Temporary Car Insurance: When To Get It and How

Even if you don't own a car, there may be times when you need to insure a vehicle for a brief period of time. Being uninsured at the wrong time could devastate you financially, especially if you cause an accident.

If you're thinking of temporary car insurance as a policy you put into place for just a few days or a week, that's not quite what we're talking about. If I went to my regular auto insurance company asking for temporary coverage, they would likely tell me to consider a policy with a minimum six-month term.

However, depending on your reason for purchasing coverage — for example, you're traveling, using a car-sharing service, or don't own a car but want to avoid a lapse in coverage — there may be some options available to you.

Can you get temporary car insurance? 

Like we said, temporary, short-term policies don't technically exist. But we all know driving a vehicle without at least some level of insurance is illegal (in most states). Even if you're driving temporarily, such as while on vacation, you need to have coverage in case of an accident or natural disaster that causes damage.

In most cases, car insurance providers offer policies that last six months or one year, so that's what you'll need to purchase. You could technically buy this type of policy and cancel it once you no longer need it, assuming the insurance provider doesn't charge a cancellation fee. But depending on the circumstances, you may be able to secure coverage through other means, like rental car insurance, non-owner insurance, or rideshare insurance.

When you might need temporary car insurance

There are a handful of instances where you may need to get some form of temporary coverage. Let's talk about your car insurance options for each of these circumstances:

• Renting a car
• Avoiding a lapse in coverage
• Using a car-sharing service
• Borrowing a car from a friend or family member
• Driving a car you keep at a vacation home or in storage
• Returning home between college semesters
• Driving rideshare or food delivery

Renting a car

Let's say you're renting a car on vacation. As long as you have a policy in place for your primary vehicle back home, coverage typically extends to rental cars as well. It's a good idea to contact your insurer before you leave to make sure, though.

Your credit card may also offer some level of rental car coverage when you use your card to pay, though many cards only offer secondary coverage and require you to file a claim with your personal insurance company first. But some cards, including the Chase Sapphire Reserve^®, Chase Sapphire Preferred^® Card, and United℠ Explorer Card, offer primary coverage.

Be sure to examine the fine print on any auto coverage your credit card issuer provides, though. For the cards above that offer primary coverage, you must pay for the rental with that card and decline the collision insurance that the rental company offers. Other terms may apply depending on the type of vehicle as well.

If you want to avoid involving your personal insurance policy, you might choose to apply for a credit card offering primary coverage. You can also typically buy collision and comprehensive coverage, as well as injury and property damage liability coverage, from the car rental company.

Avoiding a lapse in coverage

Maybe you're going to go carless for a period of time, but you expect to purchase another vehicle eventually. If you expect to be without a car for a few weeks or months, you might still want to keep your coverage or buy a new policy.

The reason for this is to avoid a lapse in coverage. Even if it's a planned one, it can look like a negative mark against you to insurers. They may see you as a higher-risk customer and therefore charge you more for any future insurance policy.

Using a car-sharing service

Maybe you're using a short-term vehicle rental company such as Turo or Zipcar. Fortunately, in these cases when you might only need a car for a few hours or days, you can often buy damage or liability coverage from the company. Zipcar, for example, lets you purchase damage and liability protection on a per-trip basis.

Check with the company before you rent a car to find out whether insurance is included in the rental cost or if renters have to purchase it separately. Verify any details so you don't get an unpleasant surprise on top of the unpleasantness that will come if you get into an accident. A car-sharing platform such as Turo is not the same as a car rental company, which means credit card companies likely won't cover damages to these vehicles.

Borrowing a car from a friend or family member

What if my niece were to visit me for two weeks to check out a few nearby colleges? If she didn't have her own car and wanted to use my vehicle, would she be covered?

Fortunately, in most cases, an insurance policy is attached to the vehicle, not necessarily the driver, so my niece could drive my car to and from these college visits as long as I gave her permission.

However, if she kept driving my borrowed car on a more long-term or frequent basis, I'd want her to get a non-owner car insurance policy, which usually is liability coverage against damages and injuries. If a relative or friend borrowing my car were to cause an accident, this coverage would help ease the financial repercussions and provide backup in case of any issues with my own car insurance.

Driving a car you keep at a vacation home or in storage

If you have a vehicle that you don't drive often, the best option may be to either keep it on your regular insurance policy or add it when you need it and remove it when you don't. Just be sure the insurance company knows the vehicle isn't garaged at your primary residence to avoid running into any trouble.

Returning home between college semesters

Another reason you might want to purchase temporary car insurance is if you're a college student heading back home for the summer. In this case, you might decide to get non-owner insurance coverage for liability purposes or ask the policyholder to add you to their car insurance policy.

If you're the parent of a returning college student, you should generally contact your insurer to find out your best course of action. The company may allow you to remove your child from the policy during the school year and add them back while they're at home driving your car. There may be specific guidelines regarding how frequently the student drives your car as well, so be sure to cover all of your bases.

Driving rideshare or food delivery

If you're using your own car for gig work for companies such as Uber, Lyft, DoorDash, or Grubhub, your personal auto insurance policy may not cover you if you get in an accident in the course of your work. Check with your company so you understand what's covered and when.

Your personal car insurance provider may require you to purchase additional rideshare coverage. That's why it's so important to check with them before you begin driving for one of these companies, even though you have to have a minimum level of auto insurance to work for them.

How much is temporary car insurance?

Asking how much temporary car insurance costs is like asking how much healthcare costs. It varies greatly, so without individual details, it's really hard to estimate.

Factors that affect car insurance rates include the type of coverage, your age and driving record, the vehicle you're insuring, location, annual mileage, and more. Plus, insurers may offer a discount for paying six months or a year in full rather than paying on a monthly basis.

With such a wide range of car insurance costs, it's best to get quotes from several companies for the type of coverage you're looking for so you can accurately compare your personal options.

As an example, though, here's what auto insurer Progressive says is the average cost of a six-month liability-only policy:

• Average of $157.27 per month in high-cost states
• Average of $105.36 per month in medium-cost states
• Average of $79.83 per month in low-cost states

How to get temporary car insurance

As previously mentioned, auto insurance companies typically don't offer short-term coverage. But depending on the situation, you may be able to get the coverage you need (if you don't already have it) through:

• Your existing auto insurance company
• The car rental company
• A car insurer that offers commercial or non-owner policies
• The car-sharing service
• The company for which you perform rideshare or food delivery services
• Your credit card issuer

Again, if you're renting a car with a credit card, most cards offer what's called secondary coverage, which means it doesn't kick in until after you file a claim with your personal insurance policy (if you have one). 

That said, some cards offer primary rental car coverage. For instance, the Chase Sapphire Reserve^® offers up to $75,000 of primary theft and collision coverage. Importantly, you typically always need to turn down the rental company's coverage to be eligible for coverage through your credit card..

How to avoid temporary car insurance scams

If you need coverage for a short amount of time, remember that legitimate auto insurers don't typically offer that. So if you do see an advertisement for one-month, one-week, or even one-day car insurance, that could be a red flag for a scam.

Legitimate insurers spend plenty of money on advertising to ensure they're a household name. If you're thinking about buying coverage from an insurer you don't recognize, research the company online. Browse customer reviews and look for any indicators that they're not legitimate.

Even if you're fairly certain it's not a scam, it may still be better to speak with an insurance agent who works with a reputable insurance company. At the very least, they can help you figure out your options based on your situation and needs.

FAQs

Bottom line

For situations like a vacation or temporary change in vehicle when you might need temporary car insurance, there are coverage options available. However, car insurance companies don't technically offer temporary car insurance — instead, you can buy a policy for a six-month period or longer.

In some cases, you might already be covered, such as with rental car insurance offered by a credit card. If you do find that temporary car insurance is necessary, shop around and take your time to compare insurance rates and policies first. The best car insurance companies should likely have a policy that fits your needs.