Temporary Car Insurance in Indiana: The Cheapest Options and What You Need to Know

In Indiana, insurance companies offer six-month policies rather than short-term policies. MoneyGeek looked into how to get temporary car insurance in Indiana according to individual needs. Our research can assist automobile owners who need temporary insurance or non-owners who only need to drive for a short period.

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Last Updated: 8/15/2022
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A six-month insurance policy, when canceled early, works as temporary insurance for your car. In Indiana, a three-month auto insurance policy costs about $181 for the average driver.

However, if you don’t own a car or are renting a car in Indiana, rental car insurance could be an ideal option.

MoneyGeek also looked at other instances where temporary auto insurance comes in handy, such as getting non-owner car insurance to help get your driver’s license reinstated or if you work for a ride-sharing business.

Can You Get Temporary Car Insurance in Indiana

In Indiana and other states, the meaning of temporary car insurance can vary. After purchasing a standard car insurance policy for their vehicles, drivers in Indiana can cancel it early if they only need coverage temporarily. If you are a non-owner, you may want to look into non-owner or rental car insurance if you frequently drive a borrowed or rented car.

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HOW TO FIND TEMPORARY CAR INSURANCE IN INDIANA TO FIT YOUR NEEDS

Even though there isn't a precise way to buy temporary car insurance, MoneyGeek looked into all of the potential options to get temporary car insurance in Indiana.

Buying a Six-Month Indiana Insurance Policy and Canceling It Early

The majority of car insurance companies in Indiana and elsewhere only sell plans with a minimum period of six months. If you cancel your auto insurance early, you may be able to create temporary insurance for your car. Most insurance companies will refund your premium in full for any unused coverage.

In Indiana, a six-month policy costs $363 on average, while a 90-day policy costs an average of $181. If you purchase a six-month policy and cancel it within 90 days, you will pay for three months of coverage.

MoneyGeek recommends avoiding any gaps in your insurance if you choose this option. It's possible to end up spending hundreds of dollars more on insurance premiums if you have an insurance lapse.

Cheap Temporary Car Insurance in Indiana

MoneyGeek compared the prices of various insurers in Indiana for a typical six-month insurance, 90-day policy and 30-day policy.

In accordance with MoneyGeek's research, the following companies in Indiana, on average, provide the cheapest car insurance for a 90-day policy:

  • Erie: $136 per 90 days
  • GEICO: $143 per 90 days

MoneyGeek's estimates do not include any cancellation fees that are charged when discontinuing a policy. However, the majority of insurance providers do not impose cancellation fees and provide a full refund for the unused portion of the policy's term.

Annual Cost of Car Insurance in Indiana by Policy Length

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Altering Indiana Car Insurance Temporarily Depending on Your Needs

It is easier to make modifications to your current car insurance policy if you are temporarily adding or removing coverages. The most common questions about short-term auto insurance include what to do when teenagers are away at college, storing a vehicle or when someone borrows your vehicle.

When You Should Alter Your Policy Temporarily

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You can temporarily take your child off your auto insurance policy or request a discount if they are attending school in another part of Indiana.

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Take advantage of USAA's storage discounts if you're a service member. Otherwise, if you are storing your car, you can temporarily cancel other coverage except for comprehensive coverage from your policy.

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If you often allow another driver to drive your car, you should add their name to your insurance policy.

Cheap Temporary Car Insurance for Students in Indiana

In Indiana, if you live with your teenage driver, they must be insured under your auto insurance policy. This can be quite pricey. MoneyGeek found that adding an 18-year-old to a parent's auto insurance costs approximately $1,361 per year.

To save money on your insurance costs, you can temporarily remove your child from your policy for the portion of the year they live more than 100 miles away from home, request a distant student discount from your insurance company or keep your child on your policy.

According to MoneyGeek, adding a college student to your car insurance policy in Indiana for two summer months costs only $227 on average, compared to approximately $1,361 annually. State Farm offers the largest savings to Indiana’s drivers for temporarily removing a student from a policy.

Annual Cost of Adding an 18-Year-Old to Car Insurance in Indiana

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  • Company
    Adding 18-year-old for two out of 12 months
    Adding an 18-year-old for the full year
    Difference
  • $1,205
    $201
    -$1,004
  • $1,241
    $207
    -$1,034
  • $1,585
    $264
    -$1,321
  • $1,698
    $283
    -$1,415
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WHAT IF I CAN’T GET A DISCOUNT?

If your college student’s school in Indiana is less than 100 miles away, you can’t take them off your insurance or get an away student discount. However, you can still save money on insurance premiums by shopping around. MoneyGeek compared the cheapest insurers for teens added to a parent's policy to help you earn savings.

What to Do About Car Insurance if You’re Storing Your Car in Indiana

If your car is being temporarily stored in Indiana and you want to save money, you can change your existing car insurance policy to a comprehensive-only policy or you can look for a policy that includes a discount for car storage.

While your car is in temporary storage, you can save money by dropping everything from your policy but comprehensive coverage. In Indiana, comprehensive and collision insurance with a $1,000 deductible costs around $232 per year, whereas comprehensive and collision insurance with minimum liability coverage costs $611 per year on average.

What to Do If You Let Someone Else Drive Your Car

All members of your household who drive your car will have to be included on your car insurance policy. If you let someone who is not a member of your household drive your car, they do not need to be included on your insurance policy as long as they have your permission to drive their vehicle.

Buying Rental Car Insurance in Indiana

If you temporarily rent a car in Indiana, you are not required to get auto insurance. At the time of rental, you can get rental car insurance that includes liability insurance. You can also add coverages like collision damage waivers, supplemental liability insurance and personal accident insurance depending on your needs.

Car rental insurance with these coverages might cost anywhere from $48 to $60 per day depending on the insurer. However, you can assess your needs and combine coverages to save money.

Finding Cheap Rental Car Insurance in Indiana

MoneyGeek calculated Indiana's rental car insurance rates using data from Indianapolis. Depending on the rental company, you can expect to pay anywhere between $48 to $60 per day on average. This quote covers supplemental liability, collision damage waiver and personal accident protection. Enterprise, Avis and Hertz each charge an average daily cost of $48, $55 and $60, respectively.

If you have a car insurance policy, you may already be covered for liability, accident and medical expenses. Several credit card issuers offer free collision damage waiver coverage for rental car bookings made with their cards. If you have either of these, you can waive the respective coverages to save money.

Cost per Day of Rental Car Insurance in Indiana

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  • Rental Company
    Total Insurance Cost
    Supplemental Liability Cost
    Collision Damage Waiver Cost
    Personal Accident Insurance Cost
  • Enterprise
    $48
    $13
    $29
    $6
  • Avis
    $55
    $17
    $29
    $10
  • Hertz
    $60
    $19
    $34
    $7

Buying Non-Owner Car Insurance in Indiana

If you don't own a car but need proof of insurance to file an SR-22 to get your driver’s license reinstated, non-owner car insurance works best. If you drive someone else's car, it's also the cheapest car insurance option.

In Indiana, it costs an average of $313 per year for non-owner car insurance.

How to Get Temporary Rideshare Car Insurance for Rideshare in Indiana

In Indiana, if a rideshare driver accepts a fare or transports a passenger, they are covered by the company's rideshare insurance. If they haven’t accepted a fare yet, they will have an insurance gap during that period.

Not all rideshare insurance policies are available in every state. MoneyGeek evaluated insurers providing rideshare insurance policies in Indiana to assist drivers in their search for the best rideshare insurance.

Frequently Asked Questions About Temporary Car Insurance in Indiana

If you have more questions about temporary car insurance in Indiana, these frequently asked questions might be able to help.

Methodology

We gathered auto insurance and non-owner car insurance quotes across Indiana in partnership with Quadrant Information Services. The policies were for a 40-year-old driver with full coverage insurance, as noted on MoneyGeek's methodology page, and the student rates were computed using the average cost of adding an 18-year-old driver to a parent's policy.

MoneyGeek evaluated the cost of one-month and three-month insurance policies, assuming a complete refund from the insurer. MoneyGeek also manually collected Indiana's rental car insurance quotes by using the websites for Avis, Enterprise and Hertz.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.