Key Takeaways
Temporary car insurance, also referred to as short-term car insurance, is insurance that can be used for a day, a week, or a month. However, you must extend your policy to six or twelve months if it exceeds a month. Temporary insurance might seem like a conducive option if you are on a quick visit to the city or require a short policy for a particular reason.
However, temporary car insurance is more of a myth in most states. Many nationally recognized insurance providers do not offer policies for less than six months. You should also be careful in choosing the providers that offer temporary insurance as it could be a fraud.
If you require a short-term policy, the best way to attend to the need is to buy a six-month policy and cancel it early. One must be careful while hopping and switching providers, as it can reflect on your car insurance rates later.
Texas, too, is less different regarding the concept of temporary car insurance. It allows you to handle temporary insurance by purchasing a full-term policy and canceling it early. Here, we will discuss the pros and cons, the involved process, cheap companies in Texas that offer the best rates for temporary policy coverage, and 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 rate for full coverage costs $162 per month. However, if you like a short-term policy, you can buy a six-month insurance policy in the state and then cancel the policy. After cancellation, most insurers will return the remaining amount of your policy's costs. So, for example, you would pay only $486 if you were to cancel your policy after three months.
Even though canceling early won't cost you an extra amount, you must make sure that there are no lapses in coverage while canceling your policy six months before.
Most of the nationally recognized insurance providers are hosted in Texas. According to Way. Com's research, we have shortlisted the best insurance providers in Texas that provide the cheapest temporary insurance rates according to the policy length and the city-wise rates.
Farmers and State Farm provide the cheapest rates among the insurance companies that allow six-month coverage and cancellation according to your requirement before the period ends. While it costs $211 to insure with Farmers, it costs $237 to insure with State Farm for 90 days.
| Company | One Month | Three Month | Six Month |
|---|---|---|---|
| Farmers | $74 | $211 | $417 |
| USAA | $80 | $227 | $449 |
| MetLife | $133 | $387 | $768 |
| AAA | $99 | $286 | $565 |
| Allstate | $103 | $298 | $565 |
| Esurance | $101 | $293 | $581 |
| Mercury | $126 | $366 | $726 |
| State Farm | $83 | $237 | $468 |
| Nationwide | $114 | $327 | $648 |
The car insurance rates you finally pay depend on driving and non-driving factors. Fort Worth and San Antonio offer the most affordable six-month premium rates among the cities discussed here.
| City | Average 6-Month Rate | Average Monthly Rate |
|---|---|---|
| Houston | $841 | $145 |
| Fort Worth | $729 | $127 |
| San Antonio | $756 | $131 |
| Dallas | $846 | $146 |
| Austin | $718 | $138 |
Teen drivers pay the highest car insurance rates in any state. The most common method adopted to reduce the insurance premium rates of teen drivers is by adding them to their p parent's policy. If your teen kids live far away, you might want to add them once they are home on vacation.
In such cases, one can opt for temporary car insurance for students in Texas. State Farm gives you the cheapest rates for a teen driver when added to an existing policy.
| Company | 18-year-old for two months | 18-year-old for full-year |
|---|---|---|
| State Farm | $2256 | $381 |
| All State | $3658 | $615 |
| Nationwide | $3701 | $622 |
Most of the time, the requirement for temporary car insurance is sudden. However, if it is not a requirement for temporary insurance, it could be the need to alter the policy. For instance, you will want to exclude your teen child studying in colleges far from Texas from your policy. Other instances could be the need to store your car or if someone else is regularly driving your car.
Under a situation where you have to store your car in Texas for a while, there are available options that let you alter your car insurance policy temporarily. For example, if you are storing your car in Texas, you can request a switch to comprehensive coverage.
This can cost around $440 annually, less than the minimum liability coverage. In addition, USAA offers reduced rates and discounts for storage if you are an active military member.
Drivers outside your family who drive your car need not be insured as they might already be covered. However, the other members of your family who drive your car must be added to your policy as the same policy must cover them.
The prerequisites for getting temporary car insurance in Texas are similar to purchasing any other insurance policy. However, in addition to regular research and obtaining online quotes, one must consider a few other factors while planning for temporary car insurance in Texas.
Since most insurance companies offer their quotes online, comparing them is an effective way to ensure that you get the best price. Since you require the policy only for a short period, price is not the only factor that must be taken care of.
The cancelation policy of the provider and the refunds given is important as you will cancel the purchased policy in less than six months.
Since switching coverage and policy is frequent while one opts for temporary insurance, good customer service is necessary to make the processes smoother.
Planning well in advance regarding the time frame you want to keep the policy, the required coverage, and the cancelation and refund policies will help you save better on temporary insurance in Texas.
It is no secret that insurance providers do not directly offer temporary car insurance. But certain situations demand it, and you might need insurance coverage for a short period. Other than buying a six-month policy and canceling it, there are some alternatives to temporary car insurance in Texas. These include non-owner and rental car insurance which are both short-term and affordable.
If you don't own a car but are a frequent driver, then it is advisable to opt for non-owner car insurance. This will keep you updated on the state-mandated minimum liability coverage in Texas.
Unlike regular car insurance, non-owner car insurance is for the driver, not the car. Hence, it will keep you covered regardless of the car you drive. In addition, the rates for non-owner car insurance are at least ten percent lower than regular insurance.
If you are on a short visit to Texas, renting a car is an option for many. In such cases, one can opt for rental car insurance for shorter and better coverage. For example, the Collision Damage Waiver might be expensive but offers complete coverage. However, insurance providers offer less expensive options like personal accident coverage and supplemental liability coverage.
Rental car insurance in Texas includes standard liability coverage and additional options like supplemental liability insurance, personal accident coverage, and collision damage waivers. Though the rental car insurance rates vary with providers, adding the coverage options to your policy will cost around $60 and $70 per day.
A few rental companies in Texas offer cheap rental car insurance in the state. The average daily cost ranges between $60 and $70. The additional coverage options will give you better protection.
| Rental Company | Total Insurance Cost | Supplemental Liability Cost | Collision Damage Waiver Cost | Personal Accident Insurance Cost |
|---|---|---|---|---|
| Enterprise | $61 | $19 | $42 | $6 |
| Avis | $63 | $23 | $37 | $10 |
| Hertz | $66 | $25 | $40 | $7 |
If you are a rideshare driver, you acquire insurance once you accept a fare or ride a passenger. Rideshare insurance covers the temporary lapse in your coverage before accepting a customer. The specifics of rideshare policies vary from state to state and might 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 providers allow a refund of your unused policy amount if you cancel your car insurance within six months. However, make sure you learn the cancelation policy of your insurance provider, as it varies with each provider.
Proof of insurance is mandatory in Texas to drive your car around. So, you can drive your brand-new car without insurance in Texas.
Since insurance providers in Texas do not offer temporary insurance, it is not possible to drive a car with temporary insurance. However, for short-term insurance, you can opt for six-month coverage and cancel the policy when needed. This will provide you with the required coverage, affordable rates, and the freedom to cancel.
Insurance companies don't sell one-day policies. Instead, most offer temporary car insurance that covers your car for at least six months. Make sure you research well before finalizing your provider and steer clear of scams.
Non-owner automobile insurance is recommended for frequent drivers who don't own a car. This keeps you up-to-date on Texas's minimal liability coverage. In addition, non-owner insurance covers the driver, not the car. Hence, you're insured regardless of the car you drive.
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