Temporary car insurance

Temporary car insurance lets you insure a car for a short period of time, such as a rental car, a borrowed car or a car you only drive occasionally. It’s possible but difficult to get temporary or short term car insurance, since most insurers set policies for a minimum of 6 months or a year.

Can I get temporary car insurance?

The short answer: maybe. In order to drive legally, you’re required to carry at least the minimum mandatory liability coverage in your province but it’s very rare for insurance providers to offer coverage for any period less than 6 months.

Here are some situations where you might need short-term, or temporary car insurance:

• You’re renting a car for an extended period of time but don’t want to pay the rental company’s higher car insurance fees.
• You’re borrowing a friend’s car that you intend to use on a regular basis.
• You’re buying a car that you’ll resell in a short period of time.
• You’ve moved and need insurance for a short time until you choose a new long term policy.

You may be able to avoid the search for a temporary car insurance policy if:

• You want a policy for 6 months or longer. You can get standard coverage from almost any insurer.
• You’re renting a car and opt for coverage through the rental company.
• You’re renting a car and have a credit card that provides coverage on rental cars. Check the fine print of your credit card coverage, as they often offer limited protection.
• If you’re borrowing a friend’s car for occasional use, your friend’s current policy could likely temporarily add you as another driver.

What kind of short-term car insurance can I get?

Short-term car insurance temporarily protects you against damage and injury if you’re in an accident in your own car, a rental or one that you’ve borrowed.

Unlike your typical car insurance policy that covers you from 6 to 12 months at a time, short-term or temporary car insurance is typically good for up to 30 days. You specify the exact coverage you’d like and the specific days you’ll need it.

Short-term car insurance generally costs more than a regular policy. Pricing is based on the make and model of the vehicle, where you’re intending to drive and other factors.

Short term car insurance options

Compare the easiest option for getting car insurance for a day, a week, a month or however long you need it.

• Car insurance for 1 month

  Car insurance for 1 month

  Need car insurance for one month? The easiest and cheapest option is to choose an insurer that offers monthly payment and no cancellation fees, then cancel before you pay for your second month. You’ll get the rest refunded if you only need insurance for a little less than a month or if you had to pay for an extra month up front. Most insurers don’t have cancellation fees, and many let you pay monthly.

• Car insurance for 1 week

  Car insurance for 1 week

  Getting car insurance for a short vacation or a weekend holiday is probably easier if you get a rental car and purchase insurance through the rental company.

  Otherwise, if it’s a car you’re borrowing from a friend or family member, just make sure their policy will cover other permitted drivers.

• Car insurance for 1 day

  Car insurance for 1 day

  Although extremely rare, handful of specialty insurers may offer on-demand car insurance for anytime as short as a few hours to a few days, or longer if you need.

  If you’re just taking your classic car out for a spin to keep the engine working, talk to a classic or collector car insurer.

What are the downfalls of temporary car insurance?

While there may be reasons to seek out short term car insurance, there are also pitfalls to consider:

• Coverage can’t always be used immediately. Comprehensive and collision coverage can be limited if you only want a policy for a couple of weeks. There might be a 30-day waiting period before you can make a claim.
• Coverage is hard to find. Companies are wary of temporary policies due to high-risk applicants, the unlikeliness to renew and the time it takes to underwrite a short-term policy. Many of the larger carriers only offer 6-month plus options.
• Temporary coverage could lapse. With a short-term policy, there’s a risk of letting your policy lapse while you’re still driving the car. And if you’re caught driving without insurance, you could face penalties.

What are the alternatives to short term insurance?

You can easily find companies that will provide temporary car insurance, but usually at a cost. Instead of opting for a lesser-known insurance company that specializes in temporary car insurance, consider a more flexible car insurance option.

• Find a pay-as-you-drive car insurance policy. This type of policy allows you to enjoy all the benefits of comprehensive car insurance while only paying for the distance you drive. CAA’s MyPace program is an example. One drawback is that you’ll usually pay a small minimum amount, limiting your savings if you’re only using the car in the short term.
• Pay premiums monthly. Choose a policy that allows you to pay your premiums monthly and cancel it when you no longer need coverage. To avoid a cancellation fee, take out a policy with a provider who don’t charge cancellation fees.
• Add a driver to an existing policy. If you’re borrowing a relative’s or friend’s car for a temporary period, ask them if they’d consider adding you to their policy as a listed driver. Note that this could significantly increase the cost of coverage.
• Rent a car. Though it’s an expensive option, you could rent a car and purchase insurance through the rental company.

When is an annual policy cheaper than temporary insurance?

Temporary insurance is flexible and can help you save money if you need a car for a matter of hours, day or weeks.

But if you’re going to use the car for at least two or three months of the year, it might be cheaper to take out an annual policy and then cancel it when you no longer need it, or to get seasonal insurance that only covers you during the time when you drive.

The drawback of taking this route is you’ll have to pick an insurer without cancellation fees that also sends prorated refunds. Otherwise you might be paying extra to cancel the policy. You may also pay more for insurance in the future if you show a lapse in coverage from on-and-off coverage.

However, when looking at the average daily rate, temporary insurance deals are more expensive than annual insurance policies.

Do I need temporary car insurance if I have a home in two different provinces?

Different rules and regulations apply in each province such as mandatory minimum coverage amounts. If you’ll be driving between provinces, make sure your current policy meets the minimum requirements of that province. Check with your current provider to learn what type of coverage you’ll need.

What if I’m at school that’s not in my home province?

If you’re away from home attending university in another province and your permanent address is at home, you should get coverage in your home province. Most insurers will let you stay covered under your home address instead of your school address, but check with your provider to see if there are any exceptions or unique coverage for post-secondary students.

Can I get temporary RV insurance?

For campers, caravans or RVs that you only drive part of the year, some providers offer part-time RV insurance. Tell your provider how many months you use it and what kind of coverage you need, and you’ll be billed only for the months you drive your RV.

Also check with your provider for any special requirements — like how long your RV has to be parked or garaged before this kind of insurance kicks in. You also might need to update your insurance provider if your RV usage changes to make sure you’re covered when you use it.

Bottom line

While car insurance is required in all provinces, some specialty companies offer short-term coverage, usually at a higher price. Compare your car insurance options to find the best one for however long you’ll be on the road.

Frequently asked questions

• Does my car insurance policy extend to a rental car?

  It depends. Some policies cover rental cars. But a bare-bones policy usually won’t. Check with your provider to find out if your policy extends to a rental car.

• Do I need short-term insurance if I'm just borrowing someone's car for a couple of days?

  In most cases, no. The current policy on the car usually covers a driver who will be driving the car occasionally. But check with the provider to find out its specific rules on this.

• What if I don't drive one of my cars much?

  If you normally keep one or more vehicles garaged for several months, you might be able to switch to a storage rate while they’re not on the road. This often means you’re only covered for comprehensive, dropping liability and collision coverage. This protects your car from fire, weather and theft but offers little coverage if you need to drive it.

• Is it possible to get 1-month car insurance?

  While there are no special policies that specifically cover you for one month, you may be able to find suitable coverage for this length of time by finding a policy that doesn’t have any cancellation fees.

• Is it possible to get one-week car insurance?

  There are no products specifically designed to cover you for only one week but you may be able to find suitable coverage for this length of time by finding a policy that doesn’t have any cancellation fees. You may also want to consider rental car options for this short period of time.

• How do I add someone to an existing car insurance policy?

  This typically can be done online, over the phone or by email. Contact your insurer for more details.

• Will I be covered instantly?

  Yes. Short-term insurance provides coverage right away although there may be a waiting period for you to make a claim.

• How long does short-term car insurance last?

  It can vary, but short-term car insurance covers your vehicle for a period shorter than the usual insurance term of 12 months.

Written by

Roslyn McKenna

Publisher

Roslyn McKenna Ayers is insurance manager at ValuePenguin and a former publisher at Finder, specializing in home and auto coverage. Her expertise and analysis has been featured on Bankrate, MSN and Reader's Digest. She holds a BA in writing and communications from Maryville College. See full bio

Co-written by

Jaclyn Hurst

Associate Publisher, Investments

Jaclyn Hurst was an associate publisher at Finder. She has a Bachelor’s degree in Business from Redeemer University and a University Certificate in Management Foundations from Athabasca University. She’s as passionate about business and finance as she is about the great Canadian outdoors, organic Sumatra coffee and music. See full bio