Temporary car insurance: Can I buy short-term car insurance?

Q: Can I get temporary insurance on a friend's car?

No . You can't buy car insurance for a car you don't own. However, you are covered as a permissive user on your friend's existing policy as long as it is active. If you frequently drive the car, ask your friend to add you to the policy. Non-owner car insurance is an alternative that provides secondary coverage when driving vehicles you don't own; the vehicle must still have a state-minimum policy purchased by the owner.

What is temporary auto insurance?

Temporary auto insurance is car insurance that covers the driver for less than the standard six-month term. Only Hugo currently offers it, and only in 16 states:

Alabama
Arizona
Arkansas
Florida
Georgia
Illinois
Indiana
Kentucky
Louisiana
Mississippi
Ohio
Pennsylvania
South Carolina
Tennessee
Texas
Virginia

There are also temporary car insurance policies available for people visiting the U.S. from another country, but that largely applies to Mexican drivers; Canadians car insurance is valid in the U.S.

When do you need temporary car insurance?

You need temporary car insurance when moving a stored vehicle, selling a car, inheriting a vehicle or driving during a short visit to or from another country. Unless Hugo Insurance is available in your state and applies to your situation, one of the workarounds below can provide the coverage you need. Hugo doesn't apply to visitors to or from other countries.

Scenario	Coverage needed	Recommended approach
Moving a stored car to a new location	Legal coverage while on the road	Have the car towed instead of insuring and driving it
Selling an uninsured car	Coverage for test drives	Buy a policy and cancel when the car is sold
Inheriting a vehicle	Coverage while selling or deciding what to do with it	Add the vehicle to your own policy until it's settled
Visiting the U.S.	Legal coverage while driving a U.S. vehicle	If you borrow or rent a car, you may not need to buy insurance; check that the coverage extends to you
Visiting Mexico	Meet Mexican insurance requirements	Buy a temporary Mexican insurance policy

How to get temporary car insurance

To get temporary car insurance in the U.S., you have three options: buy a standard six-month policy and cancel when no longer needed, sign up with Hugo if you live in one of the 16 states where it's available, or choose a lower-cost alternative, such as rental car or non-owner insurance. Each option is explained below.

Buy standard insurance and cancel when you’re done. Sign up for a six-month car insurance policy and then cancel it when you no longer need it. There's no law that prevents you from doing this, though you may not get a full refund if you cancel early. Insurance companies may use a process called short-rating as a penalty for canceling mid-term.
Obtain pay-as-you-go insurance. Only available in California and Illinois, Hugo is a pay-as-you-go car insurance company that allows you to buy coverage as you need it, turning it on and off at will. Be aware that this may result in a lapse in coverage that could cause rate increases in the future, and that could result in penalties with the state if your registered vehicle isn’t insured.
Choose affordable options. Depending on the scenario, there are a few affordable options you can consider:
- Non-owner car insurance, which covers you when you drive someone else’s car (the car must still be insured)
- Rental car insurance, which you can buy when you rent a car

How much is temporary car insurance?

Temporary car insurance costs at least a one-month premium; since the national average annual car insurance premium is $738 for a minimum coverage policy, a month of coverage averages $62. Your rates will vary based on your vehicle, driving record, where you live any other drivers in the household. Hugo, the one true temporary car insurance we know of, doesn't list rate information.

People ask

Can I get temporary car insurance in Texas?

Yes. Hugo Insurance offers car insurance coverage for as few as three days at a time. Other carriers in Texas require at least a six-month policy.

Why don't major insurers offer temporary car insurance?

Major insurance companies do not sell temporary insurance for three major reasons: it's not financially viable to collect premiums in the short term, it doesn't attract long-term customers, and it presents a higher risk of fraud. Most insurance companies offer terms of six months, with premiums calculated to cover administrative costs and potential claims.

Here's why insurers don't offer short-term car insurance policies:

It doesn’t make financial sense. Insurers make money by collecting more in premiums than they pay out in claims. In situations where they are only collecting a few months of premiums, they would struggle to cover their administrative costs, much less the cost of a claim if you are in an accident.
Long-term customers are best. Insurers like customers who renew their policy and stay with them for several years; this way, they can hopefully collect years of premiums before having to pay out on a claim. Someone looking for short-term coverage is more than likely not going to turn into a long-time customer.
Presents a bigger risk. Short-term policyholders pose a greater risk. There is always the risk a short-term policyholder may only be looking for a claim payout or may be looking to commit insurance fraud. Even if they have a legitimate reason for needing a short-term policy, they are considered a bigger risk.

People ask

Can you register a car with a temporary insurance card?

Yes. A temporary insurance card doesn't mean your insurance is temporary, only that the insurance company hasn't issued permanent cards yet. This is unusual now, as most companies have digital cards available.

Pay-per-mile insurance vs. temporary insurance

Pay-per-mile insurance is a standard six-month policy that charges a base rate plus a per-mile rate, while temporary car insurance is purchased for a matter of days. Pay-per-mile insurance is available in most states from carriers like Metromile (Lemonade), Nationwide, Allstate and Mile Auto; temporary insurance is only available in 16 states from Hugo.

Feature	Pay-per-mile	Temporary insurance
Availability	Available in most states from several insurers	Rare
Duration	Regular policy term, usually 6 months	As little as one day
Best for	Infrequent drivers	Drivers needing brief coverage
Cost	Base rate + per-mile rate	Flat rate
Available from	Metromile (Lemonade), Nationwide, Allstate, Mile Auto	Hugo (16 states)

While pay-per-mile policies are not designed for short-term situations, if you are looking for temporary car insurance because you don’t drive much anymore or are looking to save money, a pay-per-mile policy may work.

Other ways to get cheaper car insurance for infrequent use

While temporary insurance policies are not usually an option, you might be able to adjust your insurance to get cheaper rates or to cover a car for occasional use. Here are a few of the more common ones and how to deal with them:

Coverage for occasional or seasonal cars

Owners of seasonal or occasional-use vehicles can reduce their insurance costs by dropping extra cars from their policy during months when the vehicles are not in use. Most insurers allow policy changes online or by phone. Keep in mind that most states require liability coverage for any registered vehicle, so removing coverage also means turning in the registration and plates. Some states allow a vehicle to be designated non-operational or in storage and covered by comprehensive only; these vehicles can't be legally driven.

For example, a convertible that sits in the garage all winter can be covered by a minimum policy during those months

Limited-use or collector policies

A limited-use policy can be an option for collector or classic cars. These policies insure the vehicle year-round, but you must keep the annual mileage under a certain cap. The mileage cap can vary, but 2,000 to 4,000 miles a year is typical. If you exceed the mileage limit, your claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. may be denied. With this policy type, you don’t have to start and stop coverage, but carry it continuously for reasonably cheap rates.

Needing to add a person to your car insurance temporarily

If you lend your car out to a friend or roommate once in a while, there is no need to add them to your car insurance as they are covered by your policy, which allows permissive use of your vehicle.

However, if your babysitter, nanny, or even an elderly parent drives your vehicle regularly, you should consider adding them to your policy. Check with your agent regarding your specific situation for their recommendation.

If you need to add a driver to your policy, you should have the following information handy:

Name
Date of birth
Gender
Social Security number
Driver license number
Details of any recent traffic tickets or accidents

Short-term use of a car you will resell

To cover a car you plan to sell, buy a policy for the shortest period possible, which is six months unless Hugo Insurance is available to you, and then cancel it once you’ve sold the car, but be aware that early cancellation may trigger a short-rating penalty, which means that you will not receive a full refund of the premium you paid. Always contact the insurer to cancel the policy once you no longer need it; allowing it to lapseWhen your auto insurance coverage ends because you missed a payment or did not renew it on time. A lapse in auto insurance coverage may result in paying higher premiums for a new policy. for non-payment will damage your insurance history and could result in higher rates in the future.

You don't own a car but rent one, occasionally

If you don’t own a car (or have car insurance) but rent vehicles now and again, you will need some type of rental car insurance.

There are two main options for insurance when renting a car:

Buy coverage from the rental car company. This is usually a per-day fee. Be sure to ask what is covered; you need full coverage, not just a collision damage waiver.
Buy a non-owner car insurance policy. Cheaper than standard coverage, non-owner insurance covers you when you are driving a car you don't own. Bear in mind that this only provides liability coverage, so you may still need to purchase the collision damage waiver from the rental car company, unless you have a credit card that includes coverage.

Temporary car insurance on a borrowed car

If you borrow a friend’s car regularly, you may be concerned about insurance. As long as your friend has insurance on the vehicle, you are covered.

Because you don’t have an insurable interest in your friend’s vehicle – it’s not titled in your name and you are not related or living at the same address -- insurance companies usually won’t write a policy for it.

Plus, you don’t usually need to. Most standard car insurance policies extend coverage to anyone the owner allows to drive the car (permissive drivers). That means if you’re in an accident, the owner’s liability coverages will cover those that you harm, and the collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible. would cover damages to his own vehicle. As a friend, you should probably offer to pay their deductible and any premium increase after the accident.

Even if you have your own car insurance policy, it would be secondary to the car owner’s policy, so their policy would have to handle the claim up to their policy limits, then your policy would kick in. If you frequently drive someone else’s car, see about being added as a driver to the owner’s policy to make sure you’re adequately covered.

Temporary insurance for registration purposes

If you are buying and registering a car, you need to have it insured to legally hit the road, so buying temporary car insurance doesn’t solve your problem and is illegal in many states. You cannot purchase insurance to register a car and then drop it immediately afterward.

Some states have laws set up to prevent the practice. For instance, Florida will let car owners cancel their auto insurance policies during the first 60 days only if they can show proof that they no longer own the car or have replacement insurance coverage with another insurance company.

In states with insurance databases, insurance companies report when a person starts and cancels a policy. If you cancel a policy and don’t start a new one right away but still have a vehicle registered, you can be penalized. If your car is registered, the law requires insurance. If you don’t want to buy insurance, cancel the car's registration and don’t drive it -- or be prepared to face penalties and even the possible loss of your car.

Coverage for student drivers

Suppose your child attends college or university and has a car with them that they drive on a regular basis. In that case, they need full-time car insurance, not temporary car insurance coverage. But, if they don’t have a car with them at college and only drive during winter or summer break, you may be able to save some money by adjusting your insurance coverage.

You can remove your college student from your policy when they are at school and not driving. This can lead to significant savings as young drivers are so expensive to insure. You can also ask about a student away from home discount, which keeps the student on the policy but reduces the rates because they're away. This is the better approach and ensures your student is covered any time they do use the car.

Car insurance for snowbirds and vacation homes

When you keep a car in another state for an extended period, such as for snowbirds who go south for the winter months, you may need to register and insure the car there. Each state has its own rules, but in general, if you register a car in that state, you must insure it there as well. You'll need to consider insurance during the period when the car is stored; you may be able to reduce or drop coverage.

International and cross-border short-term car insurance

Before driving outside the U.S., verify that your coverage applies. Here’s a quick rundown:

Overseas: Your U.S. coverage doesn’t apply: buy rental car insurance or find out what options are available in your destination.
U.S. territories (Puerto Rico, Virgin Islands): Your U.S. policy applies
Canada: Your U.S. policy applies
Mexico: Buy a temporary Mexican policy, U.S. coverage doesn’t apply

Contact your insurer anytime you are headed out of the country and plan to drive to make sure you are covered or if you need to add a rider to your policy to extend your coverage. If you fly to another country and rent a vehicle, you should purchase coverage from the rental agency.

FAQ: Temporary auto insurance

Is one day car insurance the same as temporary car insurance?

Yes, one-day car insurance is temporary; any policy term shorter than the standard six months is considered temporary. Insurance companies do not offer one-day policies, though Hugo lets you pay for three days at a time.

Can you get temporary car insurance for a 20-year-old driver?

Yes, you can get temporary car insurance for a 20-year-old driver if Hugo Insurance is available in your state. Hugo offers coverage for as little as three days at a time.

Can I get temporary insurance on a friend's car?

No. You can't buy car insurance for a car you don't own. However, you are covered as a permissive user on your friend's existing policy as long as it is active. If you frequently drive the car, ask your friend to add you to the policy. Non-owner car insurance is an alternative that provides secondary coverage when driving vehicles you don't own; the vehicle must still have a state-minimum policy purchased by the owner.

Why are there ads for short-term insurance?

Hugo Insurance advertises short-term insurance because it allows you to purchase coverage for as little as three days at a time. Other ads for short-term insurance likely refer to the option to purchase a six-month policy with a one-month payment and cancel when no longer needed, or to a temporary Mexican car insurance policy for driving over the border.