Temporary Licenses And Auto Insurance: What's The Deal?

In most states, you need auto insurance to get a license plate. However, it is possible to get car insurance without a license, and some states don't require insurance when registering a car. If you're looking for temporary car insurance, you may need to purchase a six-month or one-year policy and then cancel it when it's no longer needed.

Temporary car insurance in New York

In New York, car insurance policies typically last for six or 12 months. However, if you're seeking flexible car insurance, you might be interested in a short-term car insurance policy.

Most car insurance companies in New York don't offer policies shorter than six months. This is to ensure the company receives payment for at least six months and to reduce the risk of customers driving uninsured. However, if you need coverage for a shorter period, some options are available.

Temporary Car Insurance Options in New York

• Buy a six-month policy and cancel it early: You can purchase a policy with the shortest term available and cancel it when you no longer need it. Most companies will refund your premium for the remaining term, but some may charge a short-rate cancellation penalty.
• Non-owner car insurance: If you don't own a car but occasionally borrow or rent vehicles, non-owner insurance provides liability coverage. It doesn't cover damage to the vehicle or injuries you suffer in an accident.
• Rental car insurance: If you're renting a car in New York, you can purchase insurance from the rental company. This is recommended as personal insurance usually doesn't cover the loss of use for a rental car.
• Pay-per-mile insurance: If you rarely drive, pay-per-mile insurance can save you money. Premiums for this type of policy depend on the base rate and the rate per mile driven.
• Rideshare insurance: If you work for a rideshare company, you may have a temporary gap in coverage when you haven't accepted a ride. While rideshare insurance policies are not available everywhere, some companies offer this option.

Pros and Cons of Temporary Car Insurance

Short-term car insurance in New York may be beneficial in certain situations, but it also has potential downsides:

Pros:

• Less commitment than a 12-month policy.
• A brief policy term may save you money if you only need coverage for a short period.
• It may be easier to qualify for a paid-in-full discount.

Cons:

• More frequent renewals mean more opportunities for rate increases.
• It may be more expensive on a per-month basis than a longer policy.

Average Cost of Temporary Car Insurance in New York

The average cost of a six-month car insurance policy in New York is $1,917. However, rates can vary based on factors such as age, gender, location, and the make and model of your car.

Best Car Insurance Companies for Short-Term Car Insurance in New York

When considering temporary car insurance in New York, it's a good idea to compare rates from different companies. Some of the cheapest options for short-term car insurance in New York include:

• GEICO
• Progressive
• NYCM
• Main Street America

Temporary car insurance in Ontario

Ontario has some of the strictest driving regulations in Canada, and temporary car insurance is not available in the province. The shortest insurance policy offered in Ontario is a six-month policy, with standard policies lasting a year. However, there are still options for drivers who need temporary coverage.

Temporary car insurance is useful for drivers who only need coverage for a short period. This could be because you're only using a vehicle for a short period of time, perhaps seasonally, or because you're selling your car and only need a policy to last a few months.

Some common situations where temporary car insurance is needed include:

• Visitors to the province who are buying a car and planning to stay for one to six months.
• Residents transferring ownership of a car and needing a temporary license sticker.
• Residents who only drive their car a few months out of the year.
• Students home from school for the summer.
• Seasonal or hobby vehicles, such as vintage cars or motorcycles, that are only driven a few months out of the year.

Alternatives to Temporary Car Insurance in Ontario

Although temporary car insurance is not available in Ontario, there are some alternatives that can provide temporary coverage:

• Usage-based insurance plans: Private insurers offer plans that adjust premiums based on annual mileage.
• Six-month policies: Some auto insurers offer six-month policies, which are suitable for medium-term vehicle ownership.
• Being listed as a named driver on someone else's policy: You can be added to someone else's policy and legally drive their car under their insurance coverage.
• Ontario's 10-Day Temporary Special Permit: This permit allows you to operate an uninsured vehicle for ten days or less. However, it does not cover damage to other vehicles or property.
• Rental car insurance: Rental car companies and some credit cards offer insurance policies for rental cars.
• Early cancellation of a standard policy: You can effectively create a short-term policy by cancelling a standard policy early. However, this may result in fees or deductions from any refund amount.

Ontario's Strict Insurance Regulations

Ontario's strict auto insurance regulations are overseen by the Financial Services Commission of Ontario (FSCO). The FSCO regulates the province's auto insurance industry, sets rates, and manages disputes between consumers and providers.

Due to these strict regulations, temporary car insurance is not permitted in Ontario as it does not provide the same level of comprehensive protection as traditional policies.

Getting non-owner car insurance

Non-owner car insurance is a policy for individuals who don't own a car but drive regularly. It 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. It does not cover damage to the vehicle you're driving or your own injuries after an accident. Non-owner insurance policies also tend to be less expensive than standard car insurance policies.

You can buy a non-owner car insurance policy if you don't own a car but plan to drive another vehicle. This type of policy will provide liability coverage for injuries or damages you cause in an accident. Non-owner insurance can be helpful if the car owner's liability limits are too low to fully cover the incident, or if you're denied coverage under the owner's policy. This can happen in some circumstances, depending on the rules of the insurer and the details of the accident.

In addition to liability coverage, a non-owner insurance policy may also include medical payments and/or personal injury protection coverage, and uninsured or underinsured motorist insurance coverage.

A non-owner auto insurance policy may be suitable in the following situations:

• Borrowing cars often: If you often borrow a car and don't have your own policy, you may want to consider a non-owner insurance policy.
• Using a car-sharing service: A non-owner policy may make sense if you frequently use a car-sharing or short-term rental service, as it gives you liability coverage beyond what the company provides.
• Renting cars often: Liability coverage is required if you rent a vehicle without an insurance policy, so a non-owner car insurance policy may be cheaper in the long run than purchasing liability coverage from the rental company every time you rent a vehicle. It won't cover any physical damage to the rental car, but you may be able to buy a collision damage waiver from the rental company to add to your liability coverage from the non-owner policy.

The cost of non-owner car insurance typically costs less than what you'd pay for the same level of liability coverage on a car you own, but this may vary depending on your driving history, location, coverage limits, and other factors.

You can get non-owner car insurance from providers such as Progressive, Nationwide, GEICO, and Allstate.

Getting rental car insurance

Rental car insurance is an optional coverage offered by a rental car company. It is not the same as rental car reimbursement coverage, which is an optional add-on to your personal auto insurance policy to pay for a rental car while your vehicle is being repaired after an accident.

When to Get Rental Car Insurance

If you already have car insurance or rental car coverage through your credit card, then rental car insurance may not be worthwhile. However, there are a few instances where adding rental car insurance could be beneficial:

• You have high deductibles on your auto policy: Rental car insurance coverage often has low or no deductibles, so you could pay less or nothing out of pocket if you need to make a claim.
• You want to avoid claims on your auto policy: With rental car insurance, you would file a claim with the rental car company, which avoids a potential rate increase on your personal auto policy.
• You don't have comprehensive or collision coverage: If you don't have comprehensive or collision coverage on your personal auto policy, adding a loss-damage waiver can protect you against physical damage to your rental car.
• You carry a low liability coverage limit: If you carry the state minimum liability limit on your auto policy, adding additional coverage from the rental company will offer greater protection if you're involved in an at-fault accident.
• You're travelling: Most US auto policies only provide coverage in the US and Canada. If you're travelling to a country where your auto policy doesn't provide coverage, then rental car insurance may be essential.

How to Get Rental Car Insurance

There are four main options for insuring your rental car:

• Insure online when you book: You can easily compare rental companies, different cars, and different prices in one go. The price is often lower than cover available directly from the rental company, and you can arrange your whole rental from home. If you rent a car abroad, you won't have to worry about language issues as you can claim when you're back home. However, if the car gets damaged, you'll have to pay the rental company first and then claim it back. This type of insurance won't reduce the excess or your deposit, although it does insure both.
• Protect your rental directly with the rental company: If you buy their cover when you arrive at the rental counter, you won't have to pay first and then claim it back if anything happens to the car. The rental company would also be your insurer, and this cover will often reduce your security deposit and insurance excess. In some instances, it may reduce them to zero. However, this cover is often more expensive than when bought from a comparison site or a third-party insurer, and there's no separate insurance company to assist you in fighting any charges you don't agree with.
• Insure your car through a third-party insurer: There are several options online, often sold as 'excess protection insurance'. The price is often lower than additional cover from a comparison site or direct from the rental company, and you can buy it from home. If you rent a car abroad, you won't have to worry about language issues as you'll claim when you're back home, and a third-party insurer can help you fight any charges you don't agree with. However, if the car gets damaged, you'll have to pay the rental company first and then claim it back, and this type of insurance won't reduce the excess or your deposit.
• Don't buy any additional insurance at all: There's no additional cost with this option, but you will be responsible for the full excess and lose your deposit if the rental car is damaged. The basic package only covers bodywork, so you'll have to pay the full cost of any repairs to the engine, undercarriage, windows, or wheels. There's also no separate insurance company to assist you in fighting any charges you don't agree with.

Questions to Ask When Choosing Rental Car Insurance

• Does it cover damage to the engine, tyres, wheels, roof, undercarriage, windows and mirrors?
• Does it cover towing costs and roadside assistance?
• Does it cover your luggage and other personal items?
• Does it cover you if you lose the keys?
• Does it cover rental company admin fees?
• Is it actually regulated insurance?

Getting added as a driver on someone else's insurance

Yes, it is possible to get car insurance without a license. If someone other than you will be driving your vehicle, it is necessary. However, some companies may be wary of insuring customers without a license, and some states require you to list at least one licensed driver on the policy.

Some insurance companies allow the person buying the auto insurance policy to designate someone other than themselves as the primary driver—that is, the person who will be driving the car the most. However, other insurers don't, so you may need to shop around to find a company that offers auto insurance for unlicensed drivers.

When buying car insurance for the first time, the insurer typically asks for your driver's license number so they can check your driving history. This helps insurers determine what your rate should be. If you don't have a license, the insurer may ask for the driver's license number of the primary driver instead. They may use this person's driving history to determine your auto insurance premium. If that driver has a less-than-stellar record, you may end up paying higher rates.

When adding someone to your car insurance, you can either call your car insurance company or log in to your account online to add a new driver to your policy. Your insurance company will typically need the driver's name, date of birth, driving history, license information, as well as their vehicle identification number (VIN) if you also plan to share one policy that covers both of your vehicles.

You can typically make a change to your policy at any time to add a new driver at your residence, such as a teenage child, or a driver that has just started driving your car regularly.

Adding a driver to your insurance policy means they're an insured driver under your policy when they drive your car. So, if they get into an accident, your insurer is more likely to cover the damage than for an unlisted driver. Sharing a policy with someone typically means that both of your vehicles are covered under one policy.

You should add any regular drivers of your car to your insurance policy so that damages from accidents are covered. Also, you can add any drivers that live at your permanent address, and most insurance companies will require it. Some states may allow you to exclude a driver from being covered by the policy.

According to CarInsurance.com, there is usually no charge for adding a driver to your insurance policy. However, your premiums may change. Your premiums may become more expensive if you add an inexperienced driver or one with a poor driving history to your policy, as they are high-risk motorists. But they may also become more affordable if you include a more experienced driver who has never had a car accident on your coverage, as they are a low risk to the insurer.

Frequently asked questions