Temporary rv insurance Temporary Car Insurance: Can I Get a Short-Term Policy, The Zebra

Temporary rv insurance

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Temporary Car Insurance

Short-term car insurance seems like a great idea, but what are you really getting?

What is temporary car insurance?

Many websites throw around the terms “short-term” or “temporary” car insurance without mentioning which insurers actually provide it or where to buy it. That’s because these policies do not exist — and in some cases, are scams. If you want a “short-term” or “temporary” car insurance policy, you’ll need to cancel your six- or 12-month policy mid-term.

Let’s review the primary reasons temporary car insurance does not exist, and the reasons to avoid these policies.

Temporary auto insurance is tricky for these reasons:

Most insurance companies won’t provide it

Most insurance two options for term lengths: six months and — less commonly — 12 months. An insurance company wants to keep its clients for as long as possible. Drivers who only want to carry insurance for a short period of time aren’t likely to renew, which makes them less-than-ideal customers. Plus, the premium an insurance company collects from an extremely short-term policy isn’t worth the insurer’s administrative costs.

Drivers seeking short-term car insurance policies also present unique risks. Car insurance companies are wary of temporary policies, as they can act as cover for drivers simply looking for a claim payout or practicing insurance fraud, i.e., a high-risk client.

For more information on common car insurance policy term lengths, see our articles below:

You might lose your down payment

While it varies by company, most policies require a down payment worth 30 to 45 days of the total premium. If you cancel five days into your policy period, you’re not always guaranteed to recoup your entire down payment.

Some insurance companies also assess cancellation fees.

You can’t use coverage immediately

Most companies have a grace period rule for car insurance coverage. Many insurance companies limit the use of collision and comprehensive coverage within 30 days of a policy’s inception. If you only want a policy for two weeks, you could be ineligible for major coverage types during this window.

Insurance is a legal requirement in most states

Unless you live in New Hampshire, you’re required by law to carry at least the legal liability coverage limit to operate or register a vehicle. If you’re caught driving without insurance, you can be ticketed and your license can be suspended.

If you’re leasing or financing a vehicle, your lender will usually require you to carry state-minimum coverage, as well as comprehensive and collision — and certainly not in a short-term capacity. If your lender discovers you’re driving without insurance, you may risk getting your vehicle repossessed.

You’ll have gaps in your insurance record

Many insurance companies will ask you if you’ve had six months of prior continuous coverage before agreeing to take you on as a client. The reason for this has to do with the risk level of a previously uninsured client. If you had an active license but were not insured, an insurance company will assume you were driving without insurance, which is an indicator of a high-risk client. Having gaps in your insurance history can raise your premium by nearly $90 per six-month policy.

Number of Months with Prior Insurer

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