One-Week Car Insurance: What You Need To Know About Temporary Cover

Car insurance is required as part of registering and operating any vehicle on the public roads – be it a rare sports car or a cheap commuter like a Toyota Camry. It covers third parties and, in certain cases, yourself, should the unavoidable circumstances happen. Most car insurance policies are renewed on a monthly/annual basis, but in some instances, applying for car insurance that lasts for a shorter period can make logical and financial sense.

In these situations, motorists should be aware that short-term car insurance policies are available through certain insurers, such as when they only need car insurance for a week or a predetermined period. These bring the same benefits and protections expected with standard insurance policies, without having to pay for the expense of a month or year-long policy.

With this in mind, let’s go over what weekly car insurance plans are, why you may want to opt for this type of coverage, and some of the advantages/disadvantages to consider when using this type of short-term insurance.

What Is One-Week Car Insurance?

There are different types of short-term car insurance that vehicle owners/users can apply for, but in this case, 1 week car insurance is a policy that lasts only for seven days, or that you pay for on a weekly basis. This type of insurance coverage does not differ significantly from equivalent plans that are renewed every month or annually; essentials, like basic liability coverage, are included within these types of insurance plans.

Users who subscribe to these temporary insurance plans can still extend their coverage at the end of each renewal period (end of the week), if they wish to continue this form of coverage.

When Is It Appropriate To Apply For Weekly Car Insurance?

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While applying for standard-length car insurance is still a common practice to ensure any registered, road-going vehicle is legal to operate on a public road, there are a few cases where it is more practical to apply for car insurance for a week.

Below are some examples of where applying for this type of temporary insurance is appropriate rather than paying for the full premium of a monthly or annual policy:

• Temporary usage of a vehicle for a media production/commercial shoot: vehicles that are road legal and granted permission for use by a media/production company for a scheduled photo or video shoot on public roads will ideally need some form of temporary insurance for peace of mind (especially for any unpredictable emergencies)
• Temporary coverage while an existing long-term insurance policy is undergoing renewal: Policyholders may need some temporary liability/coverage insurance that covers them while their up-to-date annual policy is processed to avoid a lapse in coverage.
• Permitting a registered driver other than the vehicle’s owner to drive/use the vehicle (i.e. friend, family member): visiting relatives/entrusted individuals, or cases where you need to borrow somebody else’s vehicle, ideally requires some form of insurance that applies while the vehicle is used by someone other than the registered owner/s for a few days.
• Usage of rental vehicles (or renting out your personal vehicle): some rental car customers may prefer to purchase an individually tailored insurance policy that is more cost-effective to them and meets their needs, versus paying the high premium for the standard insurance coverage (aka ‘Collision Damage Waiver’ or similar) that rental agencies offer. Car owners who also rent out their vehicles through peer-sharing platforms like Turo or privately may also want temporary insurance while their car is used by a paying customer.
• Use of a vehicle not registered in your name for work (ride-sharing, courier deliveries, designated driver service etc.): if you are using a vehicle not under your name for these paid services, you are expected to still carry some form of temporary insurance. If you are only using the vehicle for a predetermined week, applying for weekly car insurance is more suitable.
• Foreign visitors purchasing a vehicle in the country they are visiting (requiring temporary insurance coverage): those visiting a foreign country intending to purchase a car to export out of the country typically require car insurance for a week (minimum) to cover them as part of the vehicle purchase, and for the days they intend to drive the vehicle to transport it to its next port (if they do not intend to have other means to do so).
• Use of a registered vehicle currently undergoing transfer of ownership between owners (i.e. car sale): cars in transition between owners can have a lapse in which they are not covered under insurance (as they are transferred to a policy under their new owner/s).

Does Weekly Car Insurance Offer The Same Level Of Protection Versus Long-term Insurance Plans?

Those who intend to apply for and use a 7-day insurance policy should know that most of these fulfill the basic liability coverage requirements most US states require. Even under an insurance policy that is only renewed every week and so forth (until canceled), injuries and damage to any other individuals, property, or vehicles are still covered. This does mean that any repairs, injuries, or similar damages incurred to the individuals under these policies, as well as covered vehicles, will not be paid by the insurer.

What Are Some Advantages And Disadvantages Of One-week Car Insurance?

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Applying for and using car insurance on a weekly basis carries both its advantages and disadvantages. Under most circumstances, it can be applied to any standard vehicle like any other insurance policy, covering anything from a Nissan Sentra to a BMW X5.

As much as it offers far more flexibility while fulfilling the baseline of most car insurance requirements, customers who opt for a 7 day insurance policy should be aware of these, some of which we list here.

Pros Of Weekly Car Insurance

• More affordable: typical rates for weekly car insurance are far lower than the rate for a monthly/annual insurance plan. Depending on factors like the type of insurer used, coverage, vehicle make/model, and any applicable no-claims bonuses, the average cost can range from $10–$25 per day.
• More flexible payment terms (pay-as-you-go): some may find the flexible payment terms/schedule more suited to their needs or lifestyle, depending on their expected usage of the vehicle or how often the covered individuals need the vehicle. In most cases, these types of insurance plans can be paid on a weekly installment basis.
• Users can apply and receive an insurance letter/card within a short notice: the majority of insurance agencies that issue this type of short-term insurance coverage are more set up on digital platforms, allowing a far more efficient process from application to approval. Users can also receive all the required insurance documents online, typically via a mobile app, to receive almost instantaneous coverage (provided all requirements are in order).

Cons Of Weekly Car Insurance

• Renewal payment needs to be done more frequently: unless automatic reminders are set up to ensure policyholders continually pay to renew their car insurance for a week, this can be easily forgotten if not monitored. Customers also need to ensure they budget for this weekly expense.
• No full coverage: these forms of short-term car insurance are primarily limited to liability-only coverage (damage/injuries caused to other individuals, property, or vehicles).
• Can only be renewed up until a certain number of months: while weekly car insurance plans can be renewed for multiple weeks in succession, some insurers state (within the fine print of their agreements) that these can only be renewed up until a certain number of months.
• Not offered in all states or by all insurance companies: as of this writing, not all insurance agencies in the United States offer car insurance for a week (or on a weekly-renewal basis); some may only offer six months insurance as the bare minimum. In addition, not all US states recognize weekly car insurance as valid.

What Insurance Agencies Offer Car Insurance For A Week?

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While weekly car insurance is still fairly new within the insurance industry, some have attempted to be among the first to offer this more flexible, short-term arrangement for customers. However, it’s important that no matter what insurer is consulted, customers should do as much due diligence as possible to read the contract terms carefully to confirm that the policy has no hidden fees or clauses – especially within the marketing buzzwords.

It’s also important to note that most major insurance companies, like GEICO, do not offer true ‘1 week car insurance’ ; only standard six-month insurance plans that can be terminated early, or offer liability coverage that can be split into seven-day payment installments.

Some of the insurance companies or agents within the United States that offer a version of weekly car insurance include, but are not limited to the following:

• Admiral Car Insurance (and its subsidiary, Veygo)
• Hugo
• Insurify Car
• Tempcover

Weekly car insurance is still developing as a more flexible coverage plan for motorists. Therefore, customers should still do as much research to confirm if it’s appropriate for their case, legally recognised within their primary US state/region, and if intending to cover someone other than themselves, it does so without any hidden stipulations or unclear language.

Sources: Insurify, Admiral Car Insurance, Insuranceopedia, Pexels, Young Driver