Key Takeaways
Temporary auto insurance, often known as short-term auto insurance, provides coverage for days, weeks, or months. However, if you require insurance is more than one month, you must extend it to six or twelve months. Temporary insurance may appear to be a suitable solution if you are on a brief visit to the city or need a brief policy for a specific cause.
The concept of temporary auto insurance is a misconception in most states. Many well-known insurance companies do not offer coverage for less than six months. You should also be cautious when selecting temporary insurance providers, as some may be fraudulent.
The best option to satisfy the demand for short-term coverage is to purchase a six-month policy and cancel it early. However, one must exercise caution while switching auto insurance carriers, as doing so can hurt future premiums.
Michigan is not very different when it comes to temporary car insurance. You can manage temporary insurance in Michigan by acquiring full-term coverage and canceling it early.
However, Michigan used to offer 7-day insurance that allowed car owners to buy some time to shop around for insurance while registering or renewing the registration and driving around while on this registration. But, since the number of drivers who drove around after having their insurance lapsed increased, the state banned it.
Here, we will review the pros and cons, the process involved, the cheapest businesses in Michigan that offer the most affordable prices for temporary policy coverage, as well as the alternatives.
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| Regular renewal might drop the rates more quickly. | Rates can increase based on risk factors. |
| More freedom to rethink your current provider. | |
| Switch without paying a cancellation fee. | |
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| Lower interest rates can be maintained for a longer time | Fewer chances to change coverage |
| Rate changes will take longer. | |
The average car insurance in Michigan would cost $452 per month. If you need a short-term policy in the state, you can buy a six-month policy and cancel it. A six-month policy in Michigan will cost $2711. Most insurers will return the remaining amount of your policy's costs after cancellation. So, you would pay only $1355 if you were to cancel your policy after three months.
Even if early cancellation does not incur additional fees, you must ensure that there are no gaps in coverage when canceling your policy in advance.
Michigan, a no-fault state, has the highest car insurance rates in the country. It costs $5421 on average to insure a car in Michigan. According to Way. Com's research, we have shortlisted the best insurance providers in Michigan that provide the cheapest temporary insurance rates according to the policy length and the city-wise rates.
Apart from USAA, which is open to active military members and veterans, Auto-Owners Insurance Co offers the cheapest rates among the insurance companies that allow six-month coverage and cancellation according to your requirement before the period ends. It costs $581 to insure with Auto-Owners Insurance Co.
| Company | One Month | Three Month | Six Month |
|---|---|---|---|
| Farmers | $1210 | $3618 | $7230 |
| Hanover | $560 | $1668 | $3330 |
| USAA | $100 | $288 | $570 |
| MetLife | $210 | $618 | $1230 |
| AAA | $296 | $875 | $1745 |
| Allstate | $321 | $955 | $1995 |
| Esurance | $302 | $894 | $1782 |
| Mercury | $358 | $1062 | $2119 |
| State Farm | $394 | $1169 | $2331 |
| Nationwide | $213 | $646 | $1286 |
| Travelers | $311 | $920 | $1835 |
The theft statistics and accident rates play a crucial role in determining the car insurance rates in a city. Sterling Heights, Grand Rapids, and Lansing offer the cheapest six-month policy rates in Michigan.
| City | Average 6-Month Rate | Average Monthly Rate |
|---|---|---|
| Detroit | $3146 | $529 |
| Grand Rapids | $1349 | $230 |
| Sterling Heights | $2061 | $148 |
| Warren | $2219 | $375 |
| Lansing | $1456 | $248 |
Teenage drivers pay the highest prices for auto insurance in every state. Adding teen drivers to their parents' policy is the most prevalent strategy for lowering their insurance premiums. If your adolescent children reside far away, you may want to add them once they are on summer break.
In such instances, Michigan students can obtain temporary auto insurance. In addition, Progressive offers the most affordable rates for adding a teen driver to an existing policy.
| Company | 18-year-old for two months | 18-year-old for full-year |
|---|---|---|
| State Farm | $12216 | $2041 |
| All State | $8001 | $1338 |
| Nationwide | $6002 | $1005 |
| Progressive | $3523 | $2041 |
Usually, the need for temporary auto insurance is unanticipated. However, a policy modification may be necessary if temporary insurance is not needed. For instance, you will prefer to exclude from coverage your teen child attending college outside of Michigan. Other instances may include the requirement to store your vehicle or if someone else regularly uses it.
Alternatives allow you to temporarily modify your auto insurance policy if you need to store your car in Michigan temporarily. For instance, if you are storing your car in Michigan, you can request a change to comprehensive coverage.
Once you drop the liability coverage charges, it will cost $1119 annually to insure your car in Michigan. In addition, USAA offers the cheapest rates for storing your car in Michigan if you are an active military member.
Non-family members who drive your car need not be insured, as they may already be protected. However, other family members who drive your car must be added to your policy to be covered.
The requirements for temporary auto insurance in Michigan are similar to those for acquiring any other type of insurance. However, while planning on getting temporary auto insurance in Michigan, one must consider a few additional factors besides systematic research and online quotes.
Since most insurance companies provide their rates online, comparing them is an effective strategy to obtain the cheapest pricing. Since you only need the policy for a brief period, price need not be the sole consideration.
Since you will terminate the acquired policy in less than six months, the provider's cancellation policy and refund terms are crucial.
Since coverage and policy changes are common for those who choose temporary insurance, effective customer service is required to make the processes run smoothly.
You can save more on temporary insurance in Michigan if you plan concerning the length of time you wish to maintain the policy, the required coverage, and the cancellation and refund policies.
Most insurance providers do not directly offer temporary car insurance. But certain situations might necessitate it, and you may require temporary insurance coverage. There are alternatives to purchasing a six-month policy and canceling it in Michigan. Non-owner and rental car insurances are the other available economical and short-term options.
If you don't own a car and drive frequently, you should consider non-owner auto insurance. This will keep you on track with the Michigan state-mandated minimum liability coverage.
Non-owner car insurance, as opposed to standard automobile insurance, covers the driver rather than the vehicle. As a result, it will keep you covered regardless of the vehicle you drive. Furthermore, non-owner car insurance premiums are at least 10% lower than standard insurance rates.
Renting a car on a brief trip to Michigan is an option for many. One might choose rental automobile insurance for shorter and more comprehensive coverage in such situations. For instance, the Collision Damage Waiver may be costly but provides comprehensive coverage. However, insurance companies provide less expensive solutions, such as personal accident coverage and additional liability coverage.
Though the rental car insurance rates vary with providers, adding the coverage options to your policy will cost around $63 and $66 per day. Additional options like supplemental liability insurance, personal accident coverage, and collision damage waivers are offered by rental car insurance companies in Michigan.
The average daily cost of renting a car in Michigan is between $57 and $66 per day. Aviz, Hertz, and Enterprise offer cheap rental car insurance in Michigan.
| Rental Company | Total Insurance Cost | Supplemental Liability Cost | Collision Damage Waiver Cost | Personal Accident Insurance Cost |
|---|---|---|---|---|
| Enterprise | $57 | $19 | $39 | $6 |
| Avis | $63 | $23 | $37 | $10 |
| Hertz | $66 | $25 | $40 | $7 |
If you are a rideshare driver, you receive insurance if you accept a fare or ride a passenger. Rideshare insurance covers the momentary interruption in coverage that occurs before accepting a passenger. The specifics of ridesharing policies vary by state and may not be available in all states.
Shopping for car insurance coverage can be time-consuming, but if you research and shop around, you'll be rewarded with better coverage at a reduced price. Way.com give you a head start by analyzing the best car insurance coverage businesses in the United States based on financial strength, customer service, protection, and pricing, all of which may impact your insurance coverage experience.
Way.com assures savings of $971 per year on insurance coverage. You might be able to afford greater coverage if you need a temporary policy to save money with Way.com.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
Way.com’s Insurance Broker Quote Data
Yes, insurance companies will repay the unused portion of your coverage if you cancel your auto insurance within six months. However, make sure you understand your insurance company's cancellation policy, as it differs among providers.
Michigan is not very different when it comes to temporary car insurance. You can manage temporary insurance in Michigan by acquiring full-term coverage and canceling it early.
Michigan used to offer 7-day insurance that allowed car owners to buy some time for shopping around for insurance while registering or renewing the registration and driving around while on this registration. However, since the number of drivers who drove around after having their insurance lapsed increased, the state banned it.
For regular drivers who don't own a car, non-owner auto insurance is recommended. This keeps you updated with Michigan's required minimum liability insurance. Non-owner insurance also protects the driver; therefore, you are covered regardless of the car you drive.
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