What is Temporary Car Insurance?

Can You Get Temporary Car Insurance?

You can get car insurance that you'll use for only a short period of time, though true "temporary" policies aren't common in the U.S. That's because most major insurance companies won't sell car insurance policies with a term of less than six months, as the risk typically outweighs the benefits.

If you're considering a temporary type of car insurance policy, be careful about what company you do business with, and be sure to look out for scams. "One-day" policies and similar marketing tactics could be a red flag. Be extra diligent to ensure the company you choose is reputable and that the policy offers fair terms. There are also alternative forms of temporary coverage you can explore, which are explained in more detail below.

How Does Temporary Car Insurance Work?

In most states, you're required to carry auto insurance, even if you're driving a car you don't own. In some cases, you might need car insurance for only a short time, though. For instance, you may need to borrow a friend's vehicle for a couple of months and want to avoid being saddled with a six- or 12-month policy of your own.

Generally, a short-term car insurance policy will only provide basic liability coverage, which pays for damage to other cars or property as well as injuries to other people if you're at-fault in an accident. Liability coverage does not, however, pay for your own injuries or damage to the car you're driving.

Going without any coverage at all could stick you with thousands of dollars in repair, medical and legal bills. It's also illegal in most states.

Learn more: What Is Liability Auto Insurance?

When Do You Need Temporary Car Insurance?

There are several situations in which you may need to secure car insurance for a short period of time, but it all depends on the specifics of the situation.

A few times you might consider some sort of temporary coverage include:

• When borrowing a friend's or family member's car for a short period or while your car is being repaired: There's a chance the owner's existing policy covers you when driving, so check that first.
• While renting a car for a few months: You likely can skip temporary insurance if you buy coverage from the rental car company or you rent the car with a credit card that provides automatic rental coverage.
• If you're getting behind the wheel of someone else's car while you're on a road trip: Again, the owner's insurance may cover you so have them read their policy's fine print before you embark.

"Permissive use" is an inclusion in many major car insurance policies that covers temporary drivers of a vehicle. If you're borrowing a vehicle, always ask the owner if their policy includes permissive use, as it will impact what coverage you need to secure.

Learn more: How to Get Temporary Car Insurance for One Day

How Much Does Temporary Car Insurance Cost?

Temporary car insurance coverage typically costs more on average than a traditional six-month or 12-month policy. Temporary policies can run as high as $200 a month and often have 30-day minimums, even if you need coverage just for one day or one week.

In 2022, the latest year for which data is available from the National Association of Insurance Commissioners, the average monthly premium for a car insurance policy covering liability, comprehensive and collision was $104.83.

In addition to the state where you live, factors that typically affect car insurance rates include:

• Age
• Gender
• Driving history
• Driver experience
• Claim history

Not all states use credit scores in insurance pricing, but many do. In states where it's allowed, insurers can check your credit-based insurance score when you apply for coverage, whether or not it's a short-term policy. A credit-based insurance score is typically based on your credit report from one of the three major credit bureaus—Experian, TransUnion or Equifax—and reflects how well you manage your finances and how likely you are to file an insurance claim. Typically, the better your score, the lower your premiums will be. Higher scores indicate greater risk for insurers and can result in pricier premiums.

How to Get Temporary Car Insurance

As with any type of insurance coverage, you'll want to shop around before buying a temporary car insurance policy—especially since these are not widely offered.

You have several options when looking to secure coverage for only a short amount of time. Some of these options include:

Leverage the Owner's Insurance

If you're borrowing a car from someone who has their own coverage, there's a chance their policy includes "permissive use," which would cover you when driving—as long as you have the owner's permission to get behind the wheel. Check with the owner and make sure you understand any limitations to this coverage. (For example, you may only be able to drive a certain number of days.)

The owner of the vehicle can also add you to their policy temporarily. This would ensure you're covered for the period you'll be driving their car.

Cancel a Traditional Policy Early

One option is to simply purchase a standard six- or 12-month policy and cancel it once you no longer need it. In effect, that would be temporary coverage, and would ensure you have the protection you need for as long as you need it.

Just be aware that this could impact your future insurance costs, as insurers don't look kindly on gaps in coverage.

Get Non-Owner Insurance

Non-owner car insurance covers you when you're driving a car you don't own, such as one you're borrowing from a friend. You usually can buy non-owner coverage in six- or 12-month increments, sometimes from major insurers. It normally costs less than a traditional policy does, and you can cancel it before the policy period ends to avoid paying for coverage you no longer need. Companies that sell non-owner insurance include Elephant and Geico.

Buy Rental Car Insurance

If you're renting a car, you can purchase a separate rental car insurance policy to cover you while you have the vehicle. You can get this type of coverage directly from the rental car company, and it won't affect the rates you pay for any personal coverage you have.

Some credit cards provide rental car coverage as a perk, so check the fine print on your cards before booking a rental. (You may need to use the card when paying for the rental car to ensure coverage, for example.)

Learn more: How Does Rental Car Insurance Work?

Use Dealership Coverage

If you're buying a new vehicle, the dealership that sells you the car may offer temporary car insurance you can use. This may cover you for anywhere from a week to a month. Just make sure you understand the limitations of the policy and secure your own policy by the time the coverage expires.

Look for Reduced College Student Coverage

If your child is away at college for much of the year and leaves their car at your home, you might consider decreasing the coverage to the minimum amount required by your state. This could lower your premium but still ensure your child is covered when they return home.

Another possibility: Many auto insurers let you temporarily exclude from your policy a child who has left for college, as long as the school they're attending is more than 100 miles from home. When the school is less than 100 miles away, auto insurers figure there's a good chance that your child may return home fairly often and use your car, thereby eliminating the opportunity to get an exclusion. You'll just have to remember to stop and restart their policy as necessary.

Explore Pay-Per-Mile Coverage

While not technically a temporary policy, pay-per-mile coverage is another alternative to consider. This type of car insurance policy bases your rate on how much you actually drive, rather than a set premium each month. This could be an option if you only need coverage for a limited period.

Pay-per-mile policies aren't offered through every insurer, but some major companies do have programs. These include Allstate, Nationwide and Lemonade.

Learn more: What Is Pay-Per-Mile Auto Insurance?

Frequently Asked Questions

The Bottom Line

If you need car insurance coverage for only a limited period of time, there are many options you can explore, including getting a traditional policy and canceling it early or buying non-owner or rental car insurance coverage. Use Experian's car insurance comparison tool to start your search.