Does Allstate Offer Temporary Car Insurance?
Last Updated on April 18, 2023
Allstate is a popular insurance company across the United States. But does Allstate offer temporary car insurance?
Allstate, like most insurance companies, does not offer temporary car insurance, short-term car insurance, daily insurance, or similar products. However, you could sign up for an ordinary Allstate policy, then cancel it when it’s no longer needed.
Keep reading to find out everything you need to know about Allstate’s temporary car insurance options.
No, Allstate Does Not Offer Temporary Car Insurance
No major insurance company in the United States offers temporary car insurance.
Temporary car insurance is not a common type of insurance whether you’re with Allstate, GEICO, State Farm, Progressive, or another major insurer.
Allstate and other major insurers want you to sign up for a 6 or 12-month insurance policy. They want your long-term business. Even if you only need car insurance for a few hours or weeks, you may need to sign up for a long-term car insurance policy with Allstate, then cancel it when you no longer need it.
In fact, you should be wary of any company claiming to offer temporary car insurance, day-to-day car insurance, or similar policies. In many cases, these policies are misleading. In other cases, they’re outright scams.
Temporary Car Insurance Alternative: Buy an Allstate Policy, then Cancel It
There is a simple alternative to temporary car insurance: buy an Allstate policy, then cancel it when you no longer need it.
Allstate, like most other major insurers in the United States, makes it easy to cancel policies and switch providers. You can cancel your Allstate policy midterm without penalty. In fact, Allstate will even provide a refund if you have already prepaid for months you didn’t use.
Here’s how to create your own “temporary” car insurance policy by buying a standard policy with Allstate:
Step 1) Complete a car insurance application with Allstate, then sign up for a 6-month or 12-month policy.
Step 2) Pay your premiums and any require deposits to activate your Allstate policy.
Step 3) Cancel Allstate and request cancellation on a specific date. Allstate should terminate your policy on that date without issue – even if it’s before your renewal.
Step 4) In most cases, Allstate will not charge a cancellation fee. In fact, you may receive a refund on premiums you have already paid.
Your Allstate car insurance policy will end on your desired date. Whether you’ve had your Allstate policy for a week, a month, or a year, you should be able to cancel it, effectively giving you “temporary” car insurance.
Reasons You Need Temporary Car Insurance
Many drivers find themselves needing temporary car insurance because of unique situations. You temporarily need a car to move across the country, for example. Or, you may be traveling abroad and wanting to borrow a vehicle from a friend or family member.
Here are some of the situations where you may consider temporary car insurance:
- You’re a college student who wants to continue driving your family’s vehicles when home on weekends, summer break, winter break, and other holidays
- You plan to drive a car belonging to a friend or family member
- You live abroad and plan to drive or rent a vehicle when visiting the United States
- You plan to sell your vehicle in the near future
- You only drive a vehicle during certain times of the year – like a sportscar you drive during summer
Alternatives to Temporary Car Insurance
In some of the situations above, you may already have insurance coverage. In others, you may be able to purchase coverage to protect you.
Some of the alternatives to temporary car insurance include:
- Adding yourself as a permitted driver to a friend or family member’s insurance policy. If you are a licensed driver living in the same household, you must be listed on the insurance policy. You must also be listed on the insurance policy if you regularly drive the vehicle, even if you don’t live in the same household. As long as you’re listed on the insurance policy as a permitted driver and have a valid license, you should be insured when borrowing the vehicle.
- Buying pay-per-use or pay-per-mile coverage. Allstate offers Drivewise, for example, which tracks driving behavior and rewards you for safe driving. Other companies offer pay-per-mile car insurance or pay-per-use insurance, which could be ideal for drivers with short-term insurance needs.
- Driving a vehicle that already has valid insurance. As long as you are a licensed driver with permission to drive the vehicle, insurance should follow that vehicle. If you are borrowing a vehicle from a friend, and that friend has insurance for the vehicle, then your friend’s insurance policy should extend to you.
- Buying insurance from the rental car company. All rental cars already have insurance. When you rent a vehicle, the rental car company may advise you to buy the collision damage waiver (CDW), which is similar to car insurance for the vehicle. If you do not currently have insurance, then you may be better off buying insurance from the rental car company instead of buying temporary insurance.
- Buying non-owner car insurance. Allstate and certain other insurers offer non-owner car insurance, which provides you with liability coverage and similar protections even if you don’t own a vehicle. Non-owner car insurance may be the right choice if you occasionally rent or borrow vehicles.
Allstate, like most insurers, does not offer temporary car insurance, day-to-day insurance, month-to-month policies, or similar plans.
However, most Allstate customers can cancel their policy without penalty. In fact, Allstate typically provides a refund on premiums you have already paid. You could buy a 6 or 12 month policy through Allstate, then cancel it when no longer needed to effectively buy “temporary” car insurance.
Contact Allstate to explore your temporary car insurance options.