Temporary Car Insurance In Colorado In 2024

Have you ever needed car insurance for just a short stint, like a weekend road trip in a friend’s car or a brief visit home from college? Annual policies can be too much hassle and expense for such occasions.

That’s where temporary auto insurance comes into play. While it’s not commonly provided by U.S. insurance companies, there are alternatives out there. With my years of experience in the insurance field, I’ll delve into why temporary coverage could be vital and present options geared towards Colorado drivers.

Altering Colorado Car Insurance Temporarily Depending On Your Needs

When you’re in need of temporary car insurance, there are ways to adjust your existing coverage to meet your requirements. You could also explore the option of buying a six-month policy with tailored coverage if you’re currently without insurance. Let’s delve into the scenarios where these solutions are applicable.

College Student Away At School

Nearly 56% of undergraduates in college bring a car to campus. For them, figuring out car insurance is pretty simple. They can stick with their parents’ car insurance or get their own standard policy. But what about the rest of the students who don’t have cars?

You might think they don’t need insurance. However, it’s essential to consider that every year, around 1,519 college-aged students die from alcohol-related injuries, including car accidents. If your child ever needs to intervene with a friend who’s been drinking, you don’t want insurance concerns to hold them back.

While insurance typically stays with the car, if an accident exceeds policy limits, the driver could be on the hook for the difference. In Colorado, the liability requirement is $25,000 per person/$50,000 per accident for injuries and $15,000 for property damage. It’s easy for even a minor incident to surpass these limits. Keeping your child on your standard policy or getting them a non-owner policy can provide protection in such situations.

Storing Your Car

For folks who own cars they use seasonally or park for extended periods, storage insurance provides a practical solution. With storage insurance, you can pause the liability coverage on your vehicle, ensuring it’s only protected against specific risks during storage, like fire, theft, or vandalism. Most standard auto insurers include storage insurance options without requiring additional policies. Simply contact your insurer to suspend coverage when storing your car, and they can easily reinstate it when you’re ready to hit the road again.

Letting Someone Else Drive Your Car

At times, you may need to authorize someone else to drive your car. Depending on how often they use it, you may have to add them to your insurance policy as a driver. If their usage is sporadic, they’re likely covered by the permissive use clause. Nearly all insurance companies offer coverage to authorized drivers under this provision, which proves beneficial during emergencies or when lending out your vehicle.

Just remember to inform your insurance provider about any individuals residing with you or having regular access to your car, as they’ll probably need to be listed on your policy, regardless of how frequently they drive.

Adding Your Child To Your Policy

After your child gets their driver’s license, you might hesitate to add them to your car insurance policy because of the expense. But is it necessary if they won’t be driving much? Yes. Your insurance company might require you to declare all licensed drivers in your household. Failing to do so could cause problems when filing a claim or result in your policy being canceled. If they really won’t be driving, you might be able to exclude them from your policy.

International Drivers

When international travelers come to a new country, they have insurance options depending on their stay length. Renting a car for a short period? You can buy insurance from the rental agency. But if your stay extends beyond a month, consider purchasing a standard auto policy or a non-owner policy. Keep in mind, some insurers may request an International Driving Permit (IDP) or a US driver’s license. Do your homework before traveling to ensure you have the necessary paperwork to drive.

Being An Infrequent Driver

If you’re not driving much, you might not need your own insurance policy, but this depends on how often you drive. It’s important to note that insurance companies usually require listing most licensed household residents on car policies, regardless of their driving habits. However, there’s often a permissive use clause in policy contracts, allowing occasional usage with the owner’s permission. Opting for a non-owner policy could be beneficial if you frequently drive others’ cars, providing coverage for yourself regardless of the vehicle.

What Is Temporary Car Insurance?

Standard insurers usually offer policies spanning from six to twelve months. Temporary car insurance refers to coverage lasting less than six months. As it’s not widely offered in the United States, drivers seeking brief coverage should explore alternatives like procuring a standard six-month policy and terminating it prematurely.

Alternatives To Temporary Car Insurance

When drivers require temporary car insurance, they can explore various alternatives based on their specific needs.

Non-Owner Car Insurance in Colorado

Don’t own a car but drive one often? Consider getting non-owner car insurance. It’s tailored for drivers without their own vehicles, providing coverage regardless of the car you’re driving.

Colorado Pay-Per-Mile Insurance

For infrequent drivers, going for pay-per-mile car insurance might trump temporary options. Unlike typical insurance providers who bill you the same regardless of usage, pay-per-mile plans calculate your costs based on your mileage. This setup can cut costs over time while ensuring your coverage stays intact.

Rental Car Insurance In Colorado

When renting a car, drivers often contemplate temporary car insurance. However, it’s possible to obtain insurance from the rental car agency, eliminating the necessity for a personal policy. It’s wise to invest in some coverage from the rental company, as most personal auto policies don’t include coverage for loss of use of the rental car, which could lead to substantial costs.

Rideshare Car Insurance

The situation with Uber drivers in Colorado highlights why rideshare insurance is crucial for drivers in the state. Regular car insurance doesn’t cover drivers when they’re working for a rideshare company like Uber or Lyft. So, it’s really important for these drivers to get special insurance that protects them and their passengers.

Although some regular insurance companies might offer a bit of coverage, it’s better to go with the insurance that Uber and Lyft offer themselves.

Temporary Car Insurance Rates In Colorado – By Policy Length

State Farm tops the auto insurance market in Colorado, as per the state’s Department of Insurance. Our investigation indicates it’s the costliest for temporary car coverage. On the flip side, USAA provides a more budget-friendly choice.

Temporary Car Insurance Rates In Colorado – By Insurance Company

Short-Term Auto Insurance Rates In Colorado- By City

Colorado sees car accidents annually, and Lakewood bears the highest auto insurance costs in the state. Meanwhile, Fort Collins share of accidents, corresponds to the lowest insurance rates discovered in our investigation.

Average Cost Of Short-Term Car Insurance For Good Drivers

Average Cost Of Short-Term Car Insurance For Young Drivers In Colorado

Average Cost Of Short-Term Car Insurance After An Accident In Colorado

Buying A Six-Month Colorado Insurance Policy And Canceling It Early

The majority of car insurance providers give options for policies lasting six or twelve months, with shorter durations being unusual. Yet, there’s usually no restriction preventing you from obtaining a six-month policy and terminating it ahead of schedule.