Maybe you want to take your parent’s reliable car on a long journey across the United States. Or you could be moving across the country and need to borrow your friend’s car to move all your stuff.

 

Whatever the reason, temporary car insurance can come in handy in certain situations. If you’re borrowing a car, renting long-term, or lending your car to someone – a temporary policy may be just what you need.

 

Let’s dive in and look at what temporary coverage is, what the coverage works for, and when you need a policy. If you’re curious how temporary car insurance works, keep on reading.

 

What is Temporary Car Insurance?

 

Temporary car insurance doesn’t have to be complex. The coverage is just a short-term policy to help protect a car you’re driving.

 

Short-term coverage makes sense in a number of scenarios, but there are a few things you should know before signing up. First, it’s a good idea to speak with your existing auto insurance agent before looking around for another policy.

 

Many insurance companies will have add-on temporary policies that can work temporarily. If this isn’t an option, you can also look into non-owners auto insurance.  Many users find this option keeps things simple and is typically cheaper than temporary coverage.

 

Short-term, or temporary auto insurance is useful in situations like:

 

 

• Different driver using your car

• In certain rental situations

• Putting your car into storage

 

 

It should be noted that reputable insurance companies will not issue temporary car insurance policies for less than six months. While you’ll find many offers online for extra short policies of seven days or less, none of the major insurers will offer this. As such, we don’t recommend looking for such a short-term offering.

 

How Does Temporary Car Insurance Work?

 

Temporary coverage works in a similar manner to typical auto insurance. You select an amount of coverage. The coverage must meet your state’s minimum coverage limit and can include:

 

 

• Liability

• Personal Injury Policy

• Collision

• OTC (other-than-collision)

 

 

While you will have to sign up for a six-month policy, you can cancel it before the term is over. You begin the six-month period by paying for the full amount up front or selecting a month-to-month payment plan.

 

If you need to cancel the policy, you’ll have to do so a week or a month before the date you won’t require coverage. This depends on the policy.

 

If you do end up cancelling a temporary insurance policy, make sure to get a cancelation confirmation number and the name of the representative that helped you.

 

It is fairly common for the payments to continue to be processed after you requested cancellation. Refunds will be issued, but this tends to take some time. Most insurance companies don’t charge cancellation fees on short-term auto insurance coverage.

 

When Should I Get Temporary Car Insurance?

 

There are times to get short-term car coverage and other times where it is not needed. If you’re curious whether you need a policy, here are a few things to consider:

 

• Car in Storage: Many owners with cars in storage have found temporary coverage to be cheaper than their regular car insurance policy. Temporary coverage can maintain the minimum liability while taking care of any theft or damages while the car is in storage.

 

• Temporary Rental Vehicle: Certain car insurance coverage and credit cards offer rental car coverage, but many don’t. If you’re renting a car for vacation or when your vehicle is in the shop, then a temporary policy can be useful. Many times, temporary coverage will be cheaper than the rental insurance offered by the car agency.

 

• Safeguarding Against Risk: If you’ve worked hard to maintain a clean driving record and low premiums, then a student driver can bring worry. By taking out a temporary policy while the driver is learning, you can safeguard your clean record and preserve your accident-free benefits.

 

• Temporary Driver: If you loan your car to a friend or family member, you’ll want to check with your insurance agent if they are covered. Certain insurance policies only allow drivers who have been explicitly listed on the policy. If you don’t have coverage for other drivers, it can be cheaper to buy a temporary policy than add them to your current coverage.

 

Finding the Right Temporary Coverage For You

 

If you find yourself in a situation similar to the ones listed above, get in touch with your insurance agent. A temporary policy may be just what you need to help protect your assets and save a little money.

 

When you want to discuss this in depth, contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.