Temporary auto insurance is a policy that provides insurance coverage for a short period. It’s sometimes referred to as short-term car insurance or monthly car insurance.
That said, most major car insurance companies don’t issue temporary car insurance; they only issue policies for six-month and one-year terms. If you need car insurance for less time than that, you might run into trouble finding reputable insurance companies offering short-term coverage.
The good news is there are plenty of temporary car insurance options for both vehicle owners and non-owners utilizing different approaches to standard car insurance. Let’s take a deeper dive into your options for temporary car insurance and how you can leverage most car insurance policies to gain affordable temporary coverage.
Learn more: How does car insurance work? The basics explained
There are ways to minimize the cost of using insurance short term, whether you own a car or not, but most of the companies offering daily or weekly car insurance could be scams.
Most auto insurance companies don’t offer anything shorter than a six-month policy. If you find an agent selling daily or month-to-month coverage, make sure they’re a licensed auto insurance agent. You can find information about licensed insurance agents on your state’s department of insurance website.
Learn more: How to shop for car insurance
Circumstances could arise when you need monthly or weekly car insurance. Here are a few scenarios in which a standard car insurance policy might not be a good fit for you financially.
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You’re a college student. Many college students don’t have cars on campus and only drive a car regularly on holidays or summer breaks.
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You’re just visiting. Maybe you’re just in town for some sightseeing or a family gathering and need to borrow a friend’s car or rent a car to get around.
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You’re borrowing someone else’s car. For whatever reason, you need a vehicle, and a family member or friend has one to spare.
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You bought a car you’re selling soon. Whether you’re flipping the car or getting ready to go carless, you might not be planning on keeping your vehicle long-term.
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You only drive seasonally. You don’t drive your own car frequently or your vehicle is in storage most of the year.
In these situations, it’s tempting to take the risk and drive without insurance, but in most states, that’s illegal and will open you up to hefty fines, a suspended license, and even jail time. And even if your car is in storage or sitting in the driveway for long periods, it can still be a target of theft, vandalism, or damage from a natural disaster, storm, or falling object.
So, it’s important to either have your own auto insurance policy or make sure the car owner’s policy covers you.
Read more: What happens if someone else crashes your car?
If you find yourself in a situation where you need car insurance temporarily, the best car insurance companies offer several out-of-the-box coverage solutions to keep car insurance costs reasonable.
Best for vehicle owners
This can be the most expensive option in terms of temporary car insurance policies, but if you need coverage for a few months, you can take out a six-month standard auto insurance policy and then drop the insurance when you no longer need it.
This option does open you up to a cancellation fee, which can be $50 or more, and there’s no guarantee you’ll get a refund for any “unused” future insurance.
Cancellation fees aside, you’ll also want to take care not to miss any pending payments, as this could appear on your driving record as a lapse in coverage and result in higher car insurance rates.
Expert tip: Certain insurers don’t charge for the remaining months of insurance you don’t use. On its website, Progressive says, “If you own your vehicle, you can buy a six-month policy, cancel when you’re done driving, and avoid paying for months you don’t drive.”
Learn more: How to cancel your car insurance in 3 easy steps
Best for borrowing a car
If you regularly drive a car you don’t own or frequently rent cars, a non-owner car insurance policy may be the cheapest option for temporary coverage under your own insurance policy.
Be warned that the assumption is the vehicle you’re driving is covered by comprehensive and collision coverage, so non-owner car insurance usually just offers liability coverage.
Learn more: What is non-owners car insurance?
Best for rental cars
If you’re using a rental car for a shorter period of time, it may make sense to buy insurance from the rental car company. But keep in mind the collision damage waiver the rental car companies sell usually just offers collision coverage to pay for damage to the rental car.
Before you buy rental car insurance from the rental company, double-check to see if your credit card offers primary or secondary rental car coverage either as a free benefit or for a monthly fee.
Learn more: How does credit card rental car insurance work?
Best for occasional drivers
College students, retirees, and other drivers who only hop into their vehicles sporadically may save quite a bit by leaning into usage-based insurance. A pay-per-mile approach allows infrequent drivers to maintain full coverage while lowering future insurance premiums.
In order to qualify for mileage-based insurance rates, you may have to live in certain states and be required to install telematics on your vehicle.
Learn more: How does pay-per-mile car insurance work?
Best for unplanned car use with family members
A permissive user or driver is defined as a licensed driver who has the car owner’s permission to use the car, although many insurance companies stipulate limits to this coverage. The policyholder can also specifically identify excluded drivers who aren’t allowed to use their vehicles.
Once consent is given to use the borrowed car, you’re covered under the car owner’s insurance or friend’s policy for whatever kind of coverage they have on the policy.
Best for sharing a car with family or friends
Unlike permissive use coverage, if you’re planning on sharing a car frequently or for longer periods of time with friends or family, it’s best to officially add them to the policy as a named driver, even if it slightly raises your premiums.
A “named insured driver” is the person listed as the primary driver of the vehicle on the policy. A “named driver” is an additional driver you’ve added to your policy.
Best for cars in storage
While you don’t legally need insurance for a vehicle that’s in storage or isn’t driven on public roads, you might want car storage insurance, also known as “parked car insurance,” if you’re worried about damage occurring either in your driveway, garage, or in storage.
Storage coverage is typically cheaper because it only provides comprehensive coverage for protection against theft, glass damage, fire, or flood.
Learn more: What is car storage insurance?
Here are a few tips for drivers looking for a short-term car insurance policy that steer clear of scams and ensure reasonable car insurance rates.
The best way to shop for temporary or short-term car insurance is to connect with a licensed insurance agent who can help you explore coverage options and shop for multiple insurance quotes. Be transparent about your situation and how often you’ll use the vehicle.
Trying to save money by finding a temporary insurance solution can cost you more in the long run if you let your coverage lapse. If the vehicle is registered in your name and you don’t have insurance, be aware that the insurance companies communicate directly to your state’s department of motor vehicles.
Remember that borrowing or renting a vehicle isn’t your only option when you need a set of wheels. Ridesharing services, which obviously don’t require you to pay for insurance or gas, may be cheaper in the long run if you don’t drive frequently and live in a metro or suburban area.
For the most part, companies offering auto insurance coverage on a day-to-day or week-to-week basis are either operating scams or don’t provide enough coverage to meet your state’s minimum requirements. Check with your state insurance department for more information about agents licensed to operate in your area.
Yes. Generally, reputable insurance companies offer policies that span six months to a year, but you can make monthly premium payments. However, paying month by month could cause you to miss out on discounts for paying six or 12 months at a time. Check with your insurance provider or insurance agent for more information about their payment options.
While you can’t get insurance coverage for a car for a single day, you can certainly secure same-day coverage for a new vehicle when you contact your insurance provider.
Often, as long as you have the pertinent vehicle and personal information and your documents are in order, insurance companies can offer you a policy on the spot. You may be required to make an initial payment to secure immediate coverage.
This article was edited by Tim Manni.
