Short-Term Car Insurance

In general, short-term car insurance isn’t a product you’ll find from most reputable providers. However, there are ways to get insured on a temporary basis. Our research team took a look at methods for getting short-term coverage, as well as the best car insurance companies to buy it from.

Key Points:

• You can get a six- or 12-month policy from a reputable provider.
• Most companies don’t charge cancellation fees, so simply cancel your policy to get shorter coverage.
• If a car registered in your name doesn’t have insurance, you’ll have a lapse in coverage, which can raise your rate.

What Is Short-Term Car Insurance?

Essentially, a short-term car insurance policy is insurance you buy for a brief amount of time. Auto insurance providers typically sell policies in six-month or 12-month increments. Temporary insurance would allow you to cover your car for a shorter period of time.

There are several scenarios in which short-term car insurance could be useful, such as:

• You plan to sell your car within the next few months.
• You want to rent a car on your next vacation.
• Your child is away at school most of the year without a car.
• You plan to visit the United States for a short period of time.
• You plan to borrow your friend’s car for a trip.

Can You Buy Short-Term Car Insurance?

Technically, most reputable providers don’t sell temporary auto insurance. If you do see short-term car insurance advertised, it could be a scam. It may also be an attempt to draw you to a website and sell you a standard insurance policy.

How To Get Short-Term Car Insurance

Just because most providers don’t offer a product labeled “short-term coverage” doesn’t mean you have no options. Quality providers may offer several ways to take care of your need for a temporary insurance policy. Here are some options you may have:

1. Buy Your Policy And Cancel It

The most direct way to get short-term car insurance is to buy a normal policy and then cancel it when you no longer need coverage. You don’t need to tell the insurer at the time of purchase that you plan to cancel. If you pay the full premium up front, you’ll generally get a prorated refund when you cancel.

Some providers charge a cancellation fee for terminating your policy early, but many don’t. If you’re looking for temporary insurance, check whether an insurer charges a fee. If it does, factor that fee into the total cost of coverage when you compare providers.

2. Use The Rental Car Company’s Insurance

If all you need is rental car insurance, you can get it from rental car companies. The types and amounts of coverage vary, but every policy should cover at least the minimum requirements for the state where you rent the vehicle.

Drivers who want more coverage than what a standard rental policy offers can typically buy it at the rental counter. In addition to higher coverage limits, you may be able to get add-ons like roadside assistance.

3. Get Non-Owner Car Insurance

Many insurers sell non-owners insurance policies that cover you while you drive a car that isn’t yours. This can include company cars, ride-share and car-share vehicles, and those owned by family members and friends.

Non-owner policies are often much cheaper than owner insurance policies. That’s largely because they usually only cover property damage and injury liability claims. They also tend to provide secondary coverage, meaning the owner’s existing policy would cover liability claims before non-owner coverage kicks in.

The car owner’s policy would also pay for other claims depending on what types of coverage they have.

4. Use Specialized Discounts

Some people need temporary coverage because they don’t regularly have access to their vehicles. This can include college students who leave their cars at home and active-duty military members.

For many of these drivers, insurers offer specialized discounts that can reduce the cost of a policy. Some providers, for example, offer discounts for students who are away at school without their cars. Others give discounts to military members who are at home or deployed. Some insurers also offer lower premiums if you store your vehicle for an extended period of time.

The best way to learn about these discounts is to speak to an insurance agent. They may also know about savings opportunities that aren’t listed on the company’s website.

5. Try Usage-Based Insurance

Usage-based insurance gives you a discount based on your driving habits. These programs use telematics data collected from devices or phone apps to monitor your driving in real time. Your mileage is a major factor in most programs, and you can get a bigger discount by driving less.

A pay-per-mile car insurance policy is a type of usage-based program that only counts miles driven. It could be significantly cheaper than a standard policy depending on how much you drive. Pay-per-mile policies also usually have a maximum daily cost, so you can take a road trip without breaking the bank.

Additionally, many usage-based programs take safety into account when monitoring your driving habits. If you’re prone to driving late at night or speeding, think seriously about whether one of these programs is a good option for you.

What Does Short-Term Car Insurance Cover?

What a temporary car insurance policy covers can vary based on the type of policy you buy. The length of your coverage may be different, but these policies basically cover the same things as standard car insurance.

Short-term car insurance can include the following coverages:

• Bodily injury liability coverage: Covers medical expenses, funeral expenses, and lost wages for other parties in an accident you’re found at fault for
• Property damage liability insurance: Covers the cost of damages to other vehicles and property when you’re found at fault for an accident
• Personal injury protection (PIP): Covers medical expenses, funeral expenses, and lost wages for you and your passengers, no matter who’s found at fault for an accident
• Medical payments coverage (MedPay): Covers medical costs and funeral expenses (but not lost wages) for you and your passengers, no matter who caused an accident
• Collision coverage: Covers damages to your vehicle, regardless of who’s found at fault for a collision
• Comprehensive insurance: Covers damages to your vehicle from sources other than car accidents, such as vandalism, theft, or natural disasters
• Underinsured/uninsured motorist coverage: Covers your medical expenses and property damage if an at-fault driver doesn’t have enough (or any) insurance

Additional Coverage Options

Auto insurance companies also offer add-ons that cover other expenses related to owning and driving a vehicle. Consider putting these coverages on your auto insurance policy whether you intend to use them for the full term of your contract or not.

• Roadside assistance: Covers emergency roadside services such as fuel delivery, tire repair, and towing
• Classic car insurance: Covers classic, exotic, or otherwise rare and expensive vehicles that standard policies might not
• Rental car reimbursement: Covers the cost of a rental vehicle if yours is totaled or is being repaired after a covered loss
• Mechanical breakdown insurance: Covers mechanical repairs, similar to an extended car warranty
• Ride-share insurance: Covers you while you’re waiting to take a job when you use your car to work for a ride-sharing company

How Much Does Short-Term Car Insurance Cost?

The cost of short-term car insurance mostly depends on which type of policy you buy and how long you keep it. However, your insurance premium will vary from other drivers’ premiums even with the same type of coverage.

Factors That Affect The Cost of Temporary Car Insurance

The cost of car insurance coverage depends on several variables, whether you need short-term coverage or a standard term. These factors have the greatest impact on how much your car insurance will cost:

• Age: Younger drivers (especially teens) usually pay far higher auto insurance rates than older drivers. Some people may see rates start to rise again around their mid 60s.
• Gender on license: In many states, young male drivers might pay more for auto policies than same-age female drivers.
• Driving record: Traffic violations and at-fault accidents on your driving record typically result in a higher premium. People with clean driving records often get the lowest rates.
• Coverage limits: The types and amounts of coverage you have are major factors in your premium.
• Deductible: Your policy deductible is what you must pay out of pocket for certain types of claims. The lower you set your deductible, the more you can expect to pay for coverage.
• Credit score: Drivers with lower credit scores typically pay higher rates unless they’re in states that don’t allow credit to be factored into auto insurance prices.
• Location: Car insurance rates vary between states and within them based on local risk factors. Densely populated cities with higher rates of theft and car crashes tend to have higher insurance costs, for example.
• Marital status: Married policyholders tend to pay less for insurance than single ones.
• Fees: Cancellation fees or similar costs should be considered part of your total expenses if you plan to cancel your policy early.

Should You Get Short-Term Car Insurance?

Short-term car insurance isn’t an actual product for most reputable insurance companies. However, there are ways to get temporary coverage from quality providers. Which method is best for you depends on what you need it for.

The following table shows which product might be best for you if you’re looking for short-term auto insurance, depending on why you need it.

Avoid A Lapse In Coverage

There’s one thing to be aware of if you’re thinking about short-term car insurance: a lapse in coverage happens when a car registered in your name isn’t insured.

When you cancel an insurance policy, the insurance company notifies your state’s department of motor vehicles that it’s no longer covering the vehicle. That’s OK if someone else owns the car, like a friend, family member, or even a company. But if the car is registered in your name, there can be issues.

Having a vehicle registered in your name with no valid insurance counts as a lapse in coverage, even if you don’t drive it. If you’re selling the vehicle, you’ll remove your plates and registration anyway. But if you’re traveling for a few months and want to store the car without insurance, you need to cancel the car’s registration and remove the plates, too.

You won’t get a ticket or fine for having an insurance lapse if you aren’t driving the car. However, the lapse will go on your driving record and you’ll pay higher insurance rates in the future because of it.

So before you cancel your policy, check your state’s insurance laws if the car is only registered in your name.

Short-Term Car Insurance: Conclusion

While there’s no such thing as a policy that lasts for just a few weeks or months, you can get auto insurance and cancel it after you no longer need it. We recommend buying coverage from reputable car insurance companies like State Farm and Progressive and avoiding obscure agencies that advertise 30-day or short-term insurance.

Top Recommended Providers

While you can’t really buy short-term car insurance as a product from a major provider, there are companies we recommend for alternatives. Compare car insurance quotes from multiple providers to find the best rates for you.

State Farm: Best Overall Provider

State Farm is one of several major insurance companies that doesn’t charge a cancellation fee, so you can buy coverage for as long as you need it and cancel it when you don’t without paying extra. In addition, the company offers discounts for students who are away at school and don’t take their cars with them. This allows you to get an insurance policy for a full term while paying less.

USAA: Best For Military

USAA is another insurer that doesn’t charge a cancellation fee, which makes it a good choice for short-term coverage. Only military members, veterans, and their spouses and children can get auto insurance from USAA, but people who are eligible can find affordable insurance options.

On top of offering some of the best rates in the country, USAA has several discounts. Many of these are for military members, including one for storing your vehicle on base while you’re deployed.

Short-Term Car Insurance: FAQ

Below are a few frequently asked questions about short-term car insurance.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

• Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.