If you aren’t driving often or don’t own a car, you may be considering buying temporary car insurance. However, this type of coverage isn’t typically sold in the U.S.
What is temporary car insurance?
Temporary car insurance provides coverage for a month or maybe even only a day. However, most U.S. insurers don’t sell temporary auto coverage. Instead, they offer auto insurance policies in six- and 12-month terms.
While you may see ads for short-term coverage, it’s best to use caution since these policies may be a scam.
Other temporary car insurance options
Although temporary auto insurance isn’t a choice if you need short-term coverage, there are several other policy options you can choose from depending on your situation.
Drivers typically consider temporary car insurance when they need insurance for a short period or they are driving a car they don’t own. For instance, drivers may want short-term coverage if they:
- Rent a vehicle
- Don’t own a car but drive often
- Plan to buy a vehicle and sell it shortly after
- Put their car in storage
To help you decide what makes the most sense for you, we broke down the best options for short-term coverage based on some common scenarios.
Rental car insurance
Best if: You’re renting a car
Your rental company will usually offer rental car insurance that will cover you for your rental period. The cost for this type of coverage is typically $10-$30 per day, but this rate can differ based on your rental agency.
Rental car insurance is usually a lot more expensive than standard or non-owner insurance, but it’s a good option for drivers who don’t have their own policy.
Pay-per-mile insurance
Best if: You don’t drive often
Some drivers are on the road for less than 10,000 miles per year and find that a standard policy isn’t worth it. With pay-per-mile insurance, you can save money while maintaining continuous coverage. Pay-per-mile insurance offers the same coverage of a standard policy, such as liability, collision and comprehensive insurance.
As the name suggests, pay-per-mile insurance involves a low base insurance rate with additional surcharges calculated by the mile. Assuming you drive less than 10,000 miles per year, this type of coverage can be much cheaper than a standard policy—and several providers offer it, including Allstate, Nationwide and Mile Auto.
Non-owner car insurance
Best if: You borrow or share cars regularly
Non-owner car insurance provides auto insurance for drivers who don’t own a vehicle. These policies provide bodily injury liability and property damage liability coverages, which are required in most states. Some non-owner policies offer additional types of coverage, too, such as uninsured/underinsured motorist coverage (UM/UIM) or personal injury protection (PIP).
If you regularly rent cars, this type of insurance could be a good option. However, it’s important to remember that non-owner car insurance options are secondary policies, meaning they kick in once the vehicle owner’s insurance has paid out to its coverage limit. For rental cars, that means a collision damage waiver (CDW) is still a good idea.
Get added to another driver’s policy
Best if: You regularly borrow a specific car
While borrowing a family member or friend’s car occasionally is covered under permissive use, regular use of another person’s vehicle necessitates changes in their car insurance. You should be added to someone’s policy if you drive their car often (think every week or so), or if you have your driver’s license and live with someone who has a car.
Doing this will ensure you’re covered any time you drive your friend’s car, but it could also raise their insurance rates, especially if you’re considered a high-risk driver with a poor driving record.
When adding yourself to another driver’s policy, it’s important to compare quotes among providers to ensure you find the cheapest rate. You can use the Jerry app to help you compare personalized quotes from multiple insurance providers to help you find the best policy.
Depend on another driver’s insurance
Best if: You borrow cars from others occasionally
If you borrow a car from a family member or friend occasionally with their permission, you’ll usually be covered under permissive use. This means that their car insurance policy will extend to you in the event of an accident, covering any damage or injuries.
Drop your collision coverage and keep comprehensive insurance
Best if: You own a car but aren’t driving for a long period of time
If there are periods throughout the year when you know you won’t need to drive, you’re best off dropping your collision insurance while keeping your comprehensive coverage. Although comprehensive and collision coverage are typically sold together, you don’t need to keep both on your policy.
By keeping comprehensive insurance, you’ll still have protection against weather-related events or if your car is stolen or vandalized.
Keep in mind, if you have a car loan or lease, your lender may require you to keep collision and comprehensive coverage.
This type of adjustment to your policy could be helpful for:
- Snowbirds
- Parents of college-age students
- Military members
Jerry Tip
If you’re in the military and only drive between deployments, find a provider that offers a military storage plan like USAA or Geico. With this type of insurance, you’ll pay a lower rate while your vehicle is stored and unused, but you’ll be able to restore your normal coverage when you’re home and use your car.
Buy a regular policy and cancel early
Best if: You want to buy a car and sell it quickly
You may want to buy a standard car insurance policy and cancel it early under certain circumstances. For instance, if you are buying a car that you plan to sell again soon. You may also want to do this if you are visiting the United States for a longer period and need to meet insurance requirements.
Even in these cases, be sure to research potential providers and get quotes from multiple companies before choosing the right insurance for you.
Still, canceling your policy comes with risks such as:
- Your policy could lapse: If you cancel your auto policy early and don’t purchase a new one, it’s considered a car insurance lapse. Being uninsured for any period of time is a huge red flag to car insurance companies and, as a result, your insurance premiums will be higher the next time you buy.
- You could get charged a fine if you drive without insurance: If you cancel your existing insurance, make sure you have coverage if you decide to get behind the wheel again. Driving without insurance is illegal in most states.
- You could face cancellation fees: Some insurance companies will charge you cancellation fees for terminating your policy early.
Recapping temporary car insurance
Temporary car insurance generally isn’t offered in the United States. The shortest term that insurers sell coverage for is six months. If an auto insurance company offers you a policy for less than six months, it’s likely a scam.
Instead, you can consider other short-term coverage options such as non-owner car insurance, pay-per-mile insurance or rental car insurance. You may also want to be added to another driver’s policy, depending on your situation.
Kayda Norman is an insurance writer and editor with more than 12 years of content experience. She previously worked at NerdWallet as an insurance writer and content management specialist. She has covered a wide range of insurance topics such as high-risk drivers, auto insurance rate factors, and credit-based insurance scores. Her work has been featured in The New York Times, The Washington Post, and USA Today.
Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.
