Temporary Auto Insurance Michigan: What to Know

Whether you’re traveling to Michigan for a short time, borrowing a car, or a college student who drives occasionally, you may be wondering is temporary auto insurance an option in Michigan?

According to the state’s auto insurance laws it is mandatory to be insured to own and drive a vehicle. So, if you’re visiting Michigan, or if you need to drive here from time to time, then it’s legally mandatory for you to have auto insurance.

The thing is, it’s not feasible to purchase a yearly auto insurance policy if you only need the insurance for a short time or on random occasions. Committing to a year-long policy may be unnecessary and expensive.

So, the best solution is to get temporary auto insurance as you can comply with the law without breaking the bank. In this article you will learn how temporary auto insurance works in Michigan with the best short-term options for you.

What is Temporary Auto Insurance?

Temporary auto insurance is a short-term auto insurance policy that provides financial protection for a shorter time. Simply put, unlike standard auto insurance policies that are valid for six months or a year, temporary auto insurance is only valid on a daily, weekly, or monthly basis.

The main purpose of getting temporary auto insurance is to stay financially protected, and to comply with the local laws if you just need auto insurance only for a short time.

Who Needs Temporary Auto Insurance in Michigan?

While the textbook definition of temporary auto insurance says you can be insured for a single day or a few weeks, but in reality, that’s far from over. Most auto insurance companies don’t even have the option to provide daily, weekly or monthly coverage.

You will need to buy auto insurance for at least six months or a year. But based on your specific needs, if you can properly justify that you only need it for a very short time, for say a week or a month, then there are ways to get insurers to provide a temporary policy, which will be discussed later in this article.

Based on our direct experience with auto insurance clients, and according to in-depth research, you need a temporary auto insurance if you:

• Don’t own a vehicle, and drive someone else’s car occasionally
• Visiting Michigan for a short time
• Only drive on certain occasions
• Borrow a vehicle or rent it
• Test driving a vehicle Share driving responsibilities with someone

These are not eligibility criteria, but if you’re someone with any or all the above-mentioned reasons, then it shows you have valid reasons to acquire temporary auto insurance instead of a standard policy of six months to a year.

Be careful, there are scammers out there who might directly offer you cheap daily, weekly or monthly auto insurance. Usually, insurance companies are reluctant to provide auto insurance for such a short time, unless you can convince them, and justify why it’s necessary for you.

If you’re looking for a reliable auto insurer for temporary auto insurance, you can consider checking PLPD Insurance Agency in Michigan.

Temporary Auto Insurance Coverage in Michigan

Temporary auto insurance is indeed a lucrative, and feasible option. It’s crucial to know the temporary auto insurance policy and coverage that you can get. When it comes to auto insurance, Michigan has a wide range of options.

While there are three mandatory insurance policies and state mandated minimum coverage that you must get, there are some optional policies that you can consider as well.

So, here are the following temporary auto insurance policies and coverage options in Michigan.

• Liability Coverage: Having liability coverage is mandatory in Michigan which mainly covers every third party affected by an accident in which you’re at-fault. In Michigan, the liability auto insurance policy is known as PLPD Insurance. The minimum liability coverage in Michigan is $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $10,000 for property damage per accident.

If you’re not familiar with PLPD you should learn what is PLPDinsurance? and howdoes PLPD insurance work in Michigan?

• Personal Injury Protection (PIP) Coverage: As a no-fault state, it is mandatory to have PIP coverage in Michigan. The PIP insurance policy covers the medical bills, loss of income, childcare and funeral expenses for you and your passengers after a car accident regardless of whoever is at-fault. The minimum PIP coverage limit is $250,000 or $50,000 with Medicaid. You can also opt for the $500,000 coverage and even unlimited coverage.
• Uninsured/Underinsured Motorist Coverage: In Michigan, you must have the uninsured and underinsured motorist policy to protect yourself financially when the other drive is at-fault for the accident, and they are unable to provide financial compensation for being uninsured or underinsured. The minimum uninsured/underinsured motorist coverage is $20,000 for bodily injury per person and $40,000 for bodily injury per accident. It does not cover vehicle or property damage.
• Collision Insurance Coverage: This is an optional auto insurance policy that will cover the vehicle repair and replacement costs after an accident regardless of whoever is at-fault. The collision insurance policy applies when you accidentally collide with another vehicle, object or animal and damage your vehicle. You can determine the coverage based on your requirements, and budget.
• Comprehensive Insurance Coverage: This is a special type of auto insurance policy that provides coverage for accidents that are beyond your control such as theft, vandalism, fire hazard, natural disasters like storms, and earthquakes. As this is also an optional policy, you can purchase coverage that fits your budget.

Typically, the combination of these five auto insurance policies is known as full coverage. But as you are getting temporary auto insurance you can opt for the mandatory policies with minimum coverage limits.

Learn More: How Many Types of Auto Insurance are There?

Options for Getting Temporary Auto Insurance in Michigan

If you don’t own a vehicle, and if you don’t drive it in Michigan, then you’re not obligated to even have the mandatory auto insurance policies. And, if you’re here in Michigan for a short time, or if you have rented/borrowed a car, or drive someone else’s vehicle occasionally, you can consider some viable options for getting temporary auto insurance in Michigan.

Just so you know, there isn’t any actual insurance product called ‘temporary auto insurance’. There are some auto insurance policies that blend with the concept of short-term options as follows.

Usage Based Auto Insurance

Usage based auto insurance, also known as per mile auto insurance, and telematics insurance. Typically, the usage-based auto insurance will charge you a rate based on the mileage covered each month. There are standard choices, you can opt for options like less than 5000 to max 7500 miles a year, which is approximately 417 to 625 miles per month. To track your mileage, acceleration, and break patterns your insurer will give you a portable device that you need to carry in your car while driving, or use their smartphone app.

According to Market Watch, you can save from 25% to 40% on your auto insurance premiums. Plus, as it’s pay per mile, it’s a great option for temporary auto insurance.

Non-Owner Car Insurance

If you’re using your friend’s car occasionally, or every now and then you should consider getting non-owner car insurance. The non-owner car insurance provides liability coverage to the other driver, and any third party affected by an accident in which you’re at-fault.

It will not cover your friend’s vehicle damage, nor will it cover your medical bills. But as the vehicle is owned by your friend, it will protect you and your friend financially from liability compensations. Plus, non-owner car insurance is also a great option if you rent or borrow a vehicle for vacation trips.

Permissive Use Coverage

If someone allows you to drive their vehicle from time to time, then it’s essential for you to have permissive use coverage. So, if you drive your friend’s car often or occasionally you can consider getting permissive use coverage.

In this way, if you end up in a car accident, the insurer will cover the damage, and the cost incurred due to the accident. This will also keep your friend safe, as this policy will specifically cover the accident that you’ve caused.

Rental Car Insurance

Rental car insurance offers the absolute flexibility that you need for temporary auto insurance. Typically, rental car insurance is offered on a per day basis, and it is often acquired based on the duration of the rental agreement.

In general, rental car insurance is sold for a maximum period of 30 days but it can be extended depending on how long you continue to rent the vehicle. When it comes to getting temporary auto insurance, rental car insurance is an option that you should consider.

Cancelling Your Standard Auto Insurance Early

You can opt to pay for your auto insurance monthly and then cancel it after a month. This is the simplest way to get temporary auto insurance. Although this isn’t recommended, as it can add a negative image in your insurance history, and in the future, you may be charged a higher rate for auto insurance.

Some insurers require a small cancellation fee. If you’re cancelling in a month, this is something that you need to consider as you don’t have to pay premiums for 6 months or a 1 year.

So, as you’re getting the benefit of temporary insurance paying a small cancellation fee is worth it. But the idea of cancelling your standard auto insurance early should be your last resort only when you don’t have a better option.

Cost of Temporary Auto Insurance in Michigan

If you are getting temporary auto insurance in Michigan, then the cost can vary depending on the insurer and which city you’re located in. According to WalletHub, the average rate of temporary auto insurance can vary from $13 to $49 per month in Michigan.

The actual rate of your auto insurance policy can significantly vary based on the insurance policies and coverage limits that you purchase. The rates can also vary depending on which city you’re located in, and other factors such as age, driving record, insurance history and more.

Is it Still Possible to Get 7 Day Auto Insurance in Michigan?

As of September 2018, the Michigan Department of Insurance and Financial Services (DIFS) has officially banned selling 7-day auto insurance in Michigan due to mass exploitation of the policy.

Auto insurance companies are not allowed to sell 7-day auto insurance in Michigan. So, on that note it’s no longer possible to get a weekly auto insurance policy. But you can always get a standard auto insurance policy by choosing to pay monthly premiums and then cancel it after 7 days or so.

As a customer you have the right to cancel your auto insurance policy at any time. Also, as rental auto insurance is sold on a per day basis, you can still get the rental auto insurance for a week.

Is One-Day Auto Insurance a Scam?

Yes, the one-day auto insurance offer is a scam. It is not feasible for any auto insurance company to provide you with auto insurance for 24 hours. If you see any company that claims to provide an on-demand single day auto insurance policy, just know that it’s not legit.

So, if you come across this type of offer, just avoid them. Also, before buying any temporary auto insurance policy make sure to do a background check of the auto insurance company.

There are many scammers out there who disguise themselves as insurance agents, so be cautious of whom you’re communicating with. And don’t provide any information unless you’re sure it’s a legitimate auto insurance company.

Final Remarks: Should You Get Temporary Auto Insurance in Michigan?

Based on Michigan’s auto law, you must be insured to own a car, or to drive legally in Michigan. So, if you have to drive then you should get temporary auto insurance. This also applies if you drive someone else’s car occasionally.

Technically there is no such product called ‘temporary auto insurance’ but with a little creativity you can get temporary auto insurance for a short time based on your budget and requirements.

In this article, all these creative ways of getting temporary auto insurance in Michigan have been discussed in detail. So, if you have read this far, you should be aware of the auto insurance policies, coverages and the steps that you need to get temporary auto insurance.

Yet, we understand that it’s not easy, and sometimes it can get quite challenging. So, if you need temporary auto insurance in Michigan, you can contact us and one of our auto insurance agents will get in touch with you soon. Based on your requirements, we will try to offer you the best solution at an affordable rate.

FAQ

Does Michigan have 7-day insurance?

No, as of September 2018 the State’s Department of Insurance and Financial Services (DIFS) has banned 7-day insurance in Michigan. So, as it’s officially illegal now, auto insurance agencies in Michigan are no longer allowed to offer a weekly insurance policy.

Can I drive a car without insurance if I just bought it in Michigan?

No, you can’t as it’s illegal to own and drive a car in Michigan without having mandatory auto insurance policies such as PLPD insurance, PIP insurance, and the UI/UM Insurance. If you are caught driving a car without having an active auto insurance, you will face serious legal penalties such as a fine of $500 and jailtime of up to 1 year, or both.

Is temporary car insurance real?

Technically there is no such specific auto insurance product called ‘temporary auto insurance’ but there are creative ways to get temporary auto insurance. So, it is real, but it’s also important to stay cautious and only purchase from reputed auto insurance companies.

What type of insurance is temporary?

Any short-term auto insurance is temporary, the best example would be rental auto insurance. If you buy standard auto insurance and cancel it after a month, then that’s also temporary or short-term auto insurance.