What is temporary car insurance?

Although somewhat uncommon, there are instances where you may need car insurance for just a short period of time. You won’t find standalone temporary car insurance policies available from most insurers, but several carriers do offer pay-per-mile coverage that’s designed for infrequent drivers. This is a good option if you have a vehicle of your own. On the other hand, if you drive someone else’s car regularly, you may want to consider non-owner insurance. 

There are other options for obtaining short-term car insurance as well. This guide will help you decide which kind of short-term car insurance is best for your needs and how to get it. 

Key highlights

• Insurers offer products like pay-per-mile car insurance that are designed for infrequent drivers.
• Non-owner car insurance is an option for people who don’t own a vehicle but need to drive on occasion.
• Rental car insurance is a form of “temporary” or short-term insurance because it lasts only for as long as you are renting the vehicle.

What is temporary car insurance?

With a traditional car insurance policy, coverage typically lasts for six to 12 months. Temporary car insurance, also known as short-term coverage, lasts for just a few days, weeks or months.

You might need short-term insurance if: 

• You're taking a road trip and renting a vehicle, but are not personally insured or have inadequate car insurance (such as liability only) to cover a major accident.
• Your primary vehicle needs extensive repairs, so you'll be renting a vehicle but your existing car insurance policy does not cover rentals or has insufficient coverage limits to cover extensive damage. 
• You're borrowing a friend's car but do not have car insurance of your own and their policy does not cover you. 
• You only drive your car a few months a year; for example, during your college's summer breaks. 

Where can I get temporary car insurance?

Americans can’t buy temporary car insurance the way it's done in the United Kingdom, where companies like Cuvva, GoShorty, Rac and Veygo offer coverage on an hourly, daily or weekly basis. However, drivers in the U.S. do have options for short-term coverage.

"The cost of underwriting risk for such a minimal timeframe [as is typical for temporary policies] outweighs the benefits of selling this type of coverage," said Mark Friedlander, director of corporate communications with the Insurance Information Institute (Triple-I), a trade association.

Several companies, including major carriers like Progressive and Allstate, do offer pay-per-mile options. There are also several newer, online-only companies that sell short-term or pay-as-you-go insurance, but they tend to have limited availability and coverage, including:

• Hugo is a company that allows you to pay for insurance solely for the days you drive. You can buy a few days, weeks or months at a time, but you can only purchase liability coverage in some states where Hugo is available. 
• Just allows users to pay for coverage on a per-day or per-mile basis. However, it only insures residents of Arizona. 
• Mile is an insurer that charges a low base monthly rate in addition to a per-mile charge. Mile is only available in Arizona, Florida, Georgia, Oregon, Tennessee and Texas. 
• MetroMile is an online insurer that is owned by Lemonade, a digital insurance provider. It operates similarly to Mile, charging customers a monthly fee plus a per-mile rate. It is only available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington state.

Some experts urge caution when considering pay-per-mile coverage from a digital provider.

"Our recommendation is to proceed with caution [with these companies]," Friedlander says. "Some of the start-ups offering temporary policies have a minimal track record of claims history and may not have the financial capacity to cover large volumes of losses."

How does short-term car insurance work?

Insurers that offer pay-as-you-go or short-term car insurance tout the potential savings of basing your rate primarily on how often you drive. Typically, customers are charged a relatively low monthly rate, plus a fee based on how many miles they drove that month. For example:

What are my options for temporary car insurance?

Depending on how much insurance you need and for how long, there are several means of getting temporary or short-term car insurance, including:

If you’re looking for the widest array of policy options, from basic liability to full coverage with comprehensive and collision insurance, plus add-ons like towing and rental reimbursement and a choice of deductibles, a traditional car insurance policy may be your best bet. There are scores of insurers large and small that offer standard car insurance coverage, making it relatively easy to find a policy that suits your needs.

Although a standard auto insurance policy term lasts for six to 12 months, depending on the insurer, you can cancel your policy at any time in most cases, and you won't be charged for the months of coverage you don't need. However, some insurers do charge early cancellation fees.

"[Potential customers] should understand if there is a payment to start the policy and a cancellation fee," says Ian Murphy, vice president of Experian Auto Insurance Marketplace. "Also, know when the coverage begins as some do not start immediately."

Ask your agent or the company customer service representative about the fees and the policy effective date to avoid any surprises.

If a parent, relative, partner or friend gives you permission to drive their vehicle, you're usually covered by their policy. Standard car insurance policies offer "permissive use," meaning it covers drivers who are authorized to drive the policyholder’s vehicle. There's no need to purchase a separate policy, so this is an easy way to get protection before you get behind the wheel.

However, you must have permission to use the car from the owner; if you borrow it without asking and are in an accident, you could be liable for the damages. In most cases, if you live in the same household as the vehicle owner and you’re driving regularly, the vehicle owner will have to add you as a named person to their policy.

It’s a good idea to check with your insurer before you let a friend or family member borrow your car to make sure doing so won’t violate the terms of your policy

If you drive only occasionally, you may benefit from a pay-per-mile policy. These policies base your premiums on the number of miles you travel each month, so those who don’t drive much will pay significantly less for insurance than if they purchased a traditional policy. 

Coverage availability varies by insurer. For example, Hugo sells both liability-only and full-coverage policies, but in some states only liability coverage is available.

And, not all pay-per-mile companies are available nationwide. For example, Metromile is only available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.

Some companies also require users to pay a base monthly fee, regardless if they use their vehicles that month or not.

For those who don't own a car of their own, but regularly drive rental cars or use a car-share service, a non-owner policy can be a good alternative to a traditional policy. A non-owner policy usually includes liability coverage only, meaning if you get into an accident, you will be financially responsible for vehicle repairs, medical bills or property damage of your own

Depending on the insurer, non-owner auto insurance may also include uninsured or underinsured motorist protection and medical payments or personal injury protection. Comprehensive and collision coverage are not available.

Prices differ based on the company you go with, as well as personal factors such as your driving record and where you live. But generally speaking, non-owner car insurance can be less expensive than a traditional insurance policy.

Rental car insurance may be an option if you’re renting a vehicle for a few days or weeks and don’t own a car or have an existing auto insurance policy. It’s also a good option if you do have auto insurance but the coverage isn’t adequate to cover a major catastrophe (such as a liability-only policy). 

A typical rental policy only lasts as your rental agreement does, and you can purchase coverage when you pick up your vehicle. As with standard car insurance, a typical rental policy offers several coverage options, including:

• Liability insurance to cover injuries or property damage you cause others
• Collision damage waiver (CDW) / loss damage waiver (LDW) to protect against damage to the vehicle, such as from an accident, theft, or vandalism
• Personal effects coverage for any belongings of yours that may be stolen from the automobile
• Personal accident insurance to cover any injuries you or your passengers sustain
• Roadside assistance in case your rental car breaks down or you lock your keys in the vehicle may also be offered by some companies.

However, there are limitations to rental coverage. For example, policies often exclude rentals used for commercial purposes (such as driving for a ride-sharing service), and it can be expensive – as much as $50 or $60 per day, depending on coverage amounts, vehicle, and location, among other factors.

Do I need temporary car insurance?

Unless you live in New Hampshire, you are required by law to carry a certain amount of liability car insurance if you drive. That applies no matter how frequently or infrequently you get behind the wheel. If you drive without insurance and are caught, you can face fines and penalties such as having your license revoked or serving time in jail. It’s also risky; getting into an accident without insurance could leave you on the hook for thousands in property damage and medical bills. 

How much does temporary car insurance cost?

The cost of temporary car insurance can vary widely based on a number of factors ranging from the type of policy you buy – rental car versus pay-per-mile coverage, for example – to its duration, the type and amount of coverage you have, as well as personal factors like what kind of car you’re driving and how far.

Because temporary car insurance isn't common in the U.S., your best option may well be to purchase a standard policy, then cancel it when you no longer need coverage. The average annual rate nationwide for a full-coverage car insurance policy is $1,897, based on our research.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

Frequently asked questions

Can I get temporary car insurance in the U.S.?

Most standard policies are for six to 12 months. If you need car insurance for only a few days to a few months, your best bet may be to obtain a standard policy through a recognized carrier and then cancel it when you no longer need coverage. Pay-per-mile insurance is another option if you own a car but drive infrequently, while non-owner insurance may be worth considering if you drive someone else’s vehicle.

Can I get temporary car insurance if I have a poor driving record?

Standard car insurance and pay-per-mile policies are available to most drivers, even if you have a less-than-perfect record. However, if you have been convicted of a severe infraction, such as driving under the influence (DUI), you may have to seek coverage through a non-standard insurer that specializes in policies for high-risk drivers.

Can I cancel my car insurance and get a refund?

If you purchase a standard car insurance policy and cancel it early — for example, ending your coverage after three months — you are usually entitled to a refund of any premiums paid, and you're released from any further obligation to pay the policy's premiums. Check with your insurer to make sure you won’t be subject to any cancellation fees.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.