Short term car insurance in the US?

[swbluto]

Hello all. During my ownership of a car, I found that one of the most disgusting costs associated with a car was car insurance because it didn't seem to be directly proportional to the amount that I used it. My ideal would be use a car when I *really want* it for a specific, but to still have it available, but I was certainly not going to pay for semi-annual insurance on a vehicle that I preferably would use once or twice a year.

So, I got rid of my car on the belief/assumption that I would have to pay constant insurance, whether I used the car or not, as the idea seemed disgusting to pay for something I was not going to use. But, now I'm curious, is it possible to own a vehicle and not have insurance on it? Furthermore, is it possible to purchase insurance on it when you actually plan to drive it? I plan to only use the vehicle for relatively long-distance trips, which is maybe once or twice a year.

Hope was sparked when I saw mention of "one day insurance" which is apparently available in the UK. Is the same thing possible in the U.S.? Or "one week" or "one month"? I didn't think of it as a possibility before I sold my car, but it seems to be a tantalizing option.

 

[voicecoils]

Such options exist in Australia where you pay a lower annual fee and then pay per kilometer:
http://www.savingsguide.com.au/pay-as-you-drive-insurance/
http://www.payasyoudrive.com.au/howitworks/pricing.aspx

At a guess, I think you won't find any such option in the States. (The first link mentions that this type of insurance has been available in the UK for a while and is now available in Oz).

 

[voicecoils]

But, now I'm curious, is it possible to own a vehicle and not have insurance on it?

There's nothing stopping you from buying a car to drive uninsured, unregistered and without licence plates (or a drivers licence). Imagine you lived on a large farm and needed a vehicle for use on site only?

 

[jag]

Hope was sparked when I saw mention of "one day insurance" which is apparently available in the UK. Is the same thing possible in the U.S.? Or "one week" or "one month"? I didn't think of it as a possibility before I sold my car, but it seems to be a tantalizing option.

I agree with you that there should be auto insurance options were cost is based on how many days you actually drive. There are trial programs in many countries and several states in the US:

http://en.wikipedia.org/wiki/Usage_based_insurance

Insurance companies offering various forms of usage based insurance either as fully commercial products or at least on a trial basis include Progressive, Liberty Mutual and GMAC in the United States

A CNN article on Progressive's "MyRate" insurance:
http://payasyoudriveblog.blogspot.com/2009/05/cnn-article-on-pay-as-you-drive.html

Hopefully various usage-based programs will be available nation wide and with options to suit different people (ie do you approve of the insurance company monitoring when and where you drive, or would you prefer to only submit total milage per month?)

 

[TylerDurden]

In the US, operation, not ownership usually requires insurance.

I regularly 'suspend' the insurance for vehicles I don't drive in the winter. It costs less.

Similarly, RV insurance is prorated based on expected use.

 

[jag]

In the US, operation, not ownership usually requires insurance.

I regularly 'suspend' the insurance for vehicles I don't drive in the winter. It costs less.

In principle it is the same in Canada. I think the problem is that when getting a new policy invariably the company/agent will ask how long continuous insurance coverage one has had. Without continuous coverage quotes tend to be high as companies then assume you were driving uninsured. Not driving is perhaps so statistically unlikely that it isn't an option in their calculations...

 

[TylerDurden]

In the US, operation, not ownership usually requires insurance. I regularly 'suspend' the insurance for vehicles I don't drive in the winter. It costs less.

In principle it is the same in Canada. I think the problem is that when getting a new policy invariably the company/agent will ask how long continuous insurance coverage one has had. Without continuous coverage quotes tend to be high as companies then assume you were driving uninsured.

Same in the US... it is better/cheaper to suspend an existing policy than to cancel and re-open. If you let your policy *expire* for even a month or so (depending on your provider), it will re-set your status and cost you more.

So, if you take sabbatical overseas for a few months, keep your insurance in the suspended mode.

 

[liveforphysics]

In the wet season, I park my racecars in the woods behind my parents house under locked car covers. I call the insurance place and tell them I want to remove insurance from them. When the weather becomes better suited, I call them and say I want my insurance back. It takes about 10mins of inconvience to remove or add the vehicles when desired. The bill is pro-rated, and I'm only billed for the time that I have the vehicles insured.

 

[gilnet]

A good agent can bounce insurance between vehicles w/ no problem.if you are using the web or shopping all the time it's tougher and time consuming.figure out what scenerios you might encounter and sit face to face w/a local.then its just a phone call to change things.thats why he gets paid.Be sure to run your needs by another agency from time to time to keep him honest.they like to creep up rates for the inattentive. wisc.is one of the few states left that you don't legally have to have insurance(not for long)and there is a fund to protect you from uninsured motorists.

 

[RTLSHIP]

You can get good insurance at a reasonable price and then cancel it whenever you no longer wish to drive.
Typically, you need a pretty clean driver record and the car must not be too pricey. get a used car.
Also, you don't have to carry collsion insurance in most states. All that's usually required is basic coverages, but if you wreck your insurer will not pay to repair your car regardless of fault.