Is temporary car insurance available in New Jersey?
Car insurance companies in New Jersey typically won’t let you buy car insurance for a period shorter than six months.[1] Though some insurers may promote temporary insurance, such as a one-month policy, a policy shorter than six months might be inadequate or even an outright scam.
“Temporary car insurance is offered across the U.S. but can be challenging to find — depending on your location — and could be extremely expensive,” says Mark Friedlander, director of corporate communications at the Insurance Information Institute. “That’s because most national and regional insurers do not offer short-term auto coverage. The cost of underwriting risk for such a minimal time frame outweighs the benefits of selling this type of coverage.”
If you’re looking for temporary car insurance in New Jersey, you do have a few reliable options, including nonowner car insurance, cancellation of an existing policy, and rental car insurance.
Getting nonowner car insurance in New Jersey
Nonowner insurance provides basic liability coverage when you don’t own a car. It pays for damage and injury you may cause to others when you’re driving a borrowed car. Nonowner insurance doesn’t cover damages to the car you’re borrowing or your injuries.[2]
Nonowner insurance works like a standard liability coverage policy for a car owner. A standard liability policy covers damage and injuries that the owner causes to others.[3]
You can typically purchase a nonowner policy for either six or 12 months. You might need a nonowner policy in one of the following situations:
You frequently borrow someone else’s car.
You want to continue coverage when you’re temporarily without a car.
You need to maintain coverage after a serious traffic violation, like a DUI.[4]
Canceling your policy early in New Jersey
If you really need to, you can cancel a standard policy before the policy’s term expires. You might need to stop the coverage early if you’re switching to another insurer or moving to a state where your current insurer doesn’t do business.
You can cancel your car insurance whenever you want, regardless of the reason, but you may need to pay a cancellation fee. In some cases, you can cancel your policy online or over the phone, but certain insurers may require you to submit paperwork.
Since New Jersey requires liability coverage, you’ll need to obtain a new policy when canceling your current policy if you plan to drive your vehicle. And if you financed your car, the lender may require you to carry comprehensive and collision coverages too.
“You cannot drive a car without insurance in New Jersey, regardless of the situation,” says Gary La Spisa, vice president of the Insurance Council of New Jersey. If you do drive without car insurance in New Jersey, you could face fines, jail time, or suspension of your driver’s license or vehicle registration.[5]
Getting car insurance for a rental car in New Jersey
If you’re renting a car in New Jersey, your existing insurance policy may cover you, so you might not need to buy coverage from the rental car company. But if you file a claim related to a rental car incident, your premium for your existing policy could increase.[6]
You can also sometimes get rental car protection through the credit card you use to rent a car. Now, if you don’t want to risk the possibility of filing a rental car claim with your insurance company, you might consider purchasing temporary coverage from the rental car company when you book or pick up the rental car.
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