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Car insurance companies don’t offer temporary insurance options, but if you need temporary insurance you can cancel coverage or use non-owners insurance
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Written by: Daniel Robinson, Written by: Daniel Robinson Writer Daniel is a writer for the Guides team and has published articles in the U.S., U.K. and has written for a number of automotive news sites and marketing organizations across Australia, specializing in auto finance and car care topics. Daniel is the authority on a team of guides on auto insurance, loans, warranty options, auto services and more.
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Edited by: Rashan MichnerEdited by: Rashan Michner Managing Editor Rashan Michner is an editor on the Guides team with over 10 years of experience covering personal finance and insurance topics.
Whether you are using the car in a new city for a short period of time or plan to sell your car soon, there are many reasons why you 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 the insurance for a period of six months or more. In this article, we at the Guides team give you your options for temporary coverage and recommend some of the best car insurance and cheap car insurance companies to check out.
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The Guides team is committed to providing reliable information to help you make the best possible decision about insuring your vehicle. Because consumers depend on us to provide objective and accurate information, we have created a comprehensive rating system to form our rankings of the best car insurance companies. We’ve collected data from dozens of auto insurance providers to grade companies on a wide range of factors. After 800 hours of research, the final result is an overall rating for each provider, with insurers with the highest scores topping the list.
Most car insurance companies (like Geico and Progressive) do not sell temporary or short-term car 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 cost.
However, submitting your information online for a car insurance quote or call will 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 for a day, a week or a month, it is probably not legitimate and may even be a scam. A six month policy is the shortest term available.
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Fortunately, signing up for standard auto insurance coverage is easy and can be used temporarily. For example, you can buy a six-month policy and cancel it after a couple of months if you sell your car or when you’re done 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 can be rewarded with lower rates or pay only for what you drive.
While temporary auto insurance policies do not exist, there are many situations where you may find yourself in need of short-term coverage. including:
If you only need car insurance for a short time, what can you do? In fact, it is very easy to get a car insurance policy online and cancel it when you no longer need it. Your options may include trying non-owner car insurance, getting rental insurance, or trying usage-based coverage options.
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A simple 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 the first payment, meaning you don’t have to wait long for coverage to start.
Although many car insurance policies don’t come with cancellation fees, check to see if the policy you’re considering does. Still, it makes more sense to pay a small cancellation fee or lose the deposit than to get a car insurance policy for a month and figure out other transportation.
If you regularly drive vehicles that you don’t own, a non-owner car insurance policy is a good alternative to temporary insurance. 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 best thing about a non-owner policy is that it is cheaper than standard car insurance. This usually includes liability coverage for injuries and property damage if you cause an accident. Non-owners insurance is useful if you:
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Most car insurance policies include a primary driver with someone who occasionally drives the car. That means you are covered if you drive someone else’s vehicle. However, if you plan to drive another person’s vehicle frequently, consider getting non-owner coverage if you live at the same address or adding yourself to their insurance policy.
If you’re using a rental car and don’t have your own insurance, you can get coverage through the rental company. Rental car insurance may not be the cheapest option available, but it will protect you when you use the car and help you avoid getting a full insurance policy. If you opt for additional insurance from the rental car company, you won’t have to pay the 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, track driving habits such as acceleration, cornering, braking and time of day. They also track mileage, which usually makes up a large part of the overall score.
That means people who don’t drive often can save more on insurance costs with usage-based programs than people who commute every day.
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Mileage-based car insurance is a subset of usage-based insurance. But with this option, only your mileage matters. If you only drive occasionally, you can save a lot of money because you won’t be putting as many miles on the odometer. Some examples of this range include:
With these programs, you typically pay a lower monthly base rate and a rate per mile. Pay-per-mile programs also have daily mileage charge caps so you can take a road trip without paying big bucks.
Be aware that some pay-per-mile insurance programs require you to drive your car or move occasionally to keep the sensor active. This is the case of Metromile.
If you’re a college student commuting, most companies will offer a discount on your family insurance plan if you leave the car at home and go to school more than 100 miles away.
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If you store your car while you’re not using it, you can get a comprehensive-only policy from your insurance provider. This covers events that 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 require you to store your car for at least one month to get this coverage.
If you are storing your car for a long period of time, you can remove the registration from your vehicle and then stop the insurance altogether. Contact the DMV to remove your registration before canceling insurance or you will have a lapse in coverage.
When you’re 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 address your temporary insurance need, make sure to avoid a lapse in car insurance coverage. This happens when you register the vehicle in your name and don’t have insurance. Car insurance companies report directly to DMVs in each state, so your state will know if you still have a registered vehicle if you drop your insurance.
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Some providers charge a cancellation fee of up to 10% of your car insurance premium, but this varies by company and state. If you are looking for temporary insurance, it is worth paying a small fee to avoid the cost of future premiums.
However, if you’re shopping for a new policy that you intend to cancel, find out what fees you may have to pay when you decide to end your contract.
Although temporary insurance does not exist, there are still plenty of other options to choose from. When you decide what kind of coverage you want and need, take into account how much coverage you’re really getting for the price.
While you can’t get a legitimate insurance policy for less than six months, you can cancel the coverage when you don’t need it if you don’t own the 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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If you decide
