Temporary car insurance: Who has the best month to month auto insurance?
Sometimes you just need to purchase car insurance for a short period of time and do not want to commit to a six-month policy. Temporary car insurance is a short-term insurance policy that protects you against a liability claim in case of an accident that is your fault. The policy usually lasts for only 30 days but you can still cancel it at any time. After the 30 days is up you do have the option to renew the policy every 30 days going forward. And many times, companies would be able to then move you over to a 6-month policy or in some cases a yearly policy.
There are auto insurance companies that offer monthly auto insurance. We noticed one day auto insurance is a popular search in google but there is actually no such thing. The lowest term offered is a 1-month policy. But you are able to cancel your auto insurance policy at any time. So technically you can purchase an auto insurance policy today and then cancel tomorrow, but many insurance companies will have a cancellation fee and a fully earned policy fee to prevent customers from gaming the system.
Even though a temporary car insurance policy is more expensive than a regular policy it's still important to carry even if it's during a short period of time. It is not worth taking the risk of having an accident without proper auto insurance. If you currently have active insurance, you can just modify your current policy to fit your temporary car insurance needs.
Click to watch more about the importance of carrying state required auto insurance
Click to read more about driving without auto insurance
It is important to note that no national companies offer a monthly policy it is only the nonstandard auto insurance companies that we found offer this coverage. If you were purchasing insurance from a national brand you would have to do a six-month policy at a minimum and just cancel it when you want to. Though even it is a six-month policy it is still paid on a month-to-month basis so you still have the ability to cancel at any time. Most auto insurance will require you to sign a cancellation form before they will officially cancel the policy. This is very important to do because it can have an impact on how much of a refund you will get and how quick you will get it. We also suggest getting a confirmation number and document the date and time for your records. If you are setup on automatic draft payment, be sure to call your insurance company 7-10 days before the draft date. Many auto insurance companies require a notice so they can stop the auto pay from drafting. Auto insurance refunds are refunded on a pro-rated basis in most all cases. Some will short rate the refund keeping more money for the company. So, this is a good question to ask your insurance company whether they pro-rate or short rate refunds.
Even though an insurance policy is technically a contract, it is different than most contracts because the customer is allowed to cancel at any time.
Insurers typically only sell six-month policies so be leery of any companies advertising one day auto insurance or something crazy like that. It is just a front to lure you to their site to get your information. There is nothing out there that is less than a full 30-day policy.
When should I purchase temporary auto insurance?
There are many situations in which month to month car insurance can come in handy. Here are a few of the most common reasons we have found:
- You just need to get you license reinstated
- You are selling your car and only need the insurance to sell it
- You just need to get a tag for the vehicle
- You are borrowing a car for a few days
- If your child comes home for Summer or Winter break from school
Temporary car insurance can be more expensive than 6- or 12-month policies. Mainly because it’s a limited pool of companies to choose from. So just like anything else when a product is limited the price will go up. One thing to note is if you are renting a car, we recommend you purchasing the rental car company comprehensive and collision coverage they offer. Just due to many personal auto policies have exclusions in them for rental car coverage.
Click here to learn more about full coverage auto insurance.
If you do not own a car but still need temporary insurance you can purchase a non owners insurance policy. This is an insurance policy that covers you for driving a car on a temporary basis. If you own a car this would not be a policy you would want to purchase. If you are buying a new car at a dealership many of them offer temporary insurance coverage to help you get the car off the lot. Many dealerships will not allow you leave the lot until you show them proof of insurance. But many cars are sold after hours and most insurance companies are closed. So, this is where the dealership insurance coverage can really come in handy. It's important to note though that most of the time the dealer insurance just covers the vehicle itself not the liability coverage. This is where a true insurance policy is needed. Some auto insurance companies do offer automatic coverage transfer if your policy is active with them for a certain time usually 5-10 days' worth, to give you time to contact them and get it added on your policy.
Which auto insurance companies offer monthly auto insurance?
Like we mentioned above most auto insurance companies do not offer monthly car insurance policies especially the larger national brands. Its more common to find the nonstandard auto insurance companies who offer this policy. Here are some companies we found that offer the monthly car insurance policy:
Just because a company is a nonstandard carrier does not mean they are not a quality company. It just means they focus on hard to place risks. Mainly people with bad driving records and bad credit history. Some nonstandard auto insurance companies you have never heard of has some of the best service around. It's important to read reviews on the auto insurance companies you are looking at.
Click here to read more about the top auto insurance companies
How to choose the best temporary car insurance
The best way to find the best temporary car insurance is to call around and get as many quotes from nonstandard auto insurance companies as possible. The more quotes you get the better your chances of finding what you are looking for are. Be sure and find out how much the cancellation fees are. The lower the cancellation fee is the better the insurance is for you. Be sure to research the Google and Facebook reviews for the company you are choosing.
How to get temporary auto insurance or month to month insurance
When you call an auto insurance company needing temporary insurance the process is the same as doing any normal quote. Just be sure to notify the insurance agent that you are just needing it temporarily. To get cheap car insurance for a temporary situation do exactly what you would normally do, shop with as many companies as possible and make sure the coverages are being compared apples to apples. Be very specific on the coverages you need and don’t need. Some auto insurance companies will add on unnecessary coverages to increase their commission.
Adding someone to your policy temporarily
If you are loaning your car to a friend or family member you probably don’t need to add them to your policy to have coverage in case of an accident in most situation under a permissive user clause, as long as that person does not live in your home. But everyone who lives in your home must be added or excluded to your policy to have coverage in the event of an accident. But it is always a good idea to check with your insurance company to confirm its ok for someone else to drive your car if they are not an active driver on your policy. If you want to add a person to your insurance you will need to provide them with the following information:
- Date of birth
- Driver's license number
- Driving record
Adding a driver to your policy can increase your monthly rates but as soon as that person is no longer driving your car you can remove them and your rates can go back to where they were. If the driver is over 25 and has a clear driving record in most cases it shouldn’t cost much extra to add them on. It is worth paying a little extra monthly to ensure your car is covered in case of an accident.
Temporary Car Insurance FAQ’s:
What is temporary car insurance?
Temporary car insurance is a specialty type of insurance policy that is designed to cover your car for a short period of time. It is a more affordable option compared to signing up for a six-month commitment.
What does temporary car insurance cover?
The type of coverage the temporary car insurance policy will cover depends on what state you live in. But it functions as a normal 6-month policy would as far as coverage. If you select liability only than that is what it covers. Same for Comprehensive and Collision coverage if it's chosen on a temporary policy it would be covered the same way a six-month policy is.
Who should get temporary car insurance?
Here are a few good reasons for purchasing temporary car insurance:
- You need to prevent a lapse in coverage on your main car insurance policy
- You want to insurance an antique auto that you don’t drive regularly
- You are borrowing a car
- You are renting a car
- You are on vacation and want coverage
Can you temporarily insure a car that’s not insured?
Yes, just because a car is not currently insured has not effect on whether you can get insurance on it or not. The auto insurance quote you get maybe higher though.