When most people buy a car insurance policy, it usually lasts for six months or a year. Comparing options from our best car insurance providers can help you find affordable protection tailored to your needs, but you may need short-term coverage to accommodate temporary needs. For example, you might be traveling abroad or keeping your vehicle in storage, but still want insurance. The good news is you can find a way to lock in short-term coverage. Let’s dive deeper into temporary car insurance and when it might make sense.
Key Insights
- True short-term car insurance isn’t sold in the U.S.; policies start at six months.
- Alternatives include pay-per-mile, usage-based, or non-owner coverage.
- Temporary insurance fits renters, travelers, or stored vehicles needing protection.
- Always stay insured — lapses can lead to higher costs or legal issues later.
What is Temporary Car Insurance?
“Temporary car insurance is a short-term auto insurance policy that provides coverage for a limited period of time,” says Kaley Dreyer, personal injury attorney at Farah & Farah. Once you explore auto insurance plans, you might be surprised to find that most insurers don’t sell coverage for less than six months.
That being said, true temporary car insurance isn’t available in the U.S. The majority of auto policies are offered in six and 12-month increments. Fortunately, however, if you need insurance for less time, there are options at your disposal. You may be able to secure a usage-based, pay-per-mile, or non-owner plan.
You might want to explore temporary car insurance if you’re a student driver or renting a car. Or, perhaps your car is in storage and you still want to be insured to protect against theft. A temporary policy may also apply if you’re traveling abroad and need short-term coverage.
Why Do You Need Temporary Car Insurance?
Here’s a closer look at several common situations that may warrant temporary auto insurance:
Someone Else is Driving Your Car
Every so often, your spouse, nanny, relative, or friend might drive your vehicle. In this scenario, a traditional car insurance plan will likely protect them due to the “permissive use” principle. Permissive use states that as long as someone borrows your car occasionally and you grant them permission to do so, your auto insurance policy will kick in after a covered accident. If another person starts to drive your car on a regular basis, however, you’ll need to add them to your policy as an additional driver.
You’re Renting a Vehicle
In most cases, car insurance helps pay for accidents in rental cars. However, if you read the fine print and determine that your policy does not, it’s your responsibility to buy rental car insurance through the rental car company. Check with your insurer and rental car provider for more information to ensure you’re adequately covered while driving a rental.
You’re Storing Your Car
In some states, you must invest in car insurance while your vehicle is in storage. This way you’ll receive protection from theft and other non-collision events. If you’re storing your car, comprehensive coverage, which comes into play for damages related to non-collision events such as theft, vandalism, and fires, will likely be your best option.
You’re a Student Driver
If you’re in the process of getting a driver’s license, your parent, guardian, or significant other can likely cover you under their policy. This means that you won’t have to buy separate, temporary coverage. Note that if you’re a college student who attends school away from home and doesn't drive frequently, a short-term policy may only be required when you’re at home. Your parents or guardians may add you to their coverage when you’re home and remove you from it when you’re back at school.
You’re Traveling Abroad
If you have an international trip coming up for business or pleasure, you might need temporary insurance. Some car insurance providers will allow you to extend your coverage to Canada or Mexico. If not, they may be able to steer you toward another company that does offer international car insurance policies. If you’re from another country and plan to come to the U.S. temporarily, you’ll need to look into short-term car insurance from an American car insurance company.
Types of Temporary Car Insurance
For temporary auto insurance, you’ll need to think outside of the box and search for plans with short-term coverage, as true temporary plans aren’t available. Here are a few types of car insurance to think about:
Usage-Based Car Insurance
Usage-based car insurance monitors your driving to detect risky behaviors, such as speeding, abrupt braking, and distracted driving. You’ll need to download a smartphone app or install a telematics device to take advantage of it. If you can prove you’re a responsible driver, usage-based car insurance can lead to lower premiums for a temporary policy.
Pay-Per-Mile Car Insurance
Also known as pay-as-you-go car insurance, pay-per-mile auto insurance is designed for occasional drivers, usually those who drive less than 12,000 or 15,000 miles per year. If you don’t drive a lot because you’re a remote worker, retired, or stay at home, for example, pay-per-mile auto insurance can be cost-effective. You’ll only pay for the miles you drive.
Non-Owner Car Insurance
If you borrow a car from a friend or family member, non-owner insurance is worth exploring. It tends to be cheaper than traditional car insurance since you won’t drive as often. Plus, you may cancel it before it expires and avoid spending money on coverage you won’t use. Be careful about coverage lapses, which can increase car insurance rates in the future. Non-owner car insurance may also offer short-term insurance if you don’t own a vehicle but are required to file an SR-22 form with your state.
Unfortunately, daily, weekly, and monthly car insurance isn’t a thing. Depending on your situation, however, it may make sense to buy a traditional policy and cancel it early. If you go this route, however, keep in mind that you may owe cancellation fees, and a lapse in insurance may be an issue down the road.
How to Find Temporary Car Insurance
If you’re in the market for short-term car insurance, follow these steps to zero in on the right policy.
Consider Your Needs: First, think about why you need temporary car insurance and how long you’ll want it. This can help you determine the ideal coverage for your unique situation. A reputable, independent insurance agent may assist you at no cost so don’t hesitate to reach out to one.
Shop Around: Once you know what you’re looking for, do your research and request car insurance quotes from providers that offer the type of short-term policies you’re looking for. Note that not all car insurers offer usage-based, pay-per-mile, non-owner, and other non-traditional coverage so your options may be limited.
Explore Your Options: Review your car insurance quotes. Compare premiums, coverage duration, coverage levels, customer service, and financial strength ratings to find the ideal policy.
Look for Discounts: Just because you’re in the market for temporary car insurance doesn’t mean you won’t qualify for discounts. Find out which discounts, such as the pay-in-full, defensive driver, or good student discount, may apply to you and take advantage of them.
While it may be tempting to skip temporary car insurance, doing so can be risky. Even if you’re only driving a car for several weeks or months, make sure you’re properly insured. Otherwise, you may be on the hook for high out-of-pocket expenses and legal consequences for an insurance lapse. It’s better to be insured and never have to use your coverage than to forgo insurance and put your finances on the line.
What to Consider Before Buying Temporary Car Insurance
As you compare short-term car insurance plans, keep the following in mind.
Coverage Limits
Coverage limits refer to the maximum a car insurance company will pay for a covered claim. Note that higher coverage limits mean more expensive premiums. Also, temporary plans usually have set coverage limits, so you won’t be able to choose them.
Deductibles
A car insurance deductible is the amount of money you have to pay before your auto policy steps in and covers the rest of the bill. Most plans offer $500 or $1,000 deductibles. While a higher deductible will lead to cheaper car insurance rates, you’ll have to pay more out-of-pocket after a covered claim.
Cost Comparison
Your primary goal should be to find a temporary policy that offers the protection and peace of mind you need for the period of time you want at a price point you can afford. That being said, the cheapest plan isn’t necessarily the best option.
Frequently Asked Questions
1. What is the minimum coverage I need for temporary car insurance?
The minimum coverage you need for short-term car insurance depends on your unique situation. Factors like your location, the reason for the temporary insurance, and whether you’re actually driving your car will play a role in the minimum required coverage.
2. Can I buy temporary car insurance without a driving record?
Yes, you may be eligible for temporary car insurance, even if you don’t have a driving record. But, you might pay more for coverage as car insurance companies won’t be able to assess your risk level. Keep in mind that car insurance companies will likely consider other factors, such as your age, vehicle type, and credit score.
3. How long can I drive with temporary car insurance?
Most temporary car insurance policies last for six months or less. Your state and particular situation will dictate how long you can drive with a short-term auto insurance plan. Reach out to a car insurance agent for further details.
