularly borrow or rent vehicles, it could make sense to purchase a non-owner car insurance policy. When considering this type of policy, it’ll need to at least meet the New Jersey minimum liability requirement.
Drivers in New Jersey must carry at least a “Basic” policy that includes $10,000 in bodily injury liability coverage and $5,000 in property damage liability coverage. Additionally, you’ll need at least $15,000 in personal injury protection (PIP) coverage, including up to $250,000 in coverage of medical payments for certain injuries.[1]
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Who should get non-owner car insurance in New Jersey?
In New Jersey, all drivers need to have car insurance. Permissive use can kick in if someone’s insurance policy lists you as an occasional driver. But if you’re driving someone’s car multiple times per month, you need to carry at least the Basic policy, according to the New Jersey Department of Banking and Insurance (NJDOBI).
A non-owner auto insurance policy could make sense for you in the right circumstances, including:
You regularly borrow cars from friends and family. If you occasionally drive other people’s vehicles, a non-owner policy offers some of your own liability protection.
You frequently rent cars. While you can buy temporary coverage at the rental car counter, if you rent or use a car-sharing service often enough, buying a non-owner policy lets you skip the added cost of rental car insurance.
You want to maintain continuous insurance coverage. Keeping an insurance policy in place can help you avoid a lapse in coverage, which could help you avoid a spike in your premiums later.
SR-21 requirements in New Jersey
New Jersey requires certain drivers to file an SR-21 form, which is similar to the SR-22 form required for high-risk drivers in other states.
After an accident or driving while intoxicated (DWI) conviction, you’ll need to complete the New Jersey SR-21 form to prove you have at least the minimum amount of auto insurance. If you don’t complete this document, the state will assume you don’t have the minimum level of coverage, which could result in a fine.[2]
If you need to file an SR-21 form in New Jersey, it could affect your non-owner car insurance costs. Since only high-risk drivers need to complete this form, you might also experience higher car insurance premiums after the incident.[3]
Cost of non-owner car insurance in New Jersey
New Jersey drivers pay an average of $62 per month for non-owner car insurance, according to Insurify data, which is significantly higher than the national average of $46. The average cost of non-owner car insurance is on par with nearby New York, at $63 per month. But it’s much higher than the average in neighboring Pennsylvania, where drivers pay $38 per month for non-owner coverage.
As with other types of car insurance in the Garden State, this coverage is a bit more expensive for drivers than in most of the country. This is likely due, at least in part, to high population density and notoriously heavy traffic that leaves drivers stuck in traffic for an average of 104 hours per year, according to a study from the Reason Foundation.
In comparison to a traditional full-coverage or liability-only policy, at $254 and $183 per month, respectively, New Jersey drivers pay significantly less for a non-owner policy.
Non-Owner Car Insurance | Average Monthly Cost |
|---|---|
| New Jersey average | $62 |
| National average | $46 |
Disclaimer: Table data is based on real-time New Jersey quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
How to get non-owner car insurance in New Jersey
If you need a non-owner car insurance policy in New Jersey, follow these steps to get coverage:
Consider your coverage needs. Start by confirming that you need a non-owner policy. If you do, determine whether you want to stick with New Jersey’s minimum-coverage requirements or opt for more robust coverage limits.
Shop around. Before committing to a policy, compare car insurance quotes to find the best fit for your situation. Try to weigh the costs against the benefits of each policy.
Buy the policy. Once you find the right policy, you’ll need to purchase it before it becomes active. Most insurers will allow you to pay up front or make monthly payments.
Keep proof of insurance. After you buy the policy, keep proof of coverage accessible when you’re on the road.
It’s also helpful to note what insurance coverage you won’t need as a driver borrowing a vehicle. This includes gap insurance, which protects drivers with financed vehicles from the financial fallout of an accident. On the other hand, you might opt for medical payments coverage (MedPay), which could help you cover medical expenses after an accident.
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Non-owner car insurance in New Jersey FAQs
If you have more questions about non-owner car insurance in New Jersey, the following answers may help.
How much is non-owner car insurance in NJ?
New Jersey drivers pay an average of $62 per month for non-owner car insurance, according to Insurify data.
Can you insure a car that is not yours in NJ?
No. You generally can’t insure a vehicle that isn’t yours in the Garden State.
Is non-owner car insurance mandatory in New Jersey?
Non-owner car insurance isn’t mandatory for New Jersey drivers, but all drivers need to carry insurance. If you’re a named driver on someone’s insurance policy, you may be able to drive their car a few times per month under permissive use. But if you drive someone else’s car often, you may need to purchase a non-owner policy, according to the NJDOBI.
Sources
- New Jersey Department of Banking and Insurance. "Get Legal with New Jersey's Basic Auto Insurance Policy."
- State of New Jersey 219th Legislature. "Assembly No. 3451."
- New Jersey Department of Banking and Insurance. "Auto Insurance."
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sarah SharkeyInsurance Writer
7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
Featured in
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969