Is temporary car insurance available in Texas?
Most car insurance companies in Texas offer policies with terms of either six or 12 months. Some plans allow you to pay month by month, which can be helpful when you can’t pay the entire premium up front.
If you find temporary car insurance offers for one-month, one-week, or even one-day policies, they may be a scam. But some exceptions exist. For instance, Hugo sells pay-as-you-go car insurance in Texas with packages of three, seven, 14, or 30 days, or six months.
You also have other options if you want car insurance for fewer than six months. You can get nonowner car insurance if you don’t own a car, or you can buy a short-term policy and cancel it early. Some short-term insurance options are also available if you’re renting a car.
Getting nonowner car insurance in Texas
Nonowner car insurance is a type of liability policy that covers you if you plan to drive a car you don’t own. You might decide to buy this type of policy if you:
Nonowner car insurance policies and standard policies have one key difference. Nonowner car insurance only offers liability coverage and doesn’t include collision and comprehensive insurance. You’ll have coverage if you’re liable for bodily injury and property damage to another driver. But nonowner car insurance doesn’t cover the car you’re driving or any injuries you or your passengers may suffer.
These policies are usually less expensive than full-coverage policies. But you’ll still need to purchase at least the minimum coverage amount required in Texas. This includes:[1]
$30,000 per person for bodily injury liability
$60,000 per accident for bodily injury liability
$25,000 per accident for property damage liability
$2,500 of personal injury protection (PIP) coverage, which you can waive in writing
If you want more liability protection, you can increase the liability limits in your policy.
Canceling your policy early in Texas
Another option for getting “temporary” insurance in Texas is buying a standard policy and canceling it early. Car insurance companies offer standard policies in six-month or 12-month terms, so this could be a good option if you just need coverage for a month or two. You may choose to close out the policy if you’re unhappy with the coverage or you no longer need it.
In Texas — like in many states — you may cancel your policy at any time and receive a refund of the remaining balance of your premium.[2] To cancel the policy, call the insurance company and give it a date the cancellation will go into effect. The insurer may ask you to provide the cancellation in writing. It’s usually a good idea to have the original policy end on the same day the new policy begins, so you don’t have a lapse in coverage.
Your insurance company will usually send you a prorated refund. So, if you paid for six months and cancel the policy after two months, you’ll receive the balance from the four months you didn’t use the coverage. If your company charges a cancellation fee, it may subtract the fee from your refund.
Before canceling your insurance, you’ll need to buy a new policy with the minimum car insurance requirements in Texas. A minimum-coverage policy in Texas includes $30,000 of coverage for injuries per person, a total of $60,000 for injuries per accident, and $25,000 of coverage for property damage. You can either purchase personal injury protection (PIP) with at least $2,500 in coverage or waive it in writing.[1]
Make sure you receive a written cancellation for the original insurance policy and a notification that the new policy has started.
Getting car insurance for a rental car in Texas
If you’re renting a car and already have a personal insurance policy for the vehicle you normally drive, your policy will cover the rental car. But if you don’t have an insurance policy or you want additional coverage, you have a few options:[3]
Insurance from the rental company: Most car rental companies offer rental car insurance, which includes four different types of coverage that you can accept or decline. The coverages include a collision damage waiver (CDW), liability insurance that includes the state-required minimum, personal accident coverage, and personal effects coverage.
Insurance from a car-sharing service: If you’re using a car from a service like ZipCar, the fee you pay generally includes insurance. But you may have to pay additional costs if the car is stolen or involved in a collision. Some car-share users decide to purchase a waiver to avoid those potential extra costs.
Credit card insurance: The credit card you use to rent the car may offer some rental car insurance, though coverage depends on the card. You’ll also need to check whether the card offers primary coverage, which lets you file a claim directly through your credit card company. Most cards offer secondary coverage, which kicks in only after you max out your personal insurance policy or the coverage from the rental car company.
