Drivers who own a car can get temporary car insurance by purchasing insurance and canceling it within six months. You can get a full refund for your unused premiums if you cancel your policy early. A three-month auto insurance policy in New Jersey costs an average of $418.

Rental vehicle insurance can be the best option for individuals visiting New Jersey and drivers who do not own a car but need to drive.

MoneyGeek reviewed several additional scenarios in which temporary auto insurance may be necessary, such as when you need to get non-owner insurance to reinstate your driver's license or when you’re working for a ridesharing company.

Can You Get Temporary Car Insurance in New Jersey

In several states, including New Jersey, temporary auto insurance may have a variety of meanings. To get short-term car insurance, car owners can opt to purchase a full coverage policy and cancel it early. Meanwhile, drivers who don’t own a car may purchase non-owner auto insurance or rental car insurance.

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There isn't a solitary solution when it comes to purchasing temporary automobile insurance in New Jersey, so MoneyGeek looked into all the available options.

Buying a Six-Month New Jersey Insurance Policy and Canceling It Early

In most cases, insurance companies in New Jersey and other states do not cover vehicles for less than six months. Car insurance in New Jersey costs an average of $837 for a six-month policy. You can cancel your policy early if you want to get insurance for a shorter period of time. Most insurance companies will provide a refund for the unused coverage months.

A driver in New Jersey should expect to pay an average of $418 for 90 days of insurance. This is half the price of a six-month policy.

MoneyGeek advises that if you use this strategy, avoid having lapses in your auto insurance to prevent hundreds of dollars in extra costs later on.

Cheap Temporary Car Insurance in New Jersey

Sometimes, your top priority is to find the cheapest car insurance available. MoneyGeek calculated the cost of car insurance for a six-month policy, a three-month policy and a one-month policy from New Jersey insurers.

On average, the following New Jersey auto insurers offer the cheapest 90-day policies:

  • GEICO: $259 per 90 days
  • New Jersey Manufacturers: $341 per 90 days

MoneyGeek’s calculations do not include cancellation fees. Most insurers do not charge cancellation fees and will provide refunds for any unused coverage months.

Annual Cost of Car Insurance in New Jersey by Policy Length

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Altering New Jersey Car Insurance Temporarily Depending on Your Needs

If you already have an existing car insurance policy with a New Jersey insurer and just want to temporarily add or remove coverage, the best way to do so could be to make alterations to your current policy. When it comes to short-term car insurance, the questions most drivers often ask include what to do if their teenager goes to college, storing their car or letting someone borrow their car.

When You Should Alter Your Policy Temporarily

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If your child is attending school elsewhere in New Jersey, you can temporarily remove them from your policy or ask for a discount.

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If you plan to keep your car in storage, you can save money by canceling all coverages except comprehensive insurance. Military personnel can also take advantage of USAA's car storage discounts.

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If you let someone else drive your car, you should only add them to your insurance policy if they drive it regularly.

Cheap Temporary Car Insurance for Students in New Jersey

If your child lives with you in New Jersey, you will need to add them to your insurance plan, which can be expensive. MoneyGeek found that in New Jersey, the annual cost of adding an 18-year-old to your policy is $3,635 on average.

To save money, you can remove your child from your policy for part of the year if they live more than 100 miles away, utilize distant student discounts or keep your child on your policy.

In New Jersey, MoneyGeek found that adding a student for two months during the summer costs an average of $606 compared to the $3,635 average cost of adding your child for the whole year.

State Farm provides the biggest savings in New Jersey for temporarily removing your young student from your auto insurance policy.

Annual Cost of Adding an 18-Year-Old to Car Insurance in New Jersey

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  • Company
    Adding 18-year-old for two out of 12 months
    Adding an 18-year-old for the full year
  • $2,158
  • $2,902
  • $4,339
  • $5,141
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If your child attends school less than 100 miles from your home, you may still be able to save money by shopping around. MoneyGeek compared different insurance providers to help you find the cheapest insurance companies for teens in New Jersey.

What to Do About Car Insurance if You’re Storing Your Car in New Jersey

If you want to save money while temporarily storing your vehicle in New Jersey, you may either switch to a comprehensive-only policy or request a car storage discount.

A comprehensive-only insurance policy eliminates liability insurance coverage and helps you save money while your vehicle is in storage. In New Jersey, comprehensive and collision insurance with a $1,000 deductible costs an average of $387 a year compared to an average of $1,404 annually for a policy that includes liability insurance.

What to Do If You Let Someone Else Drive Your Car

If a member of your household drives your car, they must be insured on your policy. If you let someone from outside your household drive your car, they will be automatically covered by your policy without you needing to make any modifications to your coverage.

Buying Rental Car Insurance in New Jersey

If you are renting a car in New Jersey, you don’t need to purchase car insurance since you can get rental auto insurance directly from the rental company. Most rental companies provide basic liability insurance and the option to add collision damage waivers, supplementary liability and personal accident insurance. The daily cost of this coverage ranges from $59 to $70 depending on the provider, but it’s possible to mix and match coverages to save on costs.

Finding Cheap Rental Car Insurance in New Jersey

MoneyGeek collected information about rental vehicle insurance in New Jersey from Newark. Depending on the insurer, rental car insurance costs range from $59 and $70 a day. On average, Enterprise charges $70 per day, Avis costs $59 and Hertz charges $60.

You might not need to get additional coverages like liability, collision and medical payments if you already have your own auto insurance. Accident damage waivers provided by credit card issuers can also be used to cover rental cars. If you have coverage from your credit card provider or current insurer, you may be able to save money by declining these coverages.

Cost per Day of Rental Car Insurance in New Jersey

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  • Rental Company
    Total Insurance Cost
    Supplemental Liability Cost
    Collision Damage Waiver Cost
    Personal Accident Insurance Cost
  • Enterprise
  • Avis
  • Hertz

Buying Non-Owner Car Insurance in New Jersey

Non-owner car insurance is a good option for drivers who do not own a car but need to provide proof of insurance to reinstate their license. Non-owner car insurance in New Jersey costs an average of $867 per year.

For people in New Jersey who do not own a vehicle but drive regularly, non-owner insurance can be the most cost-effective option.

How to Get Temporary Rideshare Car Insurance for Rideshare in New Jersey

New Jersey rideshare drivers may be aware that they are covered by insurance when they accept fares or travel with passengers. However, there is a temporary coverage gap when drivers do not have a fare. Rideshare insurance may be useful in this situation. However, ridesharing insurance does not exist in all states.

MoneyGeek compared the coverages offered by different insurance companies for this type of policy to help you find the best rideshare insurance in New Jersey.

Frequently Asked Questions About Temporary Car Insurance in New Jersey

Temporary auto insurance in New Jersey is a great option for a multitude of reasons. It not only offers drivers affordable and easy-to-use coverage, but it also gives them peace of mind while on the road.

You can create temporary automobile insurance in New Jersey based on your individual needs, but keep in mind that most insurers won't cover you for less than six months at a time.

Yes, you will usually be refunded for your unused months of coverage if you cancel your policy early. However, you should be aware that canceling your insurance might involve cancellation fees.


MoneyGeek collected car owner and non-owner car insurance quotes across New Jersey in collaboration with Quadrant Information Services. The policies were for a 40-year-old typical driver with a clean driving record and full coverage, as detailed on our methodology page. The student costs represent the average cost of adding an 18-year-old driver to an existing policy.

MoneyGeek calculated the costs of one-month and three-month policies on a prorated basis, assuming that the insurance provider would issue a full refund with no cancellation fees. MoneyGeek also used the online tools of Avis, Enterprise and Hertz to manually collect rental car insurance costs in New Jersey.

About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.