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Car insurance companies don’t offer term insurance options, but you can cancel the insurance or use non-owner’s insurance if you need term insurance.
Car Insurance For Temporary Drivers
By: Daniel Robinson, By: Daniel Robinson Author Daniel is a writer for the Guides team and has written for many automotive news sites and marketing companies in the US, UK and Australia, specializing in car financing and care. Daniel is an authority on the Guides team for auto insurance, loans, warranty options, auto services and more.
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Edited by: Rashawn Mitchner, Edited by: Rashawn Mitchner Editor-in-Chief Rashawn Mitchner is a leading team editor with over 10 years of personal finance and insurance experience.
Whether you are using a car in a new city for a short time or plan to sell your car soon, there are many reasons why you need temporary insurance. The thing is, temporary car insurance is not a common option with most car insurance companies.
There are ways to get short-term coverage so you don’t have to use the coverage for six months or more. In this article, our team of guides will walk you through your temporary insurance options and recommend some of the best car insurance and cheapest car insurance companies to check out.
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The guide team is committed to providing reliable information to help you make the best possible decision about your car insurance. Because customers trust us to provide objective and accurate information, we have created a comprehensive rating system to form our ranking of the best auto insurance companies. We collected data on dozens of auto insurance providers to rate the companies on a number of different factors. After 800 hours of research, the final result was an overall ranking of each provider, with insurers scoring the most at the top of the list.
Most auto insurance companies (such as Geico and Progressive) do not sell temporary or short-term auto insurance for less than six months. Some websites may try to lure you in with the promise of a cheap weekly or monthly car insurance plan.
However, submitting your information online to get an auto insurance quote or calling will likely direct you to an auto insurance agent who will offer you a longer policy.
If you hear that a company is offering temporary car insurance for a day, week or month, it is probably not legitimate and could be a scam. A six month policy is the shortest term available.
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Fortunately, signing up for regular auto insurance is easy and can be used temporarily. For example, you can buy a six-month policy and cancel it after a few months if you sell the car or stop driving. Your car insurance will not charge you for the remaining months after you cancel, although you may have to pay a cancellation fee.
Also, if you drive your car occasionally, you should consider signing up for a pay-per-mile insurance plan. You may be awarded lower rates or just pay what you drive.
While there is no such thing as temporary car insurance, there are many situations where you may find yourself in need of short-term insurance. This includes:
If you need short-term car insurance, what can you do? It is really easy to get a car insurance policy online and then cancel it when you don’t need it. Your options may include trying non-owner car insurance, getting rental insurance, or trying usage-based insurance.
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The easiest alternative to short-term car insurance is a regular policy that you use temporarily. Most auto insurance policies kick in after you make your first payment, which means you don’t have to wait long for coverage to kick in.
While many auto insurance policies do not include cancellation fees, be sure to see if the policy you are considering does. However, it may make more sense to get car insurance for a month and pay a smaller cancellation fee or loss of deposit than other vehicles.
Non-owner auto insurance can be a good alternative to long-term insurance if you often drive cars you don’t own. You may travel and use a car service or use a friend’s car regularly. You can get non-owner’s insurance from major companies for an additional six or 12 months.
The great thing about a non-owner policy is that it is cheaper than regular car insurance. This is because it usually only includes liability insurance for injury and property damage if you cause an accident. Non-owner’s insurance is beneficial if:
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Most auto insurance policies cover the primary driver along with anyone who sometimes drives the car. This means that you would be covered if you were driving someone else’s car. However, if you plan to drive someone else’s car often, consider getting non-owner’s insurance or adding yourself to their insurance if you live at the same address.
If you are using a rental car and do not have your own insurance, you can get insurance from the rental company. Rental car insurance won’t be the cheapest option available, but it will cover you while you’re using the car and help you avoid having to get full insurance. If you choose additional insurance from the car rental company, you may not have to pay a deductible if you get into an accident.
Safe drivers can earn discounts through usage-based programs like Progressive’s Snapshot® or State Farm’s Drive Safe & Save™. These programs, also known as insurance telematics, monitor driving habits such as acceleration, turning, braking and time of day. They also track distance, which often makes up a large part of the overall score.
This means that people who don’t drive often can save more on insurance costs with usage-based programs compared to people who travel every day.
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Mileage-based car insurance is part of usage-based insurance. But with this option, the only thing that matters is your mileage. If you drive occasionally, you can save a lot of money by not putting as many miles on the odometer. Examples of this coverage include:
With these programs, you usually pay a low monthly fee along with a per-mile fee. Paid apps also have daily mileage limits so you can take a road trip without paying too much.
Note that some premium insurance programs may require you to drive your car or at least move occasionally in order for the coverage to work. This is the case with Metromile.
If you are a college student who commutes to school, most companies will give you a discount on a family insurance plan if you leave your car at home and go to school more than 100 miles.
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If you store your car without using it, you may get a separate policy from your insurance provider. This covers events that could damage your vehicle while it is parked somewhere, such as hail or vandalism. But it doesn’t cover accidents, so you can’t drive your car. Some companies may require you to store your car for at least one month to get this coverage.
If you store your car for a long time, you can deregister your car and then cancel the insurance completely. Contact the DMV to remove your registration before you cancel your insurance or you will face insurance defaults.
When looking for temporary car insurance options like the ones above, there are a few things to keep in mind. These include the following:
However you decide to handle your temporary insurance requirements, make sure to avoid it happening with auto insurance. This happens when you have a car registered in your name and you don’t have insurance. Auto insurance companies report directly to the DMV in each state, so your state will know if you drop your insurance but still have a registered vehicle.
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Some providers charge cancellation fees of up to 10% of your car insurance premium, but it varies by company and state. If you’re looking for temporary insurance, it’s worth paying a lower premium to avoid higher premium costs in the future.
However, if you are looking for a new policy to cancel, be aware of the premiums you will pay when you decide to cancel your contract.
Although there is no insurance, there are many other options to choose from. When deciding what type of coverage you want and need, consider how much coverage you’re getting for the price.
While you can’t get legal insurance for less than six months, you can cancel the insurance when you don’t need it if you don’t have a car. You can also try options like non-owner auto insurance or rental car insurance to cover certain situations.
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If you decide
