Temporary Car Insurance In Georgia: What To Know

Most of us have been in a position where we needed car insurance for only a short period. Perhaps you’ve borrowed someone else’s car for a short getaway, or your child is home from college for a lengthy break and plans on driving the family car.

In such situations, taking out temporary insurance rather than a standard auto policy would be much easier and more cost-effective. Unfortunately, a majority of insurers in the U.S. don’t offer short-term coverage options, but there are still ways you can drive while insured without paying for coverage you don’t need.

As a decades-long expert in the insurance industry, I have helped many drivers in the country find the best coverage for their specific needs. In this article, I will focus on presenting the best temporary auto insurance for drivers in Georgia based on their unique situation and discussing alternatives. Read on to learn how and where to get short-term coverage in The Peach State.

What Is Temporary Car Insurance?

Temporary car insurance is short-term insurance where the policy term is less than six months. Insurance companies in the United States generally offer car insurance policies with a 6-month or twelve-month policy period. Therefore, drivers in need of car insurance for a short time should look into other options like signing a standard six-month policy and canceling before the expiry date.

Alternatives To Temporary Car Insurance

Georgia residents looking for temporary car insurance have various options depending on their situation. Here are some:

Georgia Pay-Per-Mile Insurance

Pay-per-mile auto insurance is ideal for people who don’t drive often, as premiums are charged per mile driven. On the other hand, traditional policies see drivers who are similar in various respects pay nearly the same premiums regardless of how often they drive. A pay-per-mile policy, therefore, keeps you insured while saving you money.

Non-Owner Car Insurance In Georgia

Non-owner car insurance is ideal for people who don’t own a car but have borrowed or rented someone else’s car. However, this type of insurance is a liability-only policy, i.e., it only covers damages and injuries you may cause others while driving the vehicle. Loss or damage to the vehicle you’re driving is not covered.

Rideshare Car Insurance

Did you know that personal car insurance does not cover you when you get into a car accident while transporting passengers for a fee using a rideshare service like Uber? In the U.S. alone, there are approximately 1.5 million Uber drivers, with nearly 4 million trips taking place per day.

To ensure you’re adequately protected while working as a rideshare driver, you need a special kind of policy called rideshare insurance. A rideshare insurance policy fills the gap between your personal coverage and the limited coverage offered by the rideshare company.

Rental Car Insurance In Georgia

Contrary to what most people believe, you don’t need to take out car insurance to rent a car. Car rental companies usually offer their own car insurance, which you can buy, eliminating the need for a personal policy. In fact, it’s best to get insurance from the rental company because most personal car policies won’t cover loss of use to the rental car, which can be costly.

Consider Buying A Six-Month Georgia Insurance Policy

It’s difficult to find a company that sells car insurance policies with terms shorter than six months. Fortunately, it’s not against the law to purchase a six-month policy and keep it active only for the period you need coverage, then cancel it when you no longer need it.

Altering Your Georgia Car Insurance Temporarily To Suit Your Needs

If the above options don’t fit your circumstances, it may be possible to adjust your existing car insurance to cover your needs. In case you have no insurance at all, you may be able to purchase a six-month auto policy personalized to your unique needs. Below are examples of circumstances that may call for altering your car insurance:

Include Your Child In Your Policy

As soon as your child gets a driver’s license, you should add them to your car insurance policy even if it increases your premiums. It may feel like a waste of money, especially if they don’t plan on driving often, but it’s best to play it safe.

Besides, insurance companies usually require that you disclose all licensed drivers in your household. If you don’t do this, you risk having future claims you file denied or getting your policy canceled. On the other hand, it may be more cost-effective to exclude the teenage driver from your own policy and buy a separate policy for them.

Add A Licensed Driver To Your Car Insurance

If there’s someone with a driving license you regularly allow to drive your car, you should add them to your auto insurance policy. If the person only borrows your car from time to time, the permissive use clause will likely suffice.

The permissive use clause is a section in most car insurance policies that covers unlisted drivers you permit to drive your car. Permissive use comes in especially handy during an emergency or when someone needs to borrow your car.

Note: licensed drivers in your household or those with regular access to your vehicle are typically not covered under permissive use, as you should have them listed in your auto policy.

Your Child Is Away At College.

If your child is among the estimated 56% of undergraduate college students who have a car with them at school, they may be able to remain on your car insurance if the car they’re driving is yours. If your insurer doesn’t allow it, they’ll typically need to buy their own auto policy.

If your child doesn’t plan on driving while at school, and you’re thinking of removing them from your policy, you might want to reconsider. Approximately 1,519 college-aged students lose their lives each year due to alcohol-related incidents, including fatal car crashes. You don’t want your child shying away from taking the driver’s wheel of a drunk friend’s car due to lack of insurance.

Additionally, if your child borrows a car and causes damage or injury exceeding the liability limits in the car owner’s policy, they may be responsible for the difference. If they’re a listed driver in your policy, your auto liability coverage might kick in. Alternatively, you could buy your college-aged child non-owner car insurance.

Note: Under Georgia law, the minimum limits of liability insurance required are: $25,000 per person and $50,000 per accident for bodily injury and $25,000 per incident for property damage.

Your Car Is In Storage

If you need to store your car for an extended period for any reason, you may be able to suspend your liability coverage for the entire duration your vehicle is parked or stored away. However, you should keep comprehensive coverage because your car could still get damaged, stolen, or vandalized while in storage.

Your insurance company may offer storage insurance, which is reduced coverage, not a specific type of insurance policy insurance. Contact them to find out what options you have. If they offer storage insurance, you only need to adjust your policy.

If your insurer doesn’t allow suspending portions of your policy, you can reduce your coverage to state minimum coverage requirements, lowering your premium. This option is best reserved for a single-car policy, as lowering the coverage limits of a multi-car policy to the bare minimum can expose you to life-changing financial risks.

Note: If you suspend some of your car insurance coverage, make sure to ask your insurance provider to reinstate the coverage before putting your vehicle back on the road.

You Don’t Drive Very Often

If you don’t drive often, you could get away with not having your own insurance policy, depending on how frequently you drive. While most providers require policyholders to list all licensed drivers in the household on their policies, they also have a permissive use clause that covers anyone with permission to drive a policyholder’s car occasionally.

However, if you regularly drive other people’s cars, you may want to consider investing in a non-owner car insurance policy. This type of insurance protects you from liability claims resulting from bodily injury and property damage you cause others while driving someone else’s car.

Note: If a person shares the same address as you, they may not qualify as a permissive user.

You Are An International Driver

There are several auto coverage options for international drivers based on their length of stay in the country. If it’s a short visit and they rent a car, they can buy auto insurance through the car rental company. If staying longer than a month, it may be better for them to purchase standard or non-owner insurance and cancel once they’re back home.

Note: Certain insurance carriers in the U.S. may require international drivers to have an international driving permit (IDP) or a valid foreign driver’s license. As you make your travel plans, ensure to find out which precise documents you need to drive legally in Georgia as a non-citizen.

Average Cost Of Liability-Only Temporary Car Insurance

Average Cost Of  Short-Term Car Insurance For Young Drivers

Average Cost Of Temporary Car Insurance For Drivers With A Prior Accident

Temporary Car Insurance Rates In Georgia By Insurance Company

According to the National Association of Insurance Commissioners’ 2022 market share report, State Farm has the biggest market share for private passenger auto insurance in Georgia, with 22.10%. Farmers Insurance holds a 2.50% market share for the same category.

Temporary Car Insurance Rates In Georgia By Policy Length

My research concluded State Farm offers the highest rates for temporary car insurance compared to other Georgia insurance companies, while Farmers was the most affordable.

Short-Term Auto Insurance Rates In Georgia By City

Across the United States, Atlanta is the number one city you’re most likely to get in a car accident. So it’s no wonder the city has the highest auto insurance rates in Georgia. Drivers living in Peachtree City pay the lowest auto insurance rates in the state.