- Auto Insurance Coverage For Other Drivers
- Ways To Get The Cheapest Car Insurance Rates
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Car insurance companies do not offer temporary insurance options, but you can cancel coverage or use non-owner insurance if you need temporary insurance
Auto Insurance Coverage For Other Drivers
Written by: Daniel Robinson Written by: Daniel Robinson Writer Daniel is a guide team writer and has written for numerous automotive news sites and marketing firms across the US, UK and Australia, specializing in automotive finance and car care topics. Daniel is the team’s authority on auto insurance guides, loans, warranty options, auto services and more.
Getting Cheap Car Insurance For New Drivers
Edited by: Rashaun Michner, Edited by: Rashaun Michner Managing Editor Rashaun Michner is a guide team editor with over 10 years of experience covering personal finance and insurance topics.
Whether you are using a car in a new city for a short time or plan to sell your car soon, there are many reasons why you may need temporary insurance. The thing is, temporary car insurance is not a standard option from most car insurance companies.
There are ways to get short-term coverage so you don’t have to use insurance for a period of six months or longer. In this article, we at the guide team will give you your options for temporary cover and recommend some of the best car insurance and cheapest car insurance companies to check out.
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The guide team is dedicated to providing reliable information to help you make the best possible decision about your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we have created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of auto insurance providers to rate companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers who scored the most points at the top of the list.
Most auto insurance companies (like Geico and Progressive) do not sell temporary or short-term auto insurance for less than six months. Some websites may try to lure you in with the promise of a weekly or monthly auto insurance plan at a low price.
However, submitting your information online for a car insurance quote or calling will likely direct you to an auto insurance agent who will offer you a longer policy.
If you hear about a company offering a temporary car insurance policy that lasts for a day, a week or a month, it’s probably not legitimate and may even be a scam. A six-month policy is the shortest term available.
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Fortunately, applying for standard auto insurance is easy and can be used temporarily. For example, you can buy a policy for six months and cancel it after a few months if you sell your car or when you stop driving. Your car insurance provider won’t charge you for the remaining months after you cancel, although you may have to pay a cancellation fee.
Additionally, if you only drive your vehicle occasionally, you should consider signing up for a pay-per-mile insurance plan. You may be rewarded with lower rates or pay only for what you drive.
While there are no temporary auto insurance policies, there are several situations where you may find yourself in need of short-term coverage. These include:
If you only need car insurance for a short time, what can you do? It’s actually quite easy to get a car insurance policy online and then cancel it when you no longer need it. Your options may include trying non-owner car insurance, rental insurance, or trying usage-based coverage options.
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The simplest alternative to a short-term car insurance policy is a standard policy that you only use temporarily. Most car insurance policies kick in after you make your first payment, meaning you don’t have to wait long for coverage to kick in.
While many auto insurance policies don’t come with cancellation fees, make sure the policy you’re considering does. However, it may make more sense to get a car insurance policy for a month and pay a small cancellation fee or lose a deposit than to figure out another carrier.
A non-owner car insurance policy can be a good alternative to temporary insurance if you often drive vehicles you don’t own. Maybe you travel around and use a car sharing service or use a friend’s car regularly. You can get non-owner insurance from major companies for six or 12 month increments.
The good thing about a non-owner policy is that it is cheaper than standard car insurance. That’s because it usually only includes liability coverage for injuries and property damage if you cause an accident. Non-owner insurance is useful if:
Car Insurance 101: Does Your Insurance Cover Other Drivers?
Most auto insurance policies cover a primary driver along with anyone who may drive the car occasionally. This means you will be covered if you drive someone else’s vehicle. However, if you plan to drive another person’s vehicle frequently, consider getting non-owner coverage or adding to their insurance policy if you live at the same address.
If you are using a rental car and do not have your own insurance, you can get coverage through the rental company. Rental car insurance won’t be the cheapest option available, but it will cover you while you’re using the car and help you avoid getting a whole insurance policy. If you opt for additional insurance from the car rental company, you may not have to pay a deductible if you get into an accident.
Safe drivers can get discounts with usage-based programs like Progressive’s Snapshot® or State Farm’s Drive Safe & Save™. These programs, also known as telematics insurance, monitor driving habits such as acceleration, cornering, braking and the time of day. They also track mileage, which often makes up a large portion of the total score.
That means people who don’t drive often can save more on insurance costs with usage-based programs compared to people who commute every day.
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Mileage-based car insurance is a subset of usage-based insurance. But with this option, the only thing that matters is your mileage. If you only drive occasionally, you can save a lot of money because you don’t put many miles on the odometer. A few examples of this coverage include:
With these programs, you often pay a low monthly base rate plus a rate per mile. Pay per mile programs also have daily mileage limits so you can travel without paying a huge amount of money.
Note that some pay-per-mile insurance programs may require you to drive the car or at least move it occasionally to keep the sensor active. Such is the case with Metromil.
If you are a student going away to school, most companies will give you a discount on your family insurance plan if you leave your car at home and go to school more than 100 miles away.
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If you store your car while you are not using it, you may only be able to get a comprehensive policy from your insurance provider. This covers events that may damage your vehicle while it is parked in one location, such as hail or vandalism. But it doesn’t cover accidents so you can’t drive your car. Some companies may require you to keep your car for at least a month to get this coverage.
If you are keeping your car long-term, you can remove the registration from your vehicle and then cancel the insurance completely. Contact the DMV to remove your registration before you cancel your insurance or you will have a lapse in coverage.
When looking for temporary car insurance options like those listed above, there are a few things to keep in mind. These include the following:
However you decide to handle your temporary insurance claim, make sure you avoid a lapse in car insurance. This happens when you have a vehicle registered in your name and you don’t have insurance. Auto insurance companies report directly to the DMV in each state, so your state will know if you drop your insurance but still have a registered vehicle.
Ways To Get The Cheapest Car Insurance Rates
Some providers charge cancellation fees of up to 10% of the car insurance premium, but this varies by company and state. If you are looking for temporary insurance, it may be worth paying a small fee to avoid the cost of future premiums.
However, if you’re shopping around for a new policy that you intend to cancel, be aware of what fees you may have to pay when you decide to terminate the contract.
Although temporary insurance does not exist, there are still many other options to choose from. When deciding what kind of coverage you want and need, consider how much coverage you’re actually getting for the price.
While you can’t get a legitimate insurance policy that lasts less than six months, you can cancel coverage when you don’t need it if you don’t own a car. You can also try options like non-owner car insurance or rental car insurance to get you through unique situations.
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