Can You Get Temporary Car Insurance?

What is temporary or short-term insurance?

Temporary car insurance is the solution for drivers who need to be insured for less than the standard one-year length. The policy can last for days, weeks, or even a few months.

For example, you may need short-term insurance when you are switching policies or need to rent a vehicle for a trip, or perhaps you only plan to have a vehicle or drive for a short period of time.

Get short-term insurance for long term investments

When buying a car or transferring ownership, consider temporary car insurance. Our brokers will help you customize the on the duration of coverage and assessing additional coverage needs.

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Can you get temporary car insurance in Ontario?

If you are a driver seeking temporary coverage for Ontario car insurance, options are quite limited. Currently, you cannot purchase short-term policies in Ontario. Standard one-year policies are the most common type being offered, and the shortest term is six months.

As driving needs change, one might wonder, what if someone needs a car only for their weekly grocery trip, or a friend needs to borrow your vehicle?

The only alternative for those searching for short-term solution is pay-as-you-go insurance. A great solution is CAA MyPace, which uses a plugged device to track your mileage and adjust your rate based on how often you drive and how many kilometres. It has been approved by the FSCO, under the conditions that insurers are accountable for how data is collected and used to offer specific discounts.

What does temporary insurance cover?

Temporary insurance polices include the same protection offered by standard coverage. The main difference is the length of the policy. Here’s a brief overview of what is covered by short term policies:

• Liability: Third party liability protects you if you are responsible for an accident resulting in property damage, repairs, personal injury, or death.
• Accident benefits: Your policy's accident benefits section covers medical, rehabilitation, attendant care, caregiver, non-earner, and income replacement benefits if you're injured in a car accident, regardless of fault, with options to increase coverage.
• DCPD: In Ontario, for all non-at-fault accidents, you will be compensated directly by your insurer, but DCPD coverage can be removed from your policy.
• Uninsured and underinsured motorists: If you are in an accident with someone who does not have enough coverage, or not enough, you’ll have insurance to protect you.
• Additional coverage options: You may want to consider comprehensive and collision insurance to ensure adequate coverage, even if it is short-term.
• Medical expenses: SABS is mandatory and included on all Ontario policies. It helps pay for expenses related to car accident injuries.

When do drivers need temporary insurance?

Temporary insurance may be required in a number of situations. Temporary insurance provides flexible coverage for short-term needs like insuring seasonal vehicles, covering used car transactions, or insuring borrowed vehicles and RVs. Some of the most common include:

• A student home from school for the summer.
• For a seasonal, hobby, or classic car or motorcycle you use sparingly.
• When buying a used car.
• If you are selling a car.
• When you transfer vehicle ownership.
• If you have borrowed a vehicle for a short period of time.
• Vehicles you use for road trips, such as an RV.

Industry regulators, governments, and insurers are looking into alternatives to meet the changing needs of consumers. They are looking for new ways to bring down the overall cost of auto insurance. Temporary coverage could be a potential solution. Will the demand for temporary insurance shift current regulations? Time will tell.

Quickly compare temporary car insurance rates online in minutes!

Compare your temporary and standard insurance options to find the best solution for you. Our brokers will help you customize the on the duration of coverage and assessing additional coverage needs.

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Can you get short-term insurance for six months?

For drivers looking to get a short-term solution, you may be able to get car insurance for a six-month term. However, only a limited number of insurers offer this.

Short-term insurance costs will vary based on your driving needs, vehicle type, driving record and other factors. You can contact your advisor to learn more if you want to compare short-term policy options. However, it may or may not be available, and you will need to confirm with them.

Cost for temporary car insurance

Like standard coverage, temporary insurance costs vary in the provinces where it's available. Be sure to work with an expert to compare prices and options in your province. Like all car insurance, costs vary from driver to driver. Your automobile, location, age, driving history, and other factors affect the amount you need to pay.

In some cases, temporary coverage may be prorated based on the length of the policy. For example, the average insurance cost in Ontario is $2,006 annually. So, a six-month policy would be half that amount—$1,003.

Where can you get temporary insurance in Canada?

Your ability to get short-term insurance in Canada varies by province. At a glance, the options are limited for the short term, but that does not mean you should risk driving without insurance - you need coverage to drive. Here is a breakdown of short-term options across the country:

• Alberta: Alberta does not have temporary options, but they do offer a special in-transit permit. This allows you to use an existing plate and registration for up to 14 days; however, it does not include Alberta car insurance. In addition, the province does not offer any less than six months long.
• British Columbia: Yes, you can get a TOP permit for one to 15 days. You can also get one for three to 11 months in duration that will insure an automobile you wish to test drive, transport, or transfer ownership. You can also purchase additional protection from a private insurer.
• Manitoba: In Manitoba, you can get a permit for one to 30 days through local public insurance sites. This permit will include basic or optional coverage, but there will be a 5% surcharge on top of it. They also have a limit of up to three temporary permit applications per vehicle per year if you are a resident.
• Saskatchewan: Yes, temporary permits are available for 24 hours up to eight days on a vehicle that has not been registered yet. The permit will also provide coverage while you are on the road in the province. The 24-hour permit costs $26.66, and the eight days will cost $75.94.
• Quebec: Quebec has a public provincial insurance system and offers temporary permits ranging from 12 hours to one month. A local dealer or SAAQ (la Société de l'assurance du Québec) can issue them. However, no companies offer it for less than six months. Non-residents who are visiting can benefit from the public insurance plan, but this coverage depends on their degree of responsibility for the accident.
• Nova Scotia: There are very few insurers that offer short-term policies in Nova Scotia. You will need to buy a six-month or annual policy. When it is time to cancel, it depends on the company to issue a refund.
• New Brunswick: There are options to get a temporary plan in the province; however they are not shorter than six months. You would likely have to buy a full-term one and cancel early. Based on terms and conditions, you may face cancellation fees.

How can drivers get temporary insurance?

Need temporary car insurance in your province? Whether you're borrowing a car, driving infrequently, or need coverage for a short period, obtaining temporary insurance can be a convenient solution. If your province offers this type of coverage, the process generally involves gathering necessary information, comparing providers, and understanding the terms of the policy. Here's a step-by-step guide to help you navigate the process of securing temporary car insurance:

• Prepare your driver and vehicle information.
• Decide how long you will need it, what level of it, and if you want any additional protection for your automobile.
• Find out what companies offer it.
• Compare and find the most affordable options for how long you need to be insured. Observe policies that may have a longer-term but a more nominal cost.
• Choose the option that best meets your driving requirements and contact the provider.

It is essential to review the full policy so you can prepare for cancellation and management fees.

How do I get my car insured for Ontario's 10-day temporary special permit?

Did you know that if you're visiting Ontario or are passing through, you can get a special permit from the province? It will last for ten days. According to ServiceOntario, you must have the following requirements to register your car and drive it:

• Proof of identity
• The current vehicle permit
• The back of the vehicle permit signed by the owner (or you, if you are the owner)
• Name of the insurer and policy number
• A completed special permit application

You may also need this protection if you import a vehicle from another country and transport it through the province. This permit does not have any insurance – you'll have to take care of that separately.

In addition, if you have purchased your car in another Canadian province from a private owner, you will need to pay sales tax (RST or HST) when registering it in the province. However, if you are going to become a resident, you can declare an exemption from the tax.

What are the potential issues with temporary car insurance?

Temporary car insurance offers flexibility, but it's crucial to be aware of potential drawbacks. These can include waiting periods before full coverage kicks in, the difficulty of finding short-term policies, and the risk of coverage lapsing, which could lead to serious legal consequences. Here is a examination of the potential issues with short-term car insurance:

• Timelines: Temporary car insurance may have a waiting period before coverage kicks in, such as a 30-day delay for comprehensive and collision claims. This can be significant if your policy is only a couple of months long.
• Challenges to find short-term coverage: Many insurance companies avoid offering temporary car insurance due to high-risk applicants. Some provinces, like Ontario, don’t provide temporary plans at all, making it rare to find a major insurer offering policies shorter than six months.
• Risk of coverage could lapse: When you buy a short-term insurance policy, there’s a risk it may lapse while you're driving. Auto insurance is mandatory in Canada, so if your policy expires, you'll be driving illegally. Uninsured drivers can face significant fines, licence suspensions, and even jail time, depending on the province.

Our brokers can help you navigate finding temporary coverage for your car

If you’re seeking short-term car insurance coverage in Ontario, our experienced brokers are ready to assist you. We can help you navigate the options available for temporary policies that meet your specific needs, whether for a rental car, a weekend road trip, or any other brief driving situation.

Contact us today to get started and ensure you're on the right track with the appropriate coverage.