What Is Temporary Car Insurance?

There may be times when temporary car insurance might sound like a simple solution, but the reality is you typically can’t buy a policy labeled “temporary.” And if you find a carrier online offering insurance coverage for just a few days, proceed with caution — it could be fraudulent. Still, that doesn’t mean you’re out of options. While typical insurance is sold in six- and 12-month policy terms, drivers who no longer need coverage can cancel their auto insurance early. Understanding the coverage options available to you can help avoid unnecessary costs and undue stress if you only need insurance for a short time.

Can you get temporary car insurance?

In most cases, you cannot purchase temporary car insurance, as standard auto insurance is typically sold in six- or 12-month policy terms. The coverage you need really boils down to why you need short-term insurance. For example, if you are renting a car, most rental companies offer insurance you can purchase by the day. While there’s no one-size-fits-all temporary option, there’s almost always a coverage solution that fits your situation.

How can I get temporary car insurance?

Unless you’re purchasing coverage directly from a rental car agency, getting temporary insurance usually starts the same way as any other policy. You’ll want to choose the right coverage for your needs. Once you no longer need to drive the vehicle, you can cancel the policy early or potentially switch to a storage plan.

How much is temporary car insurance?

The cost of temporary car insurance depends on how you’re getting coverage. If you are renting a car, rental car insurance usually costs between $10 and $30 per day, depending on the coverage you choose (for example, liability, collision damage waiver or personal effects protection). Other factors like the make and model of the vehicle, the rental location and whether you’re under 25 can heavily influence per-day insurance costs, as well.

Similarly, the cost of a traditional auto insurance policy will vary based on several factors, including the insurance company you choose and the coverage limits you select, plus the type of car you drive, your age, your location, your driving record and more. That said, you can get a general idea of how much you might pay by looking at average premiums for full and minimum coverage policies.

Based on an analysis of data from Quadrant Information Services, the average cost of car insurance as of June 2025 is $2,680 per year for full coverage. This comes out to $7.34 per day. Yearly rates for minimum (or liability-only) coverage are $802. This works out to $2.20 per day.

Average cost of car insurance per day

Who needs temporary car insurance?

There are several reasons a driver may seek out short-duration car insurance:

• Renting a vehicle
• Borrowing a car
• Going away to school
• Seasonal use
• Storing a vehicle to sell
• Test driving
• Inheriting a vehicle
• Purchased a vehicle before their policy started
• Moving or traveling

Can you get daily, weekly or monthly car insurance?

Car insurance policies aren’t typically sold by the day or week unless you’re buying coverage through a rental car company or a specialized insurance provider. This is because longer policy terms help reduce fraud and keep administrative costs down, which makes it easier for insurers to assess risk and price policies.

How can a standard auto insurance policy be used temporarily?

A standard insurance policy can usually handle short-term needs, you just have to be strategic. Whether you plan to cancel the policy early, switch to storage coverage or only need insurance for a few weeks, traditional policies offer more flexibility than you might expect. The table below outlines common situations where a standard policy can work as a temporary solution.

What happens if you cancel a standard car insurance policy early?

Canceling your auto insurance policy before the end of the term is usually allowed, but it can come with a few consequences. Some companies, often nonstandard auto carriers, apply a short-rate cancellation fee. This means they keep a small percentage of your unused premium as a penalty. Others may charge a flat cancellation fee. However, for the most part, auto carriers usually cancel policies on a pro-rata basis, refunding the unused portion without a fee.

Note that canceling policies too often can raise red flags with insurers. If it looks like you’re frequently buying and insuring vehicles for short periods, insurance companies may assume you’re operating like a dealer and may deny future coverage. These situations require dealer insurance, which isn’t sold by every carrier.

That said, there are plenty of situations where it makes sense to cancel your policy early. If you’ve sold your vehicle, don’t plan to drive for an extended period or won’t be purchasing a new car anytime soon, ending your policy can help you avoid paying for coverage you’re not using.

What are the other options for short-term car insurance coverage?

While a typical auto insurance policy can work for most situations, it may not be the best choice for everyone. If you only drive occasionally or don’t own a car at all, you might not need a traditional policy. Alternatives like pay-per-mile insurance and non-owner car insurance can offer financial protection but typically at a lower cost than traditional insurance policies.

What is pay-per-mile auto insurance?

Pay-per-mile auto insurance is a type of policy designed for low-mileage drivers. Instead of paying a flat monthly premium, you pay a base rate plus a per-mile rate, so your cost is directly tied to how much you drive. Most insurers use a plug-in device or mobile app to track your mileage and offer the same coverage you would get with a standard policy.

This could be a good option for drivers with vehicles that are rarely used but still driven enough that a storage plan wouldn’t be the best option. Students who leave their cars at home while in school may fall into this category, as well as overseas military members and remote workers.

What is non-owner car insurance and who is it for?

Non-owner car insurance is a liability-only policy for people who don’t own a vehicle but want coverage for when they occasionally drive. To qualify for this coverage, you cannot own a car or have regular access to a vehicle. For example, if you live with your parents and they have a car, you would need to be added to their policy as a driver, and you would not qualify for a non-owner policy.

This type of policy is ideal for drivers who borrow or rent cars or are in-between vehicles and want to maintain continuous coverage. Also, drivers who need to maintain SR-22 insurance but no longer own a car can get a non-owner policy to meet state requirements. While a non-owner policy is also sold in six- or 12-month terms, it is usually cheaper than a full coverage policy since it does not include comprehensive or collision coverage.

Frequently asked questions

• How does insurance work when driving someone else’s car?
  

  For the most part, insurance follows the vehicle, not the driver. Due to the permissive use clause found in most insurance policies, your policy coverage may extend to drivers not listed in the policy, as long as you give them permission to use the car. This policy stipulation is meant for occasional drivers, such as out-of-town relatives. However, some insurers specifically stated that only the drivers listed in the policy are covered, so check with your agent before allowing others to drive your car.

• How can I get added to someone else’s car insurance policy?
  

  Before driving a car, it’s smart to make sure the owner has an active insurance policy for the vehicle. If you will be driving the car regularly, you will likely need to be added to the owner’s policy to be covered. The process of being added to a policy is simple. You will need to provide basic information such as your name, driver’s license number and driving history. Keep in mind, only the named insured (aka policyholder) can make policy changes, and their rates can increase or decrease depending on your driving record and other factors.

• What is one-day car insurance?
  

  Unfortunately, one-day auto insurance doesn’t exist aside from rental car insurance and other types of specialty products. The phrase is often confused with dollar-a-day insurance, which is a low-cost insurance plan available in the state of New Jersey. Only drivers on Medicaid with hospitalization benefits are eligible, and the coverage does not meet New Jersey’s minimum car insurance requirements.