Short Term Car Insurance Benefits

A few weeks ago I met up with a friend who shared an unfortunate but all too familiar story. When he started the story with “So I let my cousin borrow my car for a few days”, I knew that it wouldn’t end well. Nevertheless, I listened to the end and like I suspected, his cousin totaled his car. Luckily his cousin didn’t get hurt. However, the cost of repairs exceeded the value of the car. Considering this a “total loss”, his insurer gave him a small settlement check. But since this wasn’t enough, he had no choice but to save for a new car

We’ve heard this story before, right? Someone we know lets a friend or family member borrow their car only to regret it later. Or maybe this happened to you? Well, a simple solution is short term car insurance. It will save you from any potential headaches down the road. 

Short Term Car Insurance

Short term car insurance or temporary car insurance is a flexible alternative to traditional annual car insurance. Coverage ranges from one day to a month and it applies to cars, vans, and motorhomes.

It covers drivers between the ages of 18-75. 

When To Consider Short Term Car Insurance

Short term car insurance adds you to a temporary car insurance policy or allows you to cover someone else under a temporary policy. It’s beneficial when borrowing or lending a car. Whenever someone other than the owner or authorized driver plans to drive a car, consider getting temporary car insurance.

Short term car insurance can also cover learning drivers who only get behind the wheel a few times. Lots of families also get it for students who drive during the holidays or summer months.

Lastly, car enthusiasts who have a second car can get short term car insurance for weekends and special events. Remember whether you’re insuring a rental or your own car, always compare insurance rates by shopping for providers that offer the right coverage for your needs.


Short term car insurance offers many financial benefits. For starters, it’s usually more affordable to get short term car insurance than to modify your annual policy because you only pay for the amount of time you need coverage.

And most times, short term car insurance offers the same coverage as long-term car insurance. Duration is the only difference.

Long-term car insurance is for a year while short term car insurance is for however long you’d like (as long as it’s under a month). With short term car insurance, there’s also no long-term contract. So once your policy ends, that’s it. You can let it expire or renew it.

No-Claim Discount

If you decide to add another person to your existing long-term insurance policy, you could jeopardize your no-claim discount. Policyholders who do not make claims are considered less risky drivers and so insurers offer a significant discount. But if someone drives your car and gets into an accident, you lose your discount and your premium skyrockets! Without the no-claim discount, you can see as much as a 75% spike in your premium.

Making a claim on a short term insurance policy safeguards your premium. You never have to worry about next year’s premium going up because there’s no impact. 

How It Works

Essentially your temporary car insurance is a separate policy. It doesn’t interfere with your existing annual car insurance.

Temporary car insurance is generally easy to set up and requires less information than long-term insurance. You’ll likely only need a name, address and driver’s license. As well as driving history, vehicle details, the effective date and coverage period. Once you sign up, your policy is effective immediately.

As with long-term car insurance coverage, always shop around for the best rates with an insurer like Day Insure. And make sure you’re comparing apples to apples – similar coverage and duration.

All in all, with short term car insurance, all of your bases are covered. It’s an affordable option that offers you (and other drivers under your policy) the peace of mind to drive hassle-free.

5 replies
  1. Luke Smith says:

    I received a car as a graduation gift and I want to have it insured just in case something bad happens. I never imagined that short term car insurance exists! Since it’s affordable and I’m a fresh grad, I can definitely pay for this using my own money.

  2. Ashley Johnson says:

    I liked that you said tat having good car insurance will provide financial benefits. I have been thinking about getting better car insurance but have been worried about the cost. I will be sure to talk to an agent to receive help in finding a policy that fits the budget and has good coverage.

  3. Angela Waterford says:

    Wow, I never knew that short term insurance exists. I think I’ll get one from a good company that offers it since it’s affordable. Since it covers the same coverage as long-term insurance, I’m sure that it will work out for me.

  4. Jay Jorgenson says:

    I’d be interested to know more about the benefits of having short term insurance. I found it interesting when you mentioned short term car insurance covers drivers between the age of 18-75. What you said about long term insurance covers a year while short term insurance covers a month.

  5. Angela Waterford says:

    Wow, I didn’t know that I can get short term auto insurance coverage. I think I’ll get one from a good insurance company since it covers drivers between 18-75 years old. Since it’s a flexible alternative to traditional insurance, I’ll be able to save money.


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