Temporary Auto Insurance In Ny: Quick And Easy Guide

Temporary car insurance in New York is typically available for a period of six months. While most major insurers do not offer policies for less than this duration, you can opt for a six-month policy and cancel it early if you need shorter-term coverage. This option is ideal if you are dissatisfied with your current insurer, renting a vehicle, or selling your car. Additionally, non-owner car insurance is a good choice if you don't own a car but occasionally drive others' vehicles.

Temporary car insurance options in New York

In New York, car insurance policies typically last for six months or a year. Temporary car insurance, in the traditional sense, is not offered by most major insurance companies. However, there are still ways to obtain short-term car insurance coverage. Here are some options to consider:

Six-Month Car Insurance Policy

The most common form of temporary car insurance in New York is a six-month policy. This option allows you to have coverage for a shorter duration than a standard 12-month policy. The monthly premiums for a six-month policy should be similar to those of a 12-month policy, but this option provides flexibility if you prefer to pay your premiums over a shorter period. Additionally, paying the premium in full for a six-month policy may result in a discount and could be more affordable than paying for a full year upfront.

Non-Owner Car Insurance Policy

If you don't own a vehicle but occasionally borrow or rent cars, a non-owner car insurance policy might be ideal for you. This type of policy provides liability insurance that follows the driver rather than the car. It is generally inexpensive and can be purchased for six months or a year, depending on the insurer. With a non-owner policy, you'll have your own proof of insurance.

Car Insurance for Out-of-Country Travel

When travelling to another country and renting a vehicle, you may need temporary auto insurance. In this case, you can purchase travel car insurance from the rental car company. Keep in mind that U.S. car insurance policies are typically valid in Canada, but you may need a separate endorsement for coverage in Mexico.

Rental Car Insurance

If you're renting a car in New York, you don't need to purchase a separate car insurance policy. The rental car company usually offers basic liability insurance, and you have the option to add supplemental coverage such as a collision damage waiver, additional liability insurance, and personal accident insurance. Mixing and matching these coverages based on your needs can result in a more affordable policy.

Cancelling Your Existing Policy Early

Another option for short-term car insurance is to purchase a standard policy and cancel it before the six-month period ends. Most major insurance companies in New York will provide a refund for any unused portion of the policy. However, it's important to note that frequently swapping policies or having gaps in your insurance coverage may lead to higher prices in the long run. Additionally, always make sure you have another policy in place to avoid driving without insurance, as it is illegal and can result in penalties.

Non-owner car insurance

In New York, non-owner car insurance costs an average of $578 per year, which is $225 more than the national average. The cost varies depending on age, gender, and location within the state. For example, a 16-year-old male in New York pays an average of $1,535 for non-owner car insurance, while a 45-year-old pays $590 per year. The most populous cities in New York also have varying rates, with Mount Vernon having the highest at $900 and Hogansburg the lowest at $354.

Rental car insurance

If you're renting a car in New York, you may not need to buy a separate car insurance policy. In New York, most motor vehicle liability policies include rental vehicle coverage. However, it's important to check with your insurance provider to confirm the specifics of your policy. Some policies may not include rental vehicle coverage, particularly if they insure certain types of vehicles.

Even if your policy does include rental vehicle coverage, it's worth noting that there may be limitations. For example, your policy might not cover "loss of use", or revenue lost to the rental company while a rental car is being repaired. Additionally, if you've dropped certain types of coverage, such as collision or comprehensive, your rental car may not be covered in the event of theft or damage.

If you don't have a motor vehicle liability policy, you may still have coverage through your credit card company. Many credit card companies offer coverage for damage to rental vehicles, but you'll typically need to pay for the rental vehicle with that specific credit card. It's important to note that this type of coverage usually only applies to damage to the rental vehicle and does not provide additional liability protection.

When renting a car in New York, you also have the option to purchase rental car insurance from the rental car company. This insurance typically includes basic liability insurance, with the option to add on other types of coverage, such as collision damage waivers, supplemental liability insurance, and personal accident insurance. The cost of this insurance can vary depending on the company and the specific coverages selected, but it generally ranges from $33 to $66 per day.

Cancelling your policy early

In New York, most insurers allow you to cancel your policy at any time, even mid-term, without penalty. However, it's important to check your specific insurance policy or contact your insurer to verify any cancellation fees or other potential charges. Some insurers may charge a cancellation fee, which can be a flat fee or a percentage of the unearned premium, typically around 10%.

If you prepaid your auto insurance upfront, you may be eligible for a refund on premiums you have already paid. Most insurers in New York will provide a refund on unused car insurance premiums, prorated to the date of cancellation. However, some insurers may use a short-rate basis for refunds, which means they will retain a greater portion of the premium than a pro-rata basis.

To cancel your policy, you can typically call your insurance company, log in to your online account or mobile app, contact your local insurance agent, or send written notice by email or mail. It's recommended to give at least 20 days' notice before the effective date of cancellation.

Remember, it's important to understand the potential consequences of cancelling your policy early and ensure you have alternative coverage in place to avoid any legal or financial risks.

Pay-per-mile insurance

If you don't drive much, pay-per-mile insurance could be a great option for you. This type of insurance is best suited for people who generally don't drive often, such as those who take mass transit, walk, or have a second vehicle they rarely use.

How it works

Although pay-per-mile car insurance is different from a traditional auto insurance policy, you still get the same coverage options, such as comprehensive and collision insurance.

Tracking your driving

Insurance companies use technology known as "telematics" to track how far you drive, either through an app or a device that plugs into your car. Some pay-per-mile programs, like Nationwide SmartMiles and Metromile, also use tracked driving behaviours to price rates or discounts. This means that the safer you drive, the lower your premium may be.

If you’re not comfortable with sharing your data, Mile Auto lets you buy pay-per-mile insurance without using a plug-in device. Instead, you’ll need to send the carrier a photo of your odometer once a month.

Saving money with pay-per-mile insurance

The cost of pay-per-mile car insurance varies by insurer and how much you drive. To estimate how much you’ll pay, use the following formula:

> Monthly base rate + (Per-mile rate x Approximate number of miles you drive per month)

For example, if your pay-per-mile quote shows a monthly base rate of $34 and a per-mile rate of $0.05, and you generally drive 800 miles a month, you can calculate your monthly rate as:

> $34 + ($0.05 x 800) = ($34 + $40) = $74

Companies that offer pay-per-mile insurance

Only a handful of insurers offer a pay-per-mile insurance option. Some companies, like Metromile, specialize in this type of insurance, while a few large insurers, such as Allstate, also offer a per-mile option. Here are some of the companies that offer pay-per-mile insurance:

• Metromile
• Mile Auto
• Nationwide SmartMiles
• Allstate Milewise
• Noblr (a USAA company)

Frequently asked questions