+120 more)
Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
)
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
Updated
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
Car insurance policies usually come with six- or 12-month terms, but sometimes you might need a shorter-term policy — whether that’s due to your budget, an upcoming car rental, or another reason.
While actual short-term car insurance is hard to find, you still have several options for getting coverage for a limited period, including increasingly popular usage-based and pay-per-mile policies.
This article covers when you might need short-term coverage and options for finding the right policy.
You can typically purchase standard car insurance policies in only six- or 12-month increments.
Pay-as-you-go plans from companies like Hugo can give you short-term flexibility while still maintaining a standard six-month policy.
Flexible long-term policies, liability-only coverage, and non-owner car insurance are a few other viable alternatives to short-term policies.
Nearly all auto insurance policies come in six- or 12-month terms, mostly because major insurers prefer long-term contracts. That said, you might sometimes need coverage for a shorter time frame.
Fortunately, you have a few options if you need short-term coverage. For example, Hugo Insurance offers liability-only coverage that you can buy for a few days, weeks, or months at a time. You can also buy car insurance through a rental car company if you just need coverage for cars you rent. Or you can get a non-owner car insurance policy if you don’t have a car of your own but occasionally drive your friends’ or family members’ cars.
Next, we’ll cover a few situations where paying for a short-term insurance policy might make sense.
Compare personalized quotes and find the best policy for you
)
You might be looking for short-term car insurance for a few different reasons, such as renting or borrowing a car or owning a car you never drive. Let’s look at some scenarios where short-term coverage might be useful.
Traditional car insurance coverage typically extends to a rental, so if you have an existing car insurance policy, it should cover your rental. Credit cards may also offer some secondary coverage on top of your standard policy. But if you don’t have car insurance — because, for example, you don’t own a car — you might need temporary coverage to protect yourself against potential damages or liabilities.
While most rental companies offer their own insurance, this can be expensive and may not provide all the protection you need. You may be able to get broader coverage at a lower cost through a third party. Be sure you research your options before you head to the rental counter.
If you need to borrow someone else’s car, having your own coverage can offer additional protection.
The car owner’s insurance policy typically covers any drivers using the vehicle with the owner’s permission. But if you’re borrowing someone else’s car and they have limited coverage, you might want your own short-term car insurance or a non-owner policy to avoid any gaps. This is especially important if you borrow the vehicle for an extended period or a long road trip.
Traditional car insurance might seem like an unnecessary expense if you don’t drive much. In this case, temporary or usage-based coverage might be a better fit.
Companies like Hugo, Metromile, and Mile Auto offer pay-per-mile or pay-as-you-go policies, which allow you to pay less if you don’t drive much. These policies can save you a lot of money compared to traditional car insurance while ensuring you’re covered when you get behind the wheel.
Adding your teen driver to your insurance policy is typically the cheapest way to ensure you’re covered while they’re learning to drive. But if you don’t own a vehicle while you or your teen is learning to drive, you might be driving several vehicles, from rentals to cars borrowed from friends and family members.
A short-term option — like a rental or non-owner policy — allows you to cover driving practice sessions without committing to a long-term policy.
If you’re storing your car for an extended period, you may think you don’t need coverage, but maintaining some insurance is still a good idea. Most states require all registered vehicles to be insured, even if they’re not on the road. And you may want comprehensive coverage to protect your car from things like theft, vandalism, and weather-related damage while it’s in storage.
)
Not many companies offer temporary coverage, so you might not know where to start if you need the flexibility a short-term policy (or one of its alternatives) provides.
Below, we’ve identified some of the best auto insurance companies for short-term coverage. We chose these companies based on average rates, coverage flexibility and options, online customer reviews, and more.
Average premium: $53 per month
Compare.com Rating: 3.22 out of 5
Hugo offers liability-only insurance that you can buy by the day, week, or month — all with no up-front fees. With Hugo, you sign up for a normal six-month policy term but pay for coverage in small increments — as few as three days at a time. You can also extend your coverage whenever you need it, so it’s ideal for drivers who need short-term, low-cost coverage.
Average base premium: $101 per month
Compare.com Rating: 3.60 out of 5
Metromile is designed for low-mileage drivers. You pay a monthly base rate and a per-mile rate for every mile you drive. This pay-per-mile model saves you money if you rarely use your car. You can also customize coverage, adding full coverage, roadside assistance, and rental car coverage if needed.
Average premium: $137 per month
Compare.com Rating: 4.70 out of 5
Nationwide offers affordable traditional car insurance with competitive average rates. With extensive coverage options, several discounts to help you save money, and flexible options like its usage-based (SmartRide) and pay-per-mile (SmartMiles) programs, you can customize your coverage to meet your unique needs, budget, and driving habits.
Compare quotes and get the coverage you need in minutes
Short-term car insurance can provide flexibility, but it’s not right for every situation. You might risk things like coverage gaps, limited policy options, and potentially higher daily costs than traditional car insurance.
In the next section, we’ll explore the specific drawbacks to consider before buying a temporary car insurance policy.
Short-term car insurance offers convenience, but it also has some drawbacks you should carefully consider before buying a policy.
Short-term car insurance policies are relatively rare — most insurance companies only offer six- or 12-month policies. So you may have limited options when shopping for temporary coverage.
Many insurance companies require a down payment when starting a policy, even a short-term one. You may not get that down payment back if you cancel the policy early, or the insurer might deduct a cancellation fee from your refund. This leaves you paying for coverage you didn’t fully use.
Each state has minimum car insurance requirements, and failing to meet these minimums leads to fines, penalties, and being without adequate coverage if you get into an accident.
Depending on the company you work with, temporary insurance might not meet your state’s requirements.
Short-term policies may provide insufficient coverage. For example, liability-only coverage might meet your state’s minimum car insurance requirements, but it doesn’t offer any property damage coverage for your vehicle if you cause an accident or if something like a flood or theft damages it. This can leave you footing the bill for those repair costs out of your own pocket.
When you apply for a new car insurance policy, the insurance company may ask you to provide proof of prior insurance coverage. Any gaps in coverage may cause the insurance company to categorize you as a high-risk driver, leading to higher premiums.
Insurance companies may not accept short-term policies as proof of prior insurance, so you could pay higher rates when you apply for a standard car insurance policy in the future.
)
If you don’t need or can’t afford a permanent policy, consider these alternatives to temporary car insurance. Each offers coverage for a short period without exposing you to lapses in coverage and uncovered accidents or other claims.
Some insurance companies offer long-term policies that let you cancel at any time without penalty. This lets you maintain insurance without committing to a traditional six-month policy.
For example, GEICO allows customers to cancel their car insurance policies without paying a cancellation fee (but it might not be an option for drivers in North Carolina).
Likewise, Hugo lets you turn your coverage on and off, so you have the flexibility to pay for coverage only when you need it.
These policies might be a good option if you need coverage for only a few months but want more comprehensive protection than short-term policies offer.
Basic liability coverage is the minimum insurance most states require. It covers damages or injuries to others when you’re at fault in an accident, but it doesn’t cover damage to your own vehicle or medical expenses for you or your passengers.
These policies might be a good fit if you have an older, low-value vehicle and don’t need full coverage. But remember, most experts recommend buying higher limits since the state-mandated minimum limits might not be enough to cover the damages and injuries from a major accident.
Plus, if you finance or lease your car, your lender or leasing company might require you to buy full coverage.
Non-owner car insurance is a good option for people who don’t own a vehicle but occasionally rent a car or drive someone else’s. It provides liability coverage when driving a car that doesn’t belong to you.
Non-owner insurance is an affordable alternative to traditional car insurance and can fill in gaps in coverage when you’re behind the wheel of a car you don’t own. Just keep in mind that non-owner policies are “secondary” coverage, meaning they only kick in when damages exceed the vehicle owner’s insurance limits.
Rental car companies offer temporary coverage for the duration of your rental period. You can usually buy liability, collision, and comprehensive coverage.
Rental car insurance is a convenient alternative if you only need coverage while driving a rental vehicle, but it’s usually an expensive alternative to a traditional insurance policy.
Short-term car insurance can be confusing, so we’ve answered some common questions below to help clarify your options.
Yes, but it can be hard to find. Most traditional insurance companies don’t offer short-term policies — only in six- or 12-month increments. That said, it’s worth checking out alternatives like pay-per-mile and pay-as-you-go insurance.
The shortest time you can insure a car for may vary depending on the insurance company’s policies. For example, Hugo Insurance offers car insurance with policy terms that are as short as three days. That said, most policies last for at least six months — but you can typically cancel at any time.
Short-term car insurance generally refers to coverage that lasts less than six months. It’s designed for temporary situations, like renting a car or borrowing a vehicle. Depending on your specific needs, policies can last from a few days to a few months.
Data Methodology:
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Rating Methodology:
Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:
Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.
Sources:
Texas Department of Insurance, “Do I need to buy insurance when I rent a car?” accessed September 18, 2024.
Insurance Information Institute, “What is auto insurance?” accessed September 18, 2024.
)
Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
)
)
