Temporary Car Insurance In New York: What To Know

Your car insurance needs will change with time and in response to changing circumstances. As such, there will be situations where a traditional six-month or year-long policy may seem excessive. For example, when you borrow a friend’s car for a brief getaway or when your college student is home for the Summer break.

Temporary car insurance would come in handy here. But you won’t easily find reputable insurers in the U.S. offering short-term coverage. That’s not to say you have no choice but to drive without auto insurance or pay for more coverage than you need. There are alternative options available.

I have worked in the insurance industry for decades, during which time I have helped many licensed drivers find auto policies that fit their needs. I plan to do the same for New York drivers in this article. I’ll discuss various topics, from scenarios that may call for temporary car insurance to some of the cheapest car insurance companies for different driver profiles. Keep reading for more on these topics and more.

What Is Temporary Car Insurance?

Temporary car insurance is an auto policy in effect less than the standard six-month term. In the U.S., auto insurance policies usually last six or 12 months—shorter terms don’t exist. Drivers looking for insurance to cover them temporarily can look into alternatives, such as buying non-owner car insurance.

Alternatives To Temporary Car Insurance

There are several ways drivers in The Empire State can get short-term car insurance, depending on the reasons they need coverage. Here are some of those options.

New York Pay-Per-Mile Insurance

Can you drive but rarely do and want to save on your auto insurance? Pay-per-mile insurance might be the solution to your temporary insurance needs. Insurance providers don’t consider how much you drive when setting rates for traditional policies. However, premiums for a pay-per-mile policy depend on the base rate and the rate for every mile you drive.

Non-Owner Car Insurance In New York

People who don’t own cars but regularly operate borrowed or rented vehicles still need insurance. A non-owner auto insurance policy provides drivers liability coverage while driving an automobile they don’t own.

It also helps maintain continuous coverage when you’re temporarily careless, which, in turn, keeps your future car insurance premiums from going up.

Note: Non-owner insurance does not cover damage to the vehicle or injuries you suffer in an accident.

NYC Rideshare Car Insurance

New York City, frequently shortened NYC, has about 173,000 licensed for-hire drivers, with an estimated 80,000 working for Uber. Given personal auto insurance doesn’t cover transporting paying passengers, rideshare drivers need commercial insurance to cover them during activity pertaining to a transport network company (TNC).

TNCs like Uber and Lyft maintain commercial auto insurance on behalf of their drivers, but coverage might be limited. Rideshare insurance can help close gaps between your personal auto insurance and the coverage provided by the rideshare company.

Rental Car Insurance In New York

You don’t have to take out a personal auto policy for temporary coverage to rent a car. You can just get car insurance from the car rental company instead. Going this route is recommended, as personal insurance usually doesn’t cover loss of use for a rental car, which can be expensive.

Buying A 6-month New York Auto Policy And Canceling It Early

Terminating a car insurance policy before its expiration date is not illegal. So you can purchase a policy with the shortest term available from your provider of choice and then cancel it when you no longer have use for it. The shortest term most insurers offer for auto insurance is generally six months.

Note: Some insurance companies may charge a short-rate cancellation penalty that impacts the refund amount you receive after canceling a policy early. To avoid any inconvenience on your part, ask about this before buying auto insurance.

Altering New York Car Insurance Temporarily Depending On Your Needs

Depending on why you need temporary car insurance, modifying your auto policy to suit your needs may be an option. If you don’t have existing auto insurance, you may be able to buy a standard six-month policy that caters to your specific needs. Let’s look at some situations where either of these approaches may apply.

Coverage For College Students

Over half (56%) of college students have a car while attending school. To have coverage, they can either stay on their parent’s car insurance policy or purchase their own auto insurance. If your child doesn’t have a vehicle at school, you’ll still want to keep them on your policy for various reasons.

For starters, they’ll need coverage for when they come home from college and drive your car. Second, your child will likely have access to “wheels” while away. If so, you want them to have liability coverage for damages or injuries they cause in an accident while driving someone else’ car. New York drivers must have 25/50/10 minimum liability coverage.

Last but not least, college years are some of the most popular times to experiment with alcohol. An estimated 1,519 college students die each year from alcohol-related unintentional injuries, including car accidents. You don’t want your child hesitating to take keys from a drunk friend due to concerns about not being insured.

If you decide not to remove your college student from your policy, there are ways you can save on your car insurance premiums, including a distant student discount.

Adding Your Child To Your Policy

Insurers typically require you to add your teenager to your auto insurance policy as soon as they get their driver’s license. However, given car insurance premiums for young drivers tend to be higher, it’s understandable why you may be reluctant to add them.

But it’s important your child has enough coverage before they get behind the wheel, even if they won’t be driving your car very often. Besides, not notifying your insurance provider of all licensed drivers in your home may result in them denying future claims or canceling your policy altogether. If you’re certain your child won’t be driving, you could look into excluding them from your policy.

When Your Car Is In Storage

If you plan on placing your car in storage for an extended period, car storage insurance may be a good option. However, this isn’t an existing insurance policy and typically refers to comprehensive-only coverage. So basically, you drop your liability and collision coverages and hold on to comprehensive coverage since a car in storage is still at risk of damage or loss from falling objects, fire, theft, and vandalism.

When it’s time to get your car back on the road, notify your insurer beforehand so they can reinstate all suspended coverages. However, not all insurance companies allow policyholders to suspend some of their car insurance coverage. Additionally, if your vehicle is leased or financed, your lender may require you to hold on to comprehensive and collision coverages.

Note: If car storage insurance isn’t an option, consider temporarily reducing your car insurance coverage, which will reduce your insurance costs for the time your car is in storage. But be warned, this option isn’t ideal if you have a single policy for multiple vehicles, as it risks you being underinsured.

When Someone Else Drives Your Car

You will sometimes let other people borrow your car for whatever reason. If a particular person regularly operates your vehicle, your insurance provider will typically require you to list them on your auto policy. As for anyone else who occasionally borrows your vehicle, most policies include a permissive use clause that covers unlisted drivers when they have explicit permission to use your car.

Note: Permissive use does not apply to people in the same household as you.

If You Are An Infrequent Driver

If you are an infrequent driver, you may not require your own auto insurance. Insurance carriers generally require policyholders to list all licensed drivers in their household on their car insurance policy regardless of how regularly they drive. Additionally, the permissive use clause discussed above allows occasional vehicle use by an unlisted driver, as long as they have permission from the car owner.

If you regularly drive but don’t own a car, consider getting non-owner car insurance. As the name suggests,  the policy covers you when driving an automobile you don’t own.

Driving In A Foreign Country

International drivers visiting the country and planning on driving themselves have several car insurance coverage options available. If it’s a short visit and they rent a car, they can purchase insurance through the car rental company. If staying longer than a month, it would be better to buy a standard six-month or non-owner auto policy, which they can cancel once they’re back home,

Note: International drivers may be required to have an international driving permit (IDP), a United States driver’s license, or a valid driver’s license from their home country to buy a car insurance policy. Your travel preparations should include finding out what documentation you need to drive in the state(s) you plan on visiting.

Average Cost Of Minimum Coverage Temporary Car Insurance

Note: You want to carry more liability coverage than the state-mandated minimum because you pay any costs above the limits out-of-pocket. So consider purchasing higher limits to ensure you have adequate financial protection.

Average Cost Of Temporary Car Insurance For Young Drivers

Average Cost Of Temporary Car Insurance After An Accident

New York Short-Term Auto Insurance Rates By City

New York City saw 97,059 car accidents in 2021 and 100,509 car crashes in 2022. My research also showed NYC has the highest average rate for car insurance in New York compared to other major cities in the state.

Temporary Car Insurance Rates In New York By Policy Length

By analyzing quotes from different insurance providers, I found State Farm to have the most expensive rates for temporary car insurance in New York State and Farmers the most affordable rates.

Temporary Car Insurance Rates In New York By Insurance Company

The National Association of Insurance Commissioners 2022 market share report shows that Geico is the largest private passenger auto insurer in New York, with a 29.28% market share. NYCM—an insurance company local to New York—comes in at No.8 for the same category with a 2.83% market share.