While some insurance companies sell short-term insurance to drivers, car owners cannot buy insurance to register a car and then quickly drop their coverage, notes Insurance.com. If a vehicle is registered, it must be insured, and some states, such as Florida, have enacted preventive measures to ensure that motorists are obeying the law.
To avoid tickets and lawsuits, people seeking temporary insurance should purchase full-term policies and drop them when they no longer need insurance, states Insurance.com. Insurance companies do allow drivers to add cars temporarily to existing policies if those cars are only driven occasionally. Some states allow drivers to suspend their registrations and cancel insurance on cars that are out of operation for planned periods of time. When owners put these cars back on the road, they must register them again and get insurance coverage.
Car owners can make their insurance cheaper for cars they don't drive by dropping parts of coverage, such as collision, or by asking for discounts for vehicles that they drive seasonally, notes Insure.com. People may also purchase short-term insurance for covering stored, borrowed or rented vehicles or to insure cars that owners intend to resell quickly. These drivers must maintain insurance for the duration of time that vehicles are registered in their names, and they may have to pay cancellation fees for their insurance policies.