Temporary Car Insurance in New Jersey (2025)

Some New Jersey drivers may only need temporary car insurance in certain situations, such as for a quick weekend trip or a weeklong business trip.

A standard car insurance policy typically lasts six to 12 months. New Jersey drivers pay average rates of $161 per month for standard liability and $225 for full-coverage car insurance, which exceeds the national averages of $104 for liability and $184 for full coverage.

Here’s what you need to know about your temporary car insurance options in New Jersey.

Best temporary car insurance in New Jersey

Most New Jersey auto insurers don’t offer temporary car insurance with terms of less than six months, but you still have options. Many insurers will let you cancel your standard policy early without a fee.

Here are three of the best short-term car insurance coverage options in New Jersey.

GEICO: Best for overall value

State Farm: Best for non-owner insurance

Progressive: Best for discounts

Cheapest short-term car insurance in New Jersey

While New Jersey drivers pay above-average car insurance premiums, you can still find affordable car insurance. Rates start as low as $95 per month for liability-only insurance. Factors like your age, vehicle type, marital status, coverage level, ZIP code, driving record, and more affect your rates.2

The table below outlines the cheapest car insurance companies in New Jersey. The following insurers either offer a form of short-term insurance, including non-owner car insurance, or don’t have coverage cancellation fees.

Options for temporary car insurance

If you need car insurance only on a temporary basis, you have options. You can choose from pay-as-you-go car insurance, non-owner car insurance, pay-per-mile car insurance, and rental car insurance depending on your unique needs.

Pay-as-you-go car insurance: Best for safe drivers

Pay-as-you-go car insurance uses telematics to track your driving behavior and mileage. Your car insurance costs will be lower if you drive fewer miles and practice safe driving habits. With distracted driving on the rise, telematics has become a popular way for drivers to lower the chance of an accident or claim.

Pay-as-you-go car insurance usually has a base rate plus additional costs based on mileage. In some cases, your car insurance rates may rise if your mileage increases or if you don’t drive safely. Some drivers also might not want their insurer collecting their driving data. Telematics programs are voluntary and may be a good idea for low-mileage drivers.3

Non-owner car insurance: Best for borrowing a vehicle

Non-owner car insurance offers liability coverage whenever you drive a vehicle you don’t own. For instance, if you’re borrowing a friend’s car for a few days or renting a car, non-owner car insurance might fit your needs.

Non-owner car insurance has a six-month or 12-month policy term. It’s 37% cheaper than standard liability-only car insurance and 69% cheaper than full-coverage car insurance, according to Insurify data. Several major auto insurance companies offer non-owner car insurance, including GEICO, State Farm, Progressive, and Allstate.

If you regularly borrow a car or use car-sharing services like Zipcar, a non-owner car insurance policy might come in handy. While non-owner policies have standard policy terms, they’re significantly cheaper than standard policies. This makes a non-owner policy the right financial choice for drivers who need insurance on a periodic basis.

Pay-per-mile car insurance: Best for low-mileage drivers

In recent years, brands like Mile Auto and Hugo have started offering pay-per-mile auto insurance. With Mile Auto, drivers send in their odometer readings at the end of the month. Then, the company determines rates based on how many miles policyholders drove.

Pay-per-mile car insurance is a good idea for low-mileage drivers. These auto policies are also more privacy-friendly, as your insurer isn’t tracking your driving behavior — just your mileage.

Unfortunately, very few car insurance companies offer pay-per-mile insurance. Hugo and Mile Auto aren’t currently available in New Jersey. Allstate’s pay-per-mile program, Milewise, is only available in six states.

Stored car insurance: Best for occasional drivers

Many car insurance companies offer a significant discount to drivers who store their vehicles for long periods of time. For example, USAA offers major discounts to deployed policyholders who won’t drive their vehicles for a while.

Some car insurance companies offer a separate car storage insurance product, which is essentially a comprehensive-only policy that protects your stored car in the event of severe weather or vandalism. Talk to an insurance agent for more information on stored car insurance.

Pros and cons of temporary car insurance

Deciding on the right type of auto coverage to meet your needs as a driver is important. You’ll have to consider how frequently you drive, your annual mileage, how you like to pay for car insurance, and more.

Here are a few benefits and drawbacks of temporary auto insurance to consider.