Short-term car insurance is a temporary insurance that protects you and your vehicle from damage and liability for a specified period. There are reasons that you may only need car insurance for a day, a week, or a month, and this is what temporary car insurance is for. Typically, temporary car insurance is good for up to 30 days. After that, you may be able to extend it or purchase a regular policy for six to 12 months.

It’s better to be protected during this short period rather than risking not having insurance. It can also be more cost-effective to purchase a temporary car insurance policy than pay for a regular policy. However, it’s important to note that rates for short-term policies may not be proportionally lower than those for an annual car insurance policy. Insurance costs can vary widely based on individual factors and the unique pricing strategies of different car insurance providers. Though uncommon, there are times in your life when a long-term car insurance policy doesn’t make sense. Our sister company in the U.K., Veygo, offers temporary auto insurance policies for monthly, daily, or even hourly periods of time. But in the U.S., car insurance is usually sold on a long-term basis. Nearly all insurance carriers provide auto policies for a six-month or yearly timeframe to make sure you’re always covered and don’t have to constantly renew your policy. But what should you do when you need short-term car insurance when it’s not offered by standard carriers? Read on.

Understanding temporary car insurance

Temporary car insurance, also known as short-term car insurance, is a type of car insurance policy that provides coverage for a brief period, typically ranging from one day to several months. This type of insurance is designed to meet temporary coverage needs, such as renting a car, borrowing a friend or family member’s vehicle, or driving a car for a short period. Whether you’re planning a road trip, need to drive a rental car, or are borrowing someone else’s car, temporary car insurance ensures you have the necessary protection without committing to a long-term policy.

Definition and purpose of temporary car insurance

Temporary car insurance is a flexible and affordable solution for drivers who need coverage for a short period. It provides the same level of protection as a standard car insurance policy, including liability, collision, and comprehensive coverage. The purpose of temporary car insurance is to provide drivers with peace of mind and financial protection in case of an accident or other unforeseen events. This type of insurance is ideal for situations where a standard car insurance policy would be excessive or unnecessary, offering a practical alternative for short-term needs.

Can you get short-term or temporary car insurance?

As we mentioned above, most car insurance companies don’t typically offer auto policies that cover a period shorter than six months. Though you may see online advertisements in the US for carriers offering as little as seven-day coverage, these websites may be making false promises and will direct you to an agent who can only sell a minimum of a six-month policy. However, some providers do offer customizable car insurance policies that allow consumers to tailor coverage and duration to their specific needs. Of course, this doesn’t negate the fact that you might need short-term car insurance. There are options out there, but first, let’s go over why you might need this in the first place.

Why would you need short term or temporary insurance?

There are very specific reasons why you might need short-term car insurance as opposed to a typical full-term auto policy however, including:

  • You’re a student driver on summer or winter break.
  • You need to rent a car.
  • You’re visiting someone and want to use their car.
  • You want to put a car, such as a classic car, in storage that you don’t usually drive.
  • You need additional coverage for rental cars.

Do you need additional auto insurance coverage, or are you already covered?

The first step to making sure your car is properly insured for the short period you need is to see if you’re already covered by your regular car insurance. Additionally, it is crucial to compare car insurance rates to find the best coverage options for short-term policies. You also need to know when your insurance doesn’t cover you.

When you’re already covered

  • The permissive driver clause. Most insurance policies have a provision that allows car insurance to be extended to anyone — a family member or friend — that has received permission from the owner to drive their car, typically for infrequent use. This can also apply to someone using someone else’s car, but it’s important to understand the limitations of this coverage. If someone frequently uses the car, the primary policyholder may need to formally add them as a driver, which could impact insurance costs.
  • Test driving a vehicle at a dealership. If you’re test driving a car, you’re covered under the dealership’s insurance and are not required to have insurance on your own.
  • Renting a car on vacation. Typically, if you have car insurance, it will extend coverage to a rental car, though rental companies may still offer supplemental insurance. If you’re traveling out of the country, you’ll need to inquire with your carrier to check if you’re still covered or whether you should use the rental company’s insurance.
  • Driving a company car for company business. If you’re allotted a company car by your employer and engaged in use that’s for the business of the company, you are already covered for insurance.

When you’re NOT covered

  • Permissive driver use doesn’t include high-risk drivers. The permissive driver clause does not cover everyone, so if you’re considered a high-risk driver because of a DUI or suspended license, you probably aren’t covered.
  • Using a company car for personal reasons. If you’re using a company car for personal reasons, that’s not in accordance with its intended use and you won’t be covered in the event of an accident, theft, or in any other scenario.
  • Driving a newly purchased vehicle from the dealership without insurance. If you don’t have insurance already when you’ve purchased a vehicle and leave the lot to drive it home, you’re not covered.
  • During certain times when providing rideshare services. For many insurance companies, it’s a violation of a driver’s personal policy if they are engaged in rideshare services like that of Uber or Lyft. There are specific policies for these services offered either by the rideshare companies, which may come with limitations, or through other carriers.

In the examples we listed earlier for why you might think you need to buy car insurance or short-term insurance, let’s revisit each bullet point and problem solve for them.

You’re a student driver on summer or winter break.

Student drivers on a break should stay on their parents’ auto insurance policies, with an adjusted or reduced coverage plan for that vehicle. You should also inquire about away-from-school discounts to reflect this seasonal vehicle use.

You are at a rental car company and need to decide whether you need insurance

Renting a car domestically is already covered by your personal car insurance policy, but you can also secure rental car insurance through the rental company in the case of international travel or the desire for supplemental coverage.

You’re visiting someone and want to use their car.

If you’re visiting a friend and want to use their car, this falls under the permissive driver clause. If you regularly drive their car for a set amount of time, they can add you to their policy for that amount of time. It will increase their rates temporarily, but you can rest assured that you’re covered.

You want to put a car in storage that you don’t usually drive.

Lastly, for a car that you don’t plan on driving for a period, there is car storage insurance (more on that later).

If you truly need short term insurance coverage, what are your options?

Pay-per-mile insurance

Pay-per-mile insurance, also known as usage-based auto insurance or pay-as-you-go, is coverage that’s based on your actual usage as opposed to how you will drive statistically. This type of insurance may be a good fit for you if you drive infrequently and want to save money. Carriers typically use an app to track your usage. Usage-based discounts are also available by some companies instead of specific policy offerings based on usage.

Car storage insurance policy

Car storage insurance, or comprehensive-only coverage, is insurance for your vehicle if it’s not being driven or if it’s in storage. This coverage will protect your car from natural disasters, falling objects, theft, and vandalism. Some insurance companies may require your vehicle to be stored for at least 30 days to get this coverage, so you will need to contact your insurance company or representative to get specifics on requirements.

Non-owner auto insurance policy

A non-owner car insurance policy is insurance for people who frequently borrow cars of others or rent cars but have no car of their own. It typically only includes liability insurance — coverage for the other driver if you are at fault in an accident — and for the most part, is available in six-month or year limits.

How to get temporary auto insurance

Getting temporary auto insurance is a straightforward process that can be completed online or over the phone. Here’s a step-by-step guide to help you find the best policy and get a quote:

Finding the best policy

To find the best temporary car insurance policy, you should consider the following factors:

  • Coverage options: Look for a policy that offers the level of coverage you need, including liability, collision, and comprehensive coverage.
  • Duration: Choose a policy that offers the desired duration, whether it’s a day, a week, or a month.
  • Price: Compare quotes from different insurance companies to find the best rate.
  • Insurance company: Research the insurance company’s reputation, financial stability, and customer service.

By evaluating these factors, you can ensure that you select a temporary car insurance policy that meets your specific needs and provides adequate protection.

Getting a quote and purchasing a policy

To get a quote and purchase a temporary car insurance policy, follow these steps:

  1. Visit the website of an auto insurance company or a specialized temporary car insurance provider.
  2. Enter your personal and vehicle information, including your name, address, driver’s license number, and vehicle make and model.
  3. Choose the desired coverage options and duration.
  4. Get a quote and review the policy details, including the premium, deductible, and coverage limits.
  5. Purchase the policy online or over the phone and receive your insurance documents via email or mail.

Remember to carefully review the policy terms and conditions before purchasing and ask questions if you’re unsure about any aspect of the policy. This ensures that you fully understand your coverage and can drive with confidence, knowing you are protected.

Can you buy a six-month car insurance policy and cancel early?

While you can technically purchase a six-month policy and cancel early, it’s not something that’s recommended. Canceling early is typically best for circumstances when you are selling a car or switching to a new insurance policy. Canceling your auto insurance policy early outside of those situations may be a risk in terms of state requirements for car insurance and can cause an increase in rates on your next insurance policy, because at that point, there will be a lapse in coverage. Car insurance companies typically refund any remaining premium to you if you cancel before the end of the term, and cancellation fees may or may not be a factor as it depends on the insurance carrier.

Short term insurance solutions

Got it? If not, don’t fret! Here are a few more examples of scenarios where a person would need insurance for a short term and the best solutions for each.

 

Scenario Insurance solution
College student enrolled at university away from home, leaves vehicle at home with parents Possibly reduce or adjust coverage, inquire about student-away-from-home discounts
Uninsured relative comes to stay with family for summer, will use car frequently for personal use and errands Add relative on to insured family member’s policy for the summer
Couple puts their vehicle in storage while they head south to Florida for the winter Car storage policy/comprehensive only
A few friends vacationing in New Orleans, will need rental car to get around Personal auto policy, possibly additional rental car company coverage

 

There are certain situations in life where you may need a short-term solution to meet an auto insurance need. Whether it’s a non-owner policy, comprehensive-only coverage, student discounts, or other insurance options, we’ve got you covered. Get a quote with Elephant today.

 

Article last updated on January 16th, 2025 at 2:34 pm