Temporary Car Insurance In Texas For 2024

Long-term car insurance may not be ideal when you only need coverage for a few days or weeks. Perhaps your friend has lent you their car for a weekend, or you’re home from college for Summer break. In such situations, the cost and complexity of obtaining a traditional six-month or year-long policy would be overkill.

Temporary car insurance comes in handy when you want to be covered but want to avoid having to pay for coverage you won’t need. Unfortunately, many US-based insurers don’t offer car insurance policies with coverage for short periods. But there are options you can consider.

As a veteran in the insurance industry with decades-long experience, I have helped many drivers find the best auto insurance for their unique circumstances. I’ll attempt to do the same in this article by explaining situations where Texas drivers may require temporary car insurance and the available alternatives to consider. Keep reading for more details.

What Is Temporary Car Insurance?

Temporary car insurance may refer to auto insurance coverage that remains in effect for less than the standard six months or 12 months. However, such policies are not widely available in the United States, so drivers looking for short-term coverage should consider alternative options like purchasing a standard six-month policy and canceling it early.

Alternatives To Temporary Car Insurance

There are various alternatives to temporary auto insurance available, including:

Buying A Six-Month Texas Insurance Policy And Canceling It Early

Most insurance companies offer car insurance policies that last six or 12 months. Policies with shorter terms are usually not an option, but you can purchase a six-month policy and cancel it when you no longer need it.

Rental Car Insurance In Texas

A common reason for wanting to buy short-term car insurance is when renting a car temporarily. However, drivers can purchase coverage from the car rental company and skip buying a personal policy. The former is recommended in this scenario since rental car coverage offered through personal auto insurance typically doesn’t cover loss of use, which can be pricey.

Non-Owner Car Insurance In Texas

If you regularly drive a car you don’t own, consider looking into non-owner car insurance. This kind of policy offers liability protection when driving a borrowed or rented vehicle should you cause property damage and personal injury to someone else while driving.

Non-owner car insurance also helps drivers avoid a lapse in coverage when between cars, which can lead to insurers charging you higher premiums in the future.

Note: A non-owner car insurance policy doesn’t cover damage to the vehicle. It only provides liability coverage to the insured.

Texas Pay-Per-Mile Insurance

If you own a vehicle but rarely drive, pay-per-mile insurance may be your best alternative to temporary car insurance. Various factors help determine the price of a traditional car insurance policy, and how often the policyholder drives isn’t one of them. A pay-per-mile policy lets low-mileage drivers save by pricing their premiums by the miles they drive.

Rideshare Car Insurance

Personal auto insurance policies typically do not provide coverage while driving for a ride-hailing service. With an estimated 1.5 million Uber drivers operating in the United States and 2.8+ trips occurring every day from 2019 through 2020, the need for rideshare insurance cannot be overstated.

Rideshare companies like Uber and Lyft typically provide their drivers with some coverage for certain stages of the rideshare process. While their personal insurance covers them when driving for personal reasons. To bridge the gap between the two, drivers should add rideshare insurance to their regular policies.

Average Cost Of Short-Term Car Insurance With Liability Only

Average Cost Of Short-Term Car Insurance For Young Drivers

Average Cost Of Short-Term Car Insurance For Drivers With An Accident

Short-Term Auto Insurance Rates In Texas By City

2023 saw 550,873 car accidents in Texas, with Houston taking the lion’s share with close to 66,000 accidents. So it’s no wonder auto insurance in the city costs higher than the statewide average rate. Corpus Christi, which recorded significantly fewer accidents, has among the lowest car insurance rates in the state.

Temporary Car Insurance Rates In Texas By Insurance Company

According to the 2022 market share report by the National Association of Insurance Commissioners, Progressive has a 16.13% market share for private passenger auto insurance in Texas, ranking No.1. Farmers Insurance takes the sixth position for the same category with a 7.24% market share.

Temporary Car Insurance Rates In Texas By Policy Length

Based on my findings, State Farm has the most expensive short-term car insurance rates in Texas, while Farmers has the cheapest rates.

Altering Texas Car Insurance Temporarily Depending On Your Needs

What if the alternatives to short-term car insurance mentioned earlier don’t work for your needs? Depending on your reason for wanting temporary auto insurance, you may be able to change your existing plan to match your needs.

If you don’t have insurance, you may be able to purchase a six-month policy and customize it to suit your exact needs. Here are examples of situations where making adjustments to your car insurance policy may apply.

You’re An Infrequent Driver

You may not necessarily need to carry your own insurance based on how often you drive. Insurance providers typically require all household members who are licensed drivers to be listed on the car owner’s auto insurance policy so they can be covered when driving the car.

There’s also the permissive use clause in most car insurance policies, which extends coverage to anyone not listed on your policy with permission to drive your car. However, this should be someone who only occasionally operates your vehicle. If a frequent driver, they should consider a non-owner policy, as it offers liability protection when driving a borrowed or rented car.

Your Car Is In Storage

If you place your car in storage for extended periods—maybe because you own separate cars for different seasons—you may be tempted to cancel your policy. However, your vehicle may still be at risk of fire, theft, vandalism, and other non-collision incidents.

While there’s no such thing as storage insurance, you can purchase comprehensive-only coverage for a stored vehicle or suspend your liability and collision coverages on your existing policy. If the latter, contact your insurance carrier to reinstate the coverages before placing your automobile back on the road.

Note: If your insurer doesn’t allow you to drop every coverage other than comprehensive coverage, you can save by reducing your coverage to the state-required amounts. However, this is not advisable for a multi-car insurance policy because there are other vehicles to consider.

To Allow Someone Else Drive Your Car

Every now and then, a friend or family member may need to borrow your car. The permissive use clause in almost all auto insurance policies allows occasional use of your vehicle by unlisted drivers with consent. However, any licensed driver who lives with you or has regular access to your vehicle will usually need to be added to your policy, regardless of how frequently they drive.

To Add Your Child To Your Policy

If your child recently got a driving license, you may be hesitant to list them on your policy, especially given the costly insurance rates for newly licensed teenagers. But it’s best to add them, even if they won’t operate your vehicle regularly.

In fact, car insurance companies generally require that policyholders disclose all licensed drivers inside the home. Failure to do so may result in your insurer denying a claim or canceling your policy. If your child won’t be driving your vehicle at all, you may exclude them from your auto insurance policy.

College Student Away At School

More than half of undergraduate college students have a car with them at school. To ensure their driving legally, they can either remain on their parent’s car insurance policy or purchase their own insurance. And even if your child won’t be bringing a vehicle to college, do not be quick to remove them from your policy.

Say your child borrowed a friend’s vehicle while at school, and they didn’t have coverage. If they caused an accident, they would be liable for any costs exceeding the friend’s policy limits. Texas law mandates all drivers carry at least 30/60/25 liability coverage. Such low limits can quickly be exhausted by one minor incident.

Moreover, an estimated 1,519 college-aged students die from alcohol-related injuries each year, including car crashes. With all the partying that goes on in college, you wouldn’t want your child hesitating to drive a drunk friend home due to being uninsured. Keeping your child on your policy ensures they remain protected should they get behind the wheel of someone else’s car while at school. Alternatively, you can buy them a non-owner policy.

You’re An International Driver

There are a few car insurance options for an international driver visiting Texas. If it’s a short stay and you rent a car, you can purchase coverage through the rental car company. If staying longer than a month, a standard auto policy or non-owner insurance may be more suitable. Once you return to your home country, you can cancel the policy.

Note: Some insurers may require international drivers to have a recognized foreign license or an international driving permit (IDP) to purchase car insurance. Make sure to research the documentation you need to drive legally in Texas if you’re not a U.S. citizen before your trip.