One Day Auto Insurance Explained
Last Updated on September 3, 2020
If you do not have a car, one of the challenges you may face when you either rent a car or borrow one from a friend is whether or not you need to buy insurance. Most of the time the thought of insurance gets lost in the shuffle and you simply don’t buy it. Doing this, however, can put you in grave financial risk. It’s not a good idea to ever get behind the wheel of a car without insurance.
In most states, it is illegal to drive a vehicle without some form of insurance coverage. All states in the United States, except for New Hampshire and Virginia, require auto insurance. The fees for being caught driving without insurance can be very steep. The costs that result from getting into an accident without insurance could be catastrophic.
When you borrow or rent a vehicle, you won’t be 100% comfortable with how it operates and won’t be completely adept at driving it. Since you are driving a vehicle that you are not familiar with, the chances of getting into a collision increases. This is why auto insurance coverage is necessary – even if the policy only lasts one day.
Why Do You Need One Day Auto Insurance?
There could come a time when you need a car to use for a single day or just a few days. Some of these reasons include:
- You just bought a car and need insurance to drive it away immediately
- Your vehicle is being fixed and you are temporarily borrowing your friend’s car
- Visitors or relatives from another country need to drive a car for a short amount of time
- You own the vehicle temporarily and it is going to be sold soon
- The vehicle is going to storage and needs coverage for the drive over
- Your house guests need to drive the car for a short amount of time
- You are renting a vehicle for a road trip across the country
- You are currently between policies, but you still need to be on the road
- You are shopping around for a new car and need coverage while you go on test-drives
- You live in a city with public transportation and do not currently own a vehicle but you need to get a ZipCar to go shopping out of town
Whatever the reason you need a one day auto insurance policy, it’s important to remain covered. Below, we’ll look at how these policies work, how much they cost, and how to get them.
How Does One Day Car Insurance Work?
There are many auto insurance companies that offer short-term car insurance policies. These policies can be for as short as a day or up to one month. The coverage can vary based on how much coverage you need, the type of policy you buy, and what options or add-ons you choose.
If you are a licensed driver you are likely going to be able to get this type of coverage based on your particular needs.
Temporary car insurance policies can provide the driver with the same amount of insurance as a traditional auto insurance policy but can also be tailor-fit to the driver’s needs. These policies are designed to ensure that a driver is not left without protection should they be involved in any type of accident. The policies may last just one day, a month, or a bit longer.
Typically, a temporary car insurance policy will offer both liability coverage, collision coverage, and underinsured and uninsured motorist coverage. It could include medical payments coverage for any of the passengers in the vehicle at the time. Short term policies are usually more flexible than traditional policies, so you’ll be able to customize the coverage to fit your needs.
One Day Auto Insurance Prices
The price for a temporary car insurance policy is based on several factors including location and the year, makes, and model of the car. A temporary car insurance policy will typically have a higher average daily price than that of a regular car insurance policy. Even though a temporary policy might be more expensive than a traditional car insurance policy, it is important to remember you only have to pay for what you need.
A traditional auto insurance policy might charge you $600 for a six-month policy. This works out to $100 per month or around $3.30 per day. A one day auto insurance policy might cost you $20 per day for the same amount of coverage, but overall, you’ll only have to pay $20 for this coverage. With the traditional six-month policy, you’re on the hook for the whole $600, even if you only drive the vehicle a couple of times during that six-month period.
Obtaining a Temporary Car Insurance Policy
The first thing that you should do if you need a temporary car insurance policy is to contact your current or your past insurance agent. While there are many insurance companies that provide this type of temporary insurance policy, there are still a few companies that do not.
You may want to do a quick search on the internet to get quotes from several different companies. Comparison websites will provide you with information about several different companies that offer temporary one day policies. Online comparison shopping is typically instant and can make your search go much more quickly and smoothly.
When obtaining a temporary policy you will be asked to fill out a simple questionnaire. This will provide you with results in just minutes. The information you’ll need to provide includes:
- The make, model, and year of the vehicle you wish to insure
- Your name, address, driver’s license number, date of birth, and other basic personal information
- A brief overview of your driving history
After completing the questionnaire and paying for the policy, you’ll be good to go. Most of the online insurance companies will provide you with a policy that you can print out as soon as you complete the transaction. This makes it quite simple to get the car insurance you need as fast as possible, which is typically important when you need coverage immediately.
Rules for Getting Temporary Car Insurance
Most insurance companies will have a few requirements regarding who is eligible for a temporary car insurance policy. Most insurance companies that sell temporary policies require that a person be at least 21-years-old to buy coverage. In addition, the policyholder will need to have:
- A driver’s license that is valid (at least one year old)
- Less than six penalty points in the past three years
- No past revocations or disqualifications of the license
- No more than one at-fault claim within the past three years
Final Word on One Day Auto Insurance
If you are in need of a temporary or one day car insurance policy, contact your current insurance provider first. They will likely be able to provide you with the best deal for what you need. If you do not currently have a personal auto insurance policy, do a quick internet search to find a temporary insurance provider. Many reputable companies will be able to provide you with a policy for the amount of time that you need it for.