What day insurance is and who uses it
Day insurance is short-term auto coverage you buy for a single day or a few consecutive days, rather than the standard six-month or annual policy. You pay a flat rate — typically $10 to $30 per day depending on the coverage level and your state — and the policy covers you for that specific 24-hour period or the dates you select. It's designed for people who need temporary protection: borrowing someone else's car, renting a vehicle for a weekend trip, test-driving a car you're considering, or covering a gap between policies.
The coverage works like standard auto insurance. You choose liability limits (required by your state), and you can add collision and comprehensive coverage for an extra fee. The insurer issues you a policy number and proof of coverage, which you'll need to show if you're pulled over or involved in an accident. When the day ends, the policy expires — you don't renew it unless you buy another day of coverage.
Day insurance is not the same as a rental car company's damage waiver or your credit card's rental coverage. Those are separate products with different rules and limits. Day insurance is actual auto insurance that replaces your regular policy for that short window.
Key Takeaways
- Day insurance covers you for 24 hours or multiple consecutive days at a flat daily rate, and you can buy it online in minutes without a multi-month commitment.
- Most insurers require you to have a valid driver's license and a clean driving record from the past three to five years, and some will not cover drivers under 25.
- The coverage includes liability (required by law in every state) and optional collision and comprehensive, but does not cover damage you cause intentionally or violations like driving without a license.
- Day insurance costs less than adding a driver to someone else's policy or buying a short-term rental policy, but more than a single day's worth of your annual premium spread out.
- You can buy day insurance from a handful of national insurers online, and the policy takes effect when ready or at a time you choose on the same day.
When day insurance is cheaper than alternatives
If you need to drive someone else's car for a day or two, you have three main options: buy day insurance, add yourself as a driver to their policy, or drive uninsured and hope nothing happens. Adding yourself to their policy usually requires a phone call and takes 24 hours to process, and it raises their premium for months even though you only need coverage for a day. Day insurance avoids that problem: you pay once, you're covered, and their policy stays unchanged.
Rental car companies offer damage waivers (also called loss damage waivers or LDWs) that cost $15 to $40 per day. These are not insurance — they're contracts that waive the rental company's right to charge you for damage to their vehicle. They don't cover liability if you injure someone or damage someone else's property, so you still need actual insurance. Day insurance covers both liability and damage to the rental car, making it a more complete option for the same or lower price.
If you're test-driving a car from a dealer, the dealer's insurance usually covers you. But if you're borrowing a friend's car to test-drive a private sale, or if you're renting from a peer-to-peer service like Turo, day insurance is often the fastest way to get on the road legally.
How to buy day insurance and what happens next
You buy day insurance online through the insurer's website or app. The major carriers offering it include Metromile, Getaround, and a few regional insurers — availability varies by state. The process takes 10 to 15 minutes. You'll enter your driver's license number, date of birth, and driving history. You'll choose the dates you need coverage (usually starting today or tomorrow), pick your liability limits and whether you want collision and comprehensive, and pay by credit card or debit card.
Once you complete the purchase, you receive a policy number and proof of coverage by email, usually within minutes. You can read it to your phone or print it. That document is your proof of insurance — it's what you show a police officer if you're stopped. The policy takes effect at the time you specified, and it expires at 11:59 p.m. on the last day you paid for.
If you need to extend coverage, you can buy additional days through the same insurer before your current policy expires. If you need to cancel, most insurers offer a refund if you cancel before the coverage starts, but not after. Read the cancellation terms before you buy.
Who day insurance covers and who it doesn't
Day insurance covers you if you have a valid driver's license and a clean driving record. "Clean" typically means no major violations (DUI, reckless driving, at-fault accidents) in the past three to five years, depending on the insurer. Minor violations like speeding tickets usually don't disqualify you, but the insurer will ask about them and may charge more.
Most day insurers will not cover drivers under 25, because young drivers have higher accident rates and insurers price accordingly. Some insurers have a minimum age of 21 or 23. If you're under 25, call the insurer before you buy to confirm they'll cover you. If they won't, you may need to ask the car owner to add you to their policy instead, even though it takes longer and costs more.
Day insurance does not cover you if you're driving for commercial purposes — delivering food, transporting passengers for money, or using the car for rideshare. It also doesn't cover damage you cause intentionally, or accidents that happen while you're committing a crime. If you're in an accident and you were driving without a valid license or under the influence, the insurer will deny the claim.
What day insurance covers and what it doesn't
Day insurance includes liability coverage, which pays for injuries and property damage you cause to other people. Your state sets a minimum liability limit you must carry — for example, 25/50/25 in many states, meaning $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage. You can buy higher limits if you want more protection. Liability is mandatory; you cannot buy day insurance without it.
Collision coverage pays to repair or replace the car you're driving if you hit something — another vehicle, a tree, a guardrail. It has a deductible, usually $500 or $1,000, meaning you pay that amount out of pocket and the insurance pays the rest. Comprehensive coverage pays for damage from things other than collisions: theft, vandalism, weather, hitting an animal. Both are optional, but if you're driving someone else's car or a rental, the owner will almost certainly require you to carry them.
Day insurance does not cover maintenance, wear and tear, or pre-existing damage. It doesn't cover towing or roadside information unless you add that separately. It doesn't cover rental reimbursement if your car is in the shop. And it doesn't cover you if you're driving a commercial vehicle, a motorcycle, or a vehicle you own but haven't registered.
Cost comparison: day insurance vs. other options
| Option | Cost | What it covers | Time to set up |
|---|---|---|---|
| Day insurance (liability only) | $10–$20 per day | Liability only; you pay for damage to the car | Minutes |
| Day insurance (with collision) | $20–$30 per day | Liability and damage to the car (minus deductible) | Minutes |
| Add yourself to their policy | $0–$50 depending on their insurer | Liability and damage, but raises their premium for months | 24 hours |
| Rental car damage waiver | $15–$40 per day | Damage to the rental car only; no liability coverage | At rental pickup |
| Drive uninsured | $0 | Nothing; you pay all costs out of pocket if there's an accident | when ready |
For a single day, day insurance is usually the cheapest legal option. If you need coverage for a week or longer, adding yourself to someone else's policy or buying a short-term policy from a traditional insurer may be cheaper per day, even though the upfront cost is higher. If you're a regular short-term driver — borrowing cars multiple times a month — a low-mileage policy like Metromile's might save you money over time.
Frequently Asked Questions
Can I buy day insurance if I have a suspended license or recent DUI?
No. Day insurers require a valid, unsuspended license. A DUI within the past three to five years will disqualify you from most insurers. If you have a recent violation, contact the insurer directly before you buy — some have exceptions, but most will decline you.
Does day insurance cover me if I'm driving someone else's car and they're in the car with me?
Yes. Day insurance covers you as the driver, regardless of who owns the car or who's riding with you. The car owner's insurance is secondary — it covers damage to their car if your day insurance doesn't pay for some reason. Make sure the car owner knows you have coverage so they don't file a claim on their own policy.
What happens if I get in an accident on day insurance?
Call the insurer's claims line when ready, just as you would with a regular policy. Provide the policy number, the other driver's information, and photos of the damage. The insurer will assign an adjuster, who will inspect the vehicle and determine fault. If you're found liable, the insurer pays up to your liability limits. If the other driver is liable, their insurance pays. If you have collision coverage, your insurer will cover damage to the car you're driving minus your deductible.
Can I buy day insurance for a car I'm about to buy but haven't registered yet?
No. Day insurance requires the vehicle identification number (VIN) and proof that the car is registered. If you're buying a car and need to drive it home, ask the dealer for temporary tags or coverage under their dealer policy. Once the car is registered in your name, you can buy day insurance if you need a gap before your regular policy starts.
Is day insurance the same as a rental car company's insurance?
No. Rental companies offer damage waivers, which waive their right to charge you for damage to their car. Day insurance is actual auto insurance that covers liability (required by law) and damage to any car you're driving. Damage waivers don't cover liability, so you still need insurance. Day insurance is a complete product; damage waivers are not.