Sometimes, you don’t need long-term car insurance because your driving needs are only temporary. Temporary car insurance can be issued for any limited period of time, but it is commonly written for periods between two and 28 days.
Temporary car insurance is billed similarly to regular car insurance with a daily or weekly premium required to establish and maintain coverage. Should you get into an accident, there is also a deductible that will apply and varies from provider to provider.
Temporary car insurance is not so easy to find, however. Many insurance companies instead use traditional auto insurance policies and only charge a pro-rated amount based on the need.
Who Should Get Temporary Car Insurance?
This kind of insurance can be the right pick when you are borrowing a car you do not own and have not insured. Temporary car insurance can be a great option if you fit any of these scenarios:
You plan to drive a rental car.
You will drive a friend’s car on an upcoming trip.
You are between vehicles and drive a family member or friend’s car occasionally.
You plan to resell your new car immediately.
You drive for a ride-sharing service in a car you don’t own.
You have a temporary guest who will drive during their stay.
Most rental car companies require that you protect your rental with car insurance, and some companies will even provide the coverage themselves.
What Does Temporary Car Insurance Typically Cost?
According to the Insurance Information Institute, the average car insurance policy costs about $1,005 per year, but car insurance is highly customized to each person, taking into account specific factors like where you live, the kind of car you drive, and how much you drive.1 The shorter your policy, the more you are likely to pay for the daily or weekly rate of your temporary insurance policy.
How We Chose the Best Temporary Car Insurance
With so many insurance providers available today, it can be overwhelming to find the right one for your specific needs. Before selecting an auto insurance provider, we weigh several factors, including coverage options, and affordability. We then considered other things including mobile tools, discounts, and add-on coverage to provide a comprehensive portrait of the best temporary car insurance providers.