Temporary Car Insurance 2024: Costs, coverage, quotes

Temporary car insurance in Canada offers short-term coverage, from just a few hours to a few months. It's the right choice if you need flexible, short-duration car insurance without a long-term commitment.

Temporary car insurance is ideal for various situations, such as borrowing a car, renting for a short trip, test driving, or driving a newly purchased vehicle. It offers flexibility, cost-effectiveness, multiple coverage options, and quick online access. 

In this guide, we show you how temporary car insurance works, its coverage options, costs, and more. You can also use our free tool to compare the best car insurance quotes in Canada and find a plan based on your unique needs right here.

What is temporary car insurance?

Temporary car insurance, also known as short-term car insurance, is a flexible insurance option that provides coverage for a limited period, typically ranging from a few hours to a month. You can even get a 1-day or 2-day temporary car insurance.

It's a good choice for situations where you wouldn't need regular car insurance, such as:

• Borrowing a friend's or family member's car: If their insurance doesn't cover you as a driver, temporary insurance can bridge the gap.
• Renting a car for a short trip: Instead of relying on the rental company's insurance, you can choose your coverage options with temporary insurance.
• Taking a test drive in a car you're considering buying: This ensures you're legally covered while trying out the vehicle.
• Driving a newly purchased car before registering it permanently: It gives you temporary coverage while you take care of the paperwork.

Here are some key features of temporary car insurance:

• Flexibility: Choose the exact duration of coverage you need, from hours to days or weeks.
• Cost-effectiveness: Pay only for the time you need coverage, which can be cheaper than traditional insurance for short-term needs.
• Multiple coverage options: Choose between basic third-party liability or comprehensive coverage depending on your needs.
• Quick and easy: Get covered online in minutes and start driving immediately.

Before you choose any insurance policy for your car — temporary or long-term — compare quotes from different providers to get the best deal. You can do it right here, using our comparator below.

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Can you get temporary car insurance in Ontario?

In Ontario, traditional short-term or temporary car insurance, like day-to-day coverage, isn't readily available due to regulatory practices and the insurance market structure, favoring minimum coverage terms of six months or more.

Instead, individuals looking for something like temporary car insurance Ontario coverage might consider rental car insurance, non-owner policies, or being added as an occasional driver to an existing policy.

These alternatives to Ontario temporary car insurance provide flexibility for temporary insurance needs within Ontario's regulatory framework. It's recommended to consult with insurance providers or brokers in Ontario for tailored advice.

What does temporary car insurance cover? 

It covers many of the same things as traditional car insurance, with some variations depending on the specific policy you choose.

It typically covers:

• Third-party liability: Damage to other people's property and injuries they sustain in an accident you cause. It's often the minimum legal requirement.
• Personal injury protection: Medical expenses for you and your passengers in an accident, regardless of who's at fault.
• Collision coverage: Repairs or replacement of your car if it's damaged in an accident, regardless of who's at fault.
• Comprehensive coverage: Damage to your car from theft, vandalism, fire, weather events, and other incidents beyond collisions.

Additional coverages (may not be included in all policies):

• Uninsured/underinsured motorist coverage: This protects you if you're hit by a driver who doesn't have insurance or doesn't have enough coverage.
• Roadside assistance: This can cover services like towing, flat tire changes, and jump-starts.
• Rental car reimbursement: This helps cover the cost of renting a car while your car is being repaired after an accident.

While temporary car insurance covers a lot of things, it doesn’t cover:

• Regular wear and tear: It doesn't cover maintenance or repairs due to normal wear and tear on the car.
• Pre-existing damage: The insurance won't cover any damage that existed before you took out the policy.
• Personal belongings: Loss or damage to your personal belongings inside the car might not be covered.

How to get temporary car insurance? 

Obtaining temporary car insurance in Canada can be a bit tricky, as not all provinces offer it. 

1. British Columbia: Several brokers and insurance companies offer short-term coverage, typically ranging from days to weeks.
2. Alberta: While no companies offer "temporary" insurance per se, some provide policies for as short as 6 months.
3. Saskatchewan: Short-term insurance options exist, with coverage periods similar to BC.
4. Manitoba: Limited selection compared to other provinces, but some options exist for short-term needs.
5. New Brunswick: Some companies offer short-term insurance, focusing more on rental car coverage.
6. Nova Scotia: Similar situation to New Brunswick, with emphasis on rental car coverage.
7. Prince Edward Island: Limited options, but short-term coverage might be available through brokers.
8. Newfoundland and Labrador: Short-term coverage options exist, though availability might be limited.

Provinces without temporary car insurance

• Temporary car insurance in Ontario: No options less than 6 months available. You can get a 6-month policy and cancel early, but cancellation fees can be high.
• Temporary car insurance Quebec: Similar to Ontario, with no dedicated temporary options. Short-term permits offered by the government exist but require separate insurance purchases.

How much is temporary car insurance?

In Canada, its cost depends on several factors:

1. Location: Not all provinces in Canada offer temporary car insurance and those that do have differing options and regulations. The availability and cost will vary significantly depending on where you live.

2. Coverage level: Different policies offer various levels of coverage, from basic liability to comprehensive, impacting the price. Choose a plan that matches your specific needs without overpaying for unnecessary coverage.

3. Duration of coverage: The longer you need coverage, the higher the cost will be. Costs are typically calculated daily or weekly, so choosing the precise duration you require is crucial for optimizing price.

4. Driver profile: Your age, driving experience, driving history (accidents, claims), and even your credit score can influence the premium. Younger drivers or those with less experience typically pay more.

5. Vehicle details: The make, model, and year of the car you'll be driving can affect the cost. High-performance cars or those with higher repair costs often come with higher insurance premiums.

To give you a rough idea, here is a sample quote based on average rates for CAA car insurance in Ontario:

Category	Details
Category	Details
Driver	A 30-year-old male with a clean driving record
Experience	10 years of driving experience
Vehicle	2020 Honda Civic sedan
Parking spot	Parked in a garage overnight
Coverage	Standard liability, collision and comprehensive coverage
Deductible	$500 deductible
Annual Mileage	12,000 km
Estimated Premium	$1,500

Use our comparator to get accurate temporary car insurance quotes based on your details.

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What are some good options for temporary car insurance?

As we mentioned, not all provinces in Canada offer such insurance policies. Only a handful of them do. 

Even in provinces with such options, the insurance providers might vary. For instance, in British Columbia, several brokers and insurance companies offer short-term coverage, typically ranging from days to weeks.

Some popular providers include:

1. Intact Car Insurance
2. BCAA Car Insurance
3. ICBC Car Insurance

Also, the coverage will vary from provider to provider. Temporary car insurance ICBC offers insurance even for periods ranging from 1 day to 15 days.

Another popular option you can consider is CAA temporary car insurance. It’s available in Ontario, Manitoba, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador.

Are there any alternatives to temporary car insurance?

There are several alternatives, depending on your specific needs and situation. Here are some options that you can consider:

For occasional driving

• Named driver: If you'll be driving someone else's car occasionally, getting added as a named driver on their policy might be the most cost-effective option. However, this depends on their insurance provider's rules and could impact their premium.

• Carpooling/ridesharing: Carpooling services like Uber Pool or Lyft Shared can be a budget-friendly alternative for short trips.

• Public transportation: Depending on your location and accessibility, public transportation might be a viable option for getting around without needing a car.

Options for short-term car needs

• Rental car with inclusive insurance: Many rental companies offer packages that include insurance in the base price. Compare deals and consider potential limitations before choosing.

• Peer-to-peer car sharing: Platforms like Turo allow you to rent cars directly from other individuals, sometimes with insurance options included. Research reputable platforms and carefully review terms and conditions.

For specific situations

• Non-owner car insurance: This type of insurance covers you when driving someone else's car not listed on their policy. It's typically used by people who frequently borrow different vehicles.

• Day permits: Some provinces in Canada offer temporary permits for driving unregistered vehicles, but keep in mind they usually don't include insurance.

• Company car: If your employer provides a company car for work purposes, it might already have insurance included.

If you want to explore providers who offer the best car insurance coverage in your province, you can do it right here. Use our free tool below to compare the best car insurance quotes based on your needs and budget. Click the button below and get the perfect car insurance plan now.

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What to keep in mind while buying temporary car insurance? 

Here are a couple of things to keep in mind:

• Limited duration: Make sure the chosen duration covers your entire driving period. Extensions might be possible but come with additional costs.
• Driver restrictions: Policies usually only cover one driver. Adding more drivers might require separate policies.
• Price variations: Premiums can vary depending on factors such as the model of the car, coverage level, driver age, and location.
• Claim impact: Making a claim might not affect your regular insurance, but it could impact future temporary insurance rates.

How to get cheap temporary car insurance?

1. Compare Non-Owner Policies: Shop around for policies designed for drivers who don't own a car but need occasional coverage.
2. Be Added as an Occasional Driver: It can be cheaper to be added to a friend or family member's existing policy.
3. Use Rental Car Insurance: Check if your credit card offers rental car coverage or consider insurance from the rental agency.
4. Consider Telematics Programs: Look into insurance that bases rates on your driving habits, which can be more affordable for short-term use.