Who Offers Short-Term Car Insurance? – Forbes Advisor – Forbes
You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.
Updated: Apr 26, 2021, 7:00am
Car owners traditionally buy auto insurance policies that last six or 12 months. But in some cases, you may be looking for a short-term policy.
Mark Friedlander, a spokesperson for the industry-backed Insurance Information Institute, says drivers typically buy short-term car insurance policies covering 30 days or less when they need coverage for only a limited amount of time.
Just as with traditional auto insurance, the price of short-term coverage varies depending on the options you choose and the type of policy you buy, according to Friedlander. You can pick liability-only coverage, he says, or select broader coverage that includes collision and comprehensive insurance.
Trusted Choice, a network of independent insurance agents, says car owners might buy short-term car insurance for reasons such as:
Before you decide to look for a short-term car insurance policy, talk with your auto insurance agent to make sure that your regular auto insurance policy won’t cover your situation.
Trusted Choice points out that if you need to file a claim under a short-term car insurance policy, it wouldn’t jeopardize a claim-free discount you might have on a longer-term policy.
Friedlander notes that a typical short-term car insurance policy lasts 30 days even if you need the coverage for only a day or a week. As with traditional policies, pricing for short-term coverage depends on factors like:
Short-term car insurance is not widely available. While car insurance companies typically don’t advertise one-month policies on their websites, Forbes Advisor found that these companies have made filings with state insurance departments to provide one-month car insurance policies:
Friedlander says most national and regional insurance companies don’t offer short-term car insurance policies. Why? For insurers, the risk of offering short-term coverage outweighs the benefits of selling this kind of coverage, he says. That’s why insurers normally sell car insurance policies lasting six or 12 months, he says.
So, what if you aren’t able to buy a 30-day car insurance policy? Alternatives include:
John Egan is a freelance writer, editor and content marketing strategist in Austin, Texas. His work has been published by Experian, CreditCards.com, Bankrate, SHRM.org, National Real Estate Investor, U.S. News & World Report, Urban Land magazine and other outlets. John earned a bachelor’s degree in journalism from the University of Kansas and a master’s degree in communication from Southern New Hampshire University.
I’m the Insurance Analyst for Forbes Advisor. I’ve been writing about insurance for consumers for more than 20 years. Insurance intersects with many parts of our lives, yet it’s tough to untangle, and wrong choices can make a financial mess. I’m here to help you make sense of it. I’m especially interested in how data is affecting the price you pay for all insurance types.
