Temporary Car Insurance

What Is Temporary Car Insurance?

Temporary car insurance covers you for periods shorter than the standard 6 month policies. Most short term insurance policies are 30 days long, but some carriers offer terms as short as one month.

In Illinois, Indiana and Texas, you're still required to carry the minimum liability coverage even if you're only using a car temporarily. That's 25/50/25 in IL and IN and 30/60/25 in TX. Insurance Navy team works with carriers including Progressive, Dairyland, Kemper and Bristol West to get you short term policies that meet state minimums without being locked into a 6 month commitment.

Who Needs Temporary Car Insurance?

Short-term coverage is a good temporary solution for buyers driving their new car home before full cover kicks in.

It's also a good option for borrowers who just want to use a friend's car for that one road trip, and parents adding a college student back on the policy for over winter break.

Classic car owners who only ever drive their car to a weekend show can insure just those days rather than paying monthly.

Rental car companies charge between $15-30/day for their coverage options, so that 2 week rental could easily be $200+ just in insurance alone.

A short-term personal policy through a company like Dairyland or Bristol West often comes in at $75-125 for the same time period and usually has higher limits on it.

What are the Benefits of Temporary Car Insurance?

Short term policies normally cost between $50-150 a month for just liability-only coverage. Full coverage can range from $100-300 + a month depending on your driving record and the type of vehicle you're using.

If you borrow a car and have to make a claim on your own short term policy then the car owners insurance won't see a rate hike. Carriers like Dairyland and Bristol West can get you same day coverage in most cases. You won't be stuck waiting 24-48 hours to start driving legally.

What are the Drawbacks of Temporary Car Insurance?

Short term coverage is normally more expensive on a per month basis than a 6 month policy. You can expect to pay 20-40% more.

In Illinois, even a one day lapse in coverage can result in a $100 fine to get your license back and higher premiums for up to 3 years.

Texas charges $250 for the first time you have a lapse in coverage.

Some carriers will require a photo inspection before they let you add comprehensive and collision coverage. This can delay getting you covered by 1 - 2 business days.

When you cancel a short term policy within the first 30 days the down payment is often non refundable and can be anywhere from $75-150 depending on the carrier.

Types of Temporary Insurance Situations

Life changes and insurance should change with it. Insurance Navy supports many situations where short-term coverage is the right fit.

Temporary Insurance for Student Drivers

When a student is off at school more than 100 miles away without a car most carriers will let you take them off the policy and put them back on when they're home for breaks. This can save you $50-150 a month while they're away.

If your child gets good grades (usually a 3.0 GPA or B average) you'll qualify for a good student discount. This can cut your premiums by 10-25% with carriers like Progressive and Dairyland.

Adding a student driver for a few months to cover winter or summer break will cost you around $100-200 for the month depending on their driving record and the vehicle they'll be using.

Temporarily Adding Someone to Your Car Insurance

Most policies will let you lend your car to a friend from time to time and that's usually covered under your existing policy. If someone is using your car regularly like your kid is driving it to school or someone you live with is driving it to work, they need to be added to your policy. That can cost anywhere from $25-75 a month.

If the added driver has a history of getting into accidents or has a DUI on their record, then you can be looking at a $100-200 increase a month. If you don't disclose that household member to your insurance company, then your carrier can drop you and deny a claim for not disclosing it.

Short-Term International Car Insurance

US auto insurance policies won’t cover you out of the country. In Mexico you need to have Mexican-issued insurance to drive. A one day tourist policy will set you back $15-25 for liability only, or $30-50 for full coverage. Weekly policies are around $40-80 for liability only coverage.

Insurance Navy writes Mexico coverage through carriers like HDI Seguros and Qualitas that are widely recognised at the border and by Mexican authorities.

Your Mexican insurance needs to include at least 500,000 pesos in liability coverage (which is around $28,000 USD) to meet Mexican law requirements. Don't leave it till the last minute! Buying before you leave the states can save you 30-50% on the price.

Temporary Insurance When Placing a Car in Storage

Comprehensive coverage for a car that's just sitting in the garage is usually around $15-40 a month depending on the value of the car and where you live. This will cover theft, fire, vandalism, hail and flood damage while the car is just sitting there.

If you drop the liability and collision coverage while your car is stored then you can take $50-150 a month off your premium.

In some states like Illinois and Texas you actually have to keep liability on even if the car is not registered. You can file for 'planned non-operation' to get around this, or you have to turn in your plates to remove the liability coverage for good

Other Situations Requiring Short-Term Coverage

Illinois requires you to have proof of insurance to take a driving test at the DMV. If you're not currently insured then you'll need a 1-day policy and that can cost $20-40.

If you're waiting for your new policy to kick in then you can get a 'bridge' policy to keep the coverage going until your new policy is active. This usually lasts for 3-7 days.

Rideshare drivers for Uber and Lyft need special commercial coverage while they're waiting between rides, as your standard personal auto policy won't cover that. A rideshare endorsement usually costs $20-$50 a month.

How Does Temporary Car Insurance Work?

Can I Get Car Insurance for Only a Month?

Yes. Insurance Navy offers policies as short as one month and where applicable even shorter. These policies mirror the coverage available in longer terms such as liability, comprehensive and collision but apply them to a compressed period. If you need less than a month we will work with you to tailor dates and limits so the policy matches the exact period you will be driving.

Short-term coverage is more per day than 6 month or annual policies but it’s less overall because you only pay for the days you need. Pricing varies with driver profile, vehicle type, location and coverage selections so the best way to estimate cost is to request a quote; our agents can get one to you quickly and explain the components that make up the premium.

What Affects the Cost of Temporary Auto Insurance?

A driver in Chicago with a clean driving record pays around $75-120 a month for liability only short term coverage. Add one accident to your record and that's up to $150-250 a month. In Houston, the base rate is about 15% higher than in Chicago because there are more claims being made. If you insure a 2024 Camry you'll pay less than if you were insuring a 2024 Mustang GT. Sports cars and luxury vehicles will add $30-80 a month to your premiums. Drivers under 25 will pay 40-60% more than drivers over 30. Choosing the state minimum liability (25/50/25 in Illinois) over the full 100/300/100 limits will save you around $20-40 a month. Lower limits can leave you liable for anything over your per accident limit if you cause a serious accident.

How to Get Temporary Car Insurance

Getting short-term coverage is easy when you do it step by step.

First define your needs by choosing start and end dates and deciding which coverages, liability, comprehensive, collision or a combination, fit your risk tolerance and the vehicle’s value.

Next research providers that offer short-term policies and compare rates and limits on an apples to apples basis. Confirm eligibility requirements such as age, licensing history, vehicle type and intended use. Then request a quote by sharing driver information, vehicle details, your garaging ZIP code and your dates; quotes are usually online or by phone.

Before you bind coverage review policy terms, limits, exclusions, fees and any state specific rules so you understand your obligations and benefits. After you purchase, keep proof of insurance with you while driving, monitor the policy end date to avoid a lapse and contact us early if you need an extension. If plans change ask about cancellation procedures; some carriers prorate unused days while others charge fees so clarity upfront helps you manage cost.

Tips to Reduce Short-Term Insurance Costs

Raising your deductible from $500 to $1,000 will cut your comprehensive and collision premiums by 15-25%. Paying in full upfront instead of paying monthly will save you another 5-10% with most insurance companies.

If you've got a multiple cars in your household you can get a multi-vehicle discount through Progressive and some other carriers. That can be 10-25% off when you insure two or more vehicles.

Some insurance companies will give you a discount if you do a defensive driving course. This usually costs around $25-50 for 4-6 hours online and that can knock 5-15% off your premium.

Don’t forget about your vehicle's safety features. If it's got anti-theft systems, a backup camera and automatic emergency braking then you can expect a 3-10% discount on your premiums. In some states, like Indiana and Texas, improving your credit can actually get you a discount, anywhere from 20-40%