Temporary Car Insurance and Short-Term Coverage
Temporary car insurance in the U.S. is a mythical unicorn. If you see it offered, it’s likely to be a scam. The shortest term offered by most major insurers is six months.
If you only need car insurance for a short time, there are safer ways to get that coverage without buying a policy that may not be reliable. Sometimes, you may not need to purchase a policy at all.
Getting covered under someone else’s policy
Best choice if you drive someone else’s car
Many car insurance policies allow “permissive use.” This means the policyholder can lend their car to someone and have that person covered without any added premiums.
Permissive use comes with some limits, though. If you drive somebody else’s car too often, or if you live at their address, you may need to be formally added to the policy to be covered. Then, when you no longer have a need to drive the vehicle, you can be removed.
The policyholder’s insurance premiums could go up while you’re on the policy, but the premium increase is likely to be cheaper than buying a separate policy on your own.
Canceling your car insurance early
Best choice to insure your own vehicle for less than six months
If you need temporary auto insurance for your own car, you could get a longer-term policy and then cancel when you’re no longer using the car. You can often get a refund for the remaining period, so it’s almost like buying temporary car insurance for less than six months.
Some insurers will charge you a fee for early cancellation. This is either a flat charge that’s usually $50 or less, or a so-called “short rate” charge of somewhere around 10% of the remaining premium. Purchasing and canceling insurance frequently might also result in higher premiums in the future.
If you plan to store your car, you could also just cancel the collision coverage
It also protects you from those potential future rate hikes when you do need to drive the vehicle again. If you go this route, shop around and compare car insurance quotes from several companies to get your best deal.
Pay-per-mile car insurance
Best choice if you don’t plan to drive a lot
If you’re not sure how long you’ll need insurance but don’t plan to drive much, you might want to get pay-per-mile car insurance. As you can guess from the name, these policies charge you based on how much you use your car.
You can find pay-per-mile insurance programs at some major insurers, like Allstate and Nationwide, but be aware that you might not be able to buy pay-per-mile in every state.
Make sure to check how much you’ll be charged for the mileage. A typical price might be 6 cents to 7 cents per mile driven.
If you find an offer for U.S. insurance lasting less than six months, you should be very careful about taking it. It could be a scam, with no intention of paying any claims, or it could have very limited coverage.
Nonowner car insurance
Best choice if you drive cars you don’t own
If you often borrow other peoples’ cars for short periods, you might want to get your own nonowner car insurance. This is a good idea if you’ll be driving other cars with little or no insurance coverage from the owners.
You also might explore nonowner insurance if you need an SR-22 because of past traffic violations. An SR-22 proves you have insurance sufficient to your driving history, and it is required whether or not you own the vehicle. The same goes for an FR-44, a similar document required after some traffic violations in Florida and Virginia.
But be aware: Nonowner insurance doesn’t cover damage to the vehicle you drive. Instead, it covers any remaining costs to others after the owner’s insurance has paid out.
Rental car insurance
Best choice if you rent a car and don’t have strong coverage from your own insurance
Rental car agencies will usually offer you rental car insurance with various add-ons to increase the coverage. You can also find insurers like Allianz Travel that will give you a stand-alone policy covering the one-time use of the rental car.
Also be aware that some credit cards provide short-term car coverage when you rent. That means you may already be covered if you use your credit card to pay for the rental.
If you do own and insure your own vehicle, check with your current insurer first. Your existing policy may already give you at least some coverage for short-term rentals.
Frequently asked questions
Temporary car insurance doesn’t exist in the U.S. If you find an offer for car insurance lasting less than six months, be careful because it may be a scam.
Outside of the U.S., it’s a very different story. You can get temporary auto insurance in some Canadian provinces, Mexico and many other countries around the world.
In the U.S., temporary car insurance is often a scam. Major car insurance companies don’t offer coverage for less than six months. You might see offers for shorter terms, but these could be misleading.
You might need insurance to borrow someone’s car. Check with the car owner’s insurer to see if you’re covered under their policy through “permissive use.” If you’re borrowing someone’s car on a regular basis, or if you live with the car owner, you may need to be added to their policy.
Rideshare insurance is different from both rental-car and short-term insurance. It protects you when you use your own car for a rideshare business, such as driving for Uber or Lyft. Typical insurance policies won’t cover you fully in this circumstance, so rideshare insurance fills that gap.
Legally, your car doesn’t need any insurance if you’re not driving and you store it on private property. But you may still want parked-car insurance (also called comprehensive-only car insurance) to protect the vehicle from theft, vandalism or other damage. Premiums are much lower than what you would pay if you were driving the vehicle.