Temporary Car Insurance: What to Know
- Most insurers don't offer "temporary" policies.
- Be wary of companies offering short-term coverage.
- Don’t drive much? Usage-based and non-owner policies are your best bets.
.Use The Zebra to get quotes for a six or 12-month policy from GEICO, Nationwide, and Liberty Mutual (+100 other companies)
Is it possible to get temporary car insurance?
Most insurers do not offer short-term auto insurance and usually require six-month or 12-month policy terms. Be cautious of companies promoting daily, weekly, or monthly insurance, as they may not provide sufficient coverage or customer service.
Additionally, The Zebra usually recommends against buying and then canceling your regular policy mid-term due to potential consequences like early termination fees or coverage gaps, especially in the first 30 days.
"It's important to maintain some level of car insurance even if you drive occasionally or don't have a car. If there's a lapse in coverage or you eventually have to drive more, you'll lose continuous insurance discounts and have to pay higher premiums"
Richard Chavez — Licensed insurance professional at The Zebra
Fortunately, there are safe and relatively affordable alternatives for those seeking temporary coverage. Keep reading to explore which of these best suits your needs.
Need to be insured ASAP?
How to get car insurance for a short time
While major insurance companies typically don't provide temporary car insurance policies, there are affordable options available. Usage-based, non-owner, or "parked car" insurance, being added to another driver's policy or using their vehicle under "permissive use", rental company insurance, or asking about "Student Away From Home" discounts are some of them.
The best choice for short-term auto insurance depends on the nuances of your unique circumstances. Use the following steps to make the decision process easier:
- Identify Your Situation: Match your specific needs with the scenarios provided below.
- Evaluate Options: In the section after, expand relevant blocks to compare the pros and cons of the suggested options for your scenario.
- Choose the best option for you: Remember that if you need further guidance, you can speak with one of our licensed agents.
- Usage-based car insurance
- Storage coverage
- Verify the owner's insurance allows for permissive use
- Non-owners car insurance (also good if you require an SR-22)
- Get added to the policy as a named driver
- Take advantage of the rental company’s insurance offerings
- Use a rental company's insurance options
- Cancel a regular policy before the term ends
Q: Why don't most insurance companies offer daily, weekly, or monthly policies?
A: Most insurance companies don't offer short-term policies because the premiums they collect from an extremely short-term car insurance policy aren't worth the insurer's administrative costs.
Additionally, short-term clients are less likely to renew. Long-term clients offer insurers stable revenue through policy renewals, reduced customer acquisition costs, and more accurate risk assessment.
For more information on common car insurance policy term lengths, see our article 12-Month vs. Six-Month Car Insurance.
Understanding each temporary car insurance option
Expand each section to better understand the nuances, pros, and cons, of each of the previously mentioned short-term car insurance options.
Usage-Based Car Insurance
Usage-based auto insurance premiums are priced based on your driving behavior, usually a monthly base rate plus a per-mile rate times the number of miles driven each month. While these car insurance policies are offered in six-month increments, usage-based insurance could be a great alternative to a standard auto policy, especially if you are among the 58% of visitors to this page who drive less than 7,500 miles per year.
Please note that there are newer companies, such as Hugo and Veygo, that claim to offer some form of "temporary insurance." However, we recommend against them as they tend to offer limited coverage, can create gaps in coverage, operate in a grey legal area, and are innately more likely to lead to a lapse in your insurance history which could lead to substantial rate hikes.
Note: Usage-based auto insurance is different from telematics, which tracks driving behaviors like speed and breaking. Learn more about telematics here.
Pros and cons of usage-based insurance
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Cost-effective for low-mileage drivers
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Offers more flexibility than traditional policies
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Typically fewer coverage options
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Some may be wary of sharing driving data via apps or plug-ins
Top Pay-Per-Mile Programs
| Company | Best For | Availability |
|---|---|---|
| Metromile | Pure pay-per-mile coverage | AZ, CA, IL, NJ, OR, PA, VA, WA |
| Nationwide SmartMiles | Safe drivers | All states except AK, HI, LA, NC, NY, OK |
| Allstate Milewise | Consistent app-to-site experience | AZ, DE, FL, ID, IL, IN, MD, MA, MN, MO, NJ, OH, OK, OR, PA, SC, TX, VA, WA, WV, WI |
| Mile Auto | Privacy-conscious drivers | AZ, CA, FL, GA, IL, OH, OR, PA, TN, TX, WI |
| Noblr | Tech-savvy drivers | AZ, CO, LA, MD, NM, OH, PA, TX, VA |
Non-owner car insurance
One way to maintain car insurance affordably is to look into a non-owner car insurance policy. Non-owner auto insurance allows you to have continuous coverage without having to own a vehicle. Because dropping coverage can lead to higher rates once you need insurance again, non-owner policies can be a better option than going without insurance. Most insurers offer non-owner car insurance quotes.
Pros and cons of non-owner car insurance
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Usually cheaper than traditional policies if your record is clean
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Allows you to avoid coverage gaps (especially important if you frequently borrow friends' cars)
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Prevents car insurance history gaps
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Fulfills state insurance requirements
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Only provides liability coverage, not full coverage
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Not available from every insurer
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Not available from every insurer
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Any vehicles you own won't be covered
Permissive use
Borrowing a friend or family member's car is a convenient option as long as they expressly permit you and their insurance allows. Be cautious, though, a collision or incident can lead to higher rates for them in the future, even if insurance covers the immediate damages.
If the borrowed car belongs to an immediate family member with an existing policy, you should be covered so long you are a named driver on their policy.
Pros and cons of being insured through a permissive users' clause
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Free for the permissive user
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Convenience factors
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No control of policy coverage levels
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Increased risk to the policyholder
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Potential coverage gaps
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Restrictions on how often you can use the policyholder's car
Permissive use auto insurance allows infrequent use of a vehicle — fewer than 12 times per year — by a driver who does not live at the same address as the policyholder. This is a feature of many standard car insurance policies with larger companies, but always double-check your policy's permissive use standards.
Temporarily adding a driver
Note: Adding a teen or young adult driver is usually pricier than adding a driver in their mid-20s or older but often more affordable than them getting a separate policy.
If you have an existing policy and want to insure a driver for just a short period, consider adding that person as a driver on your policy and then removing them when they are no longer operating the vehicle. This option is dependent on the cost of this driver, the amount of time needed to be covered, and the risk they pose as a driver operating your vehicle, so it's important to consider these factors when choosing this method. If you're adding a driver to a policy that already exists, check out our list of documents that are important to have on hand.
Pros and cons of adding a driver temporarily to another's policy
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Adding a driver above the age of 25 with a good driving record can cost as little as $100-$200
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You will be completely covered
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Increased risk to the policyholder
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Your history may affect the policyholder's coverage availability
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Potential coverage gaps depend upon the coverage levels chosen by the policyholder
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Once removed from the policy, you must be added to another to prevent a gap in coverage
Car storage insurance
This option works best for those who own cars that they do not actively drive. As noted by licensed insurance advisor Deanna Gudgin-Jones, "Even if you are someone who does not drive your vehicle often, you are still at risk for getting hit even if it's parked. Another driver could back into you and drive off. Is that something you could pay out of pocket for damages?"
Car storage insurance or “parked car insurance” is oftentimes a much better solution than canceling your policy altogether. It significantly lowers your rates while still protecting your vehicle while it’s not in use.
Pros and cons of car storage insurance
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Can be up to 80% cheaper than traditional insurance
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Keep only the relevant coverage
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Avoids higher insurance costs as you maintain continuous coverage
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Loaned/leased vehicles may need additional coverage
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Vehicles parked on a public road are sometimes required to keep the state's liability limits
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You must reactivate your standard insurance if you choose to drive it again
Insurance through a car rental company
If you rent a car, some rental companies may offer rental insurance. The portion that covers damage to the rental vehicle is commonly known as a loss damage — or collision damage — waiver. Supplementary liability covers damage to others that you might cause. At a minimum, purchase liability coverage through the rental car company if you don't have a policy of your own. Some credit cards also provide coverage for rental cars, as do several companies such as Bonzah and Rental Cover.
Read more about insuring rental cars here.
Pros and cons of insurance through a car rental company
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The convenience of having it added when you pick up your vehicle
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Immediate coverage
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Claims made on rental car insurance typically don't affect your insurance record
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If you frequently rent cars, this can become pricier than if you had a traditional policy
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Doesn't bridge gaps in your insurance history
Student away from home discount
Parents of college students should check with their insurers for 'student away from home' discounts, applicable for students driving only during breaks. To qualify for this discount, students typically need to provide proof of enrollment at an educational institution and demonstrate that they are living away from their home address.
Pros and cons of a "student away from home" discount
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Cost savings (up to 30%)
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Allows students to maintain coverage
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Often requires proof of enrollment more than 100 miles away
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Often restricts when a student can driver (typically only on breaks and holidays)
Understanding the risks and limitations of short-term car insurance
Drivers are legally required to carry auto insurance in almost every U.S. state, and the short-term coverage options listed above do not always offer the appropriate protection. When you run the risk of getting into an accident without proper protection, you are likely to pay for damages out of pocket. Read on to learn more about what else to consider when looking for a temporary car insurance solution.
Legal and lender implications
- Mandatory Insurance Laws: Unless you live in New Hampshire, you're required by law to carry at least the legal liability coverage limit to operate or register a vehicle. Depending upon the circumstances and state, if you’re caught driving without insurance, you may be fined, lose your license, or even be imprisoned.
- Lender Requirements: If you’re financing or leasing a vehicle, lenders typically require you to carry state-minimum coverage as well as comprehensive and collision coverage not available in a short-term capacity (see Coverage Activation Delays below).
Policy coverage and financial implications
- Early Policy Cancellation Costs: Canceling a policy early can mean losing part of your down payment, which usually covers 30 to 45 days of the premium. Additionally, some insurers charge substantial cancellation fees.
- Wait Time for Full Coverage: To prevent fraudulent claims for pre-existing damage, most policies won't let you use collision and comprehensive coverage for the first 30 days. So, if you plan to be insured for only a couple of weeks, you won't be able to make use of these two coverage types.
Other financial risks
- Accident Risks: Without adequate insurance, drivers can face potential lawsuits and out-of-pocket costs for hit-and-run incidents. These risks become even greater if you don't have a consistent insurance situation. For example, if you are in an accident in a friend's car and have exceeded the number of trips specified by their policy for permissive use, you likely wouldn't be covered.
- Rate Hikes: Insurers typically seek customers with a history of continuous coverage. Short-term policies can create coverage gaps, perceived as high-risk by insurers. Gaps in insurance history raise premiums by nearly $15 per month.
Insider knowledge, trusted guidance
Temporary car insurance FAQs
Protect your car with the right coverage at the best value.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.