Short-Term Auto Insurance: One-Month Policies

While it is possible to get car insurance for a month, it's not as simple as buying a one-month policy. Major insurance companies don't offer temporary insurance policies, and you'll be hard-pressed to find a company that provides coverage for less than six months. However, you can create a temporary policy by purchasing a six-month or 12-month plan and cancelling it early. While this is an option, it's important to note that some insurers may charge a cancellation fee, and you might not get a full refund.

Temporary car insurance does not exist from major insurers

If you own your vehicle, you can buy a six-month policy and cancel when you no longer need it. You can also consider pay-per-mile auto insurance if you only drive occasionally. If you're driving a car you don't own, you can look into non-owner insurance, rental car insurance, or being added as a driver on someone else's car insurance policy.

If you're renting a car, you can buy insurance from the rental company. If you're borrowing a car, you're likely already covered by the owner's insurance policy, as long as you have their permission. If you don't own a car but drive frequently, non-owner auto insurance may be a good option.

It's important to note that some insurance companies charge a cancellation fee, so be sure to check the terms of your policy before cancelling. Additionally, having a lapse in coverage could result in higher insurance rates for future policies.

You can buy a standard policy and cancel early

If you need one-month auto insurance, you can buy a standard six-month or 12-month policy and cancel it early. Most car insurance companies offer policies that last six or 12 months, but you can cancel at any time. You will likely receive a refund for the remaining months, but you may have to pay a cancellation fee.

When you cancel your insurance policy early, you will typically be charged a cancellation fee. This is because all standard insurance policies have a 12-month term, so when you set up the policy, you are entering a year-long contract with your insurance company. If you cancel before the year is up, your insurance company will usually cancel your policy "short rate" and charge a short-rate cancellation penalty. This is a percentage of your total insurance premium for the year, which is higher than the per-day amount. The exact amount will depend on the insurance company's short rate cancellation tables and the number of days the policy was in force.

If your insurance company cancels your policy, it will typically be "pro rata". In this case, you will only owe the "earned premium" for the time the policy was in force. Policies are usually cancelled pro-rata when it is the insurance company cancelling the policy, often due to big changes in your circumstances.

Before buying a standard policy with the intention of cancelling early, it is worth checking the cancellation policy and fees. You should also consider whether the cost of the short-term insurance, plus the cancellation fee, is worth it for your situation. There are other options for getting temporary car insurance, such as non-owner car insurance or rental car insurance.

Non-owner car insurance is an option if you don't own a car but borrow or rent one frequently

Temporary car insurance does not exist from major insurers. However, if you need to insure a car for a short period of time, you can buy a six-month policy and cancel it early. Most insurers will refund you for the remaining months, although some may charge a cancellation fee.

If you don't own a car but borrow or rent one frequently, non-owner car insurance is an option. This type of insurance provides liability coverage for bodily injury and property damage, meaning that it will cover you if you're liable for damages or injuries in an accident. Non-owner car insurance does not cover damage to the vehicle you're driving or your own injuries after an accident. It is also a secondary coverage, meaning it will only kick in if the borrowed car's insurance policy limits are reached.

Non-owner car insurance is meant for people who don't own their own car but frequently borrow or rent cars. It can also be useful if you need to file an SR-22 insurance form with your state. It typically includes your state's minimum insurance requirements, although you may be able to increase the coverage limits. Non-owner car insurance is generally cheaper than standard car insurance.

In addition to liability coverage, a non-owner insurance policy may also include medical payments and/or personal injury protection coverage, as well as uninsured or underinsured motorist insurance coverage. When deciding how much non-owner insurance you need, it is recommended to get at least $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident, and $100,000 in property damage coverage.

Rental car insurance is a form of temporary insurance

Yes, it is possible to get auto insurance for one month. However, this is not a specific type of policy offered by major insurance companies. If you need car insurance for a short period, such as one month, you have a few options:

• Purchase a six-month policy and cancel it early: You can buy a regular car insurance policy for six months and then cancel it when you no longer need it. Most car insurance policies are sold in six-month or one-year increments, and you can generally cancel at any time. However, you may have to pay an early cancellation fee, and there may be other penalties.
• Rental car insurance: If you are renting a car, you can purchase rental car insurance from the rental company or a standalone policy from another insurer. This is ideal for those who don't own a car but rent one occasionally.
• Non-owner car insurance: This type of insurance is designed for people who don't own a car but frequently borrow or rent cars. It provides liability coverage, which is required in most states, and can be purchased in six-month or annual increments.

Now, focusing on rental car insurance:

• Coverage offered by rental companies: Most rental car companies provide basic insurance coverage as part of the rental agreement. This typically includes the minimum liability insurance required by law. However, this coverage may not be sufficient in the event of a major accident or theft.
• Additional coverage options: Rental car companies often offer additional insurance options, such as supplemental liability protection or a collision damage waiver. These options can provide more comprehensive coverage, but they tend to be more expensive.
• Standalone rental car insurance policies: Instead of relying on the rental company's insurance, you can purchase a standalone rental car insurance policy from another insurer. These policies can often be purchased on a day-by-day basis and may offer more flexibility in terms of coverage and cost.
• Credit card coverage: Some credit cards also provide rental car insurance when you use the card to pay for the rental. This can be a cost-effective way to get the coverage you need, but be sure to review the terms and conditions carefully.
• When to consider rental car insurance: Rental car insurance is ideal for individuals who don't own a vehicle and only need coverage for the duration of their rental. It is a temporary solution and may not be cost-effective for those who frequently rent cars.
• Comparing options: When considering rental car insurance, it's important to compare the coverage and costs offered by different rental companies and insurers. Additionally, review your existing insurance policies and credit card benefits to ensure you don't already have rental car coverage.

In summary, rental car insurance is a form of temporary insurance designed for short-term coverage when renting a vehicle. It can be purchased from rental companies or standalone insurers and offers flexibility for individuals who don't own a car but require auto insurance for a limited period.

You can be added to someone else's policy temporarily

If you need to be insured to drive someone else's car temporarily, you can ask the owner of the car to add you to their policy. Most insurers will ask the policyholder to add anyone who lives with them or frequently borrows their car to their policy. However, don't assume that you're already on the policy just because you live with the owner or borrow their car a lot. If in doubt, ask the owner to confirm with their insurer.

Being added to someone else's policy may increase their premium, depending on your driving record and other factors. Also, if you get into an accident while driving their car, their premium could go up. Therefore, it's important to be aware that you could be financially vulnerable if their policy has low coverage limits.

Frequently asked questions