Driveaway insurance is temporary coverage that protects you while you're driving a car you don't own to a new location
You buy a used car from a private seller three states away. You rent a car to drive to a wedding in another state. You're moving and need to transport a vehicle that isn't insured yet. In each case, you're driving a car that either isn't yours or isn't covered by your regular policy. Driveaway insurance fills that gap — it's a short-term policy that covers liability and sometimes collision or comprehensive damage while you're in transit to deliver or pick up a vehicle.
The policy typically lasts between one and thirty days, depending on the provider and what you purchase. It covers you if you cause an accident, hit another car, or damage property while driving. Some policies also cover damage to the vehicle itself if you're in a collision or hit by weather. Once you reach your destination and the vehicle is registered under your name or the new owner's name, the driveaway policy ends.
Key Takeaways
- Driveaway insurance covers liability (damage you cause to others) and sometimes covers damage to the vehicle itself during a one- to thirty-day trip.
- You can purchase it from your regular insurance company, from the car dealership, or from specialty insurers that sell short-term policies.
- The cost depends on the distance you're driving, the type of vehicle, your age and driving record, and whether you add collision or comprehensive coverage.
- You do not need driveaway insurance if the vehicle is already covered by an existing policy or if you're driving it on the seller's insurance before purchase.
- The policy ends when you reach your destination and the vehicle is registered, so you'll need to switch to a standard policy before driving it again.
When you actually need driveaway insurance
You need driveaway insurance only in specific situations where the vehicle has no active coverage. If you're buying a car from a dealer, the dealership often provides temporary coverage as part of the sale, so check before you buy a separate policy. If you're buying from a private seller, ask whether their insurance will cover you during the drive home — some policies do, some don't, and you won't know until you ask.
You need it if you're picking up a vehicle you've purchased but haven't yet registered or insured. You need it if you're driving a borrowed car across state lines for more than a day or two, since your regular policy may not cover borrowed vehicles or may have limits on how long you can drive one. You do not need it if you're driving your own car, even if it's not yet registered — your regular policy covers you. You do not need it if someone else is driving their own insured car and you're just a passenger.
The most common scenario is buying a used car privately and needing to drive it home before you can register it. The second most common is relocating and needing to transport a vehicle that's between owners or between insurance policies.
How to buy driveaway insurance
Start by calling your regular insurance company. Many insurers sell short-term driveaway policies to their existing customers, and it's usually the fastest route. Tell them the vehicle you'll be driving, where you're starting, where you're going, and how many days you need coverage. They'll quote you a price and can often bind the policy over the phone. You may be able to add it to your existing policy or purchase it as a standalone temporary policy.
If your insurer doesn't offer driveaway coverage, ask whether they can add the vehicle to your policy for a few days instead — some will do this at a lower cost than a separate driveaway policy. If that's not an option, contact the dealership or seller. Dealerships routinely sell short-term policies and can issue one when ready. Private sellers usually can't, but they may let you drive the car on their insurance for a day or two while you arrange your own coverage.
Specialty insurers like Turo (if you're renting a car from a private owner) or national carriers that focus on short-term policies are a third option. These are most useful if your regular insurer won't help and the seller or dealership can't provide coverage. Have the vehicle identification number (VIN), the distance you're driving, and your driver's license information ready before you call or go online.
What driveaway insurance actually covers
All driveaway policies cover liability — that means if you cause an accident and damage someone else's car or property, the policy pays for it (up to your chosen limit, usually $25,000 to $100,000). Liability is the minimum coverage and is usually included in every driveaway policy.
Many policies also offer collision coverage, which pays for damage to the vehicle you're driving if you hit something or someone hits you. This costs extra and usually comes with a deductible (typically $500 to $1,000). Comprehensive coverage is also available on some policies and covers damage from weather, theft, or vandalism — also with a deductible.
What driveaway insurance does not cover: damage you cause while driving recklessly or under the influence, damage from normal wear and tear, mechanical breakdowns, or damage that happened before you started driving. It also doesn't cover medical payments or uninsured motorist protection on most policies, though some insurers offer these as add-ons. Read the policy details before you buy to know exactly what's included.
Cost and how it's calculated
Driveaway insurance costs vary widely based on several factors. The distance you're driving is the biggest one — a 50-mile trip costs far less than a 1,000-mile trip. Your age and driving record matter: a 25-year-old with a clean record pays less than a 19-year-old with a speeding ticket. The type of vehicle affects the price too — insuring a $3,000 used sedan costs less than insuring a $30,000 truck.
Whether you add collision or comprehensive coverage also changes the price. A basic liability-only policy for a short distance might cost $15 to $40. Adding collision coverage for a longer trip could bring it to $50 to $150 or more. Dealerships sometimes bundle driveaway coverage into the sale price, so you won't see a separate charge.
Get quotes from at least two sources before you buy. Your regular insurer, the dealership, and a specialty short-term insurer may all quote you different prices for the same coverage. The cheapest option isn't always the best — make sure the coverage limits and deductibles match what you need.
What happens when you reach your destination
Driveaway insurance ends on the date you specified when you bought it, or when the vehicle is registered in your name, whichever comes first. Once the policy ends, you cannot drive the vehicle again without active insurance. If you're keeping the car, you need to purchase a standard auto insurance policy before the driveaway coverage expires — ideally before you reach your destination so there's no gap.
Contact your regular insurer a few days before the driveaway policy ends and ask them to start a new policy on the vehicle. Provide the VIN, the purchase price, and the date you want coverage to begin. Most insurers can bind a policy over the phone and send you documents by email. If you're selling the car or returning it to a dealership, the driveaway policy straightforward expires and you don't need to do anything else.
If you're buying the car and the seller's insurance is still active on it, coordinate with them so their policy ends on the same day your driveaway policy begins, or have a one-day overlap to avoid any gap. Never drive without insurance, even for a few hours.
Driveaway insurance vs. other temporary coverage options
If you're renting a car for a few days, your regular auto insurance may cover you already — check your policy or call your insurer. If not, the rental company will sell you daily coverage, which is usually more expensive than driveaway insurance but covers you for the rental period. If you're borrowing a friend's car, your policy may cover you as a driver of someone else's vehicle, so ask before you assume you need separate coverage.
If you're buying a car from a dealership, the dealership's temporary coverage is almost always included and is the simplest option — you don't need to buy driveaway insurance separately. If you're buying from a private seller and they're willing to let you drive it on their insurance for a day or two, that's free and requires no action on your part, but it only works if their insurer allows it and only for a very short trip.
Driveaway insurance is the right choice when you need to drive an uninsured vehicle across a distance that's too far for a quick trip or when the seller's insurance won't cover you. It's cheaper and simpler than renting a car to transport the vehicle, and it's faster than waiting to register and insure the car before you drive it.
Frequently Asked Questions
Can I use driveaway insurance if I'm not the one buying the car?
Yes. Driveaway insurance covers whoever is driving the vehicle, not whoever owns it. If you're helping a friend move and need to drive their uninsured car, you can buy driveaway insurance in your name. The vehicle doesn't have to be yours.
What if I get into an accident while on driveaway insurance?
Call the police if anyone is injured or there's significant damage, then contact your driveaway insurance company when ready. Provide them with the accident details, the other driver's information, and any photos. The insurer will handle the claim the same way they would for a regular policy — liability coverage pays for damage you caused, and collision coverage (if you bought it) pays for damage to the vehicle you were driving.
Does driveaway insurance cover me if I drive the car after I reach my destination?
No. The policy ends on the date you specified or when the vehicle is registered, whichever comes first. If you drive the car after that date without a standard insurance policy in place, you're uninsured and liable for any accidents. Make sure your regular policy is active before the driveaway coverage expires.
Can I extend driveaway insurance if my trip takes longer than expected?
Most driveaway policies cannot be extended — they're designed for a specific trip and end date. If your trip is delayed, contact your insurer when ready to ask about options. You may need to purchase a new short-term policy or switch to a standard policy. Do not drive without coverage while you arrange this.
Is driveaway insurance cheaper than adding the car to my regular policy for a few days?
Sometimes. It depends on your insurer and the vehicle. Call your regular insurance company and ask them to quote both options — a short-term driveaway policy and adding the vehicle to your existing policy for a few days. Compare the prices and coverage limits before you decide.