Who sells short-term car insurance?
Short-term car insurance is not widely available. While insurance companies usually do not advertise one-month policies on their websites.
Forbes Advisor found that these companies have filed with state insurance departments to provide one-month auto insurance policies:
‣ National Unity Insurance Co.
‣ Old American County Mutual Fire Insurance Co.
Temporary car insurance
Below are a few alternative ways to meet your short-term car insurance needs.
Rely on vehicle owner’s coverage
When you drive someone else’s car, you may not require your insurance as long as the owner has coverage and permits you to drive.
According to Madelyn Flannagan, vice president of agent development, education, and research at Independent Insurance Agents & Brokers of America, car insurance follows the car, not the driver.
As a result, if you are in an accident while driving a friend’s car, the damage will most likely be covered by your friend’s insurance.
There may be exceptions to this law in some areas, so check with your vehicle owner’s or agent’s insurance in advance to make sure you’ll be covered.
Have the owner add you to their policy
If you will be using someone else’s car for an extended period, insurance companies may prefer that you be listed as an additional driver on their policy.
The carrier could deny coverage or even drop the policy for fraud if it discovers that someone has failed to report all drivers who regularly use the vehicle.
Keep in mind that adding drivers could potentially affect vehicle owner rates, either positively or negatively.
“Let’s say I add you to my policy for a week and you have a terrible driving record,” says Flannagan. “That could cost me a lot of money.”
Students who only drive during school holidays should generally be listed on their parent’s car insurance policy throughout the year.
To minimize costs, inquire about discounts for policyholders whose children are not in college. Good student discounts may also be available.
Get a standard auto policy
Insurance companies may prefer that you be included as an additional driver on their policy if you will be driving someone else’s car for an extended period.
If the carrier discovers that all drivers who regularly use the vehicle are not recorded, they may deny coverage or even cancel the policy due to fraud.
Keep in mind that adding a driver could have a positive or negative impact on car owner rates.
Buy non-owner car insurance
Non-owner auto insurance can be a great alternative if you don’t own a car but occasionally borrow someone else’s.
If you cause an accident, this type of insurance usually covers medical claims and repair costs for others. You may be able to add different types of coverage to your insurance depending on where you live.
Not sure if non-owner insurance is worth it? Compare the cost of insurance with how often you drive other people’s vehicles.
You’d be better off relying on homeowner’s insurance if you only drive once or twice a year. Just make sure you are happy with the level of coverage they provide. Home insurance.
Buy rental car insurance
You have several choices if you need temporary insurance while renting a car :
Buy the car rental company’s coverage. Most agencies sell collision damage waivers that allow you to be financially free if the car is stolen or damaged during the rental period.
Use your credit card. Many credit cards offer rental car coverage, although it’s a good idea to call the issuer beforehand to make sure you understand what’s included and what isn’t.
Buy a standalone policy. Companies such as Bonzah and Allianz Global Assistance sell independent rental car policies that can be cheaper than rental agency offers.
Talk to an agent
Still not sure which temporary car insurance option is best? Contact an independent insurance agent to discuss your situation. They can offer advice tailored to your state’s laws and coverage alternatives.
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